Business Tax Credits
October 1, 2025
5 min read

Beyond Tech: Niche Industries That Should Be Claiming SR&ED (But Often Don’t)

Sophie Tremblay
PhD — Technical Narrative Lead (SR&ED)

Introduction

When you say “SR&ED,” most minds leap to software or biotech. But fields like food science, agritech, medical devices, construction materials, and even cannabis processes often conduct experiments under uncertainty. The challenge? Bridging domain language to the CRA’s technical criteria.

Undervalued Sectors & Examples

  • Food / beverages / agritech: shelf-life experiments, new ingredient formulations, new processing conditions
  • Medical devices / wearables: calibration, sensor fusion, usability under varied environments
  • Cannabis / extraction processes: solvent methods, terpene retention, potency stability
  • Textiles / materials: durability, composite material testing, weave structure optimization
  • Construction / materials innovation: novel concrete mixes, insulation variants, structural load tests

In each case, the steps parallel the CRA’s SR&ED model: uncertainty → hypothesis → experiment → result.

Strategy: Translating Domain to SR&ED

  1. Frame experiments as scientific challenges (e.g. “why degradation under humidity varied”)
  2. Hypothesize and test alternative methods/formulations
  3. Capture failures as evidence
  4. Maintain domain-centric logs but map to SR&ED language
  5. Narrative must clarify that these were not routine or known tasks

Documentation Challenges & Solutions

  • Domain logs may be looser; encourage structured experimental notes
  • Use dual logs: one domain version, one SR&ED-oriented summary
  • Annotate decision points with rationale
  • Capture pivot paths and why one approach failed

Hypothetical Case: Food Stabilization

A food company seeks longer shelf life. They experiment with different preservative blends under high humidity for 6 months. Some fail oxidation thresholds; others degrade flavor. They record test parameters, outcomes, and pivot choices. That work is analogous to a controlled experiment and can be claimed if properly framed.

Risk Zones

  • Claiming “routine quality testing” as SR&ED
  • Weak narrative connection to uncertainty
  • Sparse evidence or retrospective log creation
  • Overclaiming supporting / documentation tasks

How GovMoney Can Help

GovMoney’s domain specialists help you translate domain experiments into SR&ED ready narratives, provide sector-specific templates, and coach your technical teams to capture compliant logs in real time.

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