Canada NRC Industrial Research Assistance Program (IRAP)

Canada’s go-to innovation catalyst for growing technology SMEs

The National Research Council of Canada’s Industrial Research Assistance Program (NRC IRAP) is a foundational support system for Canadian technology companies seeking to innovate, scale, and compete globally. IRAP couples non-repayable funding with advisory services delivered by Industrial Technology Advisors (ITAs), experienced engineers and business strategists who guide firms through product development, commercialization, and talent planning. IRAP’s mandate is to accelerate the growth of small and medium-sized enterprises (SMEs) by funding research and development projects with strong market potential. Recipients span sectors from cleantech and life sciences to advanced manufacturing, AI, and agri-tech.

Unlike traditional grants with fixed deadlines, IRAP offers rolling intake based on regional capacity. Companies engage directly with ITAs to assess project readiness, refine technical scopes, and map commercialization milestones. Funding is flexible, covering salaries for technical staff, contractor fees, materials, and some overhead costs associated with R&D. In addition to direct financial support, IRAP connects firms to national labs, academic researchers, international partners, and programs like CanExport for market expansion. Because IRAP is highly competitive, companies must present a compelling commercialization plan, demonstrate sound financial management, and show that their innovation fills a validated market need.

Key program facts

Timeline planning roadmap

Although IRAP accepts applications year-round, strong preparation increases the likelihood of approval:

1. Three to six months before desired project start – Conduct a commercialization assessment. Validate customer pain points through interviews, pilot users, or letters of intent. Develop a preliminary technical roadmap and budget. Ensure corporate structure, financial statements, and tax filings are up to date.
2. Contact an ITA – Reach out via the IRAP portal or local NRC office. During the initial call, present your company overview, technology innovation, and commercialization timeline. The ITA will evaluate fit and schedule an in-depth meeting.
3. Discovery meeting (2–3 months out) – Provide detailed information on your technology, team, IP strategy, market validation, and financial health. Be ready to discuss revenue projections, burn rate, cash runway, and prior investments. The ITA will determine readiness for a Contribution Agreement (CA) proposal.
4. Proposal development (1–2 months out) – With ITA guidance, develop a formal proposal including project objectives, milestones, work packages, staffing plan, budget, and commercialization outcomes. Prepare resumes for key technical staff, letters from pilot customers, and evidence of financial capacity to cash flow the project (IRAP reimburses costs after incurrence).
5. Internal approvals and submission – The ITA submits the proposal to NRC for review. Expect iterative questions on technical feasibility, IP protection, and market strategy. Provide quick responses to maintain momentum.
6. Contribution Agreement negotiation – Once approved, finalize contract terms, reporting schedules, and eligible cost categories. Ensure your accounting system can track project expenses separately for audit purposes.

Eligibility nuances and competitive profile

• Canadian control – Companies must be Canadian-incorporated and controlled by Canadian residents. Foreign-owned subsidiaries can be eligible if they demonstrate significant R&D activity and decision-making in Canada.
• Innovation focus – Projects must involve new or significantly improved products, services, or processes. Routine engineering, maintenance, or market-ready products without technical risk typically do not qualify.
• Commercialization potential – Applicants must present credible market demand, including customer validation, pilot projects, or regulatory pathways. Highlight global scalability and export potential.
• Capacity and governance – NRC evaluates management experience, technical expertise, and financial stability. Provide audited or reviewed financial statements, cap tables, and governance structures.
• Collaboration – Joint projects with universities, colleges, or other firms can strengthen competitiveness, especially when leveraging NRC labs or specialized equipment.

Building a persuasive proposal

• Articulate the innovation gap – Define the technical problem and limitations of existing solutions. Explain how your approach advances the state of the art.
• Detail work packages – Break the project into milestones with clear deliverables (e.g., prototype iterations, validation testing, regulatory submissions). Assign accountable team members and timelines.
• Highlight team strength – Showcase technical leads with relevant expertise, prior patents, or commercialization successes. Include advisory board members and their roles.
• Quantify market opportunity – Provide TAM/SAM/SOM analysis, pricing strategy, and sales pipeline. Include letters from prospective customers willing to pilot or purchase.
• Plan for talent growth – Describe hiring plans for new engineers, data scientists, or technicians. IRAP values job creation and upskilling in Canada.
• Address IP strategy – Outline patents filed, freedom-to-operate analyses, and agreements with collaborators. Demonstrate how you will protect and monetize IP.

