CanExport Innovation - Applicant’s guide

May 2022

Summary

A detailed guide for Canadian small and medium-sized enterprises, academic institutions and non-government research centres on how to access CanExport Innovation funding to facilitate collaborative research and development (R&D) partnerships with international partners and investors to fund R&D work.

Table of contents

1. Program overview
2. How funding works
3. Project scope
4. Eligible organizations
5. Eligible foreign partners
6. Project objectives
7. Eligible activities and expenses
8. Assessment criteria
9. How to apply
10. After applying
11. Contact us

1. Program overview

CanExport Innovation is designed to promote and enhance Canada’s international innovation efforts. The program offers grants and contributions to Canadian organizations to assist them in establishing and formalizing new collaborative research and development (R&D) partnerships with foreign partners.

The R&D partnerships being pursued must be for the purpose of joint development, adaptation and/or validation of a Canadian technology owned by the applicant organization. The technology must be ready for commercialization within 5 years. Additionally, seeking investors to support joint R&D work would be considered and eligible objective by the program.

CanExport Innovation provides funding for activities up until the point at which partnerships are formalized. A partnership is considered formalized following the signing of all agreements necessary to secure the partnership and/or to begin the R&D work. All activities subsequent to the formalization of the R&D partnership, including the R&D work itself, are ineligible for CanExport Innovation funding.

CanExport Innovation is a sub-program of CanExport. Other sub-programs include CanExport SMEs, CanExport Associations and CanExport Community Investments.

The program is delivered by the Canadian Trade Commissioner Service (TCS), Global Affairs Canada, in partnership with the National Research Council of Canada Industrial Research Assistance Program (NRC IRAP).

2. How our funding works

In this section

• 2.1 Funding mechanism
• 2.2 Project time frame
• 2.3 Stacking limit for government funding

2.1 Funding mechanism

Funding is provided on a cost-sharing basis between the recipient and CanExport Innovation. The applicant may submit a maximum budget of $100,000; there is no set minimum. The program funds up to 75% of eligible costs to a maximum of $75,000 in funding per project. The applicant is responsible for the remaining 25% (in-kind contributions are not permitted).

CanExport Innovation commits to a funding decision within 60 business days.

Financial assistance can take the form of a grant or contribution. CanExport Innovation determines the most appropriate funding mechanism based on a risk assessment analysis of the applicant and the project. Requests for funding from multiple CanExport sub-programs for the same project will not be supported. Applicants may apply to only one CanExport sub-program for a specific project, related activities and expenses. It is recommended that applicants review the objectives of each sub-program to determine which most appropriately meets their objectives.

2.2 Project time frame

CanExport Innovation is a competitive program. We cannot guarantee neither the availability of funds nor the start dates of each agreement.

To be eligible for funding, proposed activities and incurred expenses must take place between the project start and completion dates specified in your funding agreement. All expenses and activities outside of the project phase are ineligible.

If approved, the start date of the funding agreement (the date that expenses are eligible) will be the application submission date. The program does not reimburse expenses incurred prior to a project’s start date. There will be no exceptions.

Project activities must then be completed within the same government fiscal year in which the application is approved.

The Government of Canada’s fiscal year begins April 1 and ends on March 31 of the following calendar year. CanExport Innovation does not support projects that span across multiple fiscal years.

Example: A project approved in November 2022 will have a maximum end date of March 31, 2023. A project approved in January 2023 will also have a maximum end date of March 31, 2023.

2.3 Stacking limit for government funding

CanExport Innovation’s stacking limit applies when funding is accessed from different Canadian government sources for a single project.

CanExport Innovation calculates fund stacking based on the total Canadian government assistance (including federal, provincial, territorial or municipal governments, or Crown corporations) provided for any eligible line item. The total amount of funding from all government sources must not exceed 75%.

Applicants must identify all Canadian government sources of funding for each expenditure submitted as part of their CanExport Innovation application. In the event that actual total Canadian government assistance exceeds the stacking limit of 75%, CanExport Innovation funding will be adjusted in order to comply with this limit. 

3. Project scope

The applicant must focus on only one technology per project application. . However, a project can target multiple partners to pursue multiple R&D collaborations for the same technology.

Applicants can pursue activities in countries for which they have received prior CanExport Innovation funding. In cases where the proposed activity is expanding on a previous initiative that received program support, it is important that the proposal demonstrate how it will build on previous outcomes, by expanding on past success or applying lessons learned to generate new results.

4. Eligible organizations

The applicant is the Canadian organization applying for CanExport Innovation funding.

