Innovation Grants in Quebec for 2026
Take advantage of grants available in Quebec to boost your business's innovation in 2026.
Innovation stands as a cornerstone of economic development, boosting productivity, creating high-value jobs, and enhancing the global competitiveness of businesses across all sectors in Quebec. It is the engine that propels industries forward, enabling them to adapt to evolving markets and seize new opportunities.
421 opportunities available
Tax CreditsOpen
Research, Innovation and Commercialization Tax Credit (CRIC)
Refundable tax credit for Quebec business R&D and precommercialization
Grant and FundingOpen
ESSOR – Component 1C: Support for investment projects (implementing a digital plan)
Support for investment projects in Quebec
Tax CreditsOpen
Development of E-Business Tax Credit (CDAE)
Tax credit for development of a Quebec e-business
Grant and FundingClosed
NovaScience Program - Support for projects in scientific culture and innovation
NovaScience promotes scientific culture and innovation development
Grant and FundingOpen
ESSOR – Component 1B: Support for investment projects (digital diagnostics)
Support for investment projects through digital transformation
Grant and FundingClosed
Support for Innovation and Productivity for Québec manufacturing companies (SIPEM) - Part 2
Boost productivity through targeted technological innovations
Grant and FundingClosed
Support for Innovation and Productivity for Québec manufacturing companies (SIPEM) - Part 1
Supports technological innovation for Quebec manufacturing productivity
Grant and FundingLoans and Capital investmentsOpen
ESSOR – Component 2: Support for investment projects promoting productivity and business expansion
Supports business productivity and expansion through technological investment
Grant and FundingClosed
Program to support the development of agriculture and agri-food in the regions
Support program for regional agriculture and agri-food development
Grant and FundingOpen
Ecocamionnage Program — Logistics Project Component
Greenhouse emission reduction aid for freight transport
Tax CreditsOpen
Investment and innovation tax credit (IITC)
Tax credit for investment and innovation in Quebec
Grant and FundingOpening Soon
PSCE – Component 1
Supports Quebec businesses in strategic supply chain integration
Grant and FundingClosed
NovaScience Program — Support for the position of innovation and commercialization manager
Ministère de l'économie, de l'innovation et de l'énergie du Québec (MEIE), Government of Canada, Gouvernment of Québec
NovaScience fund supports creating innovation and commercialization roles
Grant and FundingClosed
FAQDD — Écoemballage+ Stream 1
Fonds d'action Québécois pour le développement durable (FAQDD), Ministry of Agriculture, Fisheries and Food (MAPAQ)
Subsidy for ecodesign projects for recyclable food packaging and containers in Quebec.
Grant and FundingClosed
GHG Challenge Program - Industry
Supports major industrial projects reducing greenhouse gas emissions
Grant and FundingClosed
Maritime, Air, and Rail Transportation Efficiency Program - Pilot Project Component
Supports clean technology pilot projects in maritime, air, and rail
Grant and FundingClosed
Economic development program to help revitalize territories (DEPART)
DÉPART supports economic diversification and growth in targeted areas
Grant and FundingOpen
Capitale-Productivity
Supports business productivity, growth, and sustainable practices projects
Grant and FundingOpen
Support program for the development of reserved designations and promotional terms — Component 1
Supporting development of reserved designations and valorizing terms
Grant and FundingOpen
ESSOR – Component 1A: Support for investment projects (feasibility studies)
Investment support for feasibility studies in Quebec
Tax CreditsOpen
Incentive deduction for the commercialization of innovations (IDCI)
Reduced tax rate for Quebec-based commercialization of innovations
Other SupportExpert AdviceSuspended
Offensive Tr@ns Num
Accelerating business growth through strategic innovation coaching
Grant and FundingOpenClosing Soon
MEDTEQ+ — AVISÉ program
Funding for validation and evaluation of innovative health technologies
Grant and FundingOpenClosing Soon
Innovation program — Call for First-time Adopter Projects
Investissement Québec (IQ), Gouvernment of Québec, Ministère de l'économie, de l'innovation et de l'énergie du Québec (MEIE)
Funding for startups to develop technologies with first-time adopters
Loans and Capital investmentsOpen
REGI — Business Scale-up and Productivity — CED (QC) – Private sector
Financing to accelerate growth in Quebec
Discover how much grant funding is available for your business
Subsidize your projects with grants!
Use our free grant estimator to quickly identify the available grant amounts for which your company may be eligible.
