What Innovative Solutions Canada does

Innovative Solutions Canada is a federal government procurement and innovation program administered by Innovation, Science and Economic Development Canada (ISED), headquartered in Ottawa at 235 Queen Street, C.D. Howe Building. The program provides funding to Canadian small and medium-sized enterprises (SMEs) to develop and test innovative technologies, operating through two streams: one for proving feasibility and building prototypes, and a second for testing innovations in real-life settings. It functions as a mechanism to leverage federal purchasing power in order to lower barriers to public-sector contracting for SMEs and to stimulate domestic innovation and job creation.

The program is delivered under the umbrella of the Small Business Procurement Program (SBPP), which was announced with a $79.9 million, five-year investment commitment by Minister Rechie Valdez in August 2026. Challenge-based funding mechanisms — such as the Low-Carbon Construction Materials Challenge, through which CarbiCrete received $1 million in Phase 2 funding in June 2026 — illustrate the program's vertical deployment strategy. Co-administration with the National Research Council of Canada (NRC) and integration within ISED's broader portfolio (intellectual property, AI strategy, CASL compliance, business financing) extends the program's reach across the Canadian innovation stack.

From a business model standpoint, Innovative Solutions Canada is not a commercial revenue-generating entity. Its "revenue" is a publicly appropriated grant envelope disbursed to SMEs; funding flows from the federal treasury to participating businesses via challenge competitions and procurement contracts. The target customer segment is Canadian SMEs developing innovative technologies across verticals such as construction/cleantech, with go-to-market executed through ministerial announcements, ISED communications channels, and direct federal procurement. The program is government-owned and operated, with no private equity, venture capital, or commercial shareholders.

Name

Innovative Solutions Canada

Legal name

Innovation, Science and Economic Development Canada

Website

https://ic.gc.ca

Company type

Private

Founded year

2017

Operating status

Operating

Short description

Innovative Solutions Canada is a federal government procurement program administered by ISED that provides funding to Canadian SMEs to develop and test innovative technologies, operating through two streams: prototype development and real-life testing.

Ownership category

akta.pro rank

Headquarters

HQ city

Ottawa

HQ country

Canada

HQ region

North America

Offices1 record

Markets served

GTM type

B2B

Offering type

Services

Cost components

Operations, Personnel, Others

Revenue model

1. Federal Government Procurement Funding: Innovative Solutions Canada is a government program that allocates $79.9 million over five years through the Small Business Procurement Program (SBPP) to support the development and testing of innovative technologies by Canadian SMEs. The program funds participating small businesses rather than generating commercial revenue.

Distribution channels1 record

Marketing channels1 record

Core offering

Innovative Solutions Canada is a Canadian federal government procurement program that provides funding to small and medium-sized enterprises (SMEs) for developing and testing innovative technologies. The program operates through two streams: one for proving feasibility and building prototypes, and another for testing innovations in real-life settings. It is administered by Innovation, Science and Economic Development Canada (ISED) and is supported by a $79.9 million investment over five years through the Small Business Procurement Program (SBPP).

Product overview

Innovative Solutions Canada is a Canadian federal government procurement program managed by Innovation, Science and Economic Development Canada (ISED). The program provides funding to small and medium-sized enterprises (SMEs) to develop and test innovative technologies through two funding streams: the feasibility/proof-of-concept stream and the real-life testing stream. The program leverages government purchasing power to foster economic growth and job creation within Canada, and is part of the broader Small Business Procurement Program (SBPP) initiative announced with a $79.9 million investment over five years.

Differentiator

Problem solved

Functional benefit

Products and services

• Innovative Solutions Canada Program A Canadian federal government program that provides funding to small and medium-sized enterprises (SMEs) for developing and testing innovative technologies. The program offers two streams: one for proving feasibility and building prototypes, and another for testing innovations in real-life settings.
• Small Business Procurement Program (SBPP) A federal procurement initiative under Innovative Solutions Canada that simplifies federal contracting and expands opportunities for small businesses, supported by a $79.9 million investment over five years.

