The Natural Sciences and Engineering Research Council of Canada (NSERC) mandated Science-Metrix to carry out the evaluation of its Collaborative Research and Development (CRD) program. This Evaluation Report presents the findings of this evaluation, which covers the 1997–2008 period. These findings indicate that the CRD program is relevant, well designed, appropriately delivered, and generally provides considerable long-term benefits to industrial partners, academic researchers and highly qualified personnel (HQP). The impacts observed for the three key beneficiary groups (industrial partners, academic researchers and HQP) are well aligned to the CRD program's expected outcomes. More specifically, the CRD program enables industrial partners to benefit from collaborative R&D with a university-based expert on well-defined projects within the context of a wide variety of different needs and corresponding project objectives. As well as acquiring new knowledge from the CRD research results, 80% of industrial partners have observed concrete impacts stemming from CRD projects. These impacts include new products and services, which often allowed for increased competitiveness, as well as new or improved processes, which often led to increased productivity. Furthermore, broader socio-economic impacts and organizational benefits, such as theenhancement of R&D activities, relationship-building and access to HQP, are crucial factors that both encourage the participation of industrial partners in CRD projects and add value to these grants. However—despite an appreciable reach of the program among Canadian firms and a growing number of firms participating in CRD projects—there remains room to increase awareness of and "buy-in" to the CRD program among the business sector. Academic researchers who participated in collaborative R&D with industrial partners achieved a wide range of objectives, not only because of the availability of CRD funds to conduct research but also because of the high level of involvement of industrial partners and the participation of students. They created new knowledge and technologies that were extensively disseminated to the industrial partners and the wider academic community. Knowledge transfer was achieved through the attainment of several hundred patents and the publication of several thousand papers. Academic researchers also report that the CRD program helped to enhance and shape their research programs, their reputation and their teaching. Yet opportunities for researchers to access and benefit from the program were sometimes limited by the cashrequirements for industrial partners (particularly for small and medium enterprises) and the workload and timeframe involved in the application process (especially for small/short-term CRD projects).