Strategic Innovation Fund (SIF)
Canada
The Strategic Innovation Fund (SIF) is a major investment initiative managed by Innovation, Science and Economic Development Canada to support innovative projects that stimulate economic growth in Canada.
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grant_single|eligibleFinancing
- grant_single|noCondition
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- grant_single|timelineUnspecified
grant_single|financingType
Grant and Funding
Partnering and Collaboration
grant_single|eligibleIndustries
- Manufacturing
- Transportation and warehousing
- Information and cultural industries
- Professional, scientific and technical services
grant_single|grantors
- Innovation, Science and Economic Development Canada (ISED)
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grant_card_status|open
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The Strategic Innovation Fund (SIF) provides significant investments in innovative projects to stimulate Canada's economy and create jobs. Managed by Innovation, Science and Economic Development Canada, SIF supports projects in all sectors, including research and development, commercialization, and the expansion of industrial or technological facilities. Eligible activities encompass R&D efforts from early-stage technology readiness levels to commercial applications, thereby encouraging technology transfer and advancements across various industries.
grant_single_labels|projects
Eligible projects for the Strategic Innovation Fund (SIF) include those related to R&D and commercialization, firm expansion and growth, investment attraction and reinvestment, national innovation networks, and collaborative technology development and demonstration.
- R&D and commercialization of innovative products, processes, or services
- Expansion or material improvement of existing industrial or technological facilities
- New investments in R&D mandates and establishment of new facilities
- Development of national innovation networks supporting industrial research and technology demonstration
- Collaborative technology development and demonstration at various stages of technology readiness
grant_single|admissibleProjectsExample
$900,000
Toronto
Developing a new AI-driven financial tool for small businesses.
$2,200,000
Vancouver
Expansion of a biotech laboratory to increase research capacity.
$3,400,000
Calgary
Establishment of a clean energy R&D facility focusing on hydrogen fuel cells.
$1,500,000
Montreal
Creating a network of tech startups focusing on IoT advancements.
$1,800,000
Ottawa
Commercializing a breakthrough medical imaging technology.
$2,600,000
Windsor
Development of an advanced robotics system for manufacturing automation.
grant_single_labels|admissibility
The Strategic Innovation Fund (SIF) covers all sectors of the economy and is available to for-profit and not-for-profit organizations that aim to support Canadian innovation. SIF provides funding for Business Innovation and Growth projects and Collaborations and Networks projects, each with their own set of requirements.
- A for-profit business or cooperative incorporated in Canada
- A partnership proposing to carry out business in Canada
- A not-for-profit organization incorporated in Canada (for Collaborations and Networks projects)
grant_eligibility_criteria|who_can_apply
The Strategic Innovation Fund (SIF) covers all sectors of the economy and is available to for-profit and not-for-profit organizations aiming to support Canadian innovation through Business Innovation and Growth projects or Collaborations and Networks projects.
- For-profit business or cooperative incorporated in Canada
- Partnership proposing to carry out business in Canada
- Not-for-profit organization incorporated in Canada
grant_eligibility_criteria|who_cannot_apply
There are no specific types of companies mentioned in the grant context that are not eligible for this grant.
grant_eligibility_criteria|eligible_expenses
The Strategic Innovation Fund (SIF) supports a range of eligible project costs related to labor, materials, equipment, overhead, and more, with specific additional costs allowed for Collaborations and Networks projects.
- Direct labour costs
- Direct materials and equipment costs
- Other direct costs
- Overhead costs (program limits apply)
- Subcontracts and consultants costs
- Land and building costs (necessary and reasonable for project activities)
- Expenditures related to network operations and activities (Collaborations and Networks projects)
- Costs related to network operations (Collaborations and Networks projects)
grant_eligibility_criteria|zone
The Strategic Innovation Fund (SIF) supports projects across all geographic zones in Canada.
- Projects can be located anywhere within Canada.
- Funding is not restricted by specific geographic regions.
grant_single_labels|criteria
The Strategic Innovation Fund (SIF) evaluates and selects projects based on multiple criteria, including economic, public, and innovation benefits to ensure they align with Canada's investment priorities and provide significant advantages to Canadians. Due diligence assessments are conducted to evaluate the project’s feasibility, technical capabilities, and potential risks.
- Economic benefits: growth of Canadian firms, job creation, and maintaining high-paying jobs.
