How to Finance Your Innovation Project with NRC IRAP

Disclaimer: Programs and eligibility criteria are subject to change; always ensure that you consult official sources for the most up-to-date information.

Article enhanced with generative AI (Model: GPT-5)

Introduction 

To remain competitive, companies must continuously innovate. However, R&D resources are often limited and technological risks can be high. The National Research Council of Canada’s Industrial Research Assistance Program (NRC IRAP) was specifically designed to support these businesses by offering non-dilutive funding, specialized guidance, and structured support. 

Aimed at organizations with 500 employees or fewer, the program helps SMEs develop, test, and advance innovative technologies with strong commercial potential. 

The Nature of the Support 

NRC IRAP combines strategic advisory services with financial assistance to help SMEs move their innovation projects forward. 

First, companies benefit from the guidance of an Industrial Technology Advisor (ITA), who assesses the project’s potential, its level of technological maturity, and its alignment with the company’s business objectives. 

The program may provide a non-repayable financial contribution covering a portion of costs related to R&D activities, technical salaries, and specialized external services. This contribution is disbursed progressively, based on milestones achieved and demonstrated eligible expenses. 

Together, this guidance and funding enable SMEs to progress more quickly while reducing both technological and financial risks. 

Eligibility Criteria  

Company Eligibility

To access NRC IRAP programs, a company must meet several organizational requirements set by the Government of Canada. It must: 

• Be a for-profit SME incorporated in Canada; 
• Employ 500 people or fewer; 
• Conduct or plan to conduct technological R&D activities in Canada; 
• Demonstrate sufficient financial capacity to complete the project and cover the non-funded portion; 
• Have a team capable of executing the planned work. 

These criteria ensure that the company has the structure and stability required to successfully carry out an innovation project. 

Project Eligibility 

NRC IRAP also evaluates the technological content and relevance of the proposed project. Generally, a project must: 

• Demonstrate an innovative nature — a new technology, a significant process improvement, or the development of a high-potential product; 
• Target measurable technological advancement consistent with the program’s Technology Readiness Levels (TRLs); 
• Generate economic benefits in Canada, such as job creation, revenue growth, or increased export capacity; 
• Involve reasonable technological risks, supported by a mitigation plan; 
• Be backed by a credible team and a realistic project plan. 

The program’s objective is to invest in well-structured, realistic, and high-impact innovation projects that can meaningfully contribute to business growth and the Canadian economy. 

Industrial Technology Advisors: Your First Allies 

Who Are Industrial Technology Advisors (ITAs)? 

ITAs are technical and strategic experts employed by the National Research Council of Canada. With backgrounds in engineering or science and strong industrial experience, they support SMEs in evaluating, structuring, and implementing their technology projects. NRC IRAP relies on a network of more than 250 ITAs across Canada, enabling close, regionally informed support. 

What Services Do ITAs Provide? 

The ITA is the primary point of contact for any company supported by NRC IRAP. They analyze the company’s business context and technical capabilities, validate project eligibility, help structure a realistic plan, and, when appropriate, refer companies to complementary partners or resources. Their support continues throughout the project, including during progress reporting and reimbursement requests. 

How ITAs Evaluate Projects

When assessing a project, ITAs pay close attention to technical feasibility, alignment between objectives, activities, and budget, the company’s execution capacity, the level of innovation, expected economic benefits for Canada, and risk management. Their goal is to recommend robust, well-prepared projects that align with NRC IRAP’s mission. 

NRC IRAP Funding Programs 

Interactive Visits: A First Concrete Step Toward Innovation 

The Advisory Services Program (Interactive Visits), supported by NRC IRAP, allows eligible Canadian SMEs to quickly access the expertise of partners 

and applied research centers. Like INO, these centers act as one-stop innovation hubs, providing access to advanced technologies, specialized equipment, and multidisciplinary teams capable of transforming ideas into concrete, market-ready solutions. 

An interactive visit provides up to 20 hours of collaboration with an NRC IRAP partner to address a targeted innovation challenge. Activities may include technical or economic feasibility assessments, short-term R&D support, prototype development, access to technologies not available internally, or scientific and technical guidance to define next steps. 

Project Funding 

Beyond advisory services, NRC IRAP can directly support innovation projects valued at up to several million dollars. These projects focus on technological developments with economic or industrial impact in Canada, including innovations capable of transforming an industry, opening new markets, or generating significant economic benefits. 

Monitoring and Governance Requirements 

Projects funded by NRC IRAP are subject to enhanced monitoring requirements, including frequent technical reports, clear performance indicators, and detailed financial reporting. This oversight ensures optimal use of public funds and maximizes the impact of supported projects. 

How INO Integrates into NRC IRAP-Funded Projects 

Services Eligible as Funded Expenses 

In addition to supporting a portion of internal SME salaries, NRC IRAP allows funding for specialized external services required to carry out an innovation project. INO’s activities typically fall within this category of eligible expenses, as they directly contribute to technological advancement. 

Services commonly leveraged by SMEs include: 

• Technical feasibility studies and preliminary analyses; 
• Development and optimization of optical and photonic systems; 
• Design and prototyping of sensors, optical modules, or advanced instruments; 
• Applied software development (image processing, embedded AI, intelligent algorithms); 
• System integration, validation, and functional testing. 

These activities support technological R&D projects that naturally align with NRC IRAP’s innovation criteria. 

A Smooth Company–ITA–INO Collaboration 

When an SME considers integrating INO into an NRC IRAP-funded project, the collaboration typically follows a clear and transparent structure: 

1. The SME discusses the project with its ITA, who evaluates the relevance of involving a specialized external partner. 
2. INO prepares a detailed technical proposal, including a work plan, cost estimate, and technical justification. 
3. The ITA reviews the eligibility of the proposed activities, ensuring budget coherence and compliance with program rules. 
4. Once funding approval is granted, a portion of INO’s services may be covered, depending on project-specific terms. 

This collaborative model ensures a structured process and clear value contribution from each partner. 

Did you know that, under certain conditions, NRC IRAP can fund up to 50% of the innovation project you entrust to INO? 

Added Value for Your Business 

Engaging INO as part of an NRC IRAP–funded project offers several decisive advantages for an SME: 

• Reduced technological risk, thanks to the cutting-edge expertise of a recognized R&D center; 
• Accelerated development, by avoiding time-consuming trial-and-error approaches; 
• Enhanced project credibility, a key asset valued by Industrial Technology Advisors (ITAs); 
• Access to high-quality technical deliverables, essential for meeting NRC IRAP milestones and reporting requirements. 

INO thus becomes a strategic lever for structuring a technically robust project and maximizing your chances of securing—and successfully delivering—NRC IRAP funding. 

Frequently Asked Questions