The Atlantic Innovation Fund is the largest single component of the federal government's Atlantic Investment Partnership (AIP) funding strategy to bring the eastern provinces' technological expertise and capacity up to par with the rest of the country. It is also an ambitious attempt to rid the Atlantic provinces of the legacy of porkbarrel politics that has interfered with economic development for generations.

To be overseen by an Atlantic Canada Advisory Board, the fund will invest $300 million in the region's universities and research institutions, in both traditional and new economic sectors. The board is charged with promoting regional innovation partnerships and making, policy and funding recommendations.

The fund will also have a strong focus on linking the public and private research sectors with a view towards strengthening R&D capabilities. Preference will be given to proposals with a pan-Atlantic focus.

Other elements of the AIP include $135 million for community economic development, programs targeting trade and investment and entrepreneurship and business skills development.