Eligible Canadian organizations are:

• Small or medium-sized enterprises (SMEs): for-profit companies with fewer than 500 full-time equivalent employees
• Academic institutions: recognized Canadian educational institutions dedicated to education and research
• Non-government research centres: research organizations that are not wholly or majority funded by the government

In this section

• 4.1 Eligibility criteria
• 4.2 Ineligible organizations

4.1 Eligibility criteria

Eligible organizations must meet basic eligibility by demonstrating that they:

• are registered in Canada
• have a Canada Revenue Agency (CRA) business number*
• own or co-own intellectual property rights (IP) for the technology featured in the application and/or have appropriate decision-making authority over the IP
• have a prototype for the technology and be at Technology Readiness Level (TRL) 4 or higher, as per Innovation, Science and Economic Development Canada guidelines
• intend to commercially launch the technology within 5 years

* Organizations that do not have a CRA business number because they are registered on First Nations reserve lands may write to CanExportInnovation@international.gc.ca.

Financial Capacity

There is no minimum revenue requirement for eligible organizations; CanExport Innovation is open to pre-revenue companies. However, financial capacity is one of 5 project assessment criteria outlined in Section 9. As such, applicants must demonstrate they have sufficient private revenues to cover 25% of costs for proposed activities. Additionally, applicants must demonstrate they have sufficient funds (or a credible plan to secure funds) from private and/or public sources to finance R&D work resulting from a collaborative R&D agreement.

4.2 Ineligible organizations

• accelerators and incubators
• charities
• third-party representatives including agents, promoters, consultants, trading houses and export brokers
• government departments, agencies, crown corporations and other organizations at the federal, provincial, territorial, or municipal level

If you are unsure about the eligibility of your organization, please contact CanExportInnovation@international.gc.ca.

5. Eligible foreign partners

In this section

• 5.1 Eligible partners
• 5.2 Ineligible partners

5.1 Eligible partners

Proposed activities must contribute to negotiating an agreement that will result in the development, adaption and/or validation of the applicant’s technology.

Eligible foreign partners are the foreign organizations with whom the applicant is seeking to negotiate and establish a collaborative R&D or investment agreement. The foreign partner must have specific expertise, technology and/or financial resources that will directly contribute to R&D on the applicant’s technology.

Applicants may pursue agreements with multiple foreign partners as part of the same CanExport Innovation application.

Partners are deemed ineligible where an R&D or investment agreement has already been signed or where R&D work has already commenced. Information provided in the application about the foreign partner must be verifiable.

5.2 Ineligible partners

• Canadian organizations
• subsidiaries of the Canadian applicant organization
• foreign organizations wholly or in-part owned by the Canadian applicant organization
• foreign organization that shares executives, board members and/or employees with the Canadian applicant organization
• partners who do not provide technical contributions to the R&D collaboration or who do not intend to invest in the R&D work
• partners who will pay and/or receive payment for any type of service in the context of the R&D collaboration
• partners who will act as an intermediary for introduction to other stakeholders
• consultants or consulting firms
• service providers
• customers who will be paying the applicant for a service or technology developed or modified for their specific need
• distributors
• accelerators and incubators
• government trade promotion offices
• government regulatory agencies
• hosts of conferences or events

Canada has sanctions and related measures in place against a number of countries and sectors, as well as sanctions against specific individuals and entities. CanExport Innovation may decline funding for reasons of national interest. For more information, please visit Current sanctions imposed by Canada.

This is not a comprehensive list of ineligible partners. If you are unsure about the eligibility of your chosen partner or your proposed project, please contact CanExport Innovation (CanExportInnovation@international.gc.ca).

6. Project objectives

In this section

• 6.1 Eligible objectives
• 6.2 Ineligible objectives

6.1 Eligible objectives

Eligible CanExport Innovation project objectives are related to pursuing new partnerships with eligible foreign partners with the intent to sign a new collaborative R&D partnership or investment agreement to support technology development, adaptation and/or validation.

Responses to all application questions and proposed activities must clearly show how the proposal is linked to the following eligible objectives.

CanExport Innovation supports projects whose objective is to:

• negotiate R&D collaborations with foreign partners that will lead to the development, adaptation and/or validation of the applicant’s technology
• attract and identify a foreign partner with whom to pursue R&D collaborations or investments to fund R&D work
• secure investments where the majority of funds invested by foreign partners will support R&D work on the applicant’s technology

Technology development

R&D work that typically involves further development or enhancement of an applicant’s technology. This may include:

• integrating applicant’s technology with a foreign partner’s technology to create a combined product
• leveraging the technical expertise and/or technology of the foreign partner to co-develop additional components, which will form a piece of the applicant’s technology
• leveraging the technical expertise and/or technology of the foreign partner to enhance the capabilities of an existing technology

Technology adaptation

R&D work that involves the modification of an applicant’s existing technology to fit a new market or sector. This may include leveraging the technical expertise and/or technology of the foreign partner to modify the applicant’s technology to:

• meet market regulations or certifications
• expand the technology for applications in other industry sectors than its original sector

Technology validation

R&D work that involves the testing of an applicant’s technology by foreign partners who will typically be its first adopters. This may include:

