R&D Funding

CIIRDF Awards Model

CIIRDF’s Role
CIIRDF’s major role is that of sharing in R&D risk by investing up to CD $20,000 for feasibility studies and up to CD $800,000 for full-scale R&D projects undertaken as a joint project by Canadian and Israeli partners. The CIIRDF awards are provided on a cost-share basis for up to 50% of the project R&D costs. Click here to review eligibility criteria. CIIRDF retains neither equity nor intellectual property rights as a result of its contribution. It does, however, require that the award be repaid by the project partners should the project result in commercialization and revenue generation. If the project does not lead to revenue generation, as a result of either technical or marketing failure, no repayment is required.

The Project
The Project is defined as the scope and duration of the research and development program undertaken by both companies, at the end of which the Product should be close to market-ready. Project duration may be up to 3 years. Note that Feasibility Studies have a maximum duration of 6 months.

The Proposer
The Israeli company and the Canadian company are collectively referred to as the “Proposer.” The agreement reached between CIIRDF and the Proposer is typically a three-party agreement (i.e. between the Canadian and Israeli companies and CIIRDF), and is separate from any agreement or joint business plan in place directly between the Canadian and Israeli companies. Although the company-company agreement is not subject to review by CIIRDF, it is expected that the parties both stand to gain from the Project, and that they have agreed on issues relating to manufacturing rights, marketing, intellectual property rights, etc. Note that the Proposer need not be a legal entity.  

CIIRDF Funding
Successful Full-scale Projects will receive funding in three instalments: the first upon signing the Cooperation and Project Funding Agreement, the second upon submission and acceptance of the interim Technical and Fiscal Reports, and the final payment upon submission and acceptance of the Final Report. Feasibility Studies will receive two payments, 50% upon signing of the Agreement, and the balance upon submission and acceptance of the Final Report.

Repayments
CIIRDF investments in full-scale projects are repayable. The Proposer is required to make payments to CIIRDF based on gross sales derived from the sale, leasing or other marketing or commercial exploitation of the product or process innovation resulting from the Project. The repayment rate is 2.5% of gross sales revenue semiannually, beginning with the semiannual period during which the first sale was made following receipt of the Award, and ending when at least 90% of the Award value has been repaid to CIIRDF. Further details regarding the payment schedule are covered in the Cooperation and Project Funding agreement you will find in the Handbook.

Process
The process followed by CIIRDF was developed to keep the administrative burden to a minimum for all parties. There are two categories of project applications: Feasibility Studies (investigations to determine the technical feasibility or market acceptability of a new product or process concept), and Full-Scale R&D Projects. Feasibility Studies can be approved by the CIIRDF President, but Full-Scale Projects require Board approval. After the initial expression of intent by the Proposer to apply for Full-Scale Project funding, CIIRDF may invite a detailed proposal. The process for Full-Scale Project applications is described in the following flowchart:

Flowchart - PDF document (82 kB)

Timing
Feasibility Study proposals may be submitted at any time, and there is typically a two-week turnaround for decision. Full-scale proposals require 6-8 weeks for review leading up to a final decision by the CIIRDF Board.