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.|
Why leave money on the table?
CTAP contingency fees pay for themselves. Request a free consultation. CTAP specialized services assist Canadian companies to maximize their resources by accessing research and development tax credits available from the federal and provincial governments. CTAP staff has expertise in product development cycle, software development, engineering, manufacturing, and business management, combined with an in-depth knowledge of SR&ED.