New Product Development - A Strong Indicator of Eligibility
If you are seeking new product development funding, assistance may be available to you. While not a definitive indicator, often new product development (whether tangible or software) requires a technological advance. Even if your scientific understanding of the principles that are the source of the advance is not complete, that understanding is not required for SR&ED funding so long as the technological advance is present or planned and is targeted towards a new product (also improved products, or new / improved process). If you undertook or are planning product design and prototypes, this is also often an indicator of eligibility because of a need to reduce technological uncertainty through developing prototypes. A patent for a new invention is not required.

Success in New Product Development
… is helpful to show eligibility for SR&ED because the technological advance is often embodied in the capabilities of the new product. If your new product development pushes the envelope of what was previously available in the public domain, and better performance or capabilities can be demonstrated, that is potentially an indicator of eligibility and useful supporting evidence. Documenting what others have achieved versus what you have achieved or are attempting, is beneficial.

But Success in New Product Development is Not Required for SR&ED
Perhaps your company has been diligently attempting to make a technological advance but has encountered significant problems, perhaps even failed and given up completely, walking away from your past investments. Or possibly you have had to settle for far less than you had hoped and intended, with a new product development that is much less capable than envisioned. Don’t throw away your scrap heap (whether it is virtual or real)! As long as you have documentation (including your scrapped attempts) that establishes your intentions, the development process, and the stages along the way, it is possible that we can help you recoup some of your past investment through the Canadian government’s SR&ED program. The reasoning behind the lack of requirement to experience success is that the technology base of your company has increased through the work that was done. That is the ultimate intent of the SR&ED program.

Success in New Product Development is Encouraged for IRAP
In contrast, IRAP new product development funding plans and intends that success will be the ultimate result. IRAP carefully balances anticipated, expected, and encouraged significant technological risk with eventual success in both a technological and commercial sense.