Targeted Analysis/Due Diligence of Automotive Supplier Innovation Program (ASIP) Project Proposals

Industry Canada (IC) develops and implements policies and initiatives to encourage innovation, enhance competitiveness, and promote growth in Canada’s automotive sector and, specifically in this case automotive suppliers. IC fulfils its mission by gathering and analysing sectoral and business intelligence to develop and implement evidence-based policies and programs. These efforts contribute to increased trade and investment, commercialization of new technologies, skill development, and a more competitive domestic automotive sector.

Automotive suppliers are important to the long-term viability of the automotive sector. Canadian automotive suppliers are diverse with the sector consisting of approximately 730 companies, directly employing approximately 65,000 Canadians, or 55 percent of all employment in the automotive industry. Canada is home to several Tier 1 suppliers (typically multinational enterprises (MNEs) directly supplying vehicle assemblers or Original Equipment Manufacturer (OEM) and many innovative Canadian-owned Tier 2 and 3 suppliers (most of whom are small-and-medium-sized enterprises (SMEs) situated downstream in the supply chain).

The global automotive industry is being challenged to innovate as never before in order to meet new fuel efficiency regulations, stricter safety and environmental regulations, and consumer preferences for technology, higher quality, and energy efficiency. Unlike some industries where innovation is primarily driven by a small number of large firms, it is the supply chain that drives innovation in the automotive industry. To remain competitive, Canadian suppliers need to increase their design and development capabilities and make significant investments in research and development (R&D) to deliver technologies that meet these needs and maintain their position in global supply chains.

Automotive suppliers must be able to demonstrate their innovative products in a production-ready format to OEMs early in the vehicle development cycle. Technology demonstration is a key step in transitioning basic research and development into commercial success and represents a critical phase in the commercialization of new automotive products. To that end, ASIP would provide the next step in the innovation continuum.