Grant and FundingClosed
Maritime, Air, and Rail Transportation Efficiency Program - Studies Component
Supports studies to improve efficiency in maritime, air, and rail transport
Loans and Capital investmentsOpen
Impulsion Fund
Early-stage funding for high-potential innovative Quebec startups
Tax CreditsOpen
Tax credit for external design in Québec
Tax credit for a design activity carried out by an outside consultant
Partnering and CollaborationGrant and FundingOpen
Call for collaborative and structuring innovation projects in Quebec's strategic sectors
Collaborative innovation funding for Quebec's strategic sectors
Grant and FundingOpen
Innovative Projects Program
Supports innovative, energy-efficient projects for multi-building developments
Grant and FundingOpen
Technoclimat
Quebec Ministry of the Environment and the Fight Against Climate Change (MELCC), Gouvernment of Québec
Financial assistance for the demonstration of new technologies in Quebec
Grant and FundingClosed
NovaScience Program — Support for employment in research and innovation
NovaScience supports innovation job integration in Quebec businesses
Grant and FundingClosed
Healthy Eating Program Component 2 – Support for the development and modification of the nutritional value of processed foods
Support for nutritious transformation of processed foods
Grant and FundingClosed
Healthy Eating Program Component 3 – Support for activities and structural projects
Supports development of nutritious, health-enhancing food projects
Partnering and CollaborationExpert AdviceClosed
Stade V
Accelerator program for Quebec-based tech startups seeking growth
Partnering and CollaborationGrant and FundingClosed
International Climate Cooperation Program (ICCP)
Quebec Ministry of the Environment and the Fight Against Climate Change (MELCC), Ministry of Forests, Wildlife and Parks
Supports Quebec-driven climate action projects in francophone countries
Grant and FundingExpert AdviceOpen
FABconstruction – Stream 2 : Support for productivity enhancement
Supports productivity and sustainability in modular construction companies
Grant and FundingExpert AdviceOpen
FABconstruction – Stream 1 : Business process analysis and action plan
Expert guidance for optimizing modular and off-site construction processes
Partnering and CollaborationGrant and FundingClosed
Aboriginal Aquatic Resource And Oceans Management (AAROM) Program
Supports Indigenous aquatic resource and oceans management capacity development
Grant and FundingClosed
Collaborative Industrial Research and Support to Innovative Entrepreneurship — Stream 3
Support for business clusters to develop large-scale innovation projects
Grant and FundingOpen
REGI — Business Scale-up and Productivity — CED (QC) — Not-for-profit
Funding for business innovation and growth through CERI program
Grant and FundingClosed
MAPAQ — Food Processing Program Component 3 — Food quality and safety management
Funding nutritious food development projects in Québec businesses
Grant and FundingOpen
Regional defence investment initiative (RDII) – Quebec
Supports Quebec organizations integrating into domestic and international defence supply chains
Grant and FundingClosed
Acting to support growth
Financial support for Montréal non-profits advancing business growth
Grant and FundingClosed
Greater Montreal Climate Fund — 2025-2026 Call for projects
Supports innovative projects reducing greenhouse gas emissions in Montreal
Grant and FundingOpen
Capitale-Innovation
Supports business innovation, commercialization, and market expansion projects
Grant and FundingOpen
Social Economy Support Fund
Non-repayable financial aid supporting social economy projects in Mauricie
Grant and FundingClosed
Collaborative Industrial Research and Support to Innovative Entrepreneurship — Stream 1
Funding for collaborative projects in AI
Find tailored funding for your business
Discover more grants on the helloDarwin platform
Look through over 4,000 grants, tax credits, loans and more financial aid on the helloDarwin application.
Researchers And FacilitiesPartnering and CollaborationGrant and FundingClosed
Call for innovation projects in artificial intelligence and quantum technologies – collaborative industrial research and support for entrepreneurship
Supports collaborative innovation in artificial intelligence and quantum technologies
Grant and FundingClosed
Wood Innovation Program — Component 2
Supports innovative industrial projects using lower-grade Quebec wood
Grant and FundingClosed
Wood Innovation Program - component 1
Supports innovation and investment in Quebec's forest industry
Grant and FundingOpen
Entrepreneurial grant
Supports new business creation and structured business succession in Québec
Grant and FundingOpen
Awareness and promotion projects
Supports innovative projects promoting active and public transport at festivals
Grant and FundingClosed
PADAAR — Measure 4051 – Innovation and testing
Supports agricultural innovation and adoption of new practices
Grant and FundingClosed
MT Lab — Project financing program — Component 1: Strategic support
Grant for strategic support in Quebec's tourism industry
Grant and FundingClosed
FAQDD — Écoemballage+ Stream 2
Support for Collective Innovation in Packaging Eco-design
Grant and FundingClosed
MT Lab — Project Financing Program — Component 2
Innovative tourism project funding program in Quebec
Grant and FundingClosed
Support program for economic development projects (PAPDE) — Component 2 : Support for the development of strategic sectors and regions
Support the economic development of strategic sectors and regions
Grant and FundingClosed
Innovation Program — Stream 1 – Support for innovation projects
Innovation grant for Quebec's economic advancement
Grant and FundingOpen
Quebec City — Major projects
Supports significant business investments in targeted Quebec City sectors
Tax CreditsOpen
Development of E-Business Tax Credit Integrating Artificial Intelligence (CDAEIA)
Supports digital business projects integrating artificial intelligence in Quebec
Grant and FundingClosed
Aid measure for the decarbonization of Quebec's industrial sector (MADI)
Supports Quebec industrial decarbonization projects for reduced GHG emissions
Grant and FundingClosed
Le Fonds d’initiatives locales (FIL) Village
Financial support for local socio-economic and cultural projects
Partnering and CollaborationGrant and FundingWage Subsidies And InternsOpen
Official Languages Support Programs
Supports official language minority communities and promotes bilingualism
Grant and FundingClosed
Support for innovation projects
Funding for product and process innovations in Quebec
Grant and FundingClosed
MEDTEQ+ — PARTENAR-IA — Industry
Funding for Quebec innovative collaborations in AI for health technologies
Grant and FundingClosed
SynergiQc program for biopharmaceutical research
Grant for Quebec biopharmaceutical research collaborations
Grant and FundingOpen
InnovEnSol Program
Quebec Ministry of the Environment and the Fight Against Climate Change (MELCC), Ministry of Forests, Wildlife and Parks
Funding for innovative soil and groundwater decontamination demonstration trials
Grant and FundingClosed
Évolution-Compétences -Partnership for training and innovation
Support for diverse groups in Red Seal trades education
Grant and FundingSuspended
Innovation Program — Stream 1 – Support for mobilising projects
Transport technology innovation projects funding in Quebec
Grant and FundingOpen
Technology Maturation Program – PSOv2d
Supports technology development and validation for Quebec research institutions
Grant and FundingExpert AdviceLoans and Capital investmentsClosed
PME MTL — Call for projects : Innovation
Supports innovative business projects accelerating technology adoption in Montréal
Access over 10 000 different funding opportunities
Try the helloDarwin platform today and find programs that fit your needs
The helloDarwin application makes it easy to unlock grants so your business can grow faster—with less hassle and more impact.
