Who can apply to the Strategic Innovation Fund (SIF)?

The Strategic Innovation Fund (SIF) is Canada’s flagship federal innovation funding program supporting large, transformative projects that strengthen competitiveness, accelerate industrial capacity, and create good jobs. Administered by Innovation, Science and Economic Development Canada (ISED), SIF focuses on projects with clear economic, public, and innovation benefits. In recent ISED materials, you may also see “Strategic Response Fund (SRF),” described as building on the former SIF; eligibility concepts referenced below reflect that current framework.

This article explains who can apply to the Strategic Innovation Fund in Canada. It details eligible organizations, project categories, size and incorporation rules, sector priorities, and core readiness expectations such as Technology Readiness Levels (TRLs), intellectual property (IP) rights, and financial capacity. Use it to self-assess eligibility before investing in a full application.

Program Overview

• Purpose: Support transformative, large-scale investments that advance research and development (R&D), commercialization, industrial expansion, and collaborative innovation networks across Canada.

• Administering department: Innovation, Science and Economic Development Canada (ISED).

• Funding model: Contribution funding (often repayable for business-led projects; generally non-repayable for many network-led activities, subject to conditions).

• Typical scale: Minimum contribution requests of $10 million for projects with at least $20 million in total eligible supported costs (case-by-case determination).

• Streams/categories:

• Business Innovation and Growth (firm-led investments in R&D/commercialization, expansion, and investment attraction).

• Collaborations and Networks (national innovation networks and collaborative technology development and demonstration).

• Terminology note: Readers may encounter SRF/Strategic Response Fund in current ISED materials; it is presented as building on SIF. This guide uses “SIF” to align with program naming while acknowledging SRF terminology where relevant.

Applicant Type Requirements

Eligibility depends on whether you are applying as a business-led proponent (Business Innovation and Growth) or as a lead for a collaborative network (Collaborations and Networks).

• Business Innovation and Growth (firm-led):

• For-profit business or cooperative incorporated in Canada, or

• Partnership carrying on business in Canada.

• Responsibilities include managing the project; delivering the agreed benefits under a Contribution Agreement; submitting claims and reports; and, where applicable, repaying the contribution on the agreed schedule.

• Collaborations and Networks (network-led):

• Lead applicant can be a not-for-profit organization incorporated in Canada or a for-profit corporation incorporated in Canada.

• The lead manages the network, redistributes funds (as applicable), oversees network projects, submits claims, and reports on results and sustainability.

• Networks typically involve collaborations with Canadian universities, colleges, research institutes, SMEs, large firms, and not-for-profit entities.

Foundational requirements for all applicants:

• Ability to own or hold sufficient background IP rights to conduct the work and fully benefit from resulting IP.

• Capacity to manage a large, multi-year project with robust governance, risk management, and compliance.

• Willingness to meet reporting obligations and legal attestations (e.g., Lobbying Act compliance).

Size & Scale Criteria

SIF is intended for large, transformative investments:

• Project scale: As a guide, minimum eligible supported costs of about $20 million, with contribution requests typically starting at $10 million.

• Organizational capacity: Applicants must demonstrate:

• Sufficient financial resources to cash-flow the project between claims.

• The ability to provide matching funds and manage other government assistance (stacking).

• Prior experience executing comparable scale projects or access to capable partners.

Implications for different organization sizes:

• Large corporations: Often well-suited for firm expansion, major capital investments, and late-stage demonstrations (TRLs 8–9).

• SMEs and startups: May apply if incorporated in Canada and able to meet capacity and scale expectations; many SMEs participate effectively as suppliers or partners in collaborative projects or as part of networks.

• Not-for-profits: Typically eligible to lead or participate in networks that fund multi-partner R&D and demonstration activities aligned with national priorities.

Geographic Eligibility

• National scope: Available across Canada.

• Incorporation: Lead applicants must be incorporated in Canada (or, for partnerships, carrying on business in Canada). A Canadian subsidiary of a foreign parent can apply if it is a Canadian-incorporated entity and meets all requirements.

