How to Fund Digital Health Product Development in Ontario

By GrantHub Research Team · · Lire en français

How to Fund Digital Health Product Development in Ontario

Building a digital health product is costly. Clinical validation, privacy compliance, pilots with hospitals, and technical development all add up quickly. In Ontario, public funding helps startups and SMEs cover these early expenses. Programs like Innovating Digital Health Solutions (IDHS), delivered by the Ontario Centre of Innovation (OCI), are especially important.

Ontario’s health system encourages industry–academia collaboration to solve real clinical problems. If your product improves patient outcomes, system efficiency, or care delivery, grant funding can cover a meaningful part of your development costs.


Core Funding Path: Innovating Digital Health Solutions (IDHS)

The Innovating Digital Health Solutions (IDHS) program is a key option for funding digital health product development in Ontario. It supports projects where Ontario companies work with academic or clinical partners to develop, validate, or pilot digital health innovations.

What the IDHS program supports

IDHS focuses on applied innovation, not just research. Funded projects usually involve:

  • Digital health software or platforms (for example, remote monitoring or clinical decision tools)
  • Health data, AI, or analytics solutions
  • Medical or health technologies with strong digital features
  • Validation, prototyping, or real-world testing in a healthcare setting

Who is eligible

Each intake is reviewed individually, but IDHS generally requires:

  • An Ontario-based company developing a digital health solution
  • A postsecondary or research partner, such as a university, college, or hospital-affiliated research institute
  • A clear healthcare problem and a pathway to adoption
  • Projects that benefit Ontario’s healthcare system and economy

Academic partnership is essential. Collaboration is central to the program.

How much funding you can get

OCI does not publish a fixed grant amount for IDHS. Funding levels depend on:

  • Project scope and duration
  • Partner contributions
  • Total eligible project costs

IDHS funding is usually non-repayable and structured as cost-shared funding. Your business must contribute a portion of project expenses.

Timelines and application structure

  • IDHS operates through open or intake-based calls, not just one annual deadline
  • Projects are reviewed on technical merit, collaboration strength, and system impact
  • You need a detailed project plan, budget, and partner commitments

Because requirements can change between intakes, tools like GrantHub’s eligibility matcher can help you quickly see if IDHS—and similar Ontario programs—fit your business profile.


Other Funding Pieces to Combine With IDHS

IDHS rarely covers all your costs. Most Ontario digital health companies use it alongside other supports, including:

  • SR&ED tax credits for eligible R&D labour and development work
  • Regional or sector-specific Ontario grants tied to commercialization or scaling
  • Non-dilutive federal programs that can be combined with provincial funding

Understanding combining rules is important. Some programs limit total public funding as a percentage of project costs. See also:

  • Repayable vs Non-Repayable Business Funding in Canada
  • How to Stack Grants and Loans Without Violating Funding Rules

Common Mistakes to Avoid

Applying without a confirmed academic partner

IDHS is built around collaboration. Informal conversations are not enough. You need clear partner roles and commitment.

Pitching pure commercialization

Sales, marketing, and customer acquisition alone are not the focus. Your project must include innovation, development, or validation work.

Underestimating project management effort

OCI expects structured milestones, reporting, and governance. Weak project planning is a common reason for rejection.

Assuming funding amounts are automatic

There is no flat grant value. Budgets are checked closely, and only eligible costs are supported.


Frequently Asked Questions

Q: Do I need revenue to apply for IDHS?
No. Early-stage companies can be eligible if they are incorporated in Ontario and have the technical and partner capacity to deliver the project.

Q: Is IDHS funding repayable?
IDHS funding is generally non-repayable. However, funding is cost-shared, so your company must cover part of the project expenses.

Q: What types of partners are accepted?
Eligible partners usually include Ontario universities, colleges, research hospitals, or affiliated research institutes involved in healthcare innovation.

Q: Are application deadlines fixed?
Not always. IDHS often runs rolling or intake-based calls, so timelines can change throughout the year.

Q: Can IDHS be combined with other grants?
Yes, in many cases. You must disclose all public funding sources and stay within OCI’s stacking limits.


Next Steps

Funding digital health product development in Ontario is possible if you target the right programs at the right stage. IDHS is a strong anchor program, especially if your solution needs academic or clinical validation.

GrantHub tracks hundreds of active grant programs across Canada, including Ontario digital health funding. Reviewing which ones match your technology, stage, and province is the fastest way to build a realistic funding plan. This helps you avoid wasting time on ineligible applications.


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