How to Apply to the Industrial Research Assistance Program (IRAP): Complete Guide
The Industrial Research Assistance Program (IRAP) from the National Research Council of Canada (NRC IRAP) offers financial assistance to help Canadian SMEs plan, perform, and commercialize technology-driven R&D. If your organization aims to grow through innovation, IRAP funding—provided as a non-repayable contribution for eligible costs—can offset salaries, subcontractors, and project expenses tied directly to research and development. As of December 1, 2025, NRC IRAP supports technology innovation projects across Canada and also runs youth employment strategy programs.
This application guide explains how to apply to IRAP, what to prepare, how the IRAP application process works with an Industrial Technology Advisor (ITA), and what happens after approval, including contribution agreements and monthly reimbursement claims.
Overview of the Industrial Research Assistance Program (IRAP)
NRC IRAP is a federal innovation funding program designed to accelerate R&D and commercialization in Canadian small and medium-sized enterprises (SMEs). Eligible organizations can receive a contribution to share the costs of a defined innovation project. IRAP has long funded technology innovation projects and, since 2018–2019, it was mandated to expand support to larger projects with an increased funding threshold of up to $10 million for select high-growth firms identified by NRC IRAP. The objective is transformative growth within five years of project completion, with benefits to the Canadian economy.
IRAP is relationship-driven: you do not simply submit an online form and wait. You engage with an ITA who assesses your business and project, helps define scope and milestones, and—if there is a fit—invites a formal proposal. Typical steps include initial eligibility screening, ITA discovery, proposal development, assessment (often within three months), signing a contribution agreement, and monthly reimbursement claims supported by time and cost records.
Eligibility Requirements
Before you invest time in a full proposal, confirm that you meet the core IRAP eligibility criteria. According to program guidance:
You are an incorporated, profit-oriented small or medium-sized business in Canada.
You have 500 or fewer full-time equivalent employees (FTEs).
You plan to pursue growth and profit by developing and commercializing innovative, technology-driven new or improved products, services, or processes in Canada.
In practice, the strongest candidates also demonstrate:
A clear technology innovation project with measurable technical risks and outcomes.
The managerial and financial capacity to execute the project and sustain commercialization.
A credible market opportunity and commercialization plan (customers, channels, pricing).
Qualified technical and leadership teams with relevant R&D experience.
Operations in Canada where project work, benefits, and IP can reside.
Notes for special cases:
Pre-revenue startups can be eligible if they are incorporated and have credible technical and commercialization plans.
Foreign-owned companies may be eligible if they are incorporated in Canada and conduct the work in Canada with Canadian benefits.
Most non-profits, academic institutions, and charities are not typical applicants to IRAP financial assistance for businesses (though they may engage via subcontracting or other programs). If in doubt, consult an ITA.
Required Documents
Your first conversation with NRC IRAP will be more efficient if you have these documents ready. They enable preliminary due diligence and, later, a complete proposal:
Business plan or current investor pitch deck with traction, market, and roadmap.
Recent company financial statements (preferably audited or reviewed; at a minimum, internally prepared with notes).
Resumes or brief bios of the management and key technical staff.
Project overview (1–3 pages): problem, innovation, objectives, technical approach, milestones, risks, team roles, commercialization pathway.
Draft project budget: salaries by role, subcontractors/consultants, materials, travel (if applicable), and any other direct R&D costs; identify matching funds.
Gantt-style work plan with milestones and deliverables mapped to timelines.
IP status summary: existing IP, freedom-to-operate considerations, planned filings.
Customer and market validation: letters of intent, pilot commitments, or early sales.
Company registrations and CRA numbers, including provincial registrations if applicable.
For youth employment funding, role descriptions and confirmation of eligible youth hiring plans.
Practical formatting tips:
Use clear role-based labour allocations (e.g., Engineer A at X% for Y months).
Separate eligible R&D expenses from ineligible items (marketing, routine operations).
Keep version control (v0.9, v1.0) and date each file.
