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Source verified July 27, 2026
Innovative Solutions Canada - Program
Funding for Canadian SMEs to develop and test innovations
Funding available
$ 2,000,000
Deadline
Open continuously
Location
Canada
Overview
Innovative Solutions Canada’s Challenge Stream for innovators supports Canadian small and medium businesses developing solutions to specific government challenges. It funds proof of feasibility reports and prototype development and testing, with opportunities tied to early-stage innovations and late-stage prototypes.
/100
Opportunity Score
Moderate potential, but conditions must align.
At a glance
Funding available
Financing goals
- Develop a new product or service
- Conduct research and development activities
Eligible Funding
- Maximum amount : 2,000,000 $
Eligible candidates
Eligible Industries
- All industries
Location
- Canada
Legal structures
- For-profit business
Annual revenue
- $ 10,000,000 maximum revenue
Organisation size
- 499 employees maximum
Audience
- Canadians
- Startups
Next Steps
1
Determine your project
2
Validate your eligibility
Activities funded
- Develop a proof of feasibility report.
- Build and test a prototype.
Documents Needed
- Pathway to commercialization application form
Official resources
Eligibility
Who is eligible?
- Canadian small and medium businesses
Selection criteria
- Solutions within TRL 1-4 may be considered for Phase 1.
- Solutions within TRL 5-9 may be considered for Phase 2.
- If you entered at Phase 1 and successfully completed your proof of feasibility, you may be considered for Phase 2.
- The competition may sometimes limit applications to only Phase 1 or only Phase 2.
How to apply
- Complete a self-assessment against the Technology Readiness Scale (TRL) to determine the next steps.
Processing and Agreement
- If your project was funded through a contract and your innovation is market ready at the end of the project, you may have an opportunity to submit an application to the pathway to commercialization program feature.
- In that phase, you must recertify that you still meet challenge stream eligibility, prove that your innovation is market ready, and complete the pathway to commercialization application form.
- If your innovation is granted entry, it will be added to the list of eligible innovations for a 3 year period.
- During that period, the innovation will be available to federal organizations, and Public Service and Procurement Canada will determine the most appropriate procurement method.
Additional information
- The innovator retains ownership of any IP developed during the process, and the market-ready innovation is yours to commercialize.
Other components of this program
Explore related funding streams and grants that belong to the same program.
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Frequently Asked Questions about the Innovative Solutions Canada - Program Program
What is the Innovative Solutions Canada - Program?
Innovative Solutions Canada’s Challenge Stream for innovators supports Canadian small and medium businesses developing solutions to specific government challenges. It funds proof of feasibility reports and prototype development and testing, with opportunities tied to early-stage innovations and late-stage prototypes.
How much funding can be received?
Innovative Solutions Canada - Program Funds up to $2,000,000 of admissible expenses.
Who is eligible for the Innovative Solutions Canada - Program program?
To be eligible for the Innovative Solutions Canada - Program program, you must:
Operate as a for-profit entity incorporated in Canada, federally or provincially.
Have 499 or fewer full-time equivalent employees.
Conduct research and development in Canada and meet the program’s Canada-based payroll, workforce, and senior-executive thresholds.
What expenses are eligible under Innovative Solutions Canada - Program?
Develop a proof of feasibility report.
Build and test a prototype.
Where is the Innovative Solutions Canada - Program available?
The Innovative Solutions Canada - Program program is available across Canada.
Is the Innovative Solutions Canada - Program a grant, loan, or tax credit?
Innovative Solutions Canada - Program is a Grant and Funding
Who are the financial supporters of the Innovative Solutions Canada - Program?
Innovative Solutions Canada - Program is funded by Innovation Canada, Innovation, Science and Economic Development Canada (ISED)