The Intellectual Property Institute of Canada (IPIC) proposes two complementary programs to help Canadian businesses innovate, commercialize, and leverage their intellectual property in order to remain competitive in a global innovation economy.
The two programs are a ‘First Patent’ rebate on services and an IP Box tax incentive. If introduced, these IP incentives would create a regulatory environment in Canada attractive to both domestic and foreign businesses to conduct research and commercialize intellectual property. The map below identifies provinces that have already set up or are looking into creating similar types of incentives.
1. Québec
In this current pandemic, Québec businesses are facing a high level of uncertainty, in particular with regard to their investment projects. In order to encourage them to carry out their investment projects and to stimulate Québec's economic recovery, the tax credit relating to investment and innovation will be temporarily increased. The tax legislation will therefore be amended to temporarily double the rates of the tax credit relating to investment and innovation so that the tax credit rate is equal to 40% for a specified property acquired to be used mainly in the low economic vitality zone; 30% for a specified property acquired to be used mainly in the intermediate zone; 20% for a specified property acquired to be used mainly in the high economic vitality zone. More information: http://bit.ly/QC_IPincentives1
2. Saskatchewan
The Saskatchewan Commercial Innovation Incentive (SCII or 'Patent Box') is a growth tax incentive that offers eligible corporations a reduction of the provincial Corporate Income Tax Rate (CIT) to six per cent for 10 consecutive years for eligible corporations that commercialize their qualifying intellectual property in Saskatchewan. Companies can extend the benefit period to 15 years if at least 50 per cent of the related research and development (R&D) in advance of commercialization occurred and was conducted in Saskatchewan. This growth tax incentive is open to any company, operating in any sector, from anywhere in the world, regardless of where or when the R&D for the qualifying intellectual property occurred. More information: bit.ly/SK_IPincentives
3. Ontario
In 2020 the Ontario government announced the province's first Intellectual Property Action Plan, following the recommendations made by the Expert Panel on Intellectual Property. The plan will drive the province's long-term economic competitiveness by prioritizing the generation, protection, and commercialization of intellectual property. It will also put in place supports to help entrepreneurs and start-ups harness intellectual property's value for economic benefit; and a Special Implementation Team on Intellectual Property. More information: bit.ly/ON_IPincentives
4. Alberta
The Alberta Innovation Voucher and Micro-Voucher programs have been designed to support innovation for Alberta SMEs. The program supports SMEs working to advance technologies and get closer to commercialization. Alberta’s investment is in the range of $10,000-$100,000 paid directly to the service providers named by the SME. This includes professional fees for patent development. More information: bit.ly/AB_IPincentives1 & bit.ly/AB_IPincentives2
5. Manitoba
The government of Manitoba's Innovation Growth Program (IGP) provides cost-sharing assistance to Small and Medium-Sized Enterprises (SMEs) to assist them in developing and commercializing new innovative products and processes. The IGP will support SMEs in the development and growth stages of the business life-cycle to reduce the risks associated with innovative product development, accelerate growth and strengthen their financial position so they can secure future funding to build their Manitoba-based business. Under the IGP, firms may apply for a non-repayable grant of up to $100,000 per project to cost‑share eligible expenses on a 50/50 basis. The IGP approves projects using a competitive process and quarterly intakes. Only the strongest applications that meet the objectives of the program will be considered for funding. More information: bit.ly/MB_IPincentives
6. Prince Edward Island
The government of PEI developed an Innovation Fund to assist businesses in bringing a new product, service, or process (“product”) to market by providing financial support for the costs to refine and commercialize an innovative product that has demonstrated potential for export market uptake. More information: bit.ly/PEI_IPincentives
The government of PEI created a Development and Commercialization Fund to assist businesses through the final stages of developing a new product or services. It offers funding to businesses to commercialize their highly innovative product, service or process by supporting various activities, including the development and protection of IP. More information: bit.ly/PEI_IPincentives2
7. British Columbia
British Columbia's Strategic Innovation Fund (SIF) supports large-scale, transformative and collaborative projects that help position Canada to prosper in the global knowledge-based economy. SIF projects promote the long-term competitiveness of Canadian industries, clean growth, and the advancement of Canada's strategic technological advantage. As part of the Innovation and Skills Plan, the Strategic Innovation Fund plays a key role in the continuum of innovation funding, providing support for projects through simplified application processes, accelerated processing, and assistance that is more responsive and focused on results. More information: bit.ly/BC_IPincentives