The Automotive Supplier Innovation Program (ASIP) was created as part of the Economic Action Plan 2015. This Canadian government funding program will provide up to $100 million over five years (2015-2020) to encourage automotive suppliers to develop new innovative products and processes that will make Canada more competitive on a global scale. This program was a response to developing nations’ continued growth in the automotive manufacturing sector and the Canadian government’s commitment to support the Canadian automotive industry.
In addition to increasing competitive pressures from developing nations, the pending Trans-Pacific Partnership could lead to the loss of 20,000 Canadian automotive related jobs (source). It’s clear that Canadian automotive players must invest in R&D to create competitive advantages as the competition thickens and trade barriers fall. By offering unique and compelling products and competitive prices, Canada can take advantage of globalization and innovation.
Related Blog: 2016 Government Funding Programs for the Automotive Industry – Five business funding grants and loans will provide small and mid-sized businesses (SMBs) with the funding needed to complete strategic projects in 2016.
Automotive Supplier Innovation Program’s Funding Details
Canadian government grants provided by ASIP will fund up to 50% of eligible project costs to a maximum of $10 million. Applicants can apply for funding towards multiple projects by submitting multiple applications. Projects need to have a clear focus on new, innovative processes and technologies that do not currently exist and will strengthen the Canadian automotive supply chain.
The innovations created from eligible projects could include new production methods to reduce costs and time, lighter more fuel-efficient automotive components, or new testing and inspection technologies that take less labour, time, or reduce rework. Projects outcomes must impact must be for the Original Equipment Manufacturer (OEM), not aftermarket products and technologies.
Applicant & Expense Eligibility for ASIP Research Grants
Businesses interested in applying for the Automotive Supplier Innovation Program (ASIP) must have 1-500 full-time payroll employees, less than $1 billion in annual global revenues, and must serve the automotive industry either through equipment, processes, or software development. Applicants with more than $1 billion in annual global revenues may still apply, however they must partner with at least one other business that meets the eligibility requirements and is responsible for at least 20% of the project.
Project expenses eligible for ASIP grants and incentives include non-recurring labour costs related to the project, engineering and design contractors, specialized equipment related to the project, prototyping and testing materials, and eligible overhead costs determined by CRA’s “Overhead Proxy Rate”.
Get Started with ASIP Small Business Grants for Research
Interested automotive suppliers will need to submit a three-page application with attachments. Applications will be assessed based on their level of innovation, market relevance, economic benefits, environmental benefits, science and tech benefits, and the necessity of funding to the project’s success. Funding application review should take approximately 6-8 weeks.
Learn More About the Automotive Supplier Innovation Program
Recent Automotive Supplier Innovation Program News:
- Automotive Supplier Innovation Program (ASIP) Canadian Research Grants
- 2016 Government Funding Programs for the Automotive Industry
- Keeping a Competitive Future for Ontario’s Automotive Industry
- Ontario Collaboration Secures Global Competitiveness in Automotive Industry
- Improvements to the Canadian Small Business Financing Act (CSBFA)
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