Question Period Note: Innovative Solutions Canada

How does Innovative Solutions Canada (ISC) support Canadian innovators and entrepreneurs?

• Innovative Solutions Canada is helping Canadian small and medium-sized businesses develop and commercialize their research and development.

• By having the Government of Canada as their first customer, innovators are able to commercialize their novel technologies and this sends a powerful, positive signal to markets.

• Innovative Solutions Canada is helping small and medium-sized businesses expand into new markets, drive domestic sales and exports, and create well-paying jobs for Canadians.

As the largest buyer of goods and services in Canada, the Government of Canada’s procurement decisions have long been driven primarily by price. This approach lends an advantage to large firms and often excludes Canadian small and medium-sized enterprises (SMEs), especially start-ups and firms owned and/or led by underrepresented and marginalized groups.

Innovative Solutions Canada (ISC) addresses the request for support from SMEs by providing opportunities for the government to be their first customer when their research and development (R&D) reaches commercialization.

ISC uses grants and procurement to fund the full range of R&D activities:

• Challenge Stream ($113.8 million/year): Since 2017, 21 departments and agencies have been issuing challenges based on needs or market gaps to support Canadian SMEs develop and commercialize their promising early-stage R&D.

• Testing Stream ($33.8 million/year): Since 2010, Canadian firms of all sizes have been assisted in commercializing their late-stage R&D. The program purchases and facilitates the testing of these prototypes by the government’s organizations.

Pathway to Commercialization: Launched as a pilot in 2021, the pathway enables departments and agencies to purchase innovations that have been successfully tested through the Testing Stream.

In support of Canada’s National Quantum Strategy, ISC has issued eight challenges and released three calls for proposals, that have resulted in numerous contracts and grants.

• Departments and agencies use Innovative Solutions Canada as a policy tool to drive innovation, encourage the growth of Canadian small and medium-sized enterprises, address gaps in the market place, and meet the priorities of the Government of Canada.

• Since 2017, Innovative Solutions Canada’s Challenge Stream has awarded 376 contracts and grants, and has received 2,771 applications from Canadian small and medium-sized enterprises in response to 128 challenges.

• Since 2010, Innovative Solutions Canada’s Testing Stream has awarded 750 contracts valued at over $411 million.