S CIENTIFIC R ESEARCH & E XPERIMENTAL D EVELOPMENT : A N I - - PowerPoint PPT Presentation

SCIENTIFIC RESEARCH & EXPERIMENTAL DEVELOPMENT: AN INTRODUCTION

Justin Frape, President & Senior Consultant Wayne Smith, Vice-President, Consulting Laura J. Craig, Vice-President, Business Development & Communications

SCIENTIFIC RESEARCH AND EXPERIMENTAL DEVELOPMENT (SR&ED)

What is it? Why is SR&ED important? How does this compare to IRAP (Industrial

Research Assistance Program)?

What other funding can I access?

SR&ED – “FEDERAL TAX INCENTIVE PROGRAM”

WHY IS SR&ED IMPORTANT?

Offsets R&D costs Reduces investment risk Increases competitiveness Focuses on developing ‘know-how’ Improves products and processes

THE THREE CRITICAL QUESTIONS

1.

What technological advancements were you trying to achieve?

2.

What technological obstacles/uncertainties did you have to overcome to achieve the advancements?

3.

What work did you perform in the tax year to

• vercome those technological
• bstacles/uncertainties?

WHAT DOES THAT REALLY MEAN?

 Define your problem, look at alternatives, experiment,

test, feedback, conclusion.

 Project ends when your question is answered – desired

• utcome or not.

QUALIFYING ACTIVITIES

‘Standard

Engineering and/or Practice’

Learned concepts

count once unless a quantifiable differences exist, resulting in new uncertainties

Does NOT Qualify With exceptions….

SR&ED IS ABOUT CONTINUOUS LEARNING

How to do

something

How not to do

something AND

SR&ED IS ALSO…

Taking a step outside your day-to-day

business to make something new or make something better

The pursuit of new knowledge, regardless

• f the outcome

NEW TO YOU

HOW DO I KNOW IF SR&ED EXISTS?

 Can the technical objectives they be achieved, if at

all? How?

 Is there more than one path to the answer? And

what is the best to get there?

 So you experiment until you find the answer –

successful or not

 ‘Trial & Error’ = may not be systematic investigation

 You have learned from your mistakes

WHAT COUNTS?

 Labour  Materials  Lease Costs  Contracts  Overhead  Third-party Payments

SR&ED SECTORS & INDUSTRIES

Natural & Formal

Sciences

Engineering &

Technology

Medical & Health

Sciences

Agricultural Sciences

Social Science Humanities

Fields of Science & Technology Excluded by law

SR&ED: INDUSTRY EXAMPLES

SR&ED: CHEMICAL ENGINEERING & MATERIALS SCIENCES

SR&ED: AGRICULTURE & NATURAL RESOURCES

SR&ED: MANUFACTURING & FABRICATION

SR&ED: INFORMATION & COMMUNICATIONS TECHNOLOGIES

WHAT TYPES OF CLAIMS ARE BEING SUBMITTED?

Scientific Research

 10% of claims  Pure & Applied Science

Experimental Development

 90% of claims  Everything else…

I MIGHT HAVE A CLAIM…WHAT SHOULD I DO?

INTELLECTUAL PROPERTY

HOW DOES THIS WORK?

 A typical SR&ED mandate includes:

 Discovery meeting: project identification  Investigation: project detail and financial detail  Claim preparation and submission  Review Support

Commercialization Application and

acceptance

Finite $ Broader scope Apply at the

beginning

Innovation Tax Refund $ Based on claims Narrow scope R&D

• nly

Claim expenses at

year end

Industrial Research Assistance Program Scientific Research & Experimental Development

OTHER FUNDING PROGRAMS

 Northwestern Ontario Innovation Centre  Northern Ontario Heritage Fund Corporation  7 funding programs  Federal Programs  Province of Ontario Programs

AND WE CAN…

 Project management and planning  R & D planning  ISO Training  Identification of other sources of funding  Prepare applications  Statistical Analysis