The Industrial Research Assistance Program (IRAP) is one of Canada's most valuable — and most overlooked — funding programs for technology companies. Administered by the National Research Council of Canada (NRC), IRAP provides non-repayable contributions to help small and medium-sized enterprises pursue research, development, and commercialization of innovative technologies.
Unlike grants that reimburse after the fact, IRAP works as a cost-sharing partnership — the NRC co-funds your project alongside your own investment. And unlike SR&ED tax credits, IRAP provides funding during the project, not after your fiscal year ends. This guide covers everything Canadian SMBs need to know about IRAP.
What Does IRAP Fund?
IRAP funding covers a range of innovation activities. The program is particularly well-suited for AI and technology projects:
- •Research and development — developing new AI models, building novel software systems, creating innovative hardware solutions
- •Technology commercialization — bringing a developed technology to market, including product refinement, market validation, and go-to-market preparation
- •Hiring technical talent — IRAP frequently funds the salary costs of engineers, scientists, and developers working on the project
- •Proof of concept and prototyping — building and validating early-stage technology before full-scale development
IRAP does not fund routine business operations, marketing campaigns, or the purchase of off-the-shelf software for internal use. The project must involve genuine innovation or technological advancement.
How Much Funding Is Available?
IRAP does not publish fixed funding tiers. The contribution amount is determined on a project-by-project basis through negotiation with your assigned Industrial Technology Advisor (ITA). That said, here are typical ranges based on publicly available information:
| Project Type | Typical IRAP Contribution |
|---|---|
| Small R&D project | $50,000 – $150,000 |
| Mid-size innovation project | $150,000 – $500,000 |
| Large-scale R&D or commercialization | $500,000+ |
| Youth employment (intern hiring) | Up to $30,000 per intern (salary subsidy) |
Amounts are estimates based on publicly available IRAP program information. Actual contributions are determined by the NRC on a case-by-case basis and depend on project scope, company size, and available program funding.
IRAP funding is a non-repayable contribution — you do not pay it back. However, IRAP typically covers only a portion of total project costs (usually 50–80%), so your company must co-invest the remainder.
Who Is Eligible for IRAP?
IRAP eligibility is broader than many businesses realize:
- •Incorporated in Canada — federally or provincially incorporated for-profit corporation
- •500 or fewer employees — full-time equivalents
- •Pursuing innovation — the project must involve developing or commercializing new or improved technology
- •Growth-oriented — IRAP looks for businesses with the potential to grow through innovation, not lifestyle businesses maintaining the status quo
Unlike CDAP (now closed), IRAP does not have a minimum revenue requirement. Early-stage companies — even pre-revenue startups — can qualify if they have a compelling innovation project.
The Industrial Technology Advisor (ITA)
One of IRAP's most distinctive features is the ITA relationship. When you engage with IRAP, you are assigned a dedicated Industrial Technology Advisor — a senior technical professional employed by the NRC. The ITA serves as your primary point of contact and plays several roles:
- •Technical advisor — provides guidance on your technology development strategy, identifies potential pitfalls, and connects you with relevant expertise
- •Business advisor — helps refine your commercialization strategy, go-to-market approach, and business model
- •Funding navigator — identifies which IRAP funding streams best fit your project and can refer you to other programs (SR&ED, CanExport, etc.)
- •Network connector — introduces you to industry partners, research institutions, and other organizations that can accelerate your project
The ITA advisory service is free and available even if you do not receive project funding. Many companies find the advisory relationship alone to be one of the most valuable aspects of IRAP engagement.
How to Apply for IRAP
The IRAP application process is more relationship-driven than form-driven. Here is how it typically works:
- •Step 1: Initial contact — reach out to your regional IRAP office or submit an inquiry through the NRC website. Describe your company and the innovation project you are pursuing.
- •Step 2: ITA assignment — if your initial inquiry aligns with IRAP's mandate, you are assigned an ITA who contacts you for an introductory meeting
- •Step 3: Discovery and assessment — the ITA conducts a thorough assessment of your company, technology, market opportunity, and team. This may involve multiple meetings.
- •Step 4: Project proposal — with ITA guidance, you develop a formal project proposal including technical objectives, milestones, budget, and timeline
- •Step 5: Internal review — the ITA presents your proposal to an internal IRAP review committee for approval and funding allocation
- •Step 6: Contribution agreement — if approved, you sign a contribution agreement specifying the funding amount, milestones, reporting requirements, and eligible costs
Unlike CDAP (which is now closed), IRAP accepts inquiries on an ongoing basis throughout the year.
Stacking IRAP with SR&ED
One of the most powerful funding strategies for Canadian tech companies is combining IRAP with SR&ED tax credits. Here is how it works:
- •IRAP covers a portion of your project costs (e.g., 75% of a developer's salary)
- •You can claim SR&ED on the remaining 25% that you paid out of pocket, provided the work qualifies under SR&ED criteria
- •You cannot claim SR&ED on the portion funded by IRAP — that would be double-dipping
This stacking approach means the government effectively covers an even larger share of your R&D costs. Many IRAP-funded companies also file SR&ED claims — your ITA may even recommend it.
Tips for a Successful IRAP Application
- •Be clear about the innovation — IRAP wants to see genuine technological uncertainty and novelty, not incremental feature development. Frame your project around what is technically new or challenging.
- •Demonstrate market potential — IRAP cares about commercialization. Show that your innovation has a viable path to market and revenue.
- •Build a relationship with your ITA — the ITA is your advocate inside the NRC. Be responsive, transparent, and open to their guidance. A strong ITA relationship can make or break your funding outcome.
- •Budget realistically — IRAP reviewers are experienced enough to spot inflated budgets. Present honest cost estimates backed by market rates for talent and technology.
- •Show co-investment capacity — IRAP is a cost-sharing program. Demonstrate that your company can fund its share of the project costs.
See if IRAP aligns with your business
Our free eligibility assessment screens your business against IRAP and five other Canadian funding programs in about 10 minutes. You will receive a clear picture of which programs align with your technology and business goals.
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