As the world shifts towards the increased use of technology in everyday life, technology seems to be constantly improving to provide users with only the best experiences. From Smart TVs to even more advanced smartphones, technology is constantly improving. With this evolution of technology, mobile gaming is also an industry that has come a long way from its origin. Dating back to the 1990s, Nokia users were able to play the simplest of games such as snakes on their devices. Thanks to emerging technologies however, users today have the option of downloading any mobile applications of their choice, specifically any mobile game.

The mobile gaming industry globally is currently in it’s prime. With almost everyone having some version of a smartphone and due to the ease of access of these games, mobile games are becoming increasingly popular. Games such as Fortnite by Epic Games and PUBG by TenCent rake in over millions of dollars a month.

Specifically, the Canadian mobile gaming industry has also been excelling under these conditions. Some of Canada’s most popular mobile game developers such as Relic Entertainment and Big Blue Bubble have also been able to generate similar profits.

The added variety of mobile gaming has been of significant influence on the gaming industry in the country bringing in revenues of an estimated USD$857M in 2020 with USD$317M from the mobile gaming sector alone.

With the increased usage of mobile gaming in Canada, there is potential in this industry. Additional users each day and their feedback has contributed to Canada achieving the 25th position globally in overall mobile gaming experience compared to the US which is at 35th. Being the top 25 pushes Canada to strive for improvement and rank even higher in the coming years. Relatively, there are several efforts working towards the same goal.

The most significant effort stems from the increasing market for esports. Games such as Counterstrike have over 19 squads competing for prize money worth several million dollars. Players have been known to generate a following by playing and streaming their games on platforms such as Twitch and YouTube like Canadian steamer Sonja Reid also known as OMGitsfirefoxx. The greater the reach of these streaming platforms, the greater the excitement and energy behind it and the more likely viewers are to turn to playing themselves. In Canada, developers can continually create content to provide mobile gamers with engaging and exciting material to keep driving the market. This is also profitable for the Canadian government as it looks forward to the gaming industry to continue making significant contributions to the national GDP over the years.

The entertainment software industry contributed $4.5B to Canada’s GDP in 2019 alone and employs over 48,000 people which includes 27,700 directly working with video game companies.(https://www.newswire.ca/news-releases/video-game-development-industry-contributes-4-5b-to-canada-s-economy-850704435.html). This GDP contribution made by the gaming industry is only going to increase as advancement in video game development takes place. This industry focuses on innovation and research in order to develop new emerging technologies and intellectual property. Through research and development, gaming has expanded to smart phones, tablets, motion sensor gaming consoles and even cloud-based gaming. This development involves physics simulation, artificial intelligence, graphics acceleration and several other features that need to be simulated to create the ultimate gaming experience.

With the advancements so far, the industry is looking forward to providing its users with potential 3-D gaming and revolutionary simulations in the coming generations of consoles.

This product development is extremely well supported by the federal government of Canada. Innovation and R&D have always been supportive of such efforts and are available to all businesses to maximize. Such projects are especially eligible for the Scientific Research and Experimental Development tax program which rewards R&D efforts and funds similar projects. Applicants can expect to receive a tax credit, or a cash refund based on the qualifying expenditures of their SRED project. Provincial governments also fund such efforts on different levels such as the Digital Media Tax Credits offered in Ontario etc. through other innovation grants for all industries.

EVAMAX specializes in working with businesses to help prepare their SR&ED applications. They also have expertise in other federal and provincial support available to businesses. Contact EVAMAX today to see if your project qualifies!

Introduction

Only the amount, size, extent, or duration of work that is necessary for and directly in support of the basic research, applied research, or experimental development work undertaken in Canada is eligible.

The work below includes a production run to produce a product for testing. The context of the production run is not dealt with in this example.

We cannot determine eligibility without understanding the work performed and evaluating it using the five questions.

Related: Preparing Your Company For SRED CRA Review

Example

You produce field hockey sticks in large numbers for the world market. The main element of the production stage is a machine that accepts pre-cut lengths of timber and produces the cut forms for further processing, which includes rasping, curing, and finishing.

You started a project involving experimental development. You wanted to integrate an advanced scanning and laser cutting technology to cut and rasp hockey sticks into one machine instead of having two separate machines. This integration step involved collecting data including size and other tolerances and testing for mechanical strengths and other performance requirements.

