Just because you don't have an R&D department doesn't mean you can't get Research money

Innovation Isn't Just for Tech Giants

The Scientific Research and Experimental Development (SR&ED) program in Canada offers valuable opportunities for businesses to receive substantial financial support for research and development activities. While many think that only companies with dedicated R&D departments can benefit, this couldn’t be further from the truth. In fact, many small companies that innovate or are willing to innovate can benefit from SR&ED, even if they don't have formal research divisions.

Small companies across Canada are often innovating without even realizing it. Whether it's tweaking a product, improving a manufacturing process, or developing new software, all of these activities can qualify for SR&ED credits. Even if your business doesn’t have the resources to establish an R&D department, if you can point to areas where you’ve taken a systematic approach to solve technical challenges, you’re likely eligible.

Any company that makes anything can innovate and receive SR&ED funding. Whether you're developing new ways to be environmentally friendly in a food business, creating new technology to facilitate your processes in a manufacturing company, or building prototypes involving scientific uncertainty for a new product, all of these activities could potentially qualify for SR&ED credits. The key is experimentation, and any company, regardless of size, can experiment with new ideas.

Downtime Is an Opportunity

Another common misconception is that a company must be highly innovative or technically advanced to qualify for SR&ED. However, even if your company isn't particularly innovative, you can use employee downtime to do experimental development and benefit from SR&ED money. If your employees have time between tasks, there may be an opportunity to explore different processes, test new materials, or implement automation in a way you haven’t done before. All these activities can count toward SR&ED, turning what would be idle time into a potential grant opportunity.

Small and medium-sized businesses often overlook these opportunities because they don’t see themselves as innovators. But with SR&ED, innovation can be as simple as refining an existing product or trying a different approach to solving a technical problem.

Service Companies Can Innovate Too

SR&ED isn't limited to businesses in manufacturing or product development. Even some service companies can innovate and receive SR&ED money if they are willing to explore new methods of delivering their services. For example, a consulting firm might experiment with artificial intelligence or machine learning algorithms to better analyze data and serve clients. Or a logistics company could experiment with new route optimization techniques or transportation technologies to improve efficiency. These innovations, even if they don’t lead to immediate commercial success, may qualify for SR&ED money because they involve overcoming technical challenges.

The bottom line is that SR&ED is for more than just traditional R&D firms. If your company can demonstrate that it’s trying new methods, processes, or products and encountering technological uncertainties, you could be eligible to receive significant financial benefits from the SR&ED program.

Don't Miss Out on SR&ED Funding

For many companies, the biggest barrier to accessing SR&ED money is simply a lack of awareness. Business owners may not realize how wide the scope of eligible activities is under this program. But any company that is willing to innovate or experiment with new ideas can qualify for SR&ED—no matter its size or industry.

So if your business is experimenting with new ways to build, deliver, or improve, don’t miss out on the opportunity to benefit from the SR&ED program. With careful documentation and the right mindset, you could access substantial R&D money to reinvest in your company's future.  Dymergent Inc. has a long history of helping companies of all sizes turn that concept into a reality.