Grant and FundingOpen
Support for commercial arteries — Component 1 - Support for urban revitalization projects
Supports urban revitalization and commercial sector animation initiatives
Grant and FundingOpen
Productivity-Skills
Funds workforce training projects to boost SME productivity and competitiveness
Grant and FundingOpen
Strategic sectors
Supports collaborative innovation projects in Quebec strategic technology sectors
Partnering and CollaborationExpert AdviceLoans and Capital investmentsOpen
FTQ — Bioenergy
Financing and support for biomethanization projects in Quebec
Loans and Capital investmentsClosed
Call for investments VRQ
Supports Quebec research-based startups in early-stage company development
Partnering and CollaborationExpert AdviceOpen
Zú program — Incubation
Business growth through strategic mentoring and exclusive resources
Partnering and CollaborationGrant and FundingOpen
CRIAQ International
Supports international collaborative aerospace R&D commercialization projects
Grant and FundingClosed
Environmental Damages Fund
Funds projects that restore and protect Canada's natural environment
Grant and FundingArchived
Call for projects in social innovation
Supports innovative solutions addressing significant social needs in Quebec
Loans and Capital investmentsOpen
Circular Economy Fund
Canada's first investment fund for circular economy startups
Grant and FundingExpert AdviceOpen
RNA Entrepreneurship initiative
Supports entrepreneurial development in RNA therapeutics for Quebec academics
Loans and Capital investmentsClosed
Biomed Propulsion Program
Supports life sciences companies for commercialization and job creation
Grant and FundingOpen
Regions and Rurality Fund (RRF) - Component 1 - Support for regional outreach
Supports regional projects impacting Quebec's territories and communities
Grant and FundingOpen
Water reduction program for paper mills
Financial support to help Quebec paper mills reduce water use
Researchers And FacilitiesPartnering and CollaborationGrant and FundingOpen
Innovation continuum
Supports innovation development and commercialization in Quebec’s strategic sectors
Grant and FundingClosed
Healthy Eating Program Stream 1 – Support for the implementation of diagnostic studies
Support for diagnostic studies in healthy food processing
Grant and FundingClosed
Call for projects – Technology showcase
Supports Sherbrooke businesses showcasing innovative industrial technologies
Grant and FundingOpen
QEPD — Diversify your economy - CED (QC)
Money to develop local economy and tourism in Quebec
Grant and FundingOpen
Food self-sufficiency – major investment projects in bio-food companies
Support for major bio-food investment and automation projects
Grant and FundingOpen
Community Action Support Program for Families – Component 4 – One-time Support for Innovative Projects
One-time funding for innovative family-focused community initiatives
Grant and FundingOpen
Support for commercial arteries — Component 2 – Support for economic development projects
Support for economic development initiatives in Quebec’s commercial sectors
Grant and FundingClosed
PRIMA — Call for Projects
Funding for collaborative advanced materials R&D projects in Quebec
Grant and FundingClosed
VRQ call for projects
Funding for technology maturation projects from select Quebec institutions
Grant and FundingClosed
Regions and Rurality Fund (RRF) - Component 4 – Soutien à la vitalisation et à la coopération intermunicipale : Axe Vitalisation
Local revitalization financial aid program in Quebec
Grant and FundingExpert AdviceOpen
Youth Initiative to Combat Climate Change - Entrepreneurship and Green Economy
Supports young Quebecers in entrepreneurship and green economy initiatives
Any questions about innovation grants in Quebec?
Learn more about funding for innovation in Quebec
What kinds of innovations are subsidized in Quebec?
In Quebec, a variety of innovations can be subsidized through various government programs and initiatives. Here are some types of innovations that can benefit from grants in Quebec:
- Technological Innovations: Companies developing innovative products, services, or technologies can often benefit from grants for research and development (R&D), as well as for the implementation of new technologies.
- Environmental Innovations: Projects aiming to reduce environmental footprint, promote sustainable development, or implement clean technologies may be eligible for government grants.
- Social Innovations: Innovative social initiatives addressing social issues such as access to education, poverty alleviation, or immigrant integration, can also receive financial support.
- Health Innovations: Medical research, development of new treatments, innovative medical equipment, and projects aimed at improving healthcare can benefit from grants.
- Manufacturing Sector Innovations: Companies seeking to modernize their manufacturing processes, improve energy efficiency, or develop new manufactured products can obtain financial support.
- Cultural and Creative Innovations: Artistic projects, cultural initiatives, and businesses in arts, music, film, design, and other creative fields, may also be supported by grants.
These types of innovations can be supported by various Quebec government agencies, such as the Ministry of Economy and Innovation of Quebec, the Ministry of Environment and Fight against Climate Change, the Ministry of Health and Social Services, as well as various regional and municipal innovation support programs. Eligibility criteria and grant amounts may vary depending on the program and type of innovation. It is recommended that businesses and project leaders inquire directly with these agencies for accurate information on available funding opportunities.
How do innovation grants in Quebec support business productivity?
In Quebec, innovation grants support business productivity in several ways. They enable companies to invest in research and development (R&D), fostering the emergence of new technologies, products, and more efficient processes. Additionally, these grants encourage the adoption of innovative practices, such as resource management improvements, operational optimization, and the implementation of advanced technological solutions. By supporting these initiatives, innovation grants contribute to enhancing the competitiveness of Quebec businesses in both domestic and international markets, while stimulating economic growth and job creation in the province.
What is the growth potential of innovative companies in Quebec thanks to subsidies?
The growth potential of innovative companies in Quebec through grants is significant. These grants provide essential financial support for research, development, and implementation of new ideas and technologies. By investing in innovation, companies can enhance their market competitiveness, increase productivity, develop new products and services, and penetrate new markets. Moreover, grants can help companies attract qualified talent, strengthen their R&D capabilities, and establish strategic partnerships. Overall, innovation grants have the potential to stimulate economic growth, create high-quality jobs, and enhance Quebec's position as a center of excellence in innovation. The growth potential of innovative companies in Quebec through grants is immense. Here are some of the benefits they can bring:
- Financing for research and development (R&D)
- Improvement of market competitiveness
- Increase in productivity
- Development of new products and services
- Expansion into new markets
- Attraction of qualified talent
- Strengthening of R&D capabilities
- Establishment of strategic partnerships
- Stimulating innovation and creativity
- Creation of high-quality jobs
Are there recent initiatives to strengthen innovation in Quebec?
