Project costs: Strategic Innovation Fund

Strategic Innovation Fund (SIF) funding is project-based, with a portion of eligible supported project costs (expenditures) being reimbursed.

SIF funds projects with at least $20 million in total project costs. Learn more about funding amounts and conditions.

Eligible costs

Project costs that are supported by SIF include:

  • direct labour costs
  • direct materials and equipment costs
  • other direct costs
  • overhead costs (program limits apply)
  • subcontracts and consultants costs
  • land and building costs, which must:
    • be necessary and reasonable in order to be able to carry out project activities and
    • benefit all network members (for Collaborations and Networks projects)

Additional conditions may apply to applications that include land-related costs.

Other eligible costs for Collaborations and Networks projects

In addition to the above, the following costs are eligible for SIF support in the Collaborations and Networks category:

  • expenditures related to network operations and activities, including:
    • the organization of networking events
    • the operation of regional offices across Canada
    • participation in collaborative research and technology
    • conferences and workshops in support of collaborative research and development (R&D) activities
  • costs related to network operations, including:
    • travel
    • salaries
    • overhead
    • office equipment
    • professional services
    • other operational costs, as appropriate

Ineligible costs

SIF will not support certain costs, even if they are reasonably and properly incurred in the context of an approved project.

Examples of unsupported costs include:

  • advertising
    • except reasonable advertising of an industrial or institutional character placed in trade, technical or professional journals for the dissemination of information for the industry or institution
  • allowance for interest on invested capital, bonds, debentures, bank or other loans together with related bond discounts and finance charges
  • amortization of unrealized appreciation of assets
  • compensation for officers and employees that is unreasonable
  • depreciation of assets
  • donations
  • dues and other memberships other than regular trade and professional associations
  • entertainment expenses
  • fines and penalties
  • losses on investments, bad debts and expenses for collection charges
  • losses on other projects or contracts
  • premiums for life insurance on the lives of officers and/or directors
  • product development or improvement expenses not associated with the project
  • provisions for contingencies
  • selling and marketing expenses associated with the products or services or both being developed as a part of this project
  • taxes, including:
    • excess profit taxes or surtaxes
    • federal or provincial income taxes
    • goods and services taxes
    • special expenses in connection with those taxes