• Project activities: Work must primarily take place in Canada; international elements may be considered where justified (e.g., specialized testing), subject to program rules and value-for-Canada criteria.

Project & Activity Requirements

SIF considers both business-led and network-led initiatives. Projects must be innovative and aligned with program priorities. TRL ranges and expected outcomes vary by category.

• Business Innovation and Growth:

• R&D and Commercialization:

• Activities across TRLs 1–9 that increase TRL and lead toward implementation or commercialization.

• Examples: Validating commercial potential of early-stage technologies; adapting research findings to market applications; developing improved products or processes; reducing environmental footprint through new technologies.

• Firm Expansion and Growth:

• TRLs 8–9; technology qualified through tests/demonstrations or proven successful.

• Examples: Increasing manufacturing capacity to meet market demand; improving productivity through plant and equipment upgrades.

• Investment Attraction and Reinvestment:

• Minimum TRL 2; supports establishing new facilities or bringing new mandates to Canada.

• Examples: New Canadian production facilities; onshoring production or R&D mandates.

• Collaborations and Networks:

• National Innovation Networks:

• Multi-project networks fostering industrial research (often TRLs 3–7, but can span TRLs 1–9), with clear commercialization pathways.

• High collaboration among industry, academia, and research institutes; strengthens supply chains and business–research ties.

• Collaborative Technology Development and Demonstration:

• Selected via competitive intake; TRLs 1–7.

• Supports pre-commercial technology development/demonstration with strong collaboration across the ecosystem.

Sector priorities typically include advanced manufacturing, clean technology, critical minerals, biomanufacturing and life sciences, aerospace, digital/AI, batteries and hydrogen, automotive and semiconductors—reflecting ISED’s national industrial focus. Projects must articulate economic, public, and innovation benefits for Canada.

Financial & Operational Criteria

Applicants must demonstrate readiness and compliance:

• Financial capacity:

• Ability to finance project cash flow (SIF is claim-based).

• Evidence of matching funds and a credible financing plan.

• Audited or review-level financial statements are commonly requested to support due diligence.

• Other government assistance (stacking):

• Provincial, territorial, municipal, and federal assistance can co-fund, but total assistance is considered in determining SIF’s sharing ratio.

• Repayment expectations:

• Business-led contributions are generally repayable (unconditional, conditional, or a blend), determined case-by-case based on risk and benefits.

• Network-led contributions are often non-repayable for eligible operational or not‑for‑profit academic activities, subject to conditions.

• TRL alignment:

• Activities must align with the TRL ranges appropriate to the project category and show a credible path to outcomes.

• IP and data:

• Applicants must own or hold sufficient background IP and have a strategy to protect and exploit resulting IP in Canada.

• ESG, EDI, and environmental factors:

• Programs may assess greenhouse gas impacts, sustainability practices, and equity, diversity, and inclusion measures.

• Compliance and legal attestations:

• Lobbying Act compliance and other statutory attestations apply.

• Reporting and performance:

• Recipients must submit claims, progress reports, benefit updates, and annual statements; post‑project benefit reporting and repayments/royalties (if applicable) are required per the Contribution Agreement.

Ineligible Applicants

While SIF/SRF is broad, some applicants are typically ineligible or uncompetitive:

• Individuals and sole applicants not incorporated in Canada (SIF funds organizations).

• Entities unable to meet legal attestations (e.g., Lobbying Act compliance) or with significant unresolved compliance issues.

• Organizations lacking sufficient financial capacity, matching funds, or cash-flow to manage a claim-based program.

• Entities without adequate IP rights to perform the work or benefit from results.

• Projects focused primarily on sales/marketing, routine operations, or activities outside eligible TRL scopes.

• Organizations unable to carry out work primarily in Canada or deliver benefits to Canadians.

Note: Ineligibility may also arise from project cost categories that are not supported (e.g., entertainment, fines/penalties, income taxes). Even eligible applicants can be declined if projects do not meet program priorities or benefit thresholds.

