Step 2. Eligibility Review

The Industrial Technologies Office (ITO) conducts an eligibility review of proposals submitted to the Strategic Aerospace and Defence Initiative (SADI) to determine if the proposal meets the eligibility criteria. If the proposal does not meet these criteria, ITO will reject the proposal.

There are five main elements verified in the eligibility criteria, as listed below.

1. Companies must be incorporated under Canadian law and must be prepared to:

   • conduct strategic research and development (R&D) activities in the aerospace and defence (A&D) industries, and
   • create opportunities for Canadians to contribute to a highly skilled and knowledge-based workforce.
   
   

2. The proposal must show that the company's project will consist of eligible activities: industrial research and pre-competitive development.

   • 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. It may further include the conceptual formulation and design of products, processes or services, as well as initial demonstration or pilot projects.

3. The project must include strategic R&D activities that are:

   • supporting the development of next-generation A&D-related products and/or services;
   • building on existing Canadian strengths in A&D technology development;
   • enabling Canadian companies to participate in major platforms and supply chains; or
   • assisting the A&D industries in achieving Canada's international obligations (e.g. development programs supported by Canada).
   
   

4. The applicant must demonstrate that government support is required to meet the scope and timing of the proposed project.

5. Strategic R&D or manufacturing of high value-added technologies, made possible with repayable contributions from SADI, must take place in Canada unless otherwise agreed to by the Minister of Industry.

Once the proposal is reviewed, ITO informs the applicant whether or not the proposal meets the eligibility criteria. If the proposal is eligible, a letter is sent to the applicant indicating that the proposal will proceed to the next stage of review, the project assessment. If a proposal does not meet the eligibility criteria, ITO rejects the proposal.

If necessary, additional information required to complete the assessment and due diligence reviews will be requested.

Please see the next step, Step 3. Assessment Review.