If you run a forestry business or work in forest product innovation, finding funding for early-stage R&D can be challenging. The Forest Innovation Program (FIP) is a federal initiative designed to help close that gap. It supports pre-commercial research and development in Canada’s forest sector. The program aims to turn new ideas into market-ready products and processes.
The Forest Innovation Program (FIP) is managed by Natural Resources Canada (NRCan). It provides funding to support innovation in Canada’s forest industry, with a focus on pre-commercial R&D and market development.
According to NRCan, the program aims to:
FIP is a federal program. Funding decisions are made through competitive application rounds.
FIP does not fund individuals. The program is for organizations that are active in forestry innovation in Canada.
Typical eligible applicants are:
Projects must:
Projects that are purely academic or already fully commercialized will likely not qualify.
The Forest Innovation Program supports projects that help move ideas closer to commercial use. Common project types include:
FIP funding is usually provided as a non-repayable contribution. This means you do not have to pay it back if you meet the program’s terms..
Funding amounts are not fixed. NRCan reviews each project based on its scope, impact, and value to the forest sector. Larger, multi-year projects are common. Projects with several partners are also encouraged.
Tools like GrantHub’s eligibility matcher can help you filter forestry and innovation programs by province, project type, and organization profile.
FIP does not work like a simple online rebate. The application process is detailed and competitive.
A typical Forest Innovation Program application process includes:
Project concept development
Define your technical goals, innovation gap, and industry need.
Partner alignment
Many strong applications include industry or research partners.
Formal application submission
Submit your application to NRCan during announced intake periods.
Technical and financial review
NRCan evaluates innovation value, feasibility, budget, and expected outcomes.
Contribution agreement
Approved projects sign a funding agreement. Only after this can you claim eligible expenses.
Only eligible expenses incurred after approval are usually reimbursed. Careful planning is important.
FIP operates with specific intake periods each year. Application deadlines are announced by NRCan, and late submissions are not accepted. It is important to monitor the NRCan website or sign up for program updates to stay informed about current and upcoming deadlines.
Check the official Natural Resources Canada website for the most current dates and information.
Avoid these errors to improve your chances:
Applying with a fully commercial product
FIP targets pre-commercial work. Projects already making steady sales are often rejected.
Weak industry justification
You must show why your project matters to Canada’s forest sector, not just your own business.
Unclear budget breakdowns
Vague or inflated cost estimates can delay or hurt your application.
Assuming funding is guaranteed
FIP is competitive. Meeting eligibility does not guarantee approval.
Q: Is Forest Innovation Program funding repayable?
No. FIP funding is provided as non-repayable contributions if you meet the project terms.
Q: How much funding can you get from FIP?
There is no set maximum. Funding depends on your project’s scope, cost, and expected impact.
Q: Can FIP funding be combined with other grants?
Yes. Funding stacking is often allowed, but there are limits to total government support. Always disclose other funding sources.
Q: Is Forest Innovation Program funding taxable?
Usually, government contribution funding is taxable income. It may affect SR&ED claims. Check with your accountant.
Q: Who decides which projects are approved?
NRCan reviews applications using technical, financial, and policy criteria that match federal forestry priorities.
GrantHub tracks hundreds of active grant programs across Canada — see which ones match your forestry project and funding needs.
The Forest Innovation Program can be a good fit if your project sits between research and commercialization in Canada’s forest sector. Before you apply, map out your project costs, partners, and timelines. If you want to review how FIP compares with other federal and provincial innovation programs, GrantHub offers resources to help you identify and evaluate options that align with your business profile.
Was this article helpful?
Rate it so we can improve our content.
Canada Proactive Disclosure Data
The Canadian government has funded over 400,000 businesses through 1.27 million grants and contributions. Check your eligibility in 60 seconds.