Why SR&ED Is Not Just for Engineers and Technology Companies

June 4, 2026 | Jesse Ehrlick

When most people hear "SR&ED," they think of software companies, engineering firms, or manufacturers.

It's understandable.

These industries have historically been among the most visible users of the program.

But one of the most persistent misconceptions about SR&ED is that engineering or technology development is required.

It isn't.

Likewise, commercialization is not required.

Nor is the development of a product intended for sale.

What SR&ED Actually Supports

At its core, SR&ED is intended to support work that advances scientific or technological knowledge through the resolution of uncertainty.

The focus is not on the industry.

The focus is on the nature of the work being performed.

Specifically, whether the work involves:

• scientific or technological uncertainty
• systematic investigation
• experimentation and analysis
• attempts to achieve advancement beyond currently available knowledge

This distinction is important because uncertainty exists in many research environments beyond traditional engineering settings.

Scientific Uncertainty Exists Across Disciplines

In biomedical and clinical research, uncertainty often takes different forms.

Researchers may be attempting to determine:

• whether a treatment approach can be improved
• whether a protocol can be adapted to achieve better outcomes
• whether a methodology can overcome a previously unresolved limitation
• whether a new analytical approach can generate more reliable results

These questions may not involve commercial products.

They may not involve engineering design.

Yet they can still involve genuine scientific uncertainty.

Commercial Outcomes Are Not Required

Another common misconception is that SR&ED only applies when research is directly connected to a commercial objective.

In reality, eligibility is not determined by whether a product reaches market.

Many eligible activities occur long before commercialization is considered.

The program evaluates the research process itself — not the eventual business outcome.

This is particularly relevant in academic, clinical, and biomedical environments where the primary objective may be advancing knowledge rather than creating a commercial product.

Why This Matters for Research Organizations

Because SR&ED is so frequently associated with technology companies, many organizations never evaluate whether their scientific work might qualify.

As a result, potentially eligible activities may go unrecognized.

Understanding the distinction between:

• industry type
and
• scientific uncertainty

is often the first step toward identifying opportunities that would otherwise be overlooked.

A Broader Perspective

SR&ED is not fundamentally an engineering program.

It is a research and development program.

The defining question is not whether the work occurs in a technology company.

The defining question is whether the work attempts to resolve scientific or technological uncertainty through a systematic process of investigation.

That distinction opens the door to a much broader range of research activities than many people initially realize.