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Innovative Solutions Canada — Challenge Stream for innovators - Canada
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Innovative Solutions Canada — Challenge Stream for innovators

Supports Canadian SMEs developing innovative solutions for government challenges
Innovation, Science and Economic Development Canada (ISED)
Last Update: March 3, 2026
Funding available
$ 2,000,000
Timeline
  • Open continuously
Location
Canada

Overview

The Innovative Solutions Canada — Challenge Stream offers Canadian small and medium for-profit businesses up to $2 million in funding to develop and test innovative solutions addressing government-identified challenges. Eligible activities include feasibility studies, prototype development, and commercialization support for market-ready innovations.
/100
Opportunity Score
Moderate potential, but conditions must align.

At a glance

Funding available

Financing goals
  • Increase performance through digital transformation
  • Develop a new product or service
  • Conduct research and development activities
Eligible Funding
  • Maximum amount : 2,000,000 $
Timeline
  • Open continuously

Eligible candidates

Eligible Industries
  • All industries
Location
  • Canada
Legal structures
  • For-profit business
Annual revenue
  • All revenue ranges
Organisation size
  • 499 employees maximum
Audience
  • Canadians
  • Startups

Next steps

1
Determine your project
2
Validate your eligibility

Activities funded

  • Development and demonstration of innovative solutions addressing specific challenges faced by government organizations.
  • Creation of proof of feasibility reports for early-stage innovations.
  • Design, building, and testing of late-stage prototypes for innovative products or technologies.
  • Commercialization of market-ready solutions developed through the program.

Eligibility

Who is eligible?

  • Canadian small businesses
  • Canadian medium-sized businesses

Who is not eligible

  • Non-Canadian businesses.
  • Non-incorporated entities (such as sole proprietorships and partnerships).
  • Non-profit organizations.
  • Businesses with more than 499 full-time equivalent employees (including affiliated businesses).

Eligible expenses

  • Funding to develop a proof of feasibility report.
  • Funding to build and test a prototype.

Eligible geographic areas

  • Businesses incorporated in Canada, either federally or provincially.

Additional information

  • Innovators retain ownership of any intellectual property (IP) developed during the process.
  • Market-ready innovations may be eligible for inclusion in a federal purchasing list for up to three years.
  • Each challenge may outline distinct completion timelines and specify varying funding amounts.
  • Applicants are encouraged to subscribe to updates if no relevant funding opportunity is currently available.

Frequently Asked Questions about the Innovative Solutions Canada — Challenge Stream for innovators Program

Here are answers to the most common questions about the Innovative Solutions Canada — Challenge Stream for innovators. This section explains what the program is, how much funding is available, eligibility requirements, application deadlines, and other important details to help you determine if this grant is right for your business.

What is the Innovative Solutions Canada — Challenge Stream for innovators?

The Innovative Solutions Canada — Challenge Stream offers Canadian small and medium for-profit businesses up to $2 million in funding to develop and test innovative solutions addressing government-identified challenges. Eligible activities include feasibility studies, prototype development, and commercialization support for market-ready innovations.

How much funding can be received?

Innovative Solutions Canada — Challenge Stream for innovators Funds up to $2,000,000 of admissible expenses.

Who is eligible for the Innovative Solutions Canada — Challenge Stream for innovators program?

To be eligible for the Innovative Solutions Canada — Challenge Stream for innovators program, you must: Be a for-profit business incorporated in Canada Have 499 or fewer full-time equivalent employees Conduct R&D activities within Canada

What expenses are eligible under Innovative Solutions Canada — Challenge Stream for innovators?

Development and demonstration of innovative solutions addressing specific challenges faced by government organizations. Creation of proof of feasibility reports for early-stage innovations. Design, building, and testing of late-stage prototypes for innovative products or technologies. Commercialization of market-ready solutions developed through the program.

Who can I contact for more information about the Innovative Solutions Canada — Challenge Stream for innovators?

You can contact Innovation, Science and Economic Development Canada (ISED).

Where is the Innovative Solutions Canada — Challenge Stream for innovators available?

The Innovative Solutions Canada — Challenge Stream for innovators program is available across Canada.

Is the Innovative Solutions Canada — Challenge Stream for innovators a grant, loan, or tax credit?

Innovative Solutions Canada — Challenge Stream for innovators is a Grant and Funding

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