Yes, the Quebec Research and Innovation Investment Strategy 2022-2027 plans to invest over $7.5 billion by 2027 to support research and innovation in the province.
How can companies finance the development of innovative products or processes?
Companies can obtain financial assistance for innovation development projects, from the planning stage to pre-commercialization, by consulting the programs available on the Quebec government website.
Are there grants for private innovation infrastructures in Quebec?
Yes, programs are available for projects involving the acquisition, modernization, or development of infrastructures for organizations supporting private innovation.
How can companies obtain a tax holiday for foreign researchers?
Companies can apply for a certificate related to the tax holiday for foreign researchers by consulting the procedures on the website of the Quebec Ministry of Economy, Innovation and Energy.
What initiatives promote scientific and innovation culture in Quebec?
The government supports projects aimed at promoting scientific culture, integrating new scientific talent into the workforce, and developing an innovation culture in businesses, as detailed on the official website.
What else should I know about Innovation Grants in Quebec?
Quebec's economic landscape is increasingly shaped by its commitment to fostering a dynamic and supportive innovation ecosystem. This environment is designed to empower businesses, from nascent startups to established enterprises, to push the boundaries of what is possible.
Both provincial and federal governments, alongside a diverse network of specialized organizations, offer a comprehensive array of financial instruments. These range from direct grants and refundable tax credits to strategic capital investments, all designed to fuel innovative projects. This report aims to provide a clear and concise overview of these opportunities, highlighting how Quebec businesses can access the necessary resources to transform their novel ideas into tangible successes. Navigating the complex landscape of innovation funding can be daunting. This guide is intended as a practical and authoritative resource for business leaders, R&D managers, and entrepreneurs seeking to understand and leverage the available support. The objective is to demystify the various Quebec innovation programs and SME innovation financial aid, providing actionable information to inform strategic decisions regarding innovation investments.
I. Key players in innovation funding in Quebec
Quebec's innovation ecosystem is supported by close collaboration between several governmental and private entities, each playing a distinct yet complementary role in supporting businesses. This multi-tiered structure, while potentially complex, offers a multitude of entry points for businesses seeking funding and support.
The central role of the Ministry of Economy, Innovation and Energy (MEIE)
The Ministry of Economy, Innovation and Energy (MEIE) is the primary provincial government body responsible for developing and implementing economic, innovation, and energy policies in Quebec. It acts as the strategic architect behind many provincial funding initiatives. The MEIE's fundamental mission is to support the sustainable growth of Quebec's economy, promote the advancement of research and innovation, and ensure responsible governance of energy resources. This broad mandate underscores its fundamental role in the innovation ecosystem.
To fulfill its mission, the MEIE regularly publishes key strategic documents, such as the "Strategic Plan 2023-2027" and the "Quebec Research and Innovation Investment Strategy 2022-2027." These documents serve as a roadmap for businesses wishing to align their projects with government objectives. The Ministry also directly manages specific calls for projects, such as the "Social Innovation Call for Projects," which demonstrates a broader definition of innovation, beyond purely technological advancements.
Investissement Québec (IQ): the strategic partner for businesses
Investissement Québec (IQ) functions as a key agency of the MEIE, acting as the government's main financial arm for economic development and innovation. IQ is often the direct point of contact for businesses seeking provincial funding. IQ's primary mandate is to strengthen businesses' innovation capacities, particularly SMEs, improve their productivity and competitiveness, and actively foster strategic partnerships within the innovation ecosystem.
The organization offers a comprehensive range of financial solutions tailored to the different growth stages of businesses and their innovation projects. This includes support for digital diagnostics, feasibility studies, significant investment projects, and commercialization efforts. Key programs directly administered by Investissement Québec include the "Innovation Program," the "ESSOR Program," the "Commercialization and Export Support Program (PSCE)," and the "Impulsion PME Program." These programs cover a wide range of innovation needs.
The National Research Council of Canada (NRC) and its Industrial Research Assistance Program (NRC IRAP)
The National Research Council of Canada (NRC) administers the Industrial Research Assistance Program (NRC IRAP), a key federal initiative dedicated to supporting innovation across Canada. This program complements provincial efforts by offering a distinct layer of federal support. NRC IRAP offers a unique integrated approach that includes not only financial support but also invaluable advisory services from experienced Industrial Technology Advisors (ITAs) and strategic networking opportunities. This holistic support aims to help small and medium-sized enterprises (SMEs) innovate more effectively and successfully commercialize their ideas in domestic and global markets.
The program's areas of support are vast, encompassing technological innovation, clean technology development, advancements in artificial intelligence (AI), promotion of international collaboration, and assistance with intellectual property (IP) management, thus highlighting its role in national innovation priorities.
Other support organizations and initiatives
Beyond the main provincial and federal entities, Quebec benefits from a network of regional and specialized support organizations. These local players play a crucial role in providing targeted and local assistance to businesses.
Notable examples of regional organizations include AG-Bio Centre, Agrinova, the Centre d'enseignement et de recherche en foresterie (CERFO), the Centre en imagerie numérique et médias interactifs (CIMMI), and the Institut National d'Optique (INO) in Capitale-Nationale. In Estrie, there are the Accélérateur de création d'entreprises technologiques (ACET), the Carrefour d'innovation en technologies écologiques (CITÉ), and Productique Québec. These regional hubs offer tailored services such as R&D support, consulting, incubation, specialized training, and collaborative workspaces, providing vital on-the-ground assistance.
Innovation funding is not limited to direct grants. Entities such as BDC Capital, the Anges Québec Capital Fund, Compétivert (an Investissement Québec initiative focused on environmental impact), the Arctern Fund (specializing in clean technologies), and Solunov (from the Fonds de solidarité FTQ) offer capital or quasi-capital financing. These funds are essential for innovative businesses at various growth stages, providing capital in exchange for equity in the company.