Named customers1 record

Segments1 record

Ideal customer profiles1 record

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Partnerships

Three partnerships are on record, tiered core, major and program participant.

• Innovation, Science and Economic Development Canada (ISED)coreOthersISED is the federal department that administers the Innovative Solutions Canada program. It manages the $79.9 million investment over five years through the Small Business Procurement Program (SBPP) to support SME innovation and development of new technologies.
• National Research Council of Canada (NRC)majorStrategic or Co-development PartnerNRC collaborates with ISED to deliver the Innovative Solutions Canada program. In the CarbiCrete example, NRC co-funded the $1 million investment alongside ISED for Phase 2 of the Low-Carbon Construction Materials Challenge program.
• CarbiCreteprogram participantOthersCarbiCrete is a Montreal-based company that received $1 million in funding through the Innovative Solutions Canada program to support its low-carbon concrete technology. The company is developing technology that replaces traditional cement with steel-making by-products and permanently sequesters CO2 during curing.

Scale indicators2 records

Recent moves4 records

Expansion highlights4 records

Direct peers

• NRC Industrial Research Assistance Program (IRAP): Canadian federal program under the National Research Council that provides funding and advisory services to Canadian SMEs for technology innovation. The most directly comparable peer, sharing mandate, target audience, and federal program structure with Innovative Solutions Canada.
• SBIR (US Small Business Innovation Research): US federal government program that funds small businesses for federal R&D with commercial potential. Direct international peer with the same mandate of using federal procurement to support SME innovation and prototype development across agencies.
• Innovate UK: UK government innovation agency funding business-led innovation across sectors. Comparable to Innovative Solutions Canada in providing government-backed funding for SME R&D and prototype development in another national jurisdiction.
• Sustainable Development Technology Canada (SDTC): Canadian federal foundation funding Canadian cleantech SMEs developing and demonstrating clean technology. Comparable as a Canadian federal program supporting SME innovation with a sectoral focus and similar funding mechanism.
• Mitacs: Canadian not-for-profit organization funding research internships and innovation collaborations between Canadian SMEs, academia, and government. Comparable as a Canadian innovation funding intermediary supporting SME technology development.

Regional players

• Alberta Innovates: Alberta provincial Crown corporation funding innovation and research in Alberta. Comparable as a Canadian government-affiliated innovation funding organization, though operating at provincial rather than federal level with overlapping SME mandate.
• Ontario Centre for Innovation (OCI): Ontario provincial innovation funding organization supporting SMEs and technology development. Comparable to Innovative Solutions Canada in providing government-backed funding for SME innovation in a Canadian province.
• Canada Economic Development for Quebec Regions (CED-Q): Canadian federal regional development agency supporting SME innovation and economic development in Quebec. Comparable as a Canadian federal program supporting SME growth and innovation, with similar regional economic development mandate.

Broad incumbents

• Business Development Bank of Canada (BDC): Canadian federal Crown corporation providing financing and advisory services to Canadian SMEs. Comparable as a government-backed Canadian SME funding institution, though broader in scope than innovation-specific procurement.
• European Innovation Council (EIC, under Horizon Europe): European Union innovation funding program supporting SMEs and startups across Europe. Comparable as a government-backed large-scale innovation funding program for SMEs, operating at supranational level with similar procurement orientation.

Market position

Strengths4 records

Weaknesses4 records

Competitive moat3 records

Key risks4 records

Key highlights5 records

Customer concentration

• Xx.com/canadabusiness
• YouTubeyoutube.com/user/IndustryCanadaGC
• Facebookfacebook.com/CanadaBusiness
• LinkedInlinkedin.com/company/ised-isde
• Instagraminstagram.com/cdninnovation

Revenue estimate

Valuation estimate

Number of profiles

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments6 records

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Innovative Solutions Canada