Ensure consistency among narrative, budget, and timeline.
Step-by-Step Application Process
Below is a structured IRAP application process that reflects how organizations typically engage with NRC IRAP. Exact steps and document names may vary by region, sector, and project complexity.
Step 1: Verify basic eligibility
Confirm incorporation in Canada and profit orientation.
Confirm your employee count (≤500 FTEs).
Ensure your project is technology-driven R&D with technical risk and learning.
Align with Canadian commercialization and benefits.
If you satisfy these criteria, proceed to initial contact.
Step 2: Contact NRC IRAP and request an initial discussion
Call NRC IRAP toll-free at 1-877-994-4727 to connect with the program.
Briefly describe your company, technology area, and the proposed project.
Be prepared to share your business plan/pitch deck, company financials, and team bios. These support preliminary due diligence and help place you with an appropriate ITA.
Outcome: If your opportunity aligns with IRAP, you will be referred to an Industrial Technology Advisor (ITA).
Step 3: Meet your Industrial Technology Advisor (ITA)
Your ITA may schedule a discovery call and, often, an in-person or virtual meeting.
Expect questions about strategy, technical approach, market potential, team capacity, and risks.
The ITA may perform a diagnostic to identify capability gaps and recommend strategies.
If there is a fit, the ITA may invite you to develop a formal project proposal.
Tip: Treat this stage like investor diligence—clear articulation of the technology, R&D plan, and commercialization path is critical.
Step 4: Co-develop the project scope, milestones, and budget
With ITA feedback, refine your objective, technical plan, work packages, and milestone schedule.
Define measurable success criteria for each milestone (e.g., prototype achieving X tolerance, model accuracy ≥Y%).
Build a budget by category: labour by role, subcontractors/consultants, materials/supplies, specialized testing, limited travel related to R&D, and other direct costs.
Identify internal matching funds and any stacking with other programs (e.g., provincial grants, SR&ED tax credits). Be transparent about all funding sources.
Deliverables at this stage often include:
Detailed work plan and Gantt chart.
Budget spreadsheet with monthly phasing.
Risk register with mitigation strategies.
Commercialization plan outlining target segments, pricing, channels, and regulatory steps (if relevant).
Step 5: Prepare and submit your IRAP proposal
Your ITA will provide instructions for proposal submission, typically via a secure NRC IRAP portal or file exchange.
Populate all required sections: company overview, project summary, technical work plan, budget, team, commercialization plan, benefits to Canada, and other funding sources.
Attach supporting documents (financials, resumes, letters of intent, IP summaries).
Validate internal consistency (scope ↔ milestones ↔ budget ↔ timeline).
Quality checks before submission:
Every cost maps to a task and milestone.
Labour allocations are realistic and not double-counted across projects.
Subcontractor SOWs (statements of work) are specific on deliverables and pricing.
Commercialization case is evidence-based, not aspirational.
Step 6: Undergo NRC IRAP assessment (typically within three months)
IRAP will assess the proposal considering:
Technical merit and potential business impact.
Management and financial capacity.
Likelihood of achieving expected results.
Commercialization plan credibility and market opportunity.
Anticipated benefits to Canada (jobs, investment, export potential, IP).
Respond promptly to clarification requests. Provide revised budgets or schedules if asked. Keep your ITA informed of any material changes in staffing, financing, or customer commitments during review.
Step 7: Receive decision and, if approved, finalize the Contribution Agreement
If successful, you will receive a non-repayable contribution to share eligible project costs.
Review the Contribution Agreement carefully, including start and end dates, eligible cost categories, reporting and claim requirements, IP and publication clauses (if any), environmental or security provisions, and audit rights.
Confirm your internal processes for time tracking, procurement, payment approvals, and documentation retention to comply with IRAP’s reimbursement model.
Note: The agreement defines claim frequency (often monthly), documentation requirements, and maximum contribution amounts. For larger, high-growth projects, the contribution can reach higher thresholds as identified by NRC IRAP.