Several consortia and funds focus on specific high-potential sectors, often facilitating collaborative R&D projects. These include the Consortium de recherche et d'innovations en bioprocédés industriels au Québec (CRIBIQ), InnovÉÉ (for the electrical energy sector), CQDM (for biopharmaceutical research), PRIMA (for advanced materials), and Scale AI (Canada's global AI innovation cluster). These organizations play a vital role in promoting industry-academia partnerships and accelerating innovation within their respective niches. The presence of these specialized consortia indicates a strategic government orientation aimed at developing key sectors through collaborative research and partnerships, rather than generic innovation. For a company, this means that aligning innovation projects with these strategic sectoral priorities can significantly increase the chances of obtaining funding. Furthermore, it provides access to specialized networks, cutting-edge research, and collaboration opportunities that might not be available through more general innovation programs. This is a targeted approach to economic development that leverages specific regional and sectoral strengths.
Local governments also contribute to the innovation funding landscape. For example, the City of Quebec offers specific grants for innovation, including for AI integration. PME MTL in Montreal provides targeted support to businesses adopting eco-responsible practices and acquiring clean technologies.
The multi-layered nature of innovation funding (federal, provincial, regional, specialized) represents a comprehensive but potentially fragmented ecosystem. Businesses must understand this architecture to identify the most relevant entry points and maximize cumulative aid. It is therefore crucial for businesses to strategically navigate these different avenues, identifying the programs best suited to their specific needs, project development stage, and sector of activity. Establishing links with local support organizations can be decisive in guiding businesses through this complex system.
II. Research and development (R&D) funding: the engine of advancement
Quebec, like the rest of Canada, recognizes R&D as a key driver of economic growth. To stimulate these activities, a robust set of funding programs and tax incentives has been put in place, facilitating access to the capital needed for experimentation and innovation.
Scientific Research and Experimental Development (SR&ED) tax credits: a pillar of Quebec research and development funding
The Scientific Research and Experimental Development (SR&ED) tax incentive program is the largest federal program in Canada designed to encourage businesses of all sizes and in all sectors to conduct R&D activities in the country. It constitutes a cornerstone of Quebec research and development funding.
To be eligible, a project must meet three fundamental criteria: it must aim for a scientific or technological advancement, involve scientific or technological uncertainty, and contain demonstrable scientific or technical content. This applies to the creation of new products, processes, or devices, or significant improvements to existing ones.
A wide range of expenses can be claimed under SR&ED, including salaries and wages, R&D subcontracting costs, payments made to universities or research institutes for R&D, costs of materials directly consumed or transformed in the R&D process, and certain overhead expenses.
The program offers two main types of tax incentives: a deduction for SR&ED expenses to reduce taxable income for the current or future tax years, and an investment tax credit (ITC). For certain Canadian-controlled private corporations (CCPCs), this ITC can be refundable, providing a direct cash flow.
Quebec offers its own provincial SR&ED tax credit, which can be claimed in addition to the federal credit, allowing for a significant combined benefit. Provincial rates vary: CCPCs can receive 30% on the first $3 million of eligible expenses, with a rate of 14% on the excess. Other corporations and individuals generally receive a 14% rate. A crucial detail for small businesses in Quebec is that the first $50,000 of SR&ED expenses are generally not eligible for calculating the provincial tax credit. This particularity can significantly impact the net benefit of smaller projects. For large-scale R&D projects, this $50,000 threshold for the provincial credit is relatively minor. However, for a small SME undertaking a project with, for example, $75,000 in eligible R&D expenses, the exclusion of $50,000 from the provincial calculation significantly reduces the effective provincial tax credit. In such cases, the federal SR&ED credit and direct grants like NRC IRAP become proportionally more important and potentially more attractive. It is therefore essential for businesses to meticulously document all R&D work and related expenses to maximize SR&ED claims and ensure compliance during potential audits.
Quebec R&D grant via NRC IRAP: advice, networking, and financial support for SMEs
The National Research Council of Canada's Industrial Research Assistance Program (NRC IRAP) is specifically designed to support small and medium-sized enterprises (SMEs) in their innovation journey. It represents a major source of Quebec R&D grant at the federal level.
NRC IRAP offers a unique integrated approach that includes not only financial support but also invaluable advisory services from experienced Industrial Technology Advisors (ITAs) and strategic networking opportunities. This holistic support aims to help SMEs innovate more effectively and successfully commercialize their research and development efforts.
The program's areas of support are vast, encompassing technological innovation, clean technology development, advancements in artificial intelligence, promotion of international collaboration, and assistance with intellectual property management. Financial aid can include direct wage subsidies for new employees engaged in R&D projects, covering up to 40% of the new employee's salary, with a maximum of $75,000. It is important to note that combining NRC IRAP funding with SR&ED tax credits can result in a very attractive overall reimbursement rate, potentially reaching up to 110% of eligible expenses, making it a powerful strategy for R&D investment. The interaction between the federal SR&ED tax credit and Quebec's provincial SR&ED credit, combined with direct grants like NRC IRAP, creates a powerful and multifaceted incentive system for R&D.
Other programs for R&D and innovation
Beyond tax credits and NRC IRAP, other programs contribute to Quebec research and development funding.
Investissement Québec's Innovation Program is a fundamental program aimed at strengthening the innovation capacities of businesses, particularly SMEs, at all stages of their innovation projects. It specifically supports the development of new products or processes, or significant improvements to existing ones, aligning with essential R&D activities. Eligible activities cover the entire innovation lifecycle, including conception, design, engineering, prototyping, as well as rigorous testing and validation. The maximum funding available can reach $500,000 per project. It should be noted that social economy enterprises can benefit from higher rates, up to 80% of eligible expenses, reflecting a policy priority for inclusive innovation. Applications for this program are analyzed continuously, offering flexibility to businesses.
