Guide
Government innovation programs that buy from small tech firms
The government programs that fund or buy new technology from small firms, including Innovative Solutions Canada, SBIR and STTR in the US, SBRI in the UK, BRII in Australia and EU pre-commercial procurement.
Normal tenders favour proven solutions. Innovation programs do the opposite: they fund new ideas, often in stages, and give small firms a government customer to test with. For govtech startups, they can be the fastest way in.
Canada: Innovative Solutions Canada
Innovative Solutions Canada (ISC) helps Canadian small businesses develop and test innovations with the federal government.
- Challenge stream: departments post problems, and small businesses propose solutions. Winners can receive funding for a proof of concept and then a prototype.
- Testing stream: the government buys and tests late-stage prototypes in a real operational setting.
It's open to Canadian small businesses that meet the program's size and research and development criteria. Many provinces and cities run their own challenge programs too.
United States: SBIR and STTR
The Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs fund research and development by US small businesses across many federal agencies, in phases: feasibility, full development, then commercialization. STTR requires partnering with a research institution. The programs depend on periodic reauthorization by Congress, so check their current status on sbir.gov before planning around them.
United Kingdom: SBRI
The Small Business Research Initiative (SBRI) lets public bodies run competitions for innovative solutions to specific challenges, usually with a feasibility phase followed by a development phase. Despite the name, firms of any size can apply, but it suits small firms well. Competitions are often run through Innovate UK.
Australia: BRII
The Business Research and Innovation Initiative (BRII) has run rounds where government agencies set challenges and small businesses compete for feasibility and proof-of-concept grants. Some states have their own programs, such as the NSW Small Business Innovation and Research program.
European Union
Pre-commercial procurement (PCP) and public procurement of innovative solutions (PPI) let public buyers fund R&D in competing phases, often with EU support. The EU's innovation partnership procedure lets buyers develop and then buy a new solution under one contract.
How to win one
- Watch for challenges in your area. Programs publish them on their own sites and on tender portals.
- Answer the problem, not your product. Show how your technology solves the stated challenge.
- Show the innovation. Explain what's new and why existing solutions don't work.
- Plan the path to purchase. Evaluators want to know how a successful pilot could become a real contract.
Common questions
What is Innovative Solutions Canada?
It's a federal program that funds Canadian small businesses to develop and test innovative products and services in response to government challenges.
Can a foreign company apply for SBIR?
Generally no. SBIR and STTR are for US small businesses that meet ownership and location rules.
Do innovation programs lead to real contracts?
They can. Testing and later phases are designed to move successful innovations toward purchase, but follow-on contracts aren't guaranteed.