Technology Readiness Levels (TRLs) are a widely recognized way to measure the technical maturity of an innovation.
In the startup and funding ecosystem, TRLs help both technical and non-technical stakeholders quickly see where a proprietary technology falls on the 1-to-9 scale that tracks Research, Development and Deployment. TRL 1 marks the beginning of research, while TRL 9 signals a technology that’s fully ready for production.
Originally created by NASA to track progress in space technology, the TRL framework is now used worldwide—including by the European Union and the Canadian federal government. The criteria for each TRL are largely consistent no matter where you are.
Because of this, TRLs have become a go-to tool for internal development teams everywhere. They help teams plan product roadmaps, allocate resources, and prepare for the next stage of R&D.
TRLs are also a key part of financial planning and funding strategy. Whether you’re applying for government grants (many of which use TRLs to determine eligibility), pitching to venture capitalists, or getting ready for an acquisition, understanding your TRL can make all the difference.
Whether or not your business is seeking outside investment, it’s crucial for founders, CFOs, and product leaders to know what each TRL involves—and what’s required to move up the scale.
How TRLs affect your funding options
In Canada, the government groups the nine TRLs into four main stages of technology development:
- Fundamental Research (TRL 1-2)
- Research and Development (TRL 3-5)
- Pilot and Demonstration (TRL 6-8)
- Early Adoption (TRL 9)
These categories are especially helpful for companies seeking government funding through tax credits and grants in Canada. They serve as a quick reference to estimate the minimum and maximum funding your business could qualify for.
There’s also the Industrial Research Assistance Program (IRAP), which provides advisory services and financial support to drive Canadian innovation. IRAP mainly targets early-stage SMBs, helping them bring their innovations to market.
IRAP funding usually tops out at around $150,000, though exceptions are made in some cases. To be eligible, your business must:
- Be an incorporated, profit-driven Canadian SMB
- Have 500 or fewer full-time employees
- Be committed to developing and commercializing innovative, technology-driven products, services, or processes in Canada.
To qualify, you’ll need to meet these requirements and work directly with a local Industry Technology Advisor to build your innovation story—including your past, current, and projected TRL status.
Boast offers a complete solution to help you maximize your tax incentive claims and take the guesswork out of the process. Your data—lots of it—drives a more accurate claim. Boast connects securely with hundreds of systems, making it easy and instant to capture and qualify your SR&ED investments. Request a demo with our team today to get started.
