Facts:
Several of the reports acknowledge that
“large, multi-national” companies have
strong commercialization infrastructures &
prefer to have SR&ED funding vs.
SME’s who need commercialization assistance.
A Feb. 28, 2012 report from CATA acknowledges,
“53 per cent of surveyed companies compete in the market without collaborating with industry peers.”
The report then recommendations that,
“To compete and survive, small companies need to collaborate among themselves, as well as with large anchor companies that have built-in channels to the market. Canada does not have a culture of collaboration,”
“The government must encourage collaboration among Canadian industry companies on a much larger scale than at present, where most of the incentives were focused on collaboration between government labs and industry and on ways to get more academic institutions to license their inventions to industry,”
Group Recommendations:
Consider incentive for
“large co’s” to act as “ANCHORS” for
development, mentoring & commercialization with
SME’s on SR&ED projects.
This could be implemented;
based on previously approved SR&ED projects &
as a basis to implement the proposed &/or
refundable SR&ED ITC treatments.
As noted in the section on US collaboration the Canadian SR&ED form already contemplates Collaborative claims for SR&ED projects.
As a result we recommend the existing SR&ED claim information can be used to identify “collaborative” SR&ED work, allowing;
a single project description for multiple claimants (reduced compliance costs),
additional incentives to large Canadian firms who work with Canadian SMEs &
perhaps even joint incentives for work with Canadian & US companies,
jointly administered by the CRA & IRS.
Example SR&ED claim form – method to claim “collaborative work”:
Commercialization Collaboration
Collaboration – Stage 1 (Large & Small Companies):
Consider “refundable credit” incentive for;
large companies to act as “ANCHORS”
for development, mentoring & commercialization with
SME’s on SR&ED projects,
including a single project description for multiple claimants to reduce compliance costs.
Collaboration – Stage 2 (Canada–US SR&ED)
Consider extending Stage 1 Collaboration;
to include joint incentives for work between
Canadian & US companies,
jointly administered by the CRA & IRS.