Strategic Aerospace and Defence Initiative

The Strategic Aerospace and Defence Initiative (SADI) has three main objectives:

• to encourage strategic research and development (R&D) that will result in innovation and excellence in new products and services;
• to provide enhanced opportunities for the Canadian aerospace, defence, space and security (A&D) industries; and
• to foster collaboration between research institutes, universities and colleges, non-profit organizations* and the private sector.

Eligibility Criteria

• All Canadian companies in aerospace and defence industries that wish to conduct strategic research and development activities.
• SADI is open to A&D companies of all sizes - including small and medium enterprises - and from all regions of Canada.
• Eligible recipients are corporations incorporated under Canadian law.

Eligible Activities

• Industrial research: Planned research or critical investigation aimed at discovering new knowledge, with the objective that such knowledge may be useful in developing new products, processes or services, or in bringing about a significant improvement to existing products, processes or services.
• Pre-competitive development: The translation of industrial research findings into a plan, blueprint or design for new, modified or improved products, processes or services, whether intended for sale or use, including the creation of a first prototype that could not be used commercially. Pre-competitive development may further include the conceptual formulation and design of products, processes or services, as well as initial demonstration or pilot projects.

Summary

Strategic R&D projects under SADI will use technologies that either:

• support the development of next-generation A&D-related products and/or services;
• build on existing Canadian strengths in A&D technology development;
• enable Canadian companies to participate in major platforms and supply chains; or
• assist the A&D industries in achieving Canada's international obligations (e.g. development programs supported by Canada).

What are Eligible Costs?

• These are costs incurred by the recipient that are required to carry out the project.
• Costs may include labour, material, overhead, specialized equipment and other costs related to the project.
• SADI's repayable contributions may also cover eligible project costs incurred prior to the signing of contribution agreements with recipients. In such cases, these costs will not have been incurred prior to the date when the Industrial Technologies Office (ITO) received the project proposal, and they will not exceed a specific percentage of total project costs.
• SADI shall not reimburse eligible costs incurred by the recipient should the proposal be rejected.

What are Non-Eligible Costs?

SADI does not support costs such as those associated with land and buildings.

Types and Amounts of Contributions

• SADI provides Canadian aerospace and defence industries with repayable contributions for strategic R&D projects.
• ITO calculates the contribution amount for each project on the basis of it being the minimum amount of assistance required to ensure that the project proceeds successfully and generates benefits for Canadians.
• Contributions to SADI projects will equal approximately 30% of a project's total eligible costs. ITO is not required to distribute specific amounts of funding or percentage funding levels by region.

*Note: "non-profit" also known as nonprofit organizations, non profit organizations, not-for-profit organizations, voluntary organizations and volunteer organizations.

New Brunswick Contact(s):
See National Contact.

---

National Contact(s):
Industrial Technologies Office
Industry Canada
235 Queen Street
Ottawa, Ontario  K1A 0H5
Fax: 613-954-5649
Toll-free (information): 1-800-266-7531
TTY Toll-free (hearing impaired): 1-866-468-1669
E-mail: info@ito.gc.ca
Web site: http://ito.gc.ca/epic/site/ito-oti.nsf/en/h_00022e.html