• working with the foreign partner to conduct a pilot of the applicant’s technology
• working with the foreign partner to conduct clinical trials using the applicant’s technology
• leveraging the technical expertise, technical knowledge and/or technology of the foreign partner to test the applicant’s technology

6.2 Ineligible objectives

Project objectives that do not focus on pursuing a collaborative R&D or investment partnership are ineligible under CanExport Innovation. This includes the pursuit of partnerships that are directly related to/for:

• sale of the applicant’s technology
• licensing of the applicant’s technology solely for sales purposes
• applicant or foreign partner being paid to provide a service and/or conduct R&D work
• manufacturing purposes
• distribution purposes
• client acquisition
• acquiring and/or establishing capital assets (ex. properties, structures, equipment, facilities, etc.)
• lobbying, domestic policy development and influence
• student exchange programs
• event sponsorship

In addition, CanExport Innovation will not support R&D objectives related to:

• Customizing a base technology to meet the specific needs of the applicant’s client. This is considered core business activities conducted for sales purposes
• Developing technologies that are at the basic research or feasibility stage
• Projects and/or technologies that may lead to significant adverse effects on human health, the environment or international human rights standards
• Conducting R&D on a technology that will be commercialized for military combat purposes (ex. development of arms, combat support or intelligence gathering)

This is not a comprehensive list. If you are unsure about the eligibility of your project objective, please contact CanExport Innovation (CanExportInnovation@international.gc.ca).

7. Eligible activities and expenses

In this section

• 7.1 Category A: Travel-related meetings
• 7.2 Category B: Virtual meetings
• 7.3 Category C: Virtual events
• 7.4 Category D: Shipping
• 7.5 Category E: Certifications
• 7.6 Category F: IP Protection
• 7.7 Category G: Promotional materials
• 7.8 Category H: Other consultant/legal services
• 7.9 Ineligible activities
• 7.10 Other ineligible expenses

7.1 Category A: Travel-related meetings

CanExport Innovation may support travel to conduct in-person meetings with pre-identified foreign partners at the partner’s office or on the margins of an event. The event must be relevant to the industry in which the applicant is operating or targeting.

CanExport Innovation determines the eligibility of travel expenses based on 3 criteria:

1 - Travel duration

Reasonable travel duration is determined based on the scope and complexity of the R&D collaboration being pursued. The applicant must provide an outline with travel dates and activities to be conducted on each date. CanExport Innovation will consider providing support for a maximum of 5 days per travel destination.

2 - Number of participants

All travellers (for a maximum of 2 individuals per trip) for whom funding is requested must be identified in the application. Only employees or executives of the applicant organization are eligible for funding; employees based in Canada must be legally able to work in Canada. At least one traveller must have decision-making authority over the technology. Travel costs for participants deemed essential to formalizing the R&D partnership are eligible; travel expenses of individuals CanExport Innovation considers non-essential to the formalization of the R&D partnership will not be covered. 

3 - Costs

Funding is allocated per person based on reasonability of estimated costs and quotes provided. For certain expenses, estimated costs are assessed against established CanExport Innovation guidelines, as detailed below. Estimates that appear high will be flagged and may affect a project’s approval. Applicants may wish to provide additional explanations/rationales for high estimates.

Please note that CanExport Innovation reserves the right to adjust funding for eligible expenses based on its policies at the time of assessment.

Eligible expenses under this category include:

• economy class roundtrip or multi-city airfare from Canada to travel destinations where meetings will be conducted with foreign partners
• per diem of CAD $400 for each approved traveller (CAD $300 at 75% funding) for accommodation and meals
• single entry visas
• cost of ground transportation within target markets (taxi, car rental, bus or train) to and from airports, meetings and site visits
• renting meeting rooms and audio-visual equipment up to a maximum cost of CAD $500 per international destination (CAD $375 at 75% funding)
• in-person registration fees for two employees (executives or technical expert) for 1 event per application

Only the cost of return economy class airfare for the straight route is eligible. For CanExport Innovation purposes, the straight route is defined as the route between the traveller’s home location in Canada and the location of approved program activities.

For trips that include more than one meeting in destinations that require additional air travel, only the cost of economy class multi-city airfare is eligible. Additional stops are not permitted.

Example: If a traveller based in Vancouver is meeting with foreign partners located in Tokyo and Shanghai, the applicant must provide a quote for the cost of economy class airfare for Vancouver-Tokyo-Shanghai-Vancouver or Vancouver-Shanghai-Tokyo-Vancouver.

If a traveller chooses to use bus, car or train to travel (straight route) to an event or meeting as an alternative to flying, the estimated expense cannot exceed what an equivalent straight route economy class airfare is expected to cost.

Required documentation to be submitted with your application (where applicable):

• screen capture of event registration fees and link to the event’s official website;

• written proof (letter or email) from each foreign partner. If the meeting is occurring at the margins of an event, the letter or email must include the partner’s confirmation of attendance at the event.

