Innovative Solutions Canada

Innovative Solutions Canada
Name	Innovative Solutions Canada
Formation	2017
Type	Innovation procurement program
Headquarters	Ottawa, Ontario
Parent organization	Treasury Board of Canada Secretariat

Innovative Solutions Canada is a Canadian procurement and innovation initiative that supports early-stage commercialization by awarding contracts and grants to small and medium-sized enterprises. It aims to accelerate adoption of new technologies across federal departments and agencies while stimulating private-sector research and development in Canada.

Overview

Innovative Solutions Canada operates as a federal innovation procurement program linked to agencies such as the National Research Council (Canada), the Treasury Board of Canada Secretariat, and the Department of Innovation, Science and Economic Development (Canada), engaging partners like the Canadian Space Agency, the Department of National Defence (Canada), and the Public Health Agency of Canada. It delivers a phased model that advances projects from proof of concept to pre-commercial procurement, collaborating with organizations including the Business Development Bank of Canada, the Export Development Canada, and provincial innovation hubs like MaRS Discovery District, Communitech, and Innovate Calgary. The program interfaces with advisory bodies such as the Standing Committee on Industry, Science and Technology, the Parliament of Canada, and policy frameworks like the Industrial and Technological Benefits Policy.

History and Development

The program was announced during the mandate of the Prime Minister of Canada in response to recommendations from reports produced by institutions such as the Council of Canadian Academies and the Canadian Science Policy Centre. Early pilots drew on models from the Small Business Innovation Research program in the United States and the Small Business Research Initiative in the United Kingdom. Foundational development involved consultations with provincial governments like the Government of Ontario and the Government of British Columbia, research bodies including the National Research Council (Canada) Industrial Research Assistance Program and industry associations such as the Canadian Chamber of Commerce and the Canadian Wireless Telecommunications Association. Subsequent expansion aligned with federal commitments in budget documents debated in the House of Commons of Canada and with inputs from parliamentary committees such as the Standing Committee on Public Accounts.

Program Structure and Funding

Innovative Solutions Canada implements a two-phase procurement model with an initial concept phase and a later supply-phase competition involving departments like the Royal Canadian Mounted Police, the Canada Revenue Agency, and the Royal Canadian Air Force. Funding streams intersect with innovation funding mechanisms such as the Strategic Innovation Fund and the Industrial Research Assistance Program. Award levels and contribution agreements reference policies administered by the Treasury Board of Canada Secretariat and oversight by the Office of the Auditor General of Canada. Financial instruments and supports coordinate with entities like the Business Development Bank of Canada, provincial venture funds including Ontario Centres of Excellence, and private capital actors such as BDC Capital and institutional investors tracked by the Toronto Stock Exchange.

Application and Procurement Process

Applicants submit proposals through mechanisms that interact with the Public Services and Procurement Canada procurement framework, evaluation panels drawn from officials in departments including the Canadian Food Inspection Agency and the Department of Fisheries and Oceans, and advisory reviewers from agencies like the Canadian Institutes of Health Research and the Natural Sciences and Engineering Research Council of Canada. The process follows procurement policies influenced by the Canada Free Trade Agreement and procurement case law considered by the Federal Court of Canada. Successful applicants may proceed to contracts executed in accordance with regulations from the Treasury Board of Canada Secretariat and reporting standards assessed by the Office of the Auditor General of Canada.

Notable Projects and Outcomes

Projects funded through the program include collaborations with the Canadian Space Agency on satellite-related technologies, trials with the Department of National Defence (Canada) for unmanned systems, partnerships with the Public Health Agency of Canada for diagnostics, and work with the City of Toronto and the Government of Quebec on urban innovation pilots. Outcomes have led to commercialization paths involving corporate partners such as Magellan Aerospace, MDA (company), and startups spun out with support from accelerators like Creative Destruction Lab and Founder Institute. Success stories have been showcased at events organized by Canadian Innovation Exchange and publications by the Conference Board of Canada.

Criticisms and Evaluations

Evaluations by bodies including the Office of the Auditor General of Canada and analyses cited in reports from the Fraser Institute and the Institute for Research on Public Policy have highlighted challenges such as administrative complexity, procurement timelines, and scale-up barriers faced by small firms. Academic assessments from scholars affiliated with universities like the University of Toronto, McGill University, and the University of British Columbia have compared the program to international peers including the Small Business Innovation Research program and the Small Business Technology Transfer program. Parliamentary committee hearings in the House of Commons of Canada and critiques from industry groups such as the Canadian Federation of Independent Business have prompted reforms to evaluation criteria and outreach to underserved regions like the Atlantic Provinces.

Governance and Partnerships

Governance arrangements involve coordination among federal institutions including the Treasury Board of Canada Secretariat, the National Research Council (Canada), and the Public Services and Procurement Canada, alongside partnerships with provincial innovation agencies such as InnovateBC and Investissement Québec. External governance and advisory roles include collaboration with the Business Council of Canada, regulatory input from departments like the Department of Finance (Canada), and alignment with international partners through networks such as the Organisation for Economic Co-operation and Development and bilateral dialogues with counterparts in the United Kingdom, the United States, and the European Union. The program also works with Indigenous economic development organizations including the Assembly of First Nations and regional development agencies like the Atlantic Canada Opportunities Agency.

Category:Innovation in Canada Category:Procurement