Initiative overview
Launched in 2018 (merging the former Build in Canada Innovation Program and ISC predecessor programmes) and administered by ISED, Innovative Solutions Canada uses the federal government's buying power as a first purchaser of pre-commercial Canadian technology. The programme operates through two streams: (1) Challenge Stream — government departments and agencies post real operational challenges (including AI challenges for workflow automation, decision support, and process improvement); eligible Canadian SMEs with fewer than 500 FTE employees apply and can receive up to CAD 150,000 for a Phase 1 proof-of-feasibility (up to 6 months) and up to CAD 1M for Phase 2 prototype development (up to 2 years); and (2) Testing Stream — departments post solicitations for late-stage pre-commercial prototypes for operational testing; successful innovators receive contracts for testing in live government environments. Upon successful testing or prototype completion, eligible SMEs access the Pathway to Commercialization, enabling non-competitive government procurement contracts of up to CAD 8M per contract over three years. As of 2024, ISC had awarded over 960 contracts worth over CAD 446M across both streams. ISED's AI-specific challenge solicitation (EN578-25ISC2) targets AI and robotic process automation (RPA) solutions for government servic delivery. The programme is aligned with the Government of Canada's AI Strategy for the Federal Public Service and Treasury Board Secretariat (TBS) digital procurement policy.
