Innovation To Drive Equipment Manufacturing
Navdeep Bains, the Minister for Innovation, Science and Economic Development wants to make innovation a core Canadian value, in order to build a path to a stronger middle class and higher-quality jobs. An emphasis on innovation, especially in the manufacturing industry, with a focus on agricultural equipment is essential. Innovation in Canadian agriculture has created new opportunities for the sector since the late 1800s.
Over time, the agricultural equipment-manufacturing industry developed as an independent entity away from commercial and industrial manufacturing. The need to develop equipment to suit the arid Canadian climate and larger farms triggered innovation in the sector, made Canada a world leader in agricultural machinery. The introduction of programs such as the SR&ED Tax Incentive and the Industrial Research Assistance Program (IRAP) have proven to be instrumental in this innovative journey.
Serious global issues such as overpopulation and food productivity can only be improved through innovative technologies and products. For instance, the agricultural sector will need to produce more for less with new and improved solutions.
Administrative costs that are associated with the SR&ED tax credit are becoming cumbersome. In order to better achieve the objective of the program, which is to reward innovation, the submission process needs to be streamlined, otherwise the innovation can end up being negated by administrative costs.
The federal and provincial governments are working hard to ensure that innovation in the manufacturing sector remains strong and continues to grow. Members of the Agricultural Manufacturers of Canada believe that innovation in Canada is not something that happens in an isolated facility. Rather, it is how industries solve problems for everyday operations.
To learn more about claiming the SR&ED tax incentive, contact us today.