Innovation Fund breakdown
Accelerate Okanagan - Jun 09, 2017 - Columnists

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On March 22nd as part of the 2017 federal budget, the Government of Canada announced funding support for innovation. Grant Thornton, an Accelerate Okanagan partner and Canadian accounting and business advisory firm, highlights the fund and how it will help innovation in Canada.

The Canadian economy

Experience shows that investment in innovative, high-growth sectors helps to drive global competitiveness and sustainable economic growth. Canada’s 2017 federal budget aims to encourage further research and development, with the government attempting to make Canada a centre for global innovation.

Canadian businesses invest over $15 billion annually on the research and development of new products and processes. The latest budget hopes to boost that investment by introducing measures to fund superclusters, develop the Venture Capital Catalyst Initiative and create a Strategic Innovation Fund designed to increase access to various sector and segment-specific innovation programs by consolidating them into one all-encompassing fund.

Strategic Innovation Fund

The Strategic Innovation Fund announced in the 2017 federal budget is part of the government’s Innovation and Skills Plan which aims to create high paying Canadian jobs by investing in high-growth sectors. The government hopes the changes will entice and sustain new high-quality business investment into our economy.

The budget introduces the $1.26 billion, five-year Strategic Innovation Fund to consolidate and simplify existing innovation programming for various areas.

To sustain the fund’s expansion, starting in 2017, it will provide a further $200 million over three years to supplement existing funding. Of this amount, $100 million is new funding and $100 million will be drawn from funding announced in the 2016 budget.

Changes are being made to streamline the application process to access these funds. Further details about the program are expected to be unveiled over the coming months.

How to maximize funding and leverage the Strategic Innovation Fund

The underlying goal of the Strategic Innovation Fund is to encourage growth-minded companies to invest in research and development of new products and processes. Companies applying for the programs covered by the Strategic Innovation Fund may also be able to leverage the Scientific Research and Experimental Development tax credit.

The Scientific Research and Experimental Development program is the largest source of research and development funding in Canada, which rewards claimants for innovation.

Scientific Research and Experimental Development is not limited to traditional lab research; claimants from various industries can reap benefits of the program.

In the coming months, the federal government is expected to further consolidate and streamline access to the myriad of programs currently available to support research and development in Canada.

Should the Innovation in Canada platform be created, it will undoubtedly help entrepreneurs access much-needed growth capital.


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