How to Structure AI Research and Commercialization Partnerships in Quebec

How to Structure AI Research and Commercialization Partnerships in Quebec

Quebec leads Canada in applied AI research, but many businesses struggle to turn that research into commercial products. Public funders in Quebec now require formal industry–research partnerships to help commercialize AI research. Programs under PARTENAR‑IA can cover up to $1.5 million per project, but only if your partnership is structured the right way.

This guide explains how to structure AI research and commercialization partnerships in Quebec so your project stays eligible, fundable, and commercially useful.

---

The Partnership Model Quebec Funders Expect

Most Quebec AI funding programs follow the same core model:

• At least one Quebec-based business (often an SME or startup)
• At least one public research partner (university, CCTT, or recognized research centre)
• In many cases, a second industry partner
• A clear commercialization path, not just exploratory research

PARTENAR‑IA programs are delivered through sector-based organizations like InnovÉÉ, PROMPT, MEDTEQ+, CRIBIQ, and CQRDA. Each focuses on a different industry but uses similar partnership rules.

Common PARTENAR‑IA Requirements Across Programs

Based on program guidelines:

• Projects must be carried out in Quebec
• Businesses must be incorporated and registered in Quebec
• SMEs usually must have fewer than 250 employees
• AI must be central to the project, not an add-on
• Research partners must play a real R&D role, not advisory only
• The project must aim for commercial deployment or pre-commercialization

Tools like GrantHub’s eligibility matcher can help you quickly filter which PARTENAR‑IA stream fits your sector and business size.

---

Structuring Roles: Who Does What?

Clear role definitions help partnerships succeed and stay eligible for funding.

Industry Partner Responsibilities

• Define the commercial problem
• Own or license the new intellectual property (called “foreground IP”—the inventions or technology created during the project)
• Lead market validation and deployment
• Cover their share of project costs (cash or in-kind)

Research Partner Responsibilities

• Conduct applied AI R&D
• Develop models, algorithms, or prototypes
• Document results for funder reporting
• Support technology transfer

Funders expect a balanced collaboration, not contract research disguised as a partnership.

---

Intellectual Property and Commercial Rights

Quebec funders do not usually take ownership of intellectual property (IP), but they care deeply about clarity.

Best practices:

• Define background IP before the project starts (background IP means any technology or inventions partners bring into the project that were developed earlier)
• Specify who owns foreground IP (the new inventions or technology created during the project)
• Include licensing rights for other partners if required
• Align IP terms with commercialization goals

PROMPT and MEDTEQ+ programs, in particular, assess whether IP structure supports long-term market use.

---

Choosing the Right PARTENAR‑IA Program for Your Industry

PARTENAR‑IA is not one grant. It’s a framework delivered by different organizations.

Key PARTENAR‑IA Streams

PARTENAR‑IA — InnovÉÉ (Energy and Electrification)

• Funding: Up to $1.5 million, covering up to 50% of eligible costs
• Focus: Electricity systems, smart grids, electrified transport, intelligent vehicles
• Requires: At least one research centre and one additional business partner

PARTENAR‑IA — PROMPT (ICT and Digital Technologies)

• Funding: Up to $1.5 million, up to 50% of project costs
• Focus: AI in information and communications technologies
• Strong emphasis on IP ownership and commercialization readiness

PARTENAR‑IA — MEDTEQ+ (Health Technologies)

• Funding: Up to $1.5 million, up to 35% of eligible expenses
• Max duration: 24 months
• Focus: AI-based medical and health technology solutions

PARTENAR‑IA — CRIBIQ (Industrial Bioprocesses)

• Funding: Up to $350,000 per business partner, up to $1.5 million total
• Coverage: Up to 50% of project costs
• Focus: AI in bioeconomy and industrial bioprocessing

PARTENAR‑IA — CQRDA (Aluminum and Manufacturing)

• Funding: Up to $1.5 million, up to 35% of costs
• Focus: AI projects that promote aluminum use

---

Budget Design and Funding Stacking

PARTENAR‑IA typically covers 35%–50% of eligible costs, meaning you must plan other funding sources.

Eligible costs often include:

• AI developer and researcher salaries
• Subcontracted R&D
• Data acquisition and model development
• Prototype and testing costs

Stacking means using more than one government grant or loan for the same project. However, total government support usually cannot exceed program limits. For example, if PARTENAR‑IA covers 50% of costs, you cannot use other public funds to cover more than the remaining 50%.
See also:
How to stack grants and loans without violating funding rules

---

Common Mistakes to Avoid

1. Treating the research partner as a vendor
   Funders expect shared risk and contribution, not fee-for-service work.

2. Unclear commercialization plan
   “Future market potential” is not enough. You need defined users and pathways.

3. Late IP discussions
   IP disputes after approval can freeze funding.

4. Choosing the wrong PARTENAR‑IA stream
   Sector misalignment leads to rejection, even for strong AI projects.

---

Frequently Asked Questions

Q: Do I need a university partner for PARTENAR‑IA?
Yes. All PARTENAR‑IA programs require at least one recognized public research centre, such as a university or CCTT.

Q: Is PARTENAR‑IA funding repayable?
No. PARTENAR‑IA provides non-repayable grants, but only for approved eligible expenses.

Q: Can startups apply, or only established SMEs?
Startups are eligible under most streams if they are incorporated in Quebec and meet employee and control requirements.

Q: Can I combine PARTENAR‑IA with federal AI funding?
Yes, in many cases. You must respect maximum public funding limits and disclose all sources.

Q: How long do projects usually last?
Most projects run 12–24 months, depending on the stream.

After reviewing your options, GrantHub tracks hundreds of active grant programs across Canada — check which ones match your business profile.

---

Next Steps

A strong AI partnership starts with the right structure, not the funding application. Once roles, IP, and commercialization plans are clear, funding programs like PARTENAR‑IA become much easier to access.

GrantHub helps Quebec businesses identify the right AI funding stream, validate eligibility, and avoid structural mistakes before they apply.

---