SR&ED | Industries We Serve 

The Scientific Research and Experimental Development (SR&ED) program in Canada is highly relevant to the medical devices industry, especially considering the industry’s emphasis on research and development (R&D) activities. The SR&ED program provides tax incentives to encourage businesses, including those in the medical devices sector, to engage in innovative R&D projects.

Given that the medical device industry in Canada is characterized by small and medium-sized enterprises (SMEs) actively involved in the research and development of medical, diagnostic, and therapeutic apparatuses, the SR&ED program becomes a crucial support mechanism. Companies engaged in the manufacturing and regulation of medical devices can benefit significantly from SR&ED incentives as they invest in advancing technologies and processes within the industry.

The program’s tax credits and benefits can play a pivotal role in fostering innovation, driving growth, and maintaining the competitiveness of SMEs in the medical devices sector. The projected annual growth rate of 5.4% until 2028 in the medical device market aligns with the objectives of the SR&ED program by encouraging ongoing research efforts and technological advancements within the industry.

Considering the substantial size of Canada’s medical device market, estimated at US$6.8 billion in 2022, and the overall healthcare expenditure of approximately C$331 billion, the SR&ED program serves as a strategic tool to incentivize businesses to contribute to advancements in healthcare technologies, thereby benefiting both the industry and the broader healthcare ecosystem.|