Ineligible expenses include:

• any travel expenses that are inconsistent with Canada’s official travel advisories and those of destination countries in effect at the time of assessment; for example:
• quarantine, accommodation, relocation and/or incidental costs resulting from travel disruptions; and
• medical, product, laboratory, documentation, and/or administration fees associated with COVID-19 requirements (i.e. vaccinations, PCR tests, rapid antigen tests, vaccination certification documentation, etc.)
• airfare that is business class, first class or any other classes above economy class
• airfare costs paid with bonus points from programs such as Air Miles/Aeroplan/World Points or any other barter system
• travel costs for individuals that are not essential to the formalization of the R&D partnership
• travel costs for individuals that are not executives of and/or employed by the Canadian applicant organization (ex. consultant, legal consul, foreign partner representative)
• costs related to obtaining a passport
• cell phone charges such as international roaming charges or data plans
• costs of hospitality, entertainment, and gifts (including bar tabs and promotional articles to be given away as gifts)
• events where meetings with pre-identified foreign partners have not been confirmed
• event registration that includes booth fees
• rental and/or installation of a booth for a conference or exhibition

This is not a comprehensive list of eligible activities. If you are unsure about any of the examples listed above, please contact CanExport Innovation (CanExportInnovation@international.gc.ca).

7.2 Category B: Virtual meetings

CanExport Innovation may support virtual meetings with a pre-identified foreign partner to negotiate and/or formalize an R&D partnership agreement.  This category can also be used to meet a pre-identified foreign investor to negotiate an investment agreement to support R&D work on the applicant’s technology.

To be eligible, the purpose of the virtual meetings must be to:

• pursue and formalize an R&D collaboration
• negotiate an agreement that will lead to R&D work on the applicant’s technology
• pursue investments for funds to conduct R&D work on the technology identified in the application 

Eligible expenses under this category include:

• registration for a secure video conferencing platform to meet with pre-identified foreign partners;

Registration fees to a video conferencing platform will only be covered for months in which eligible meeting sessions will take place, up to a maximum of 6 months per application. Maximum eligible rate is CAD $30 per month (CAD $22.50 per month at 75% funding) for a maximum of 2 eligible individuals directly participating in the CanExport Innovation project.

• translation and/or interpretation services.

Funding for translation of documents or interpretation services are eligible up to a maximum cost of CAD $2,000 per application (CAD $1,500 at 75% funding). Only translation/interpretation from English/French to the partner’s language is eligible.

Required documentation to be submitted with your application:

• written proof (letter or email) from each foreign partner indicating their interest to conduct virtual meetings on specific dates.

7.3 Category C: Virtual events

CanExport Innovation may support participation to one event that is relevant to the industry in which the applicant is operating or targeting. The purpose of the participation must be to find foreign partners to engage in an R&D collaboration or foreign investors to fund R&D work. Events must include official Business-to-Business (B2B) meetings.

Eligible expenses under this category include:

• event registration fee for two individuals

Applicants may request funding for only one event per application. CanExport Innovation will cover 2 eligible participants. Participants must be employed by the applicant and must qualify as essential to R&D partnership negotiations. To qualify, participants must be an executive or hold a technical position in the organization. Applicants must provide details of the role the participant will play in the meetings.

• registration for a secure video conferencing platform to meet with pre-identified foreign partners

Registration fees to a video conferencing platform will only be covered for the month in which the event will take place. Maximum eligible rate is CAD $30 (CAD $22.50 per month at 75% funding) for a maximum of 2 eligible individuals directly participating in the event.

• translation and/or interpretation services

Funding for translation of documents or interpretation services are eligible up to a maximum cost of CAD $2,000 per application (CAD $1,500 at 75% funding). Only translation/interpretation from English/French to the partner’s language is eligible.

Required documentation to be submitted with your application:

• screen capture of registration fees
• proof that the event schedule includes B2B meetings, provided as a screen capture and a link to the event’s official website 

Ineligible expenses include:

• expenses related to virtual booths (registration fees that include virtual booth space, setting up, promotional materials and renting equipment);
• registration fee to participate in a panel or as a speaker;
• registration fee for a participant who is not employed by the applicant;
• registration fee for a participant who does not qualify as essential to R&D partnership negotiations.

7.4 Category D: Shipping

CanExport Innovation may support return shipping of technology or sample materials to be used for demonstration purposes only. Funding for shipping is eligible only during the R&D partnership negotiation phase. The purpose of shipping is to help facilitate successful formalization of a collaborative R&D partnership with a pre-identified foreign partner or an investor who will fund R&D work.

Applicants must show that partners are willing to receive the shipped items for demonstration purposes.

Products/prototypes shipped to the foreign partner cannot be sold and must be returned to Canada, unless consumed during the demonstration process.

The maximum allowable cost for shipping is CAD $4,000 per application (CAD $3,000 at 75% funding).

