Innovation Program — Stream 1 – Support for mobilising projects
Montréal, QC, Canada
Transport technology innovation projects funding in Quebec
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- grant_single|timelineUnspecified
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Grant and Funding
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- Transportation and warehousing
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- Investissement Québec (IQ)
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grant_card_status|open
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The grant, under the Innovation Program - Phase 2, offers up to $10 million per project to support high-maturity technological innovation projects in Quebec's aerospace sector, focusing on the development of new products, innovative manufacturing processes, or technological solutions. Eligible activities include project planning, product development and improvement, prototype testing, validation, and demonstrations in real operational scenarios.
grant_single_labels|projects
The grant focuses on developing technological solutions for the aerospace industry and aims to support projects through various phases up to real-world demonstration. Eligible activities cover preparation to implementation steps in creating a viable prototype or solution.
- Conducting preparatory activities and research necessary for planning and executing the project, including collaboration, market studies, technical and financial assessments.
- Validation of principles and development or enhancement of a product or technological solution, including design, engineering, and prototyping.
- Testing and validating the product or technological solution through prototype trials, pilot production runs, and controlled demonstrations.
- Creating a commercialization plan and quantifying steps required for certification or approval of the technological solution.
- Real-world demonstration of the product or solution outside of laboratory settings to improve scale and functionality.
- Developing technologies for remote-piloted aerial systems, space technologies, cybersecurity solutions, innovative aerodynamic configurations, and more based on list specifics.
grant_single_labels|admissibility
To be eligible for this grant, partnering companies must meet the following criteria:
- Be for-profit businesses legally constituted under Quebec or Canadian law.
- Registered in the Quebec Enterprise Register and possess a Quebec Enterprise Number (NEQ).
- Operate a facility in Quebec aimed at producing goods and services or conducting R&D.
- Derive the majority of their revenue from manufacturing or service activities.
- Not be affiliated or under mutual control unless authorized by the minister.
- Contribute financially to the project's execution and activities.
- Share the innovation project's costs, benefits, and intellectual property.
- Not be in a service offer or subcontracting agreement with another project partner firm.
- Commit to establishing a new non-profit organization (NPO) specifically for managing the project.
grant_eligibility_criteria|who_can_apply
Eligible applicants for this grant include private companies, particularly those involved in aerospace innovations with a focus on developing technology for future transport systems. The partnerships should include at least two businesses based in Quebec, Canada, with specific structural and engagement conditions.
- Enterprises legally constituted under Quebec or Canadian laws must be registered with the Quebec business registrar and hold a Quebec enterprise number (NEQ).
- Applicants must have a commercial facility operational in Quebec dedicated to producing goods/services or involved in internal research and development.
- Most of the revenue for these enterprises should come from manufacturing activities or service provisions.
- Partnerships between at least two Quebec-based companies are required, contributing financially to the project and sharing costs, profits, and intellectual property.
- Companies must establish a new non-profit organization (NPO) specifically for managing the project.
- Small and medium-sized enterprises, defined as having 250 employees or less in Quebec, or for international enterprises, no more than 500 employees in total, are prioritized.
- Projects must include a minimum financial commitment of 5% of eligible expenses to Quebec universities and recognized public research centers and engage with non-partner SMEs through subcontracts accounting for at least 5% of eligible expenses.
grant_eligibility_criteria|who_cannot_apply
This grant excludes certain companies and industries based on their ownership status, financial standing, and main activities. These restrictions ensure that only eligible entities that align with the strategic objectives of the grant are considered for funding.
- Companies controlled directly or indirectly by a government or municipal entity.
- Enterprises majority-owned by a state corporation.
- Businesses under bankruptcy protection or that enter such during the project duration.
- Organizations non-compliant with language legislation.
- Entities on the non-compliance list for public contracts.
- Companies with previous failures to meet financial assistance obligations from the Ministry or IQ within two years of application.
- Companies involved in industries such as arms production, fossil fuels, gambling, sexual exploitation, and those primarily serving other non-compliant areas.
- Holding companies.
- Businesses with ethical concerns that could harm the image of the Quebec government.
grant_eligibility_criteria|eligible_expenses
The grant covers specific expenses directly related to the project activities conducted in Quebec, essential for the project's accomplishment.
- Direct labor costs for the project, including social benefits and mandatory contributions, excluding bonuses.
- Labor costs for project management, with potential inclusion of travel-related salaries abroad contingent on written approval from IQ.
- Consultant fees for Quebec-based external consultants, not exceeding 5% of the project's eligible expenses.
- Specialized services and subcontracting, including research, prototyping, and machining.
- Costs of foreign experts visiting Quebec, limited to 5% of the project's eligible expenses while on Quebec territory.
- Travel expenses following Quebec government standards, not exceeding 5% of eligible project expenses.
- Acquisition of equipment and raw materials, with costs calculated based on annual amortization principles.
- Renting of equipment, including installation and removal costs, but excluding permanent infrastructure modifications.
- Transport costs for equipment and materials.
- Costs for studies evaluating various aspects like market, process, technology, and certification.
- Fees for using licenses required for the project's duration.
- Costs related to various communication activities up to $10,000 per partner.
- Fees for intellectual property protection strategies.
- External testing and homologation costs.
- Verification costs for compliance with standards by external auditors.
- Certification-related costs.
- In-kind contributions, not exceeding 10% of eligible expenses.
- Management and reporting costs by the designated NPO.
