Innovative Solutions Canada — Testing Stream
In plain language
Federal departments buy your late-stage prototype to test in their own operations. You keep the IP; they pay fair market value up to $550K (standard) or $1.15M (military). Structured as a procurement, not a grant, so no cost-sharing or co-funding — the government is your customer. Works only for Canadian SMEs (<500 FTEs) with a near-commercial prototype matched to a posted federal need. New calls appear sporadically on the ISC site — check the "Available for testing" list. Solid validation plus revenue if you fit an open call, but you are waiting for the government to list a relevant challenge.
Who qualifies
What you'll have to report
Testing milestones and technical reports to the sponsoring department; deliverables acceptance; final testing report; no financial drawdown reporting (it's paid against fixed deliverables).