Based on statistical analysis and your in-house knowledge of the existing machinery, you determined that an experimental sample size of 500 sticks from the cutting and rasping machine would generate enough data to test and validate your hypotheses with 95% confidence. It would also be enough to conclude that the development is complete and successful.

You produced 2,000 sticks.

Related: SR&ED Consulting: Is Your Company Maximizing Potential Benefits?

Conclusion

The testing and data collection associated with cutting and rasping the first 500 sticks is commensurate with the needs and directly in support of your SR&ED work. (Note that this is all this example deals with. It does not deal with treating expenditures, including materials, for SR&ED investment tax credits.)

Source: CRA (Canada Revenue Agency)

 

For assistance in preparing your submission and to position your application for approval contact EVAMAX Group to help you with the process. You may also email us at info@evamax.com or call 1-877-711-7733.

 

SR&ED Case Study Creating new materials, devices, products or processes without technological advancement

 

Introduction 

The creation of new materials, devices, products, or processes, or the improvement of existing ones, can be achieved without technological advancement.

Work can be done systematically to produce a new product. However, without technological uncertainty and an attempt to achieve technological advancement, the work is not SR&ED.

We cannot determine eligibility without understanding the work performed and evaluating it using the five questions.

Example

The basic design of the potato peeler has not changed for more than 100 years. You wanted to develop a novel peeler by adding a phosphorescent substance to the plastic handle so it would be easier to find the peeler in a dark kitchen drawer.

You obtained several samples of phosphorescent powders from various suppliers. You carried out a number of production runs, testing each powder at varying levels in the molding process. Adding the phosphorescent substance did not require any change to the molding process or the type of plastic, nor did it affect the other physical properties of the handle or how the peeler worked.

As a result of the work you performed, you determined, for each powder, the amount needed to produce the proper glow in the handle. You then chose a supplier based on an analysis of the amount of powder needed and the unit cost of the powder.

You came up with a new and novel product, and the work you performed to choose the appropriate powder, based on performance and cost, was carried out very systematically. However, there was no technological advancement required to develop this glow-in-the-dark peeler.

There was no technological uncertainty. You could claim you were unsure about how to achieve your objectives because you did not know which powder to use and what level you needed to use it to make the peeler.

However, there are no lacking scientific or technological knowledge or principles that prevented you from making that determination. You knew how to add the phosphorescent substance and adding it did not affect the properties of the handle or the performance of the peeler.

Conclusion

New or improved materials, devices, products, and processes can be developed without technological advancement.

Source: CRA (Canada Revenue Agency)

 

For assistance in preparing your submission and to position your application for approval contact EVAMAX Group to help you with the process. You may also email us at info@evamax.com or call 1-877-711-7733.

 

SR&ED Case Study Creating new materials, devices, products or processes without technological advancement

 

Introduction

Development work is based on an existing scientific or technological knowledge base. Specifically, you might be directly adapting a known engineering or technological practice to a new situation when you are reasonably certain that the known technology or practice will achieve the desired objective.

We cannot determine eligibility without understanding the work performed and evaluating it using the five questions. In this example, there are indicators that suggest there may be uncertainty but they do not point to any specific uncertainty.

Example

You are a greenhouse grower. After successfully verifying that a newly developed plant variety can be grown on a small scale, you believe there is a good chance you can use the new plant variety to produce commercial crops. You are trying to find the optimum conditions to maximize production.

You plant a controllable zone (between 2 and 10 acres) in a greenhouse and monitor the growth of your crop. Depending on its performance, you make adjustments to guide the crop to optimal production. These adjustments involve using optimization techniques for variables such as light, temperature, carbon dioxide, and humidity.

You also develop and implement management protocols to optimize the control of nutrient levels, de-leafing, thinning, and other operational practices. These adjustments and management protocols are often called the “development of cultural management strategies” or “crop husbandry strategies.”

Based on the results from your controllable zone, you start commercial production.

Conclusion

These strategies are well-known and practiced in this industry. You are fairly sure that the techniques, data, and procedures you used, in this case, would work to optimize production. So, although you might not be certain of the specific parameters, figuring them out using these strategies is drawing on the existing scientific or technological knowledge base of the industry.

