Over the next five years, the Government of Canada proposes to invest $100 million to develop the Automotive Supplier Innovation Program (ASIP). The program is designed to support Canadian automotive suppliers that are looking to develop commercially viable, ground-breaking products that meet new emission, safety, and fuel efficiency standards. Through the ASIP, small- to medium-sized enterprises (SMEs) can receive support for product development and technology demonstration. Eligible small to medium sized enterprises have less than 500 employees and less than $1 billion in revenue globally. The program will provide non-repayable funding of up to 50% of the eligible project costs to a maximum of $10 million. Eligible project activities include pre-commercial product or process testing, the development of prototypes, and product or process engineering.

Eligible ASIP projects will focus on research and development in the automotive sector and the creation and retention of high-skilled jobs in Canada. Eligible projects must align with the government’s environmental agenda as well as their science and technology strategy.  The Canadian government would like to incentivize innovation to encourage the development of fuel efficient technologies or processes with the long term economic goal of job creation. Eligible projects should have the potential to attract future investments to foster Canadian competitiveness. Going forward, new strategies will be announced by the federal government to enhance business access to R&D support programs.