Innovative Solutions Canada Program
Last Update: July 22, 2025
Canada
Funding for Canadian SMEs to develop and test innovations
Innovative Solutions Canada Program at a glance
Eligible Funding
- No Condition
Timeline
- Unspecified
Financing Type
Grant and Funding
Eligible Industries
- All industries
Grant Providers
- Innovation, Science and Economic Development Canada (ISED)
- Government of Canada
- Innovation Canada
Program status
Open
Overview of the Innovative Solutions Canada Program program
Your small business could get funding to come up with an innovative solution to a government challenge, with access to early-stage development, testing and validation of a prototype, and a pathway to commercialization.
Financing terms and conditions
- Phase 1: Funding of up to $150,000 for developing a proof of feasibility report within up to six months; in some cases, awards may reach up to $300,000 and the timeline may vary.
- Phase 2: Funding of up to $1,000,000 over a maximum period of two years for the development and testing of the prototype; in some cases, awards may reach up to $2,000,000.
Eligible projects & activities
- Development of a proof of feasibility report for innovative solutions addressing government challenges.
- Building and testing prototypes of innovations to meet specific government-identified needs.
Examples of admissible projects:
$ 180,000
Developing a green building material from recycled plastics
$ 150,000
Development of a solar-powered water purification system
$ 250,000
Creating a blockchain-based voting system to enhance electoral transparency
$ 200,000
Introducing a waste-to-energy plant to convert municipal waste into clean energy
$ 160,000
Creating a mobile health diagnostics platform for remote communities
$ 120,000
Developing an AI-based traffic management system to improve urban mobility
Eligibility criteria of the Innovative Solutions Canada Program program
- The applicant must be a Canadian-incorporated, for-profit small or medium-sized business (federally or provincially incorporated).
- The business must have 499 or fewer full-time equivalent employees, including affiliates.
- Research and development activities must be conducted within Canada.
- At least 50% of annual wages, salaries, and fees must be allocated to employees and contractors primarily working in Canada.
- At least 50% of full-time equivalent employees and senior executives (vice-president and above) must have Canada as their principal place of work or residence.
Who is eligible?
- Canadian small businesses
- Canadian medium businesses
- For-profit corporations incorporated in Canada
Eligible expenses
- Development of a proof of feasibility report.
- Building and testing of prototype innovations.
Eligible geographic areas
- Businesses incorporated in Canada (federally or provincially).
Eligibility criteria of the Innovative Solutions Canada Program program
There are evaluation and selection criteria for this grant. The eligibility and evaluation criteria include:
- Relevance to the challenge
- Technical innovation
- Financial viability
- Potential for commercialization
- Capability and resources to deliver
How to apply to the Innovative Solutions Canada Program program
1
Self-Assessment
Evaluate your project against the Technology Readiness Scale (TRL) to determine eligibility for Phase 1 or Phase 2.
2
Eligibility Verification
Ensure your business meets all eligibility criteria outlined in the program.
3
Review Fund Opportunities
Check current funding opportunities and relevant details like funding amounts and timelines.
4
Proposal Development
Develop a detailed proposal for your innovation, including objectives, feasibility, and potential impact.
5
Application Submission
Compile and submit your application, ensuring all required documents and forms are complete.
6
Confirmation of Submission
Receive confirmation of your application submission from the granting body.
Additional information
- The innovator retains ownership of any intellectual property developed during the grant process.
- Market-ready innovations may be eligible for the pathway to commercialization, making them available for federal procurement for a period of 3 years.
- Applicants should monitor each challenge for unique timelines and funding details.
- Affiliated businesses, including parent companies and subsidiaries both in and outside Canada, must be included in full-time employee calculations.
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