Eligible expenses under this category include:

• Courier services to deliver legal agreements
• Return shipping of technology for demonstration* purposes
• Return shipping of sample materials to demonstrate* technology proof-of-concept to foreign partner

A demonstration* is defined as the process of conducting a preliminary evaluation to determine compatibility of technologies or feasibility of a potential R&D collaboration. The applicant’s technology must be returned to the applicant following evaluation. 

Required documentation to be submitted with your application:

• quote for shipping fees;
• written proof (letter or email) from each partner to whom items will be shipped confirming that they are interested in receiving these items.

Ineligible expenses include:

• shipping technology or materials to conduct actual R&D work: validation, adaptation or development;
• shipping technology or materials for commercial (sales), manufacturing or distribution purposes;
• shipping of promotional and/or marketing materials.

7.5 Category E: Certifications

CanExport Innovation may support applications for a new certification in foreign markets where the pre-identified foreign R&D partner or investor resides. Obtaining this certification must assist in formalizing the partnership and comply with foreign regulations and standards. Applicants must provide sufficient details showing how obtaining this certification will assist in securing the partnership.

Eligible expenses under this category include:

• certification application fee

Certification application fees under this category must be incurred directly through the foreign agency issuing the certification. Eligible certifications are related to the technology identified in the application only.

• consultant or legal fees specifically to help process the certification application

The consultant hired to help process the certification application (expert advice on regulatory issues) may be based in Canada or in a target market. In certain markets, applicants may be required to use a consultant or legal firm registered to do business in the market to apply for certification. Where such laws exist, CanExport Innovation will only support consultant or legal fees from firms registered in the particular market.

Requested amounts for consultant or legal fees will be assessed against industry standards to determine reasonability of cost for the type of services provided. Only reasonable amounts will be deemed eligible. Requests for funding with amounts that appear high will be flagged and applicants will be asked to provide more information.

• translation from English/French to the market’s official language, if different.

Funding for translation of documents or interpretation services are eligible up to a maximum cost of CAD $2,000 per application (CAD $1,500 at 75% funding). Only translation/interpretation from English/French to the target market’s language is eligible.

Required documentation to be submitted with your application:

• screen capture of the cost of the application fees for certification;
• consultant/legal fee quotes if such services (expert advice on regulatory issues) are required to obtain the certification. Quotes must be itemized with a breakdown of costs. Where applicable, the certification application fee will be shown separately from other types of consultant/legal services that will be provided under the contract, as well as include a description of what these other services encompass.

Ineligible expenses include:

• application for a certification in Canada
• application for a certification that is not clearly linked to the pursuit of a specific foreign R&D partnership
• application for a certification to allow for general market entry
• application for a renewal of a certification
• fees related to conducting tests on the technology in order to obtain the certification
• travel, meal or incidental costs for consultant or legal counsel
• consultant fees where there is an indication of affiliation or an employer-employee relationship between the applicant and the consultant firm.

7.6 Category F: IP Protection

CanExport Innovation may support the development of an international IP protection strategy or patent application in foreign markets where the pre-identified foreign R&D partner or investor resides.

Applicants must provide sufficient details showing how obtaining this IP protection will assist in securing the partnership.

For a brief overview on meeting international standards, protecting your IP rights and other in-market legal considerations, please consult  Step 9.8 of the TCS Step-by-Step Guide to Exporting for more information.

Eligible expenses under this category include:

• application fees for a patent
• application fees to copyright programming code for software

Application fees under this category must be incurred directly through the foreign agency issuing the IP protection. Eligible application fees may include a Patent Cooperation Treaty (PCT) application. The markets must align with the location of the pre-identified foreign R&D partner.

• consultant or legal fees (expert advice on regulatory issues) specifically to help processing an IP application
• consultant or legal fees (expert advice on regulatory issues) to develop an international IP protection strategy

Requested amounts for consultant or legal fees will be assessed against industry standards to determine reasonability of cost for the type of services provided. Only reasonable amounts will be deemed eligible. Requests for funding with amounts that appear high will be flagged and applicants will be asked to provide more information.

The IP expert consultant may be based in Canada or in a target market. In certain markets, applicants may be required to use a consultant or legal firm registered to do business in the market to apply for IP protection. Where such laws exist, CanExport Innovation will only support consultant or legal fees from firms registered in the particular market.

• translation from English/French to the market’s official language, if different.

Funding for translation of documents are eligible up to a maximum cost of CAD $2,000 per application (CAD $1,500 at 75% funding). Only translation from English/French to the target market’s language is eligible.

Required documentation to be submitted with your application:

• screen capture of the IP protection application fees;
• consultant/legal fee quotes if such services (expert advice on regulatory issues) are required to help obtain the IP protection. Quotes must be itemized with a breakdown of costs. If included, the IP protection application fee will be shown separately from other types of consultant/legal services that will be provided under the contract, as well as include a description of what these other services encompass.

