The Saskatchewan government has launched its first-ever research strategy aimed at bolstering the province’s tech sector. The strategy includes expanding tax incentives for startup investors and increasing funding for research commercialization. Innovation Saskatchewan, a provincial government-backed agency, announced these changes alongside an expansion of the Saskatchewan Technology Startup Incentive (STSI). The STSI offers a 45-percent non-refundable tax credit to Saskatchewan-based investors backing local startups. Initially introduced in 2018, the program has facilitated over $108 million in private investment. The expansion now includes life sciences startups, making the province more attractive to healthtech companies, which are typically capital-intensive and highly regulated. Kari Harvey, CEO of Innovation Saskatchewan, noted that this move is designed to attract healthtech startups to the region. In April 2024, the Government of Saskatchewan doubled the annual cap for STSI from $3.5 million to $7 million and expanded eligibility to include cleantech startups. The province already offers additional incentives, including a refundable research & development tax credit covering 10 percent of the first $1 million in qualifying expenses, as well as a six-percent tax credit for purchases of manufacturing and processing equipment. The Innovation and Science Fund (ISF) is also receiving a significant boost, with its annual funding nearly doubling to $5.2 million. The ISF supports research institutions by matching funding opportunities and has invested in various projects bridging the academic and private sectors. The fund is expanding its eligibility to four application streams: research infrastructure, research projects, international collaboration, and commercialization programs. Furthermore, Innovation Saskatchewan is rebranding its ‘research and technology parks’ in Regina and Saskatoon as Innovation Saskatchewan Parks. These hubs, previously managed by the Saskatchewan Opportunities Corporation (SOCO), boast 1.3 million square feet of office and lab space. Despite these advancements, challenges persist in the tech ecosystem. Access to capital remains a hurdle for early-stage and scaling companies. According to a report from the Canadian Venture Capital and Private Equity Association (CVCA), venture capital firms invested $11 million in Saskatchewan startups in Q1 2025, representing a third of the total amount raised in the province in 2024. Conexus Venture Capital is actively deploying its $30-million Fund II, focusing on early-stage startups. Saskatchewan companies securing seed financing include parking software startup Offstreet and railway technology startup Rayhawk. Securing talent also remains an ongoing challenge, though tech sector employment in the province is on the rise. An Innovation Saskatchewan report found that tech sector employment doubled over a four-year period, reaching approximately 5,500 workers in 2023. The tech sector accounted for 10 percent of all new jobs created between 2016 and 2023.