Budgeting and cost eligibility

• Eligible costs – Salaries of technical staff, contractor fees, materials, subcontracts, prototype fabrication, travel essential to project execution, and a portion of overhead (often up to 10%).
• Ineligible costs – Sales and marketing, general administration, debt servicing, capital purchases not directly related to R&D, and costs incurred before the CA start date.
• Cash flow planning – IRAP reimburses eligible costs after submission of expense claims. Maintain sufficient working capital or a line of credit to cover expenses upfront.
• Timesheets and documentation – Implement time-tracking systems for employees charging time to the project. Retain invoices, receipts, and proof of payment for audits.
• Stacking limits – Total government assistance (federal, provincial, municipal) generally cannot exceed 75% of project costs. Disclose all other funding sources.

Tips and tricks for a winning IRAP engagement

• Build a strong ITA relationship – Treat the ITA as a strategic advisor. Regular communication, transparency, and responsiveness boost confidence.
• Leverage advisory services – Request connections to NRC labs, intellectual property experts, and international partners. These non-financial supports can differentiate your proposal.
• Demonstrate traction – Provide metrics such as pilots completed, revenue growth, or venture investment. Even pre-revenue companies should show evidence of customer interest or letters of intent.
• Plan for diversity and inclusion – Highlight inclusive hiring practices, training programs, or partnerships supporting underrepresented founders. NRC increasingly values equity considerations.
• Show post-project sustainability – Describe commercialization plans, manufacturing strategies, and follow-on funding to sustain growth after IRAP support.

Common pitfalls to avoid

• Underestimating timelines – Build buffer time for proposal development and approvals. Rushing leads to incomplete budgets or weak market validation.
• Vague commercialization plans – Statements like “we will enter the U.S. market” are insufficient. Provide specific go-to-market strategies, distribution channels, and regulatory pathways.
• Insufficient financial controls – Lack of bookkeeping systems or unclear ownership structures raises red flags. Prepare clean financial statements and governance documents.
• Scope creep – Stick to technical milestones. Adding marketing activities or unrelated features can render costs ineligible.
• Poor reporting – Late or inaccurate claim submissions jeopardize current and future funding. Assign a dedicated finance lead to manage reporting.

Post-award execution excellence

• Kickoff with ITA – Review milestones, reporting cadence, and claim submission process. Confirm allowable cost categories.
• Quarterly progress reports – Provide narrative updates, technical results, and variance explanations. Include commercialization updates to demonstrate momentum.
• Audit readiness – Maintain organized documentation. NRC may conduct site visits or financial audits to verify claims.
• Talent development – Utilize IRAP’s Youth Employment Strategy or Industrial Technology Benefits for hiring recent graduates or interns.
• Plan next steps – As the project progresses, work with your ITA on follow-on funding (e.g., larger IRAP projects, NRC Challenge programs, or provincial incentives).

Alternative and complementary programs

• SR&ED Tax Incentive – Claim refundable tax credits for eligible R&D expenditures; stackable with IRAP if within limits.
• Sustainable Development Technology Canada (SDTC) – Provides larger grants for cleantech commercialization.
• CanExport SMEs – Funds international market development activities.
• Innovative Solutions Canada (ISC) – Offers challenge-based procurement for innovative products.
• Provincial programs – Explore Ontario’s OCE programs, Alberta Innovates, or BC Innovate BC for co-funding.

Additional resources

• IRAP Client Services – Access templates, claim forms, and guidance documents.
• Business Development Bank of Canada (BDC) – Offers growth capital and advisory services that complement IRAP projects.
• Canadian Digital Media Network (CDMN) – Provides mentorship and international soft-landing opportunities.
• Innovators’ Experience portal – NRC’s online platform for webinars, success stories, and updates on new initiatives.

With a well-defined innovation roadmap, robust commercialization strategy, and proactive engagement with NRC advisors, Canadian SMEs can harness IRAP to accelerate product development, create high-quality jobs, and expand globally.