- Public benefits: environmental practices, investment in skills and training, inclusive business and hiring practices.
- Innovation benefits: enhancement or development of new industrial processes and technology, creation of intellectual property, and productivity impact of the new technology.
- Technical feasibility: evaluation of the project’s technical feasibility.
- Managerial, technical, and workforce capability: assessment of the organization’s competencies to implement the project.
- Financial and market risk: analysis of eligible project costs and market risks associated with the project.
- Equity, diversity, and inclusion practices: consideration of the company’s EDI practices.
- Greenhouse gas impact (if applicable): evaluation of the project’s impact on greenhouse gas emissions.
- Additional benefits to Canada: consideration of broader benefits that the project may generate.
grant_single_labels|register
- Step 1: Consultations
- Engage in a consultation with SIF officials to ensure your project aligns with SIF's priorities, meets eligibility requirements, and prepares you to complete the application steps. Required actions include reviewing SIF's project requirements, checking eligibility online, and pitching your project during a consultation meeting.
- Step 2: Statement of Interest (SOI) application
- After the consultation, you may be recommended to submit a SOI to start the application process. The SOI includes a description of your project, its benefits to Canada, alignment with SIF objectives, and your organization's financial and management capacity. SIF will assess the SOI and notify you of the results.
- Step 3: Full application
- If invited, submit a full application with detailed information about your project for due diligence and benefits assessment. SIF will conduct a thorough evaluation of your project's feasibility, benefits, and risks. If successful, the project will be recommended for approval, and a Contribution Agreement will be developed.
- Step 4: Implementation and monitoring
- Once the Contribution Agreement is signed, you can start claiming costs and reporting on the project's status. Regular reporting, including claims, project status reports, and benefit updates, will be required throughout the project's life cycle.
grant_single_labels|contact
1-800-328-6189
Apply to this program
Summary of the Strategic Innovation Fund (SIF)
The Strategic Innovation Fund (SIF) provides significant investments in innovative projects aimed at growing Canada's economy, fostering job creation, and promoting sustainable development. Managed by Innovation, Science and Economic Development Canada (ISED), SIF focuses on supporting transformative initiatives across all sectors of the economy, with a minimum contribution amount of $10 million and required project costs of at least $20 million.
Detailed Explanation of the Strategic Innovation Fund (SIF)
The Strategic Innovation Fund (SIF) is a flagship initiative of Innovation, Science and Economic Development Canada (ISED). Launched in 2017, SIF is designed to drive significant economic growth and technological advancement in Canada by providing substantial financial support for innovative projects. This comprehensive guide explores the nuances of the SIF, its eligibility criteria, application process, and the various benefits it offers to Canadian enterprises and non-profit organizations.
Objectives of the Strategic Innovation Fund
SIF aims to make transformative investments across all sectors of the economy, fostering a knowledge-based economy and promoting sustainable growth. The key objectives include:
- Encouraging businesses to invest in research and development (R&D) activities.
- Accelerating the growth and expansion of innovative businesses in Canada.
- Attracting and retaining large-scale investments to Canada.
- Advancing networks of collaboration between the private sector, research institutions, and non-profit organizations.
Who Can Apply?
SIF covers a wide range of sectors and is open to both for-profit and not-for-profit organizations. There are two categories under which entities can apply:
Business Innovation and Growth Projects
Applicants under this category must be:
- A for-profit business or cooperative incorporated in Canada.
- A partnership proposing to carry out business in Canada.
Successful applicants will be responsible for managing their projects, abiding by the terms and benefits of the Contribution Agreement, and handling all related reporting and repayments.
Collaborations and Networks Projects
Eligible lead applicants for this category include:
- A not-for-profit organization incorporated in Canada.
- A for-profit corporation incorporated in Canada.
Lead applicants must collaborate with Canadian universities, research institutes, SMEs, and other organizations to manage the project, submit claims, and report results.
Eligible Projects
SIF supports projects that align with its innovation, growth, and collaboration goals, falling under the following categories:
Business Innovation and Growth Projects
This category includes:
- R&D and Commercialization: Activities focusing on developing new products, processes, or services that increase the Technology Readiness Levels (TRLs).
- Firm Expansion and Growth: Projects that improve industrial or technological facilities, focusing on TRLs 8 to 9.
- Investment Attraction and Reinvestment: Supporting new investments in R&D mandates and establishing new facilities in Canada.
