You may walk up the plate for the first time and crack it out of the park. You might also eat dirt rounding first base. However, having safety cushions at your back means failure isn’t a loss. You never have to worry about, “my SR&ED Project Failed” ever again.
So, why is failure important? Why do SR&ED programs support companies that fail?
Gaining Experience
Each time you fail, you gain valuable experience and turn that into knowledge. Failure alters your frame of mind and forces you to tackle problems in new and innovative ways.
Yes, having spent time and effort developing a new process only for it to flop in the end is a tough pill to swallow. However, that is far from wasting time. When a breakthrough does come, the time, effort, and money-saving potential will pay off in spades.
Creating Value
The benefits of failure extend far beyond the walls of your company. Developing a new process or technology is a universal effort. When you try but ultimately fail, you just created a new stepping stone for more work. Failing means not having to start from scratch the next time around.
While this certainly builds for future projects internally, it also helps drive interest and motivates innovators from across your industry.
The Little Guys Can Innovate Too
SR&ED incentive programs help small companies with big ideas. That doesn’t mean they’re not available to larger businesses as well, it just helps even the playing field.
This means that being a start-up doesn’t disqualify you from pushing your industry forward. Even pre-revenue businesses can apply and be approved for SR&ED funding. Thanks to it also being given to projects that ultimately don’t pan out, the little guy can make big waves when it comes to innovation.
It’s Not Too Late
If you’ve embraced failure as the progress maker it is, you may have already tried your hand at innovating. Whether it was successful or not, you might be thinking that because you didn’t file a SR&ED claim in the same fiscal year, you missed out on funding.
Well, we’ve got some fantastic news for you. You can actually file a claim up to 18 months after your fiscal year ends. So even if it’s been over a year since it ended, you’ve still got plenty of time to apply!
However, it’s important to know that 18 months is a firm deadline.
Innovation Happens Everywhere
You might think that SR&ED incentives are exclusively for high tech sectors. Not so, as industries across the spectrum are eligible.
For example, maybe you’re a manufacturing company that created a new way to increase production speed, or perhaps you tried and failed to decrease your carbon footprint. In both scenarios, that manufacturing company is just as eligible for an SR&ED claim than a research project conducted in a lab.
In conclusion, don’t think that, because your company is too small, you work in a certain sector, or you’re worried you might fail, that SR&ED incentives aren’t for you.
These programs can help pave the way for a stronger future for your company, along with a brighter one for an entire industry.
Still thinking about nothing but, “my SR&ED Project Failed”?
If you need help navigating the complex world of SR&ED incentives, need to file a claim, or simply have a few questions, Maxim Innovation here to help.