In this case, there is no scientific or technological uncertainty in determining the optimum conditions to maximize production of a new plant variety. This is the development based on the existing scientific or technological knowledge base.

Source: CRA (Canada Revenue Agency)

 

For assistance in preparing your submission and to position your application for approval contact EVAMAX Group to help you with the process. You may also email us at info@evamax.com or call 1-877-711-7733.

 

 

Introduction

Even though a cost target in itself does not necessarily create a technological uncertainty, a technological uncertainty might exist when the paths to meeting the cost target are technologically uncertain.

No specific technological uncertainty is identified in this example because what is specifically lacking in the scientific or technological knowledge base, which is preventing the cost target from being met, is not explained.

We cannot determine the eligibility without understanding the work performed and evaluating it using the five questions. In this example, there are indicators that suggest there may be uncertainty but they do not point to any specific uncertainty.

Example

You want to develop an air recirculation system for energy-efficient homes that will permanently remove carbon monoxide. A key component of this system is a module in which carbon monoxide is converted to relatively harmless carbon dioxide at room temperature.

There is a process that uses a tin oxide and platinum catalyst to convert carbon monoxide to carbon dioxide at room temperature. You could develop a product that includes a module based on this process. However, the high cost of using this process will make the selling price of the product out of reach for your customers. There are other methods to convert carbon monoxide, but they are not effective at room temperature. It is important that the module operates at room temperature.

To achieve your project objective (a room-temperature carbon monoxide remover), you have to develop a new inexpensive process. There might be technological uncertainty associated with how to convert carbon monoxide to carbon dioxide at room temperature without using the costly tin oxide and platinum process.

Conclusion

Your motivation for doing the work is the cost target. The cost target—a business or commercial objective—by itself does not create a technological uncertainty. However, a technological uncertainty might arise from the need to meet the cost target, even though a more costly process is known to work.

Source: CRA (Canada Revenue Agency)

For assistance in preparing your submission and to position your application for approval contact EVAMAX Group to help you with the process. You may also email us at info@evamax.com or call 1-877-711-7733.

 

SR&ED Case Study Creating new materials, devices, products or processes without technological advancement

 

Introduction

There is a difference between a technical problem and technological uncertainty. We cannot determine eligibility without understanding the work performed and evaluating it using the five questions. In this example, there are indicators that suggest there may be uncertainty but they do not point to any specific uncertainty.

Example

Scenario 1 – Technical problem

You are a chemical company and you are developing a new process for a chemical product. Part of the process involves a series of pumps. The pumps started to corrode after six months, even though they had an expected lifespan of 10 years. Surprised to see corrosion so soon, you contacted the pump supplier. After looking at the pumps, the pump supplier found that there was a corrosive liquid in them. The pumps were not designed to come into regular contact with a corrosive liquid. So you looked at your whole process, including the parts involving the pumps.

You found that there were low levels of a corrosive liquid in the streams entering the pumps from time to time. After many weeks, you were able to trace the source of the corrosive liquid back to a sporadic leak in a filter system upstream of the pumps. You also found that the leak was likely caused by the filter system operating at a higher temperature than it was designed for. You replaced the filter system with a new high-temperature filtration unit. This appears to have resolved the problem of the corrosive liquid getting into the pumps.

In this scenario, the problem with the pumps in the new process was technical and not technological. You resolved the technical problem—corroding pumps—by identifying the true source of the problem and fixing it with an existing solution.

Scenario 2 – Technological uncertainty

This time you are the pump supplier. A series of pumps supplied by you started to corrode after six months of operation rather than after the expected lifespan of 10 years. You were asked to investigate the problem. You found that the pumps were corroding because of a leak in the seal on their shaft, which allowed a corrosive liquid into the units. In this case, the pumps were designed to operate in a corrosive environment. You replaced the seals in the pumps, but the pumps again showed signs of corrosion after six months. Again the cause was a leak in the seal on their shaft.

You investigated further and found that the temperature of the shafts of the pumps after they had been working for a long time, was above the maximum recommended an operating temperature of the seal material. After prolonged operation, the seal failed, letting corrosive liquid leak into the units.

