Call for innovation projects in artificial intelligence and quantum technologies – collaborative industrial research and support for entrepreneurship

• Maximum financial assistance of $1.5 million per project, for up to 24 months.
• Funding rate up to 35% of eligible expenses for SMEs or large enterprises, 50% for startups, and 50% for specific expenses incurred by public research centers or for access to quantum computing platforms if these represent at least 20% of eligible project expenses.
• The sum granted to an individual company cannot exceed 80% of the total grant awarded for the project.
• Public funding from all sources must not exceed 75% of total eligible project expenses; private contributions must represent at least 25%.
• Advance payments of up to 50% of the total grant upon contract signing, with subsequent disbursements based on documentation of incurred expenses, and a minimum 15% final retention paid after project completion and approval.

• The applicant must participate in a consortium of at least two Quebec-based companies, including at least one SME or one startup.
• The company must be legally incorporated under federal or Quebec law and registered with the Registraire des entreprises du Québec.
• The company must have its head office and principal operations (employees or subcontractors) based in Quebec.
• The business must operate a facility in Quebec dedicated to the production of goods or services, or to internal R&D activities.
• The company must have a French-language website.

Who is eligible?

• Consortiums of Quebec-based companies, including at least one SME or innovative startup
• Startups in the pre-commercialization phase operating in artificial intelligence (AI) or quantum technologies (QT)
• Small and medium-sized enterprises (SMEs) with activities in AI or QT
• Large Quebec enterprises collaborating on structuring and large-scale innovation projects in AI or QT

Who is not eligible

• Companies listed in the Register of Enterprises Ineligible for Public Contracts (RENA), including subcontractors registered in RENA.
• Businesses affiliated with, or receiving funding/in-kind contributions from, universities, research institutes, or laboratories linked to military, national defense, or state security organizations posing national security risks to Canada.
• Companies listed on the Office québécois de la langue française (OQLF) list of non-compliant enterprises regarding francization.
• Businesses that have failed to meet commitments related to previous government aid in the past two years after being duly notified.
• State-owned enterprises or companies controlled (directly or indirectly) by a government entity, municipal entity, or majority-owned by a state enterprise.
• Companies currently under bankruptcy protection or subject to the Bankruptcy and Insolvency Act.
• Holding companies.
• Businesses whose main activities are the production or distribution of weapons, fossil fuel extraction and production (except for transition activities), gambling, violent games, exploitative or explicit sexual services, tobacco or drug-related sales (except cannabis/hemp interventions), or primarily religious, political, or advocacy activities.
• Companies with unethical behaviors that could harm the integrity or reputation of the Quebec government.

Eligible expenses

• Professional fees for specialized services, including subcontracting.
• Salaries and benefits for direct project staff, including project management.
• Travel and accommodation expenses related to project realization, including potential client visits to real-world demonstrations or technology showcases.
• Direct costs of materials and inventory required for the project.
• Direct equipment costs, prorated by project duration, useful life, and usage in the project.
• Equipment and land rental fees.
• Acquisition costs for studies or other relevant documentation.
• Platform and facility fees, including access to advanced technology infrastructure.
• Costs for preparing intellectual property strategies, securing intellectual property protection (such as patent agent fees), and acquiring intellectual property rights or licenses.
• Costs for required certifications or regulatory approvals linked to commercialization.
• Fees for incubator or accelerator support for startups (up to 2% of eligible expenses and a maximum of $25,000 per project).
• Expenses for participation in exhibitions or trade shows to present the product or process and attract potential clients for technology demonstrations.
• Project coordination and management fees by industrial sectoral research groups (up to 5% of eligible project expenses and a maximum of $100,000 per project).

Eligible geographic areas

• Companies having their head office in Quebec
• Companies operating an establishment in Quebec

• Level of innovation of the project (15%).
• Scientific/technological quality: clarity of objectives, sound methodology, and responsible development (15%).
• Implementation: rationale for financial support, intellectual property management, and integration of sustainable development principles (10%).
• Collaboration and expertise: relevance and expertise of partners, team capacity, and engagement of stakeholders (20%).
• Anticipated impacts: economic benefits, commercialization potential, and advancement within the sector, with quantifiable positive effects for companies and the Quebec innovation ecosystem (40%).

• All submitted documents and applications must be written in French.
• An electronic acknowledgment of receipt will be sent within 5 business days after submission.
• Recipients must not transfer or license intellectual property resulting from the funded project to entities or individuals outside Quebec for five years post-completion, unless authorized.
• A residual payment of at least 15% of the government contribution is withheld until project deliverables are completed and the final report is approved.