Special Cases & Exceptions

• Canadian subsidiaries of foreign parents:

• Eligible if the Canadian entity is incorporated in Canada, conducts the work in Canada, and delivers Canadian benefits. Ownership structure must be transparent, and benefit retention (e.g., IP in Canada) should be clear.

• Indigenous-owned organizations:

• Eligible where they meet incorporation and project requirements; projects that support Indigenous economic participation are typically recognized positively in benefit assessments.

• Not-for-profits and academic partners:

• Can lead or participate in networks; funding for network operational activities and collaborative projects may be non‑repayable under conditions.

• Startups and SMEs:

• May be eligible as lead applicants or through consortia if they demonstrate the required capacity, scale, and matching funds; many SMEs join networks to advance pre-commercial R&D and demonstrations.

• Consortia and networks:

• Encouraged for collaborative R&D/demonstration and supply chain development. The lead must manage governance, selection, and monitoring of sub‑projects.

Self-Assessment Checklist

Use this quick screen before engaging with ISED:

• Are you a for-profit corporation/cooperative incorporated in Canada, a partnership carrying on business in Canada, or a Canadian not‑for‑profit (for network-led applications)?

• Can you credibly manage a multi‑year, large‑scale project (governance, procurement, risk, compliance)?

• Does your project fall within eligible TRL ranges and demonstrate a path to commercialization or industrial deployment?

• Do you have sufficient IP rights and a plan to protect and exploit resulting IP in Canada?

• Can you show strong Canadian benefits: jobs, investment, supply chain development, innovation spillovers, and where applicable, GHG reductions?

• Do you have confirmed or realistic matching funds and the cash flow to cover expenses between reimbursement claims?

• Are key costs aligned with eligible categories (e.g., direct labour, equipment, subcontractors, reasonable overhead)?

• Are your EDI and sustainability practices documented and improving?

• Are you prepared to comply with legal attestations and ongoing reporting/audit requirements?

• Is your project size aligned with typical SIF scales (e.g., total eligible supported costs near or above $20 million, with a contribution request at or above $10 million)?

If you answered “yes” to most questions, you likely meet the baseline profile for SIF/SRF consideration. If several “no” answers apply, consider a collaborative role in a network or explore other funding programs.

Frequently asked questions about SIF eligibility

• Am I eligible for SIF?

• You may be eligible if you are a Canadian-incorporated for‑profit or not‑for‑profit (for networks) or a partnership carrying on business in Canada, with a large, innovative project that delivers clear Canadian benefits and meets TRL, IP, and capacity requirements.

• Does SIF have size requirements?

• Projects are typically large scale, with contribution requests starting around $10 million and total eligible costs at least $20 million. Capacity to manage a claim-based, multi‑year project is essential.

• Can non-profits apply for SIF?

• Not-for-profits can lead Collaborations and Networks and partner on business-led projects. Funding for network operational and collaborative activities is often non‑repayable under conditions.

• Does SIF require Canadian incorporation?

• Yes. Leads must be incorporated in Canada (or be a partnership carrying on business in Canada). Canadian subsidiaries of foreign parents can qualify if they meet all requirements and deliver Canadian benefits.

• Can SIF recipients stack with provincial funding?

• Co-funding from other governments is common. Total assistance from all sources is considered in determining the SIF sharing ratio.

• Does SIF require audited financials?

• Detailed due diligence is standard. Audited or review-level financial statements and a robust financing plan are typically required.

Conclusion

Eligibility for the Strategic Innovation Fund centres on being a Canadian organization capable of delivering a large, innovative project with measurable benefits for Canada. For business-led initiatives, you must be incorporated in Canada (or a partnership carrying on business in Canada), demonstrate strong financial and managerial capacity, align activities with the appropriate TRLs, and hold sufficient IP rights. For Collaborations and Networks, Canadian for‑profit or not‑for‑profit leads coordinate multi-partner R&D and demonstration activities aligned with national priorities. With SIF/SRF’s emphasis on economic, public, and innovation benefits, well‑prepared applicants—across clean technology, critical minerals, biomanufacturing, aerospace, AI, advanced manufacturing, and more—can confidently determine their fit and proceed to consultations and formal intake steps.