Industrial Research Assistance Program (IRAP)

The National Research Council of Canada Industrial Research Assistance Program (NRC IRAP) provides funding for small and medium-sized businesses in Canada for the purposes of growing innovation capacity and taking ideas to market.

Funding Type

IRAP funding operates on a reimbursement basis, historically reimbursing up to 80% of salary costs and up to 50% of eligible subcontractor costs. Successful first-time applicants may receive ~$50,000 in funding. Typical contributions to SMEs range from 50K to 1M and for larger projects under AI Assist & Clean Tech may receive over 1M in funding for projects demonstrating significant benefits to Canada. IRAP Youth Employment program typically funds up to 30K per hire.

Eligible Applicants

NRC IRAP sets out minimum requirements that apply for all funding streams, as well as specialized requirements for each of the initiatives.

It is important to note that NRC IRAP does not support unlimited or limited liability corporations (ULCs or LLCs), sole proprietorships or partnerships, or cooperatives.

While minimum requirements should be met to be eligible for funding, it does not guarantee NRC IRAP support or funding. Meeting these requirements enables IRAP to selectively engage with potential companies to further assess their projects and eligibility. Additional requirements are in place for the specific funding programs under IRAP.

Minimum requirements (SME Criteria):
01

Operate as a for-profit business, incorporated and operating in Canada

02

Employ a maximum of 500 full-time equivalent staff in Canada

03

Develop and commercialize innovative, technology-driven products or services

04

Demonstrate the ability to create economic benefits in Canada, such as new jobs or increased innovation capacity

NRC IRAP still operates its funding programs through a single point of entry but changed its internal funding stream structure to distribute funding based on programs created by federally mandated initiatives. The current funding programs include:

IRAP – Funding to Support Technology & Innovation

The goal of this program is to assist businesses to turn their innovations into market-ready products and services.

NRC IRAP provides financial support for research and development (R&D) and other technology-driven innovation projects, helping your company expand, add jobs, and compete on the world stage.

NRC IRAP considers the following important aspects when funding projects:

Technical Innovation

The feasibility and novelty of your technology.

Operational Capacity

Your management team's expertise and financial stability.

Execution Likelihood

The probability of successfully delivering project results.

Commercialization Strategy

Your plan to take the product or service to market.

Market & Economic Impact

The market viability of the project and its tangible benefits to Canada.

IRAP doesn’t fund daily operating costs for nontechnical or purely commercial activities. The work should be performed in Canada and demonstrate strong potential for commercialization.

Clean Technology Program

Through this new support for Canadian businesses to develop & advance clean technologies, NRC IRAP is funding business developing, testing or commercialization activities. This program could potentially fund promising technologies through proof of concept to larger-scale, multi-year projects that create long-term environmental benefits. SMEs are required to meet the minimum criteria below to be eligible for consideration for funding.

  • Develop new clean technologies for commercialization
  • Provide a clear plan for providing environmental benefits, such as reducing greenhouse gas emissions, improving air, soil, or water quality
  • Demonstrate an innovative technology with validated proof of concept
  • Establish measurable and quantifiable environmental impacts for their technological innovation
  • Outline a clear path to commercialization for your innovation

AI Assist

Canadian Government is committed to providing support to increase the quality and competitiveness of Canadian AI technologies. Through this program NRC IRAP provides funding and support to innovative businesses projects that meet the following criteria:

  • Aim to develop and adapt generative AI (GenAI) and deep learning (DL) solutions safely and ethically and apply into their core products and services
  • Undertake scientific research, product development, testing, and validation of AI technologies for safe adoption

DI Assist: Defence & Dual Use Technology

In January 2026, the Canadian Government announced a $241 million investment in the (NRC IRAP) to launch the Defence Industry Assist initiative (DI Assist).

To fulfill the objectives of Canada's Defence Industrial Strategy, DI Assist acts as a catalyst to speed up innovation, fortify the domestic supply chain, and empower Canadian enterprises to scale up within essential sovereign capability areas.

To unlock funding, your business must first meet NRC IRAP's basic eligibility requirements and clearly demonstrate its ability to innovate, scale operations, and drive growth in the defence sector.

  • Develop defense and dual-use technologies applicable to both military and civilian applications
  • Address the specific capability needs of the Canadian Armed Forces
  • Align with the priorities and key sovereign capabilities outlined in the Canada’s Defence Industrial Strategy
  • Demonstrate a clear path to commercialization for the technology

This program funds projects through various stages of development leading such as early stage R&D, testing, refining or validation of technologies closer to commercialization. IRAP supports preparing companies for defence market procurement processes.

Project Timelines/Deadlines

NRC IRAP intake is continuous, and projects strictly follow the Canadian federal government fiscal year. Funding approvals for the fiscal year start on April 1st each year.