Industry Canada, Government of Canada

The Strategic Aerospace and Defence Initiative supports private sector industrial research and pre-competitive development (R & D) in Canada's aerospace, defence, security and space (A & D) industries. Industry characteristics for R & D in the A & D industries such as high development costs, long development lead times and long payback periods, combined with the cyclical nature of the industry and the fact that projects are high risk, make it difficult for the private sector to entirely fund an R & D project.

Through repayable project contributions, the Strategic Aerospace and Defence Initiative will encourage strategic research and development and leverage crucial private-sector R & D investment in the aerospace, defence, security and space industries. SADI will foster collaboration between research institutions, universities and colleges, non-profit organizations and the private sector. Supporting R & D in the industry also enables Canada to attract global A & D firms and first class scientific and engineering talent.

SADI is open to all Canadian companies in aerospace and defence (A & D) industries. The following activities may qualify for SADI.

• 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.

• Contributions to SADI projects will equal approximately 30 percent of a project's total eligible costs.
• Funding through SADI is in the form of conditionally repayable contributions, rather than loans.
• Repayment may include both principal and a royalty on the basis of gross business revenue.

Research and Development, Financing

The Strategic Aerospace and Defence Initiative is administered through Industry Canada's Industrial Technologies Office. Click here to download the Program Guidelines.

Industrial Technologies Office
Industry Canada
235 Queen Street, 7th Floor
Ottawa ON K1A 0H5
Tel: 1-800-266-7531, Toll free hearing impaired only TTY: 1-866-468-1669
Fax: (613) 954-5649
Email: info@ito.gc.ca
Website: http://ito.ic.gc.ca/eic/site/ito-oti.nsf/eng/h_00022.html

January 2010/AW