The creation of new materials, devices, products, or processes, or the improvement of existing ones, can be achieved without technological advancement.
Work can be done systematically to produce a new product. However, without technological uncertainty and an attempt to achieve technological advancement, the work is not SR&ED.
We cannot determine eligibility without understanding the work performed and evaluating it using the five questions.
The basic design of the potato peeler has not changed for more than 100 years. You wanted to develop a novel peeler by adding a phosphorescent substance to the plastic handle so it would be easier to find the peeler in a dark kitchen drawer.
You obtained several samples of phosphorescent powders from various suppliers. You carried out a number of production runs, testing each powder at varying levels in the molding process. Adding the phosphorescent substance did not require any change to the molding process or the type of plastic, nor did it affect the other physical properties of the handle or how the peeler worked.
As a result of the work you performed, you determined, for each powder, the amount needed to produce the proper glow in the handle. You then chose a supplier based on an analysis of the amount of powder needed and the unit cost of the powder.
You came up with a new and novel product, and the work you performed to choose the appropriate powder, based on performance and cost, was carried out very systematically. However, there was no technological advancement required to develop this glow-in-the-dark peeler.
There was no technological uncertainty. You could claim you were unsure about how to achieve your objectives because you did not know which powder to use and what level you needed to use it to make the peeler.
However, there are no lacking scientific or technological knowledge or principles that prevented you from making that determination. You knew how to add the phosphorescent substance and adding it did not affect the properties of the handle or the performance of the peeler.
New or improved materials, devices, products, and processes can be developed without technological advancement.
Source: CRA (Canada Revenue Agency)
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