Collaborations and Networks Projects
This category includes:
- National Innovation Networks: Projects fostering collaboration among research institutions, academia, and industry, mainly focusing on TRLs 3 to 7.
- Collaborative Technology Development and Demonstration: Activities supporting industrial research and technology demonstration projects, focusing on TRLs 1 to 7.
Eligible Supported Costs
SIF provides reimbursement for specific project-based costs, including:
- Direct labour costs.
- Direct materials and equipment costs.
- Other direct costs and overhead costs (with program limits).
- Subcontract and consultant costs.
- Land and building costs necessary for project activities (with additional conditions).
For Collaborations and Networks projects, additional eligible costs include network operations, travel, salaries, office equipment, professional services, and other operational costs.
Ineligible Costs
Some costs are not supported by SIF, such as:
- Advertising expenses (except in trade, technical, or professional journals).
- Interest on loans, depreciation of assets, fines, tax-related expenses, and marketing expenses not associated with the project.
- Compensation deemed unreasonable, losses on projects or contracts, premiums for life insurance on officers/directors, and donations.
Application Process
The SIF application process is divided into three main stages: Before you apply, Apply, and After your project is approved. Here’s a closer look at each stage:
Before You Apply
1. Consultations: Before applying, a consultation with SIF officials helps ensure your project aligns with SIF's priorities and meets eligibility requirements. Reviewing SIF's project requirements and checking your eligibility online are essential steps at this stage.
Apply
2. Statement of Interest (SOI) Application: Following the consultation, you may need to submit an SOI describing your project, its benefits to Canada, and its alignment with SIF objectives. After assessment, SIF may ask for additional information or invite you to submit a full application.
3. Full Application: If invited, submit a detailed application for a comprehensive due diligence and benefits assessment. This process includes evaluations of technical feasibility, managerial capacity, financial risk, and the project's alignment with equity, diversity, and inclusion practices.
After Signing of the Contribution Agreement
4. Implementation and Monitoring: Once the Contribution Agreement is signed, the project enters the implementation phase, where you will claim costs quarterly and report on project status. SIF monitors projects regularly, including work performance and compliance with the Contribution Agreement's benefits.
Term Sheets and Contribution Agreements
Upon passing the due diligence assessment, SIF will work with the applicant to develop a Term Sheet outlining the terms and conditions of the funding. Once approved, a Contribution Agreement is prepared to formalize the funding arrangement, detailing the reporting requirements, funding terms, repayment schedules, and obligations of both parties.
Benefits to Canadians
SIF aims to create economic, public, and innovation benefits for Canadians by:
- Developing enterprises through R&D and accelerating technology transfer.
- Improving the lives of Canadians through job creation, diverse workforces, health outcomes, and enhanced safety.
- Transforming the economic and environmental landscape by reducing greenhouse gases and promoting clean technologies.
Funding Amounts
The minimum SIF contribution amount is $10 million, for a project with at least $20 million in total eligible supported costs. The actual funding amount depends on overall project costs and the level of government assistance received.
Assistance from Other Governments
SIF collaborates with other government levels to refer projects or seek co-funding opportunities. The level of co-funding varies based on the activity type and includes contributions from federal, provincial, territorial, and municipal levels.
Repayment Conditions
Most SIF contributions are repayable, structured on a case-by-case basis as unconditional, conditional, or a combination of both. Non-repayable contributions are considered for activities with significant benefits for Canadians and alignment with government priorities, assessed on a case-by-case basis.
Reporting Requirements During and After the Project
Recipients must submit regular claims and project status reports during the project, and annual performance reports, financial statements, and repayment forecasts after project completion. Audit participation is also required to verify costs and compliance.
Legal Considerations and Intellectual Property
Applicants must comply with relevant Canadian laws, including the Lobbying Act and Conflict of Interest Act, and provide necessary representations regarding ethics, lobbying, and public office holder disclosures. Applicants must also hold sufficient intellectual property rights to carry out project activities and protect IP resulting from SIF-supported activities.
Security of Company Information
SIF handles applicant information according to the Privacy Act and the Access to Information Act, ensuring confidentiality unless disclosure is authorized or required by law.
International Agreements
SIF operates in accordance with Canada’s international agreements, with contributions not dependent on actual or estimated export performance.
For more detailed information or to apply, contact the Strategic Innovation Fund (SIF) via the provided contact options.