The NovaScience Program, administered by the MEIE, is designed to support the creation of strategic positions focused on innovation and commercialization within businesses, thereby fostering a culture of innovation. The Fonds de recherche du Québec, MEIE agencies, are dedicated to supporting fundamental and applied research initiatives in various scientific fields. Finally, the Tax Holiday for Foreign Researchers' Salaries in Quebec is a targeted tax incentive from the MEIE aimed at attracting highly qualified foreign researchers to work on SR&ED projects in Quebec. This program offers substantial tax exemptions on their income for up to five years, addressing the critical need for specialized R&D talent. The combination of direct financial aid (grants, equity participation) and tax incentives (tax credits, tax exemptions for foreign researchers) demonstrates a comprehensive government strategy to stimulate R&D by addressing both initial funding needs and long-term cost reduction, while attracting essential human capital.
III. Grants for digital transformation: the digital era for Quebec SMEs
Digital transformation has become a strategic imperative for Quebec businesses, particularly SMEs, seeking to improve their productivity, efficiency, and competitiveness in an increasingly digitized economy. Support programs for SME digital transformation aim to facilitate this essential transition.
The strategic importance of digital transformation
Digital transformation involves integrating digital technologies into all aspects of a company's operations to improve productivity and efficiency. The main objectives include reducing manual tasks, optimizing processes, and better information management. For businesses, this digital shift is essential to remain competitive in the market. The Quebec government and its partners have recognized that digital transformation is not just about adopting new technologies, but a strategic lever for productivity growth and economic resilience. The emphasis on digital diagnostics and personalized action plans underscores an approach that goes beyond simply funding equipment, focusing on a holistic and strategic integration of digital into SME operations.
Key support programs for digital transformation
Several major programs are available to support SMEs in their digital transformation journey:
Investissement Québec's ESSOR Program is crucial support for businesses wishing to undergo a digital transformation. It aims to accelerate investment projects, productivity improvements, environmental footprint reduction, and internationalization strategies. The program consists of several components, including component 1B which covers the planning of the digital transformation project (digital diagnostics and plans) and component 1C for the implementation of digital solutions. The grant for implementing a digital plan can cover up to 50% of eligible costs, with a maximum amount of $50,000 for the duration of the program. For larger investment projects, financial support can reach $250,000 for companies in the aluminum equipment and processing sectors. The ESSOR program is designed to support businesses in the complete integration of technologies, through streamlining or automation processes, with a view to achieving efficiency gains.
The Canadian Digital Adoption Program (CDAP), although no longer accepting new direct grant applications for technology improvement, has offered significant support. It aimed to help Canadian SMEs adopt digital technologies and improve their online presence. The "Grow Your Business Online" stream offered a micro-grant of up to $2,400 to encourage e-commerce. The "Boost Your Business Technology" stream provided support for developing a digital adoption plan, covering up to 90% of eligible costs for the services of a digital advisor, up to a maximum of $15,000. In addition, CDAP could offer an interest-free loan from the Business Development Bank of Canada (BDC) of up to $100,000 for implementing the plan, and up to $7,300 for hiring young graduates to implement the technologies.
The Support for Innovations and Productivity of Manufacturing Businesses in Quebec (SIPEM) program, administered by Investissement Québec, is specifically designed for manufacturing businesses. Component 1 of SIPEM offers a maximum contribution of $500,000 per project (50% of eligible expenses) for businesses deploying an Industry 4.0 project. Component 2 supports the acquisition of production, operation, or technology equipment, with a maximum financial contribution of $100,000 per project (50% of eligible expenses). This program aims to accelerate the productivity of Quebec's manufacturing businesses through tailored technological innovation.
Municipal initiatives also contribute to digital transformation. For example, the City of Quebec offers a contribution aimed at improving productivity and addressing labor shortages through automation.
The multiplicity of digital transformation support programs, ranging from grants for diagnostics and planning to aid for implementation and equipment acquisition, demonstrates a multifaceted government approach. This approach aims to support SMEs at every stage of their digital shift, recognizing that transformation is a complex process requiring adapted and continuous support. The possibility of combining different grants to maximize financial aid, potentially reaching up to 80% of cumulative aid, highlights the importance of understanding the landscape to optimize digital transformation costs.
IV. Specific innovation support: green technologies, AI, and cultural
Quebec is actively committed to supporting innovation in key strategic areas, recognizing their potential to generate significant economic and societal benefits.
Quebec green technology grant
The government's commitment to ecological transition is evident through various Quebec green technology grant programs. These initiatives aim to encourage businesses to adopt eco-responsible practices and develop clean technologies.
The Ministry of Economy, Innovation and Energy (MEIE) offers aid programs for a green and prosperous Quebec, specifically accessible to Quebec environmental and clean technology businesses. Among these, the Technoclimat program supports demonstration projects for green technologies or greenhouse gas (GHG) emission reduction technologies. Aid can reach 50% of eligible expenses, up to $3,000,000, and even $5,000,000 for a strategic project in transport electrification. The ESSOR program and Investissement Québec's Commercialization and Export Support Program (PSCE) can also support projects for the establishment of industrial production units for green technologies developed in Quebec, or projects for the development and diversification of international markets for these technologies.
At the municipal level, PME MTL in Montreal offers a grant of up to $40,000 per business for the adoption of eco-responsible practices, and $60,000 for a clean technology acquisition project, covering up to 75% of eligible expenses. The Quebec Action Fund for Sustainable Development offers grants for eco-design projects for recyclable packaging and food containers.
Investissement Québec, through its Compétivert initiative, supports Quebec businesses with high growth potential for projects with significant environmental impact. Similarly, the Arctern Fund is a private venture capital fund that finances cutting-edge clean technology business projects aimed at creating a positive environmental impact. Finally, Sustainable Development Technology Canada (SDTC) offers a Seed Fund, providing one-time grants of $50,000 to $100,000 to develop promising green technologies. This commitment to green innovation, through grants and funding, reflects a strategic government priority to position Quebec as a leader in the sustainable economy. It is a recognition that green technologies are not only beneficial for the environment but also catalysts for economic growth and competitiveness.
