NOHFC Invest North — Innovation: up to $2 million for R&D and commercialization in Northern Ontario

A conditional contribution covering up to 50% of eligible costs — technical labour, prototyping, IP protection, and commercialization — for private-sector businesses developing and bringing new technology to market in Northern Ontario.

NOHFC Invest North — Innovation is a conditional contribution from the Northern Ontario Heritage Fund Corporation that provides up to $500,000 for applied research and development projects, or up to $2 million for projects that combine R&D with demonstration and commercialization phases. In both cases the program covers up to 50 percent of eligible costs, and total government funding from all sources cannot exceed 75 percent of total eligible project costs. Eligible costs include direct internal technical labour performed in Northern Ontario, prototyping and design, product testing and certification, intellectual property protection, building and renovation costs tied to commercialization, materials, and limited marketing. Private-sector businesses are the eligible applicants; partnerships with academic or research institutions are permitted, but the private-sector entity must be the lead applicant and the direct recipient of funding. Intake is continuous, but funding is limited and not all eligible projects receive support. Confirm your specific eligibility with NOHFC before building a project plan around this program.

Two funding tiers: research-only versus R&D plus commercialization

The program distinguishes between two types of projects, each with its own funding ceiling. Applied Research and Development projects — work focused on developing a new technology, product, or process — are eligible for up to $500,000. Projects that extend into demonstration and commercialization, or that combine all three phases (R&D, demonstration, and commercialization), are eligible for up to $2 million. In both cases, NOHFC covers up to 50 percent of eligible costs. The difference matters at the planning stage: if your project will move from research into bringing a product to market, structuring the application to cover the full scope can access the higher ceiling. Confirm with NOHFC how your project scope maps to their definitions before finalizing an application.

What the Innovation program funds

NOHFC lists the following as eligible cost categories for Invest North Innovation:

• Direct internal technical labour: specialized work performed in Northern Ontario by employees with relevant technical expertise.
• Prototyping and design services: costs of building and testing prototypes of the new technology or product.
• Product testing and certification: third-party testing, regulatory approval, and certification processes.
• Intellectual property protection: patent applications, trademark registrations, and related legal costs to protect the innovation.
• Building and renovation costs: capital expenses for facilities directly supporting the commercialization of the technology.
• Material costs: physical materials used in the R&D or demonstration work.
• Marketing — capped: in-person or virtual trade show support and marketing material design, limited to 20 percent of total eligible project costs.

What the program does not fund

Several cost categories are explicitly ineligible. Projects aimed solely at improving a business's own internal operations — rather than developing a new product or technology for the market — fall outside the program. Ineligible costs include land acquisition, working capital, administrative and overhead expenses, the labour of owners holding 10 percent or more ownership stake, in-kind contributions, business plan development, travel, standard office equipment, and vehicles. The program is built for technology development with a commercial outcome, not internal efficiency upgrades.

The 75 percent government funding cap

While NOHFC covers up to 50 percent of eligible costs, the program imposes a hard ceiling: total government funding from all sources cannot exceed 75 percent of total eligible project costs. This means the applicant must contribute at least 25 percent of total eligible costs from non-government sources. If the project is also drawing on federal programs — such as NRC IRAP, FedNor RAII, or the SR&ED tax credit — the combined public contributions across all programs must stay at or below 75 percent. Mapping your funding stack against this cap is a practical step before finalizing the application, since a project drawing on multiple programs can run into the ceiling without careful planning.

Academic and research institution partnerships

Invest North Innovation explicitly permits partnerships between private-sector businesses and public-sector academic or research institutions — universities, colleges, and research centres. Lakehead University and Confederation College, both based in Thunder Bay, are examples of institutions where these partnerships are possible. In a partnership structure, the private-sector business must be the lead applicant and the direct recipient of the NOHFC funding; the academic partner is a collaborator, not a co-applicant. Partnerships can strengthen an application by demonstrating technical capacity and research credibility — but the private entity remains responsible for the project and for meeting the program conditions.

How to apply

Applications go through NOHFC and proceed in three stages: initial submission reviewed against program guidelines, a detailed evaluation phase in which NOHFC may request additional information, and a final decision by the NOHFC Board of Directors. Intake is continuous, but funding availability is limited and the board exercises discretion — qualifying for the eligibility criteria does not guarantee funding, and not every qualifying project is approved. Contact NOHFC at 705-945-6700 or through the inquiry portal at myportal.nohfc.ca before building a full application to confirm your eligibility, your project scope, and what the submission package should include. Engaging NOHFC early is the practical way to identify whether a specific cost category or project structure falls inside the program before investing time in the full submission.

Frequently asked questions

• Can a software company apply? Private-sector businesses developing new software products or technology solutions are the type of applicant the program is designed for, provided the work constitutes genuine R&D or commercialization rather than internal operational tooling. Confirm with NOHFC whether your specific project meets the program's definition.
• Can the grant and SR&ED be stacked? The SR&ED tax credit and Invest North Innovation address different cost bases and operate under different rules, so stacking is sometimes possible — but total government funding from all sources cannot exceed 75 percent of eligible project costs. A qualified SR&ED practitioner can help map the interaction.
• Does the business need to be based in Northern Ontario? Yes. Work must be performed in Northern Ontario, and NOHFC requires applicants to confirm they fall within the program's eligible geographic boundaries. Contact NOHFC to verify your location qualifies.

Source: Northern Ontario Heritage Fund Corporation — Invest North Innovation program (nohfc.ca/private-programs/invest-north-innovation/). NOHFC inquiry line: 705-945-6700; portal: myportal.nohfc.ca. Program details, funding ceilings, eligible costs, and intake status can change — confirm directly with NOHFC before applying. This is general information, not funding advice.