On February 16, 2023, the Department of Finance released a blueprint for the new Canada Innovation Corporation (CIC). The agency brings to life the Budget 2022 $1 billion commitment to establish an innovation agency to drive Canadian business investment in research and development (R&D) and foster economic growth.
The CIC will actually operate with an initial budget of $2.6 billion over four years, as the agency will be transferred purview over the Industrial Research Assistance Program (IRAP), previously housed under the National Research Council. Operations are expected to begin in 2023. The blueprint document provides details on how the CIC will operate, with further details on the standing up of the CIC's operations to be annoucned in the coming months.
Mandate and Objectives
The CIC will provide targeted support to new and established Canadian firms by delivering funding and advisory services in support of innovation and R&D investment. The CIC will be operationally independent and take an outcome-driven approach to funding decisions.
The key objectives of the CIC include:
Advisory and Funding Opportunities
The CIC willl deliver funding and advisory services, aimed at encouraging Canadian firms to initiate and scale R&D activities in Canada for the purpose of producing new and improved, globally competitive products, processes, and services.The CIC will conduct three main activities:
Available funding is expected to range from $50,000 to $5 million per project. Select, large-scale R&D projects may receive a maximum contribution of $20 million per project. The project evaluation processes will be calibrated to the level of funding requested. The Department of Finance has released an initial program suite comprised of a graduated framework of funding tools. The list is illustrative and indicative of the future flexibility of programs. Program design and launch will be undertaken by the Board of Directors and senior leadership and will evolve with changing business opportunities.Funding tools include:
Sussex continues to be engaged in funding opportunities offered by the federal government for both emerging and established industries. We would be happy to support clients in any capacity as opportunities become available through the Canada Innovation Corporation.
Devin McCarthy, Senior Vice President and Federal Practice Group Lead
Roberto Chavez, Senior Associate, Federal Practice
Teodora Durca, Research Associate, Environment Practice