Quebec artificial intelligence grant
Artificial intelligence (AI) is recognized as a major strategic field, and Quebec has implemented numerous initiatives to encourage and accelerate its adoption in businesses, offering opportunities for Quebec artificial intelligence grant.
Scale AI, Canada's global AI innovation cluster, is a central player. It funds up to 50% of expenses related to the adoption or commercialization of AI solutions in value chains, with support of up to $120,000 for AI support through various incubators. Scale AI evaluates projects based on three key pillars, focusing on improving industrial performance for more resilient and sustainable supply chains.
The Ministry of Economy, Innovation and Energy (MEIE) also offers major programs. The Health and Social Services Innovation Support Fund (FSISSS), with $18 million, helps businesses and health institutions test their innovations in real conditions, with a maximum grant of $240,000 (up to 50% of eligible costs for Quebec SMEs working in human health, and 80% for health institutions). The Tax Credit for R&D Research Consortia supports businesses participating in a research consortium or entrusting it with an R&D mandate, aiming to accelerate the development of new solutions through resource and expertise sharing.
Other important initiatives include:
- Prompt: Funds collaborative AI projects up to $1.5M, with support adapted to businesses based on their size (35% of expenses covered for SMEs, 50% for startups).
- PRIMA – PARTENAR-IA – Entreprise: Aims to fund innovative collaborative AI projects applied to advanced materials.
- Next Generation Manufacturing Canada (NGen): Supports the adoption of advanced technologies, including AI, in manufacturing, with grants for collaborative and innovative industrial projects.
- The Strategic Innovation Fund (SIF): Supports high-impact innovation projects, including AI, targeting large companies or structuring projects in strategic sectors.
- The NRC IRAP: Also offers support to SMEs that innovate through artificial intelligence.
- The Call for Artificial Intelligence and Quantum Technologies Innovation Projects from the Government of Quebec: Targets consortia of Quebec businesses and cooperatives, with the possibility of collaboration with a public research center. It aims to support projects leading to significant and immediate economic benefits, and to position Quebec as a leader in responsible AI and quantum technologies.
AI funding reflects a national and provincial strategy to position Quebec as a center of excellence in artificial intelligence. This objective is achieved by encouraging collaboration between businesses and research centers, stimulating investment, and fostering technology transfer. This approach highlights the recognition of AI not only as a technology but as a fundamental economic transformer.
SODEC cultural innovation grant
The Société de développement des entreprises culturelles (SODEC) is a major player in supporting innovation within Quebec's cultural sector, offering SODEC cultural innovation grant opportunities. A recent bill aims to increase SODEC's funding by $200M to support music and culture in Quebec, highlighting the strategic importance of culture in the digital age.
SODEC offers several aid programs to stimulate cultural innovation:
- The Cultural Events Support Program aims to increase sales revenue of cultural works and products at events, and to promote the performance and economic and cultural benefits of Quebec events. Application deadlines are specific and recurring throughout the year.
- The Aid for Digital Experience Producers program supports digital experience producers as part of a two-year business strategy, for the creation and valorization of a catalog of Quebec intellectual property technocreative works, content, experiences, or cultural products. It aims to valorize these businesses and encourage the development of business models based on the creation of Quebec intellectual properties. Businesses must be legally constituted and have been primarily active in the field for at least two years.
- The Innovative Initiatives Support Program supports innovation projects related to the production, dissemination, or commercialization of cultural content, as well as the management or emergence of new business models. General objectives include promoting the competitiveness of Quebec cultural businesses in national and international markets, and stimulating innovation, experimentation, research, and development within these businesses. Eligible clients include legally constituted businesses, for-profit or non-profit, with their head office and main establishment in Quebec, and whose effective control is predominantly held by individuals with their tax residence in Quebec.
SODEC's support for cultural innovation highlights the recognition of the cultural sector as a full-fledged economic driver, capable of generating added value and competitiveness. This demonstrates an understanding that innovation is not limited to scientific or technological fields but also encompasses creativity and the transformation of business models in cultural industries.
V. Financial aid for startups and SMEs: catalyzing growth
Quebec has positioned itself as a favorable environment for entrepreneurship and SME growth, with a wide range of Quebec startup financial aid and SME innovation financial aid programs. The focus is on supporting high-growth potential businesses and startups, recognizing their crucial role in job creation and economic diversification.
Specific programs for startups
The Quebec ecosystem offers specific incentives for startups, aiming to catalyze their development from the earliest stages.
The First Adopters Call for Projects is a flagship program designed to strengthen the innovation capacities of businesses, primarily SMEs, at different stages of their innovation projects. It aims to increase collaboration between innovative young companies (startups) and established companies (first adopters) in the research and development process of innovative technologies. This program makes early investment in innovative technologies more attractive and promotes the rapid adoption of technologies developed by startups. Eligible projects must include R&D activities carried out by agreement between the parties, in an on-site testing environment provided by the first adopter, and include a real-world demonstration component. The financial aid from the Government of Quebec is paid to the startup and cannot exceed $75,000 per company for a maximum period of 18 months, covering up to 60% of eligible expenses. First adopters must contribute at least 20% of eligible expenses, in cash only.
Investissement Québec's Impulsion PME Program is a $120 million investment aimed at supporting innovative young businesses with high growth potential, particularly in the regions. It aims to stimulate private investment, create a favorable environment for innovation, and connect all players in the innovation cycle, from idea to commercialization. The program can invest in equity or quasi-equity, with a minimum amount of $250,000 per investment. Maximum amounts vary: $750,000 for businesses located in the Montreal Census Metropolitan Area (CMA), $1,000,000 for those located outside the CMA, and up to $2,000,000 for the biopharmaceutical sector. The program cannot exceed 50% of the total financial package, with the remainder to be financed by other investors.
