Canada IRAP Innovation Funding 2026
Canada's Industrial Research Assistance Program (IRAP) provides non-repayable grants for small and medium-sized AI companies developing innovative products and services. IRAP funds wages, contractors, and materials for AI innovation with advisory support from National Research Council experts.
- Canadian SMEs with 500 or fewer full-time employees
- For-profit corporations incorporated in Canada
- AI innovation project with commercial potential
- Qualified team with technical expertise to execute project
- Financial need for IRAP funding to proceed with project
- Contact local IRAP office to discuss project fit and eligibility
- Submit project concept with technical approach and commercial plan
- Assigned Industrial Technology Advisor evaluates project
- Develop detailed project proposal with budget and milestones
- IRAP reviews and approves funding (typically 4-8 weeks)
- Sign contribution agreement with milestone-based funding
- Receive funding in installments tied to project progress
- Submit progress reports and financial claims quarterly
- Final report and financial claim upon project completion
IRAP, delivered by the National Research Council of Canada, is Canada's premier innovation funding programme for SMEs. For AI companies, IRAP provides grants covering up to 80% of project costs for developing novel AI technologies and bringing them to market.
Eligible AI innovation activities include development of new AI products or services with commercial potential, significant improvement to existing AI technologies, adoption of AI to solve business challenges in traditional industries, development of AI platforms and infrastructure for Canadian markets, and scale-up of proven AI technologies for growth.
IRAP funding levels include 80% of project costs for projects under $500k, 50% of project costs for larger projects ($500k - $10M), with typical grants ranging from $200k to $2M. Projects are funded over 6-24 months depending on scope.
Eligible expenses include salaries and benefits of employees working on AI project, contractor fees for specialized AI expertise, materials and equipment for AI development (cloud, compute, datasets), and intellectual property costs (patent filing, licensing).
IRAP provides non-repayable contributions (not loans - no repayment required) and assigned Industrial Technology Advisor providing business and technical guidance. Projects must demonstrate innovation beyond current state-of-practice, strong commercial potential in Canadian or export markets, and qualified team with technical and business capabilities to execute.
Applications are evaluated on technical innovation and feasibility, commercial potential and market opportunity, team capability and track record, financial need and project leverage, and benefit to Canada including job creation and economic impact.
Frequently Asked Questions
Frequently Asked Questions
No, IRAP provides non-repayable contributions (grants). There is no repayment requirement, no royalties, and no equity taken. This makes IRAP one of Canada's most attractive innovation funding programmes for AI companies.
Yes, IRAP funds salaries and benefits for employees working on the funded AI project. This includes data scientists, ML engineers, and research staff. Many AI companies use IRAP to de-risk hiring while developing innovative AI products.
Your AI project must go beyond standard application of existing frameworks and techniques. Examples: novel model architectures, new training approaches, unique applications of AI to unsolved problems, or significant technical improvements to existing methods. Routine AI development doesn't qualify.
Yes, IRAP funds AI innovation targeting export markets, not just Canadian customers. Projects with strong export potential (selling AI globally) are viewed favorably as they benefit Canada's economy and competitiveness.
- •IRAP Application Strategy for AI Companies
- •Demonstrating Innovation and Commercial Potential
- •AI Project Planning and Milestone Design
- •Working with IRAP Industrial Technology Advisors
- •Financial Management for IRAP-Funded Projects
- •Scaling AI Companies with IRAP Support
Explore AI consulting, training, and solutions in Canada.
View Canada hub