What is the Atlantic Innovation Fund?
The Atlantic Innovation Fund (AIF) is a program designed to strengthen the economy of Atlantic Canada by accelerating the development of knowledge-based industry.
What are the objectives of the AIF?
The objectives of the AIF are to:
increase activity in and to build capacity for innovation and research and development (R&D;) that leads to technologies, products, processes or services that contribute to economic growth in Atlantic Canada;
increase the capacity for commercialization of R&D; outputs;
strengthen the region's innovation capacity by supporting research, development and commercialization partnerships and alliances among private sector firms, universities, research institutions and other organizations in Atlantic Canada; and
maximize the region's ability to access national R&D; funding programs.
What types of projects are eligible for AIF funding?
The Atlantic Innovation Fund focuses on R&D; projects in the area of natural and applied sciences, as well as in social sciences, humanities, arts and culture, where these are explicitly linked to the development of technology-based products, processes or services, or their commercialization.
More specifically, the Atlantic Innovation Fund is designed to focus on areas of strategic importance to the region that offer the most potential for future growth, including information technology, ocean technologies, aquaculture, bio-technology, health/medical technologies, and environmental technologies. AIF investments could also strengthen the region's ability to develop technologies that allow natural resource industries - such as oil and gas, agriculture and agri-food, fisheries, forestry and mining - to
maintain and increase their competitiveness.
Who can apply for AIF funding?
Eligible applicants include universities, research institutions and private sector businesses. Proposals that involve partnerships among these groups are encouraged.
Federal and provincial departments, including government research laboratories and institutes, are not eligible for funding.
What are the eligibility criteria?
To be considered under the Atlantic Innovation Fund, projects must meet the following criteria:
be compatible with the AIF objectives;
be scientifically and/or technically sound;
demonstrate management capability to successfully undertake the project;
demonstrate significant economic benefits for Atlantic Canada;
demonstrate commercialization potential of project;
support new or improved technologies or new applications of technologies;
have adequate financing for the duration of the project;
be incremental; and
support one or more strategic sectors/technologies.
While not an absolute requirement, the Atlantic Innovation Fund will favour projects with a combination of the following desirable criteria:
includes private sector participation (for institutional proposals);
fills a gap in the Atlantic system of innovation;
improves innovation capacity of private sector;
is pan-Atlantic in scope;
builds critical mass through networks/cooperation of existing or additional talent (researchers);
leverages funding from other public and private sector sources;
attracts new firms, institutions and researchers to Atlantic Canada;
builds on research excellence; and
fosters national and international affiliations.
What are the eligible costs?
Eligible costs include reasonable, incremental, project-related costs such as:
wage and salary costs directly associated with a project;
capital costs such as testing equipment, computers, furniture, machinery and any other equipment that is considered essential for a project;
operating expenses for a project, including travel and direct overhead; and
essential building and renovation expenses (assistance will not exceed 30% of the eligible portion of these costs).
Non-eligible costs include such items as:
land, goodwill, and assets in excess of fair market value;
cost allocation for the use of existing space owned by the applicant;
recurring or fixed charges such as property taxes, rentals, insurance and membership dues;
interest, bonds and other financing costs.
How much financial assistance is available?
The Atlantic Innovation Fund can provide assistance up to 80% of total eligible costs for non-commercial projects and up to 75% of total eligible costs for commercial, private sector projects.
Applicants are encouraged to lever funding from other private and public sources prior to applying for AIF funding.
Commercial applicants seeking funding of $1,000,000 or less are not eligible under the Atlantic Innovation Fund. However, such projects may be eligible for assistance under the Business Development Program of the Atlantic Canada Opportunities Agency (ACOA).
Is AIF funding repayable?
Contributions to the private sector are conditionally repayable based on the commercial success of a project.
Contributions to non-commercial organizations, such as research institutes and universities, are non-repayable. However, a private sector partner in a non-commercial project who benefits from the commercialization of the resulting product, process or service would be expected to pay a financial compensation equal or greater than the proportion of the benefits received to the partner institution.
What is the project proposal process?
Projects are approved under the Atlantic Innovation Fund through a series of competitive funding rounds. The Minister of ACOA launches a new round by issuing a Request for Letters of Intent and Project Proposals. Eligible applicants must submit a mandatory letter of intent and a detailed project proposal by separate deadlines for consideration for AIF funding.
An independent Advisory Board, composed of regional leaders in business and academia, reviews all AIF project proposals and provides recommendations to the ACOA Minister.
For additional information on how and when to submit a letter of intent and project proposal, please click here.
Information is also available by contacting the ACOA office nearest you.
