Industry Canada encourages private R&D investment in small firms

Industry Canada encourages private R&D investment in small firmsThe federal government has updated the Industrial and Regional Benefits (IRB) policy to encourage firms receiving major government defence and security contracts to in turns partner with small businesses, it announced yesterday.

The IRB policy obliges firms that take government defence and security contracts to reinvest 100 per cent of the contract’s value into business activities in Canada. The Conservative government announced seven changes to the program in 2009 and has been rolling them out since then. The seventh, and final, change to the policy since 2009 will encourage firms to invest in “long term, innovation-focused activities” at Canadian small businesses. It’s a move designed to increase the amount of long-term research and development being done at Canadians small and medium-sized businesses, according to Industry Canada.

The investments made to small firms can be done in cash or in kind, according to the guidelines. They must involve R&D and commercialization activities and the investments will receive multiplier credits from the government. For example, for every dollar a defence contractor invests in a smaller partner that will be spend on R&D activities, it will receive $9 in credit from the IRB program. Multipliers are also applied to the purchase of equipment and transfer of knowledge or marketing and sales support.

Industry Minister Christian Paradis announced the changes yesterday in Toronto.

Source | Industry Canada

 

Would you recommend this article?

Share

Thanks for taking the time to let us know what you think of this article!
We'd love to hear your opinion about this or any other story you read in our publication.


Jim Love, Chief Content Officer, IT World Canada

Featured Download

Brian Jackson
Brian Jacksonhttp://www.itbusiness.ca
Editorial director of IT World Canada. Covering technology as it applies to business users. Multiple COPA award winner and now judge. Paddles a canoe as much as possible.

Related Tech News

Get ITBusiness Delivered

Our experienced team of journalists brings you engaging content targeted to IT professionals and line-of-business executives delivered directly to your inbox.