Once you discovered the cause of the problem, you started working on understanding the relationship between the sealing material and the seal profiles in a high-temperature, corrosive environment. You wanted to figure out the most suitable seal profile and seal material to achieve a 10-year lifespan. The manufacturers had data on the behavior and physical properties of the seal materials at much lower temperature ranges, but there was no information or data on their corrosion resistance and physical properties at higher temperatures and in that specific type of environment. Nor was there any information on the profile that would be suitable for the high-temperature, corrosive environment the pumps were going to be used in.

In this scenario, you likely faced technological uncertainty which prevented you from choosing a combination of seal profile and sealing material that would offer long-term performance in a high-temperature, corrosive environment. That technological uncertainty could be related to the properties of the materials in the corrosive conditions as well as to the effect of seal profile on performance.

Conclusion

There is a difference between a technological uncertainty and a technical problem that can be resolved by applying practices, techniques, or methodologies that are known or that are openly available.

Source: CRA (Canada Revenue Agency)

 

For assistance in preparing your submission and to position your application for approval contact EVAMAX Group to help you with the process. You may also email us at info@evamax.com or call 1-877-711-7733.

 

SR&ED Case Study Creating new materials, devices, products or processes without technological advancement

 

Introduction

Technological uncertainty may arise from limitations of the current technology that prevents you from developing a new or improved capability. Technological uncertainty exists when you don’t know whether you can achieve a certain result or objective or how to achieve it based on generally available scientific or technological knowledge or experience.

We cannot determine eligibility without understanding the work performed and evaluating it using the five questions. In this example, there are indicators that suggest there is uncertainty but they do not point to any specific uncertainty.

Example

You use the current technology to extract oil from oilseeds, which involves batch processing. In batch processing, the seeds are crushed, conditioned, and flaked at high temperature (80–100°C). The residue after removing the oil is made up mostly of protein-rich flour and seed coats with some trapped oil. This residue (also called meal) is then ground and the trapped oil is extracted with the solvent. The solvent is recovered from both the meal and the extracted oil by toasting and distillation. You generally sell the meal as an animal feed product. However, it would be better if you could sell the meal as nutrition rich flour.

The meal product you get with this process is a mixture of protein-rich flour, which you want, and seed coats, which you don’t want. Seed coats have no nutritional value, and they make the flour visually unappealing as a potential ingredient in food for humans to consume. Also, the high temperature used in the conditioning and flaking harm the nutritional value of the oil and the flour.

With the current technology, your ability to separate the protein-rich flour from the seed coats without affecting the nutritional value of the oil and flour is limited. You want to develop a low-temperature oil extraction process that would let you separate the protein-rich flour from the seed coats for a particular type of oilseed, so you can produce a protein-rich product suitable for humans to consume.

In particular, you want to be able to separate the seed coats from the protein-rich flour at a low temperature. This is difficult because the seed coats and the flour have similar physical properties and because the two are bonded together.

Although there are many different methods to separate solid particles with different physical properties, there is no effective low-temperature method to separate solid particles with very similar physical properties when the particles themselves are bonded together.

After literature review and discussing it with academic and industrial experts, you found out that one technology that had reportedly been tried to separate seed coats from flour on a small scale was ultrasonic maceration (without extraction) in a batch process. But, you could not find any information on using ultrasonic maceration with solvent extraction for your particular oilseed. On top of that, you believed that you needed to develop a continuous process for a large-scale operation (as opposed to a small-scale batch process) that involved ultrasonic maceration and simultaneous solvent extraction.

There was no information that showed whether large-scale ultrasonic maceration and solvent extraction had been used for any type of oilseed. There was technological uncertainty associated with developing a large-scale continuous method using ultrasonic maceration and simultaneous solvent extraction to process a particular type of oilseed at low temperatures to produce a protein-rich product suitable for humans to consume. You did not know whether you could achieve that or how to achieve it based on generally available technological knowledge or experience.

 

Conclusion

Technological uncertainty arose because of the limitations of current technology. You could not use the current technology to develop a large-scale, continuous process to separate the seed coats from the protein-rich flour at a low temperature. There was technological uncertainty because you did not know whether you could achieve a specific result or objective or how to achieve it based on generally available scientific or technological knowledge or experience.

Source: CRA (Canada Revenue Agency)

 

For assistance in preparing your submission and to position your application for approval contact EVAMAX Group to help you with the process. You may also email us at info@evamax.com or call 1-877-711-7733.

 

 

SR&ED Case Study Creating new materials, devices, products or processes without technological advancement