- Creation and startup costs of the NPO, managing the project's financial and administrative obligations.
grant_eligibility_criteria|zone
The grant supports legally constituted profit-making companies that have active operations within Quebec, specifically contributing to research, development, or the production of goods and services in the region. The eligible companies are those ensured to promote innovation and economic growth within Quebec's strategic sectors.
- Companies must have an establishment actively operating in Quebec.
- Businesses with a Quebec Enterprise Number (NEQ).
grant_single_labels|criteria
The evaluation and selection of projects for this grant are based on specific criteria with allocated point scores to ensure alignment with the grant’s objectives.
- Innovativeness and Market Potential (30%): The project should present an innovative product, manufacturing process, or technological solution that is notably novel and offers a technological and commercial advantage over existing market solutions.
- Economic Benefits (30%): The project should deliver economic benefits within Quebec during the project’s implementation and through subsequent commercialization, like job creation and investment growth, both locally and internationally.
- Partners and Partnership Quality (15%): Evaluation of the partners' capacity to execute the project, their engagement, experience, and the strategic complementarity of their activities, ensuring intellectual property advantage remains within Quebec.
- Project Mobilization (10%): The degree of mobilization through allocation of admissible expenses to universities and recognized research centers, as well as Quebec-based SMEs not partnered in the project.
- Environmental and Social Characteristics (10%): The project should pursue environmental objectives with positive societal impacts and demonstrate potential social benefits, integrating sustainability principles into its planning.
- Project Governance (5%): The governance structures and risk control mechanisms proposed to ensure proper project management and cost control.
grant_single_labels|register
Here are the steps to submit an application for this grant:
- Step 1: Prepare Documentation
- Complete reading of the application guide to understand requirements.
- Prepare a detailed project description including sections such as project summary, detailed description, innovation and commercialization details, economic benefits, partnerships, mobilizing nature, environmental objectives, project governance, major activity schedule, support letters, project team resumes, and history of past funded projects.
- Gather financial documents including recent financial statements, financial forecasts, and a Gantt chart of budgets by stage for each partner company.
- Step 2: Complete Application Form
- Fill out the application form for financial assistance for the respective project segment.
- Sign the completed application form.
- Step 3: Obtain Conventional Template
- Request a copy of the standard financial aid agreement for the respective section at pi.transports.demain@economie.gouv.qc.ca.
- Step 4: Submit Application
- Send the completed and signed application along with all required documents to pi.transports.demain@economie.gouv.qc.ca by the deadline of November 10, 2024, at 23:59.
- Step 5: Receive Acknowledgement
- Expect to receive an electronic acknowledgment within two business days of submission.
grant_single_labels|otherInfo
Here are additional relevant details for this grant:
- The maximum assistance rate provided by the program is 50% of eligible expenses, with a cap of $10 million per project.
- The funding is non-repayable unless terms are violated.
- Recipients are required to uphold a high standard of ethics and integrity as a condition for continued financial aid.
- Projects must commence within a minimum one-year duration and conclude by December 31, 2028.
- The non-profit organization (OBNL) established to manage the project must be newly created specifically for this purpose.
- All intellectual property rights resulting from the project must remain within Quebec for five years following project completion, unless specific permission is granted.
- The project's industrial and economic impacts on Quebec are assessed over a ten-year period.
- A residual 5% of the financial contribution is withheld until project completion and verification of deliverables.
Apply to this program
Driving Innovation in Tomorrow's Transport Technologies
This grant initiative is aimed at catalyzing major projects that span from advanced transport technologies development to their commercialization in the aerospace sector. It encourages collaboration among Quebec's enterprises and research centers, underlining the strategic growth of the region's aerospace capabilities.
Detailed Insights into the Grant Program and Its Strategic Goals
The "PROGRAMME INNOVATION – VOLET 2" reflects the Government of Quebec's commitment to fostering cutting-edge transportation solutions, addressing environmental challenges, and enhancing the province's competitive edge in aerospace. With a substantial financial injection of 54.4 million dollars over the next five years, this grant supports projects aimed at developing innovative transport technologies, specifically focusing on the aerospace sector. These projects are geared towards reaching a high level of technological readiness, advancing from level 5 or 6 up to level 8, as defined by Canada's standards.
Eligible projects must involve a collaboration of at least two Quebec-based enterprises, working towards the design and demonstration of novel products or processes. The focus is on sustainable technologies that not only meet international environmental standards but also significantly reduce carbon footprints. For instance, the initiative supports the creation of electric and alternative fuel vehicles, the integration of AI in avionics, and the development of remote-piloted systems.
The program mandates that 5% of eligible project expenses be allocated to universities and public research centers, fostering a robust research ecosystem. Similarly, at least 5% must also be directed towards local SMEs through subcontracting, thus stimulating economic growth and supporting Quebec’s strategic sectors.
Projects are assessed based on their innovative character, potential economic benefits, and partnerships quality. Successful proposals are those that demonstrate a clear pathway to commercialization within a few years post-development. Additionally, they must present a strategic plan outlining potential employment creation, economic investment, and enhanced export capabilities that align with Quebec’s aerospace strategy.
This initiative not only propels technological advancements but ensures the intellectual property remains within Quebec for at least five years post-project completion, securing long-term economic benefits for the province. The requirement to form a new nonprofit organization (OBNL) to manage these projects further embeds the collaborative spirit intended behind this grant, emphasizing transparency and accountability.
Ultimately, the "PROGRAMME INNOVATION – VOLET 2" serves as a catalyst for making Quebec a beacon of aerospace innovation, attracting investments, and fostering a resilient economy through transformative technological developments in the transport sector.