Ineligible expenses include:

• application fees for the registration of a trademark;
• application fees for IP protection in Canada;
• application fees for a provisional patent to prepare for the international phase of the PCT procedure;
• consultant or legal fees related to monitoring patents or trademarks;
• consultant or legal fees related to developing a Canadian IP strategy;
• mediation or litigation services;
• application for insurance of intellectual property;
• travel, meal or incidental costs for consultant or legal counsel;
• consultant fees where there is an indication of affiliation or an employer-employee relationship between the applicant and the consultant firm.

7.7 Category G: Promotional materials

CanExport Innovation may support the development of professional promotional material that will assist in attracting potential foreign R&D partners or investors to fund R&D work. Funding can be used to support creating new materials, or significantly enhancing existing ones.

The applicant must outline the types of promotional materials that will be developed and provide a breakdown of associated costs. Applicants must show that the development and usage of the material will specifically enhance partnership negotiation efforts in targeted  markets with foreign R&D partners or investors. Promotional materials that are not clearly targeted for this purpose will not be funded.

Eligible expenses under this category include:

• services from a consultant to develop promotional materials

The consultant may be based in Canada or in a target market.

Requested amounts for consultant will be assessed against industry standards to determine reasonability of cost for the type of services provided. Only reasonable amounts will be deemed eligible. Requests for funding with amounts that appear high will be flagged and applicants will be asked to provide more information.

• translation from English/French to the market’s official language, if different

Funding for translation of documents or interpretation services are eligible up to a maximum cost of CAD $2,000 per application (CAD $1,500 at 75% funding). Only translation/interpretation from English/French to the target market’s language is eligible.

• printing costs - although distribution of electronic material is encouraged where appropriate.

Required documentation to be submitted with your application:

• consultant quotes itemizing and breaking down costs, with a description of the types of services that will be provided under the consultant contract.

Ineligible expenses include:

• development of promotional materials for general marketing purposes, or to generate sales;
• development of manuals or instructional material;
• development of material that does not clearly target a specific foreign market,R&D partner or investor;
• website development and web hosting fees;
• promotional materials for booths at an event;
• creation of gifts or favours for handouts;
• core business expenses such as business cards, letterheads, signage, etc.
• consultant fees where there is an indication of affiliation or an employer-employee relationship between the applicant and the consultant firm

7.8 Category H: Other consultant/legal services

CanExport Innovation may support consultant/legal fees to assist the applicant in pursuing foreign R&D opportunities.

Funding for this activity is eligible up to a maximum cost of CAD $4,000 per application (CAD $3,000 at 75% funding).

Eligible expenses under this category include:

• consultant or legal fees for conducting due diligence on a pre-identified foreign R&D partner, investor, or the partner’s technologies;
• legal fees for drafting and/or reviewing legal agreements with a pre-identified foreign R&D partner or foreign investor who will fund R&D work;
• consultant or legal fees for developing strategies for international R&D collaborations for:
• market research to assess viability of conducting R&D with partners in a specific markets;
• evaluation of financial requirements to conduct R&D and/or do business in specific markets;
• roadmap for international expansion through R&D collaborations.

Required documentation to be submitted with your application:

• written proof (letter or email) from each foreign partner indicating their interest to pursue an R&D partnership where funding is requested to cover:
• services for drafting, reviewing or printing legal agreements
• services related to conducting due diligence on the partner, investor, or the partner’s technologies

Ineligible expenses include:

• general retainer fees or honoraria;
• general market research for sales purposes;
• conducting research as part of R&D work;
• travel, meal or incidental costs for consultant or legal counsel;
• consultant fees where there is an indication of affiliation or an employer-employee relationship between the applicant and the consultant firm.

7.9 Ineligible activities

• travel activities in a country subject to Government of Canada travel advisories;
• activities completed by the date application is assessed;
• activities that do not contribute to negotiating and establishing an R&D agreement with a foreign partner;
• activities related to conducting R&D work;
• general attendance at an event where the applicant does not have confirmed meetings with pre-identified foreign partners;
• broad activities that do not include specific timelines or marked as “to be confirmed”;
• broad activities with numerous foreign partners that do not demonstrate targeted and strategic engagement;
• speaking engagements;
• conducting general outreach and/or marketing;
• conducting core business that falls under your organization’s everyday operations in Canada.

This is not a comprehensive list of ineligible activities. If you are unsure about any of the examples listed above, please contact CanExport Innovation (CanExportInnovation@international.gc.ca).

7.10 Other ineligible expenses

• expenses incurred prior to submitting a CanExport Innovation application;
• expenses related to non-specified activities, such as those marked “to be confirmed”;
• expenses related to preparing a CanExport Innovation application;
• capital costs and office supplies (such as computers, office equipment, office space, supplies and business cards);
• ongoing/core activities and overhead expenses (i.e., fundamental operational activities);
• salaries and commissions;
• honoraria for professional services;
• Goods and Services Tax (GST), including any GST share of the Harmonized Sales Tax;
• any refundable portion of taxes, duties or other items for which a refund or rebate is available.