Other equity funds are also crucial for startups: BDC Capital offers a comprehensive range of specialized financing for various growth stages. The Anges Québec Capital Fund can invest up to $4 million in innovative businesses with high growth potential. Finally, Ubisoft Entrepreneur.es offers funding, support, and networking opportunities for techno-creative businesses. The emphasis on supporting early-stage and high-growth potential businesses demonstrates a desire to sow the seeds of tomorrow's economy. This reflects the understanding that young companies, while risky, are major sources of new innovations and job creation.
General aid for SMEs
Beyond startups, established SMEs also benefit from programs aimed at strengthening their competitiveness and expansion.
Investissement Québec's Commercialization and Export Support Program (PSCE) aims to strengthen the export and commercialization capacities of SMEs, both nationally and internationally. It supports projects aimed at increasing productivity, developing new products, or strengthening market presence. Financial aid can reach 50% of eligible expenses, up to $250,000 over a maximum period of twelve months, and up to $500,000 per company.
The Support for Innovations and Productivity of Manufacturing Businesses in Quebec (SIPEM), already mentioned for digital transformation, is also relevant here. It supports tailored technological innovation projects to accelerate the productivity of manufacturing businesses.
The National Bank SME Growth Fund can provide up to $15 million for business growth, transfer, or acquisition. The Scotiabank Women Initiative offers capital, training, advisory services, and mentorship to develop businesses owned by women.
Comprehensive support for startups, ranging from seed funding to incubation and acceleration support, highlights a strategy aimed at nurturing innovation from its earliest stages. By offering direct grants, capital investments, and professional guidance, Quebec ensures that young businesses have the best chance to transform their innovative ideas into commercial successes, thereby contributing to the province's economic vitality.
VI. Strategies for maximizing grants: a path to success
Navigating the landscape of innovation grants in Quebec can be complex, but a strategic and proactive approach can significantly increase the chances of success.
Understanding eligibility criteria
Each grant program has specific eligibility criteria related to the nature of the business (size, sector, location), the type of project (R&D, digital transformation, green technology, cultural innovation), and eligible expenses. It is imperative to carefully read the program guides and ensure that the project and the business meet all requirements. For example, Investissement Québec's Innovation program excludes projects related to fossil fuels or gambling, while SODEC has specific criteria for cultural businesses and digital experience producers.
Preparing a strong application
A well-prepared application is essential. This involves putting together a solid project plan with clear and measurable business objectives, a conservative financial package with contingencies, and a detailed implementation plan. For SR&ED tax credits, meticulous documentation of research and development work is crucial to maximize reimbursements. Projects must also demonstrate commercial potential and expected benefits (impact, productivity, competitiveness).
Seeking support
Quebec's ecosystem is full of support organizations (incubators, accelerators, research centers, specialized consultants) that can offer valuable assistance. These experts can help assess eligibility, prepare applications, optimize funding, and even navigate audit processes. For startups, being supported by a recognized incubation or acceleration organization is often an eligibility criterion for certain programs like the First Adopters Call for Projects. This support is a decisive factor for the success of applications.
Combining programs
An optimal strategy often involves combining several funding programs, whether federal, provincial, or municipal, to maximize cumulative financial aid. For example, it is possible to combine NRC IRAP with SR&ED tax credits to achieve high reimbursement rates. Similarly, digital transformation programs can be combined with other grants to optimize costs. It is important to check the specific cumulation rules for each program to ensure compliance.
Strategic monitoring and networking
The grant landscape is constantly evolving. Regular strategic monitoring of calls for projects and program updates is essential. Subscribing to newsletters from relevant ministries and organizations, such as the MEIE, can help stay informed about new opportunities. Networking with other entrepreneurs, advisors, and support organizations also allows for discovering lesser-known programs or best practices.
Adopting a proactive approach, by informing oneself, meticulously preparing applications, and seeking professional support, is key to fully leveraging innovation funding opportunities in Quebec. This allows businesses to transform the challenges of complexity into strategic advantages, ensuring they are well-positioned to access the resources that will fuel their growth and competitiveness.
Conclusion: innovation, a strategic investment for Quebec
Quebec has built a robust and diverse innovation ecosystem, offering a wide range of grant programs and financial aid to support businesses at every stage of their innovative journey. From tax credits for research and development to grants for digital transformation, green technologies, artificial intelligence, and cultural innovation, the opportunities are numerous and varied.
The presence of key players such as the Ministry of Economy, Innovation and Energy (MEIE), Investissement Québec (IQ), the National Research Council of Canada (NRC) with its NRC IRAP program, as well as a multitude of regional organizations and specialized funds, demonstrates a deep and structured commitment to innovation. This support architecture, though complex, is designed to meet the specific needs of each type of business, from startups to established SMEs, and to stimulate growth in strategic sectors.
The ability to effectively navigate this funding landscape is a major asset for Quebec businesses. A thorough understanding of eligibility criteria, rigorous application preparation, seeking professional support, and adopting a strategy of combining aid are decisive factors in maximizing the chances of success.
Ultimately, innovation grants are not just financial aid, but strategic investments that enable Quebec businesses to strengthen their competitiveness, increase their productivity, generate quality jobs, and position themselves advantageously in national and international markets. Innovation is the engine of Quebec's future prosperity, and the available support programs are the catalysts that transform ideas into sustainable economic realities.
Find similar grants
By Funding Type
By Business Size
By Service
By Audience
By Industry
Education Grants in Quebec
Grants and Funding for Culture in Quebec
Grants and Funding for Financial Services in Quebec
Grants and Funding for Green Manufacturing and Decarbonization in Quebec
By Industry Subsectors
By Administrative Region
Grants and Funding in Abitibi-Témiscamingue
Grants and Funding in Bas-Saint-Laurent
Grants and Funding in Capitale-Nationale
Grants and Funding in Centre-du-Québec
Grants and Funding in Chaudière-Appalaches
Grants and Funding in Côte-Nord