Step 8: Execute the project and submit monthly claims
IRAP is reimbursable. You incur costs, then claim eligible portions with documentation. Establish discipline from day one:
Timesheets: Project-coded, signed/approved, capturing hours by role and work package.
Payroll evidence: Payslips, T4 summaries (when available), payroll registers, and proof of payment.
Invoices and proof of payment: For subcontractors, testing labs, and materials; include SOWs and deliverable acceptance records.
Travel logs and receipts: Only if allowed and directly tied to R&D tasks.
Progress reports: Brief monthly narratives linked to milestones, deliverables, and technical learning.
Your ITA remains engaged during the project. Communicate milestone achievements and any scope changes promptly. Seek pre-approval for significant changes to scope, budget reallocations, or timeline extensions.
Step 9: Close-out and final reporting
At project completion:
Submit final technical report summarizing objectives, results, variances, and next steps.
File final financial claim with all outstanding documentation.
Prepare for possible audit or documentation review; keep records for the retention period stated in your agreement.
Successful close-out positions you for future IRAP opportunities and supports downstream commercialization and scale-up funding.
Application Timeline
Every project is different, but the following is a realistic planning baseline:
Initial contact to ITA meeting: 1–3 weeks, depending on region and workload.
Scoping and proposal development: 2–6 weeks (longer for complex or multi-partner projects).
NRC IRAP assessment: typically within three months of proposal submission.
Contribution Agreement finalization: 1–3 weeks after approval, subject to contracting.
Project start: upon agreement execution and in accordance with eligible cost dates.
To avoid delays:
Start early, especially if targeting a specific quarter.
Build buffer time for subcontractor quotes and internal approvals.
Keep financials and corporate records current.
Tips for a Successful Application
Be specific: Translate ambition into measurable technical milestones and clear success criteria.
Show capacity: Demonstrate the right team, infrastructure, and cash flow to deliver.
Prove market need: Include objective customer evidence and credible commercialization steps.
Align benefits to Canada: Jobs, IP, manufacturing, exports—state them directly and conservatively.
Right-size scope: Focus on a phase you can complete within 6–18 months with tangible outcomes.
Document rigorously: Institute timesheets, coding, and procurement discipline before Day 1.
Be transparent: Disclose stacking with other funding (e.g., provincial grants, SR&ED) and how you will manage cost-sharing.
Engage your ITA: Ask for feedback early; incorporate it into your proposal.
Common Mistakes to Avoid
Vague R&D: Describing product features rather than the technical uncertainties and learning activities.
Budget drift: Costs that do not map to defined tasks or over-allocation of personnel.
Weak commercialization story: No customer validation, unclear path to market, or unrealistic forecasts.
Late documentation: Missing timesheets, unpaid invoices, or lack of proof of payment at claim time.
Scope creep without approvals: Changing milestones or subcontractors without prior consent.
Overpromising: Inflated benefits or timelines undermine credibility.
What Happens After You Apply
If approved: Sign the Contribution Agreement, align internal controls, and launch project activities. Submit monthly reimbursement claims with evidence and progress narratives. Maintain regular check-ins with your ITA.
If conditionally approved: Address conditions (e.g., co-funding proof, refined milestone definitions) within the specified timeframe.
If declined: Request feedback from your ITA. You may be able to revise scope, strengthen commercialization evidence, or reapply when circumstances change. Consider complementary programs and the IRAP youth employment stream if hiring young talent supports your innovation plan.
Conclusion
Applying to NRC IRAP is a guided process built around your relationship with an Industrial Technology Advisor and a strong, evidence-backed R&D and commercialization plan. By confirming eligibility, preparing clear documents, co-developing a rigorous scope and budget, and maintaining disciplined reporting, your organization can navigate the IRAP application process efficiently and position its innovation for Canadian and global growth. For initial screening and to connect with an ITA, call NRC IRAP at 1-877-994-4727.