This is not a comprehensive list of eligible activities. If you are unsure about any of the examples listed above, please contact CanExport Innovation (CanExportInnovation@international.gc.ca).

8. Assessment criteria

The application must tell the full story of the organization’s plans in terms of pursuing foreign R&D partnerships or investments. Answers should be concise. The program will assess the quality and the pertinence of information provided.

CanExport Innovation is a competitive program with limited funding. All applications are assessed against the same merit criteria and evaluated to determine that all program requirements have been satisfied.

Applicants must successfully demonstrate that:

• sufficient justification and details are presented for project activities and each cost aligns to the pursuit of foreign R&D partnerships;
• the organization’s R&D project aligns with their international business development strategy;
• their application is carefully crafted with regard to guidance provided in this applicant guide.

In this section

• Criteria 1: Applicant capacity
• Criteria 2: Past performance on CanExport Innovation projects
• Criteria 3: Technology readiness and ownership
• Criteria 4: Appropriate choice of foreign partners
• Criteria 5: Methodology used for pursuing partnership

Criteria 1: Applicant capacity

The applicant must demonstrate:

• adequate managerial capabilities to execute the proposed activities
• sufficient human resources to execute the proposed activities and/or conduct the resulting R&D work
• that it will be one of the parties performing the R&D work resulting from the partnership agreement
• sufficient financial resources from private sources to cover their share of proposed activities
• sufficient financial resources to conduct the R&D work
• clear benefit to the Canadian economy should the proposed project be successful (ex. revenue generated, jobs created, etc.)
• sufficient details to assess the organization’s capacities and for non-experts to understand its technology

Criteria 2: Past performance on CanExport Innovation projects

The applicant must:

• demonstrate effective use of previous CanExport Innovation funding
• communicate with the CanExport Innovation program team in a timely manner

Criteria 3: Technology readiness and ownership

The applicant must demonstrate that the technology:

• is at Technology Readiness Level (TRL) 4 or above, as per Innovation, Science and Economic Development Canada guidelines
• will be ready for commercial launch within 5 years
• has an existing prototype
• intellectual property (IP) rights are owned or co-owned by the applicant, or that they have appropriate decision-making authority

Criteria 4: Appropriate choice of foreign partners

The applicant must:

• demonstrate that chosen foreign partners have the appropriate skills, knowledge, expertise and/or technology for meeting the R&D objectives required to commercialize the technology
• demonstrate that chosen foreign partners will make technical contributions as part of the R&D collaboration
• demonstrate that chosen foreign partners will not be paid for services related to conducting their portion of the R&D work
• provide sufficient details to assess the suitability and capabilities of foreign partners
• provide written proof (letter or email) that foreign partners are interested to meet

Criteria 5: Methodology used for pursuing partnership

The applicant must demonstrate in sufficient detail an appropriate and logical plan of action for pursuing and securing an R&D partnership with foreign partners.

9. How to apply

In this section

• 9.1 Working with the Trade Commissioner Service
• 9.2 Submitting an application
• 9.3 Processing time

9.1 Working with the Trade Commissioner Service

The Canadian Trade Commissioner Service (TCS) helps Canadian companies navigate the complexities of international markets and make better business decisions. The TCS is on the ground in more than 160 cities worldwide gaining market intelligence, uncovering opportunities for Canadian companies and helping reduce business costs and risks. The TCS is a free service of the Government of Canada that helps companies find qualified contacts, assess market potential, prepare for international markets, and resolve business problems.

For further guidance, applicants can find the name of the trade commissioner responsible for their sectors in Canada and in international markets through Find a trade commissioner.

9.2 Submitting an application

CanExport Innovation funding is available year-round. We are currently accepting new applications through our online portal.

Follow these steps to apply for CanExport Innovation:

1. Familiarize yourself with the program details by reading our Applicant’s Guide.
2. Create an account on our online portal.
   Note: Not compatible with Internet Explorer.
3. Once you are signed in, enter your information under My Profile and select Update.
4. On the CanExport Innovation landing page, select Apply Now!
5. Complete the Application Basic Eligibility section. The purpose of this section is to determine whether your company meets the basic eligibility criteria of the CanExport Innovation program. Once completed, you will receive a confirmation of your Basic Eligibility by email within 7 business days. If you have any questions regarding the eligibility criteria, please consult Section 4.1 of the Applicant’s Guide.
6. If your company is deemed eligible, you will then be able to complete and submit the rest of your application.
7. Submit a completed application at least 60 business days before the start date of the first proposed activity. Please consult Section 9.3 of the Applicant’s Guide for more details on processing timelines.
8. If you are having technical problems or need help resetting your password, contact NRC.CanExport-Help-Aide-CanExport.CNRC@nrc-cnrc.gc.ca

9.3 Processing time

CanExport Innovation recommends that you submit a completed application at least 60 business days in advance of the first proposed activity’s start date.

