Canada’s 2025 Federal Budget makes one thing clear: the government is increasing its focus on innovation. From stronger R&D tax credits to major investments in AI, clean technology, and skills, Budget 2025 points to a more competitive and future-ready economy.
For founders, this matters. These signals show where opportunities and funding are likely to grow. At North Forge, we help founders across the Prairies and across Canada turn these national initiatives into results.
Canada Federal Budget 2025 innovation funding
Budget 2025 is a clear signal that Canada is here to build and compete. It gives founders the certainty to keep scaling at home, the confidence to invest and hire and drive the next decade of innovation. The continued funding for ElevateIP ($84.4M) and IP Assist ($75M) indicates a long-term commitment to protecting Canadian IP and turning ideas into globally competitive companies.
- Joelle Foster, President & CEO, North Forge
1. Stronger SR&ED Credits for Research and Development
Budget 2025 raises the enhanced Scientific Research & Experimental Development (SR&ED) program credit limit to $6 million, restores capital expenditure eligibility, and introduces pre-claim approvalswith a 90-day processing target.
What it means for founders:
If you are building something new, these changes help you reinvest faster. North Forge’s mentorship network can help you plan your SR&ED strategy, organize documentation, and align your R&D activities with the new framework.
2. Major Investment in AI and Compute Infrastructure
The budget allocates $925.6 million over five years to build sovereign AI compute capacity and allows the Canada Infrastructure Bank to invest in national AI infrastructure.
What it means for founders:
AI and data-driven companies can expect stronger domestic resources, including potential access to large-scale compute. North Forge can help you position your company for emerging AI programs and partnerships.
3. Renewed Focus on Intellectual Property
Budget 2025 extends ElevateIP, the Innovation Asset Collective, and NRC’s IP Assist program. This confirms that IP strategy remains central to commercialization and scale.
What it means for founders:
Strong IP is increasingly tied to funding access. Through North Forge, startups can connect with mentors and partners who know how to protect IP, structure licensing, and use IP to attract investment under our ElevateIP program.
ElevateIP is a powerful initiative that helps startup founders unlock and understand the value of their intellectual property. The renewal of this program means more than just funding, it ensures that Canadian companies can build competitive, IP-rich companies right here at home. For many founders, this is one of the few accessible pathways to expert IP guidance and protection - support that is absolutely critical in today’s global innovation economy. It's been an honour to see firsthand how hard our national team has worked to push for this renewal, and we at North Forge are proud to deliver a program that protects innovation, promotes education, and drives long-term economic growth.”
-Cara Dveris, ElevateIP Manager, Projects & Administration Manager, North Forge
4. More Venture and Growth Capital
A new $1 billion fund-of-funds through BDC Venture Capital and a planned $750 million early-growth capital strategy will increase access to venture funding, including for life sciences and deep-tech founders.
What it means for founders:
If you are ready to scale, the capital landscape is widening. North Forge helps position your company to connect with national funding partners and investors.
5. Manitoba’s Moment: Port of Churchill Plus
Budget 2025 introduces the Port of Churchill Plus strategy. The plan highlights upgrades to rail and port infrastructure and places Indigenous equity participation at the center of development.
What it means for Manitoba’s innovation ecosystem:
This is more than infrastructure. It signals that the Prairies are central to Canada’s clean energy and logistics future. Founders in manufacturing, energy, and supply chain technology can expect new opportunities close to home.
6. New Paths for Talent and Skills
The budget includes $570 million for training through Labour Market Development Agreements, funding for new Workforce Alliances, and a national online skills platform.
What it means for founders:
Hiring and upskilling should become easier. North Forge connects startups with programs and partners that help fill talent gaps, including support for internationally trained professionals and digital skills.
7. Procurement and Scale: “Buy Canadian” for SMEs
A new Buy Canadian Policy and a Small and Medium Business Procurement Program aim to improve SME access to federal contracts.
What it means for founders:
Federal procurement can be a strong first customer. North Forge helps startups meet public sector standards and turn contracts into a repeatable go-to-market path.
The Big Picture
Budget 2025 shows a clear pattern. Canada wants to accelerate innovation across every region, not only in the largest hubs. For North Forge, this validates more than a decade of work. We support early-stage founders with advanced equipment, funding guidance, and mentorship that turn ideas into scalable companies.
Ready to Turn Policy into Opportunity with the insights from the Canada Federal Budget 2025 innovation funding?
If you are ready to take the next step, from validating your prototype to scaling your business, join our community of innovators. We will help you navigate federal programs, connect with investors, and access the expertise you need to grow anywhere in Canada.
