National Research Council Criteria
The National Research Council’s IRAP generally receives a greater number of indications of interest and applications than it can fund in any given time period. Innovation and invention are two necessary ingredients to receive funding approval, but these must also be accompanied by evidence of solid management, a clear plan to market the results of the R&D, sufficient accounting systems, intentions to make certain minimal equity contributions (cash and in kind) by the company to the project, and sufficient other financing to meet the remaining funding needed. A history of innovation by the company or its principals is beneficial but not necessary. The proposal need not promise to result in a patentable invention, but it cannot be a duplication or a near-duplication of an existing technology reasonably available on the market, even if that technology is proprietary. It must promise to strengthen the company’s technological capability, effectively increasing the permanent in situ technological capital of the applicant.

What the National Research Council Funds
Ideally, project activity will generate new employment in technology or science fields, which is the area of funding that the National Research Council, through IRAP, is most likely to support. This funding of labour costs is generally 50%, although some other costs such as specialized materials, equipment, studies, lab fees, and contractors may also be supported in exceptional cases. Core innovation and invention activities that carry high technological risk are targeted for support by IRAP. If your company is a technology neophyte on the business landscape, IRAP may prefer to work with you in several staged project phases with specific deliverables towards eventual product innovation, during which the relationship with you can be developed.

Relationship to R&D Tax Credits
Application for R&D tax credits (SR&ED) is expected and in fact specified in the Contribution Agreement between the National Research Council and the applicant. Correspondingly, SR&ED applicants that are IRAP-supported tend to be viewed more favorably by CRA because of the screening that the National Research Council also applies to applicants. However, because of the more limited focus of NRC IRAP, projects that qualify for SR&ED are not necessarily IRAP candidates. Additionally, timing, organizational, IP ownership, and other issues may be involved. TSGI consults with you to help you assess whether the intensive grant application, execution, and monitoring process with NRC IRAP is a good fit with your company’s goals. If the eventual decision is positive, TSGI will be at your side to assist consulting with you on those processes.

The National Research Council’s R&D funding programs target high technological risk yet are averse to business risk, which can be a Catch-22 for start-ups. Another aspect of NRC IRAP involvement is that it is not just “about the Project”; it is about a longer-term, year-to-year Program relationship to build the technological basis of your company.