Strategic Aerospace and Defence Initiative Information Booklet

Eligibility requirements and approval process

Eligibility requirements

To be eligible for support from SADI, applicants and projects must meet five requirements, as follows:

1. The applicant must be a Canadian incorporated company that conducts strategic research and development in the aerospace and defence industries, and that creates opportunities for Canadians to contribute to a highly skilled and knowledge-based workforce.
2. The project must comprise either industrial research or pre-competitive development, as follows:
   • Industrial research: This is 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 significantly improving existing ones.
   • Pre-competitive development: This is the translation of industrial research findings into a plan, blueprint or design for new, modified or improved products, processes or services intended for sale or use, including the creation of a first prototype that would not be ready for commercial use. Pre-competitive development may also include the conceptual formulation and design of products, processes or services, and of initial demonstration or pilot projects. It does not include the initial demonstration or pilot projects themselves, if these could be converted or used for industrial application or commercial exploitation. It also does not include routine or periodic alterations to existing products, production lines, manufacturing processes, services and other ongoing operations, even though these alterations may be improvements.
3. The project must include strategic research and development activities involving one or more technologies that do the following:
   • support the development of next-generation aerospace and defence-related products and services;
   • build on Canadian strengths in aerospace and defence technology development;
   • enable Canadian companies to participate in major platforms and supply chains; and
   • help the sector contribute to Canada's meeting its international obligations (e.g., development programs).
4. The applicant must demonstrate that SADI support is essential to the scope and timing of the project.
5. The project must comprise strategic research and development that takes place in Canada, unless otherwise agreed to by the Minister of Industry. Similarly, any manufacturing of high-value-added technologies derived from SADI–funded projects must occur in Canada, unless the Minister approves otherwise.

Lobbying Act requirements

The applicant must comply with the Lobbying Act throughout the application process and the life of any SADI–funded project. Prior to communicating with ITO about an application or the project to which it relates, the applicant should review the provisions of the Act with legal counsel, and all company representatives (employees or advisors engaged on the company's behalf) should ensure that they are aware of the requirements of the Act and comply with them.

The applicant will be required to make representations and warranties about that compliance during the application process and as part of any contribution agreement. That agreement will state that lobbyists may not be paid a commission, contingency fee or any other consideration that depends on the agreement's execution.