 A 1989 report prepared by Odette Madore, Govt of Canada Economics Division, summarizes the history of R&D tax policy.The SR&ED program is intended to encourage businesses of all sizes, particularly small to medium and start-up firms, to conduct research and development (R&D) that will lead to new, improved, or technologically advanced products, processes, devices, and materials.The Canadian SR&ED tax incentive is the government's largest single support program for R&D.