10. After applying

In this section

• 10.1 Decision
• 10.2 Payments
• 10.3 Amendment to the funding agreement
• 10.4 Reporting requirements
• 10.5 Disclosure of change of circumstances

10.1 Decision

Following the assessment of the application, a decision email will be sent to the Signing Authority identified in the Application Form.   The Program is competitive and funds are limited: decisions are final and non-negotiable.CanExport Innovation reserves the right to deny any funding requests for any reason, at our sole and absolute discretion.

Unsuccessful applicants

Applicants who are not approved for funding may submit a new application with revised responses.   Activities included as part of a new application must respect the timeline of 60 business days required of all application submissions.

Successful applicants

Once the applicant has been advised of the decision, recipients can expect to receive their funding agreement by electronic mail within 10-12 business days. An authorized officer of your firm will need to review, sign and return the agreement within 20 business days of the date it was ratified by NRC IRAP.

Companies that fail to return a signed funding agreement to NRC IRAP within the prescribed timeline of 20 business days forfeit their funding.

The funding agreement is a legally binding document. It stipulates the responsibilities and obligations of both signing parties, the recipient and CanExport Innovation, on behalf of Global Affairs Canada.

For operational reasons, the program reserves the right to shorten the end date of your project. This may happen if we consider that activities taking place at the end of a fiscal year could be moved earlier.

The National Research Council of Canada Industrial Research Assistance Program (NRC IRAP) manages your funding agreement and is also responsible for issuing payments. Please direct all questions regarding the latter to NRC IRAP (NRC.CanExport.CNRC@nrc-cnrc.gc.ca).

10.2 Payments

Grant recipients

 NRC IRAP will issue a payment to successful applicants who were approved for grant funding after NRC IRAP receives a signed copy of the funding agreement. Payments may take up to 30 business days.

Grant recipients do not submit claims.

Contribution recipients

Successful applicants to whom we provide contribution funding must submit reimbursement claims for eligible expenses. Recipients must include a status report with each claim.

We recommend submitting claims every 3 months at a minimum. NRC IRAP will assess the claim and status report. Reimbursement is based on the results of the assessment. NRC IRAP will endeavour to process claims and reimburse eligible expenses within 30 business days.

NRC IRAP provides templates for claims and status reports after they receive a signed copy of your funding agreement. They will send templates to the legal signing authority identified in the application.

You may request additional copies of the claim template by writing to NRC IRAP (NRC.CanExport.CNRC@nrc-cnrc.gc.ca).

10.3 Amendment to the funding agreement

Amendments to agreements will only be considered on an extraordinary basis and if a strong rationale is provided. Please note that an expired agreement cannot be amended. 

10.4 Reporting requirements

Final report

All recipients must submit a final report no later than 7 days after the project completion date. Contribution recipients must include a final claim with their final report.

The final report will ask you to detail:

• activities completed;
• project outcomes in relation to expected results;
• details and successes pertaining to each foreign partner;
• challenges encountered;
• lessons learned;
• other comments on the program.

NRC IRAP provides recipients with a template for the final report. The template is included with the fully executed funding agreement. Recipients may also request a copy by contacting NRC.CanExport.CNRC@nrc-cnrc.gc.ca.

In the event that the terms and conditions of the agreement are not satisfied, repayment of funds may be requested.

Contribution recipients

In addition to submitting a final report, contribution recipients are required to submit interim reports for each activity . Interim reports must be submitted as part of the claim process. NRC IRAP provides templates for claims and status reports after they receive a signed copy of your funding agreement. They will send templates to the legal signing authority identified in the application.

Periodic updates

CanExport Innovation may periodically request updates on your project. We ask that you respond to the requests in a timely manner.

10.5 Disclosure of change of circumstances

You must let us know if anything is likely to affect your project. Keep us informed about key changes to your company or its business activities, particularly if they affect your ability complete your project, carry on business and pay debts due.

You must also inform us if you become aware of a breach of terms and conditions under the funding agreement, or any changes to information that identifies your company such as:

• name
• address
• designated representatives
• bank account details

11. Contact us

If you have questions that this guide does not answer, please contact: CanExportInnovation@international.gc.ca

Due to the high volume of requests and applications that we receive, we are only able to respond to questions that this guide does not already answer or that are not covered by our Frequently Asked Questions.

Please contact the National Research Council of Canada (NRC.CanExport.CNRC@nrc-cnrc.gc.ca) if you have questions about:

• your funding agreement
• reporting
• claims

If you are having technical difficulties with our online application system or technical problems related to your account, please reach out to NRC.CanExport-Help-Aide-CanExport.CNRC@nrc-cnrc.gc.ca.