Yukon Research, Innovation and Commercialization Conference

Rick WarnerNSERC PacificJanuary 23, 2012

Agenda NSERC - A Many Splendored Agency

Overview of NSERCColleges and Community Innovation ProgramUniversity: Industry programsIndustrial Scholarships and FellowshipsNSERC Value Proposition

Questions

Vision, Mission and Goals

NSERC helps make Canada a country of discoverers and innovators for the benefit of all Canadians.

NSERC achieves this by investing in people, discovery and innovation in partnerships with industry through programs that support post-secondary research in the natural sciences and engineering on the basis of national, peer-reviewed competitions.

Vision

Mission

Lead the advancement of knowledge in science and engineering, and ensure that Canadian scientists and engineers are leaders and key players in a global knowledge community.

Connect and apply the strength of the academic research system to addressing the opportunities and challenges of building prosperity for Canada.

Inspire new generations of students to pursue careers in science and engineering, and provide them with the means to develop their full potential.

Demonstrate NSERCs accountability and how the results of its investments in Canadian research and training benefit Canadians.Increase visibility of Canadian research.

Goals

People

Discovery

Innovation

Accountability

NSERC: Implementing the Federal S&T StrategyPeople AdvantageAttract, retain and grow base of knowledge workers. Entrepreneurial AdvantageTranslate knowledge into wealth, wellness and well-being NSERC>1,800 company partners29,500 students11,800 professorsPeopleDiscoveryInnovation

NSERC Multi Year Budget

84% Growth

NSERC Investments 2010-11Total: $1.08 billion

RPP Budget 2011-2012 ($282.1M)*CommercializationProgram (2.5%)Industry-Driven Collaborative R&D Program (39.2%)Strategic PartnershipsProgram (39.9%)*Does not include Networks of Centres of ExcellenceTraining in IndustryProgram (7%)College and Community Innovation Program (11.4%)

The Five Major Programs in RPP

UniversitiesCollegesStrategic Partnership ProgramIndustry-Driven Collaborative R&D ProgramCommercialization ProgramTraining in Industry ProgramColleges and Community Innovation Program (CCI)Strategic Project Grants (SPG)Partnership Workshops (PWP)Idea to Innovation (I2I)Industrial Undergrad Student Awards (i-USRA)Applied Research and Development (ARD) GrantsCollaborative Health Research Projects (CHRP)Interaction Grants (IG)Centres of Excellence for Commercialization & research (CECR)Industrial R&D Internships (IRDI)Applied Research Tools and Instruments (ARTI) GrantsAuto. Partnership Canada (APC)Engage Grants (EG)Industrial Postgraduate Scholarships (IPS)Innovation Enhancement (IE)Strategic Network Grants (SNG)Collaborative Research and Development (CRD)Industrial R&D Fellowships (IRDF)Technology Access Centres (TAC)Network of Centres of Excellence (NCE)Industrial Research Chairs (IRC)College-University Idea to Innovation (CU-I2I) Business-Lead Network of Centres of Excellence (BL-NCE)Industrial Research Chairs for Colleges (IRCC)

Tri-Council ProgramThe CCI Program is managed by NSERC in collaboration with the Canadian Institutes of Health Research (CIHR) and Social Sciences and Humanities Research Council of Canada (SSHRC).CCI program is open to proposals across the spectrum of natural and social sciences, engineering, humanities and/or health

College Growth*ACCC report indicates that: (i)3,795 companies participated in applied research projects at Canadian colleges in 2009-10. This represents a sevenfold increase over 2005-06; and (ii)private sector investment in Canadas colleges increased tenfold over the last four years from $4 million to $45 million in 2009-10.

Polytechnics Canada report indicates that between 2008-09 and 2009-10: (i)active applied research projects during the year increased by 39%; and (ii)faculty/staff engaged in applied research increased by 34%.

Pre-200720072008200920102011 (As of Dec)CCI-Eligible Colleges132136526781Eligible Colleges that have received at least one CCI Grant668304856

Universities and Colleges in Pacific RegionUniversitiesBC Institute of Technology The University of BCUniversity of the Fraser ValleyUniversity of Northern BC Royal Roads University Simon Fraser University Thompson Rivers University Trinity Western University Vancouver Island UniversityUniversity of Victoria

CollegesCamosun College College of New CaledoniaCollege of the RockiesDouglas College Emily Carr University Justice Institute of BCKwantlen Polytechnic UniversityLangara CollegeNorth Island CollegeOkanagan College Selkirk CollegeYukon College

Colleges and NSERCNSERC views the colleges as:Closely linked with industry locally and regionallyPlaying an important and growing role in advancing innovation Having a unique role distinct from that of universities

NSERCs goal:Assist the colleges in advancing innovation (existing programs and new mechanisms)

CCI Suite of Grants

Objectives of CCIIncrease innovation at the community and/or regional level by enabling Canadian colleges to strengthen their capacity to work with local companies, particularly SMEs

Support applied research and collaborations that facilitate commercialization, as well as technology transfer, adaptation and adoption of new technologies

Who are eligible partners?Businesses, colleges, hospitals, public utilities, associations and government agenciesUniversities, and other organizations, as collaborators

Who is eligible to apply?College employees, preferably an administrator or a manager who has experience in managing grants

What Do Companies Typically Need? SMEsQuick and easy cash and financingShort term projects to solve specific problemsHQP for expertise but limited resources to train studentsAccess to specialized equipment/facilities

Large FirmsHave more $ for R&D but spend less as proportion of other investmentsHQP important (recruitment)Whats on the horizon? Med/long term projectsAccess that is: Fast and easy Access to:Future, talent, world-class

Innovation Enhancement Grant (IE)Entry-Level IE Grants (funding of up to $100,000 per year for two years)Five-Year IE Grants ($2-3M base funding of up to $500,000 per year for the first three years and up to $400,000 for years 4 and 5)Anticipated Impacts :Encourage colleges and industry partnerships Professors and Students participating in applied R&D activities on real industry problemsIncrease applied research capacity and TT activitiesNew technologies and processes adopted by local companies and other organizations

Applied Research and Development Grant (ARD)

provide Canadian companies access to the knowledge, expertise and capabilities available at colleges

support well-defined applied research and development projects undertaken by college researchers with their private-sector partners

No deadline

Project duration: 6 months to 3 years

Three levels:Up to $25K (six months)Requires a new relationship, in kind contribution (no cash)internal review, 4-6 week turnaroundUp to $75K per year (up to 3 years)Private sector partner(s) contribute 1/3 of project costs in cash and/or in-kindExternal peer review$75K to $150K per year (up to 3 years)Private sector partner(s) contribute of project costs in cash and/or in-kind (match NSERCs contribution)External peer review and committee reviewApplied Research and Development Grant (ARD)

Technical merit Applied research competence Potential for innovation impact Private-sector support Contribution to the training of HQP Benefit to Canada Applied Research and Development Grant (ARD)Selection criteria:

ARD update as of January 10, 2012*

Chart1

78

12

2

ARD grants received per level

Sheet1

2008 IE Awards by Province

200820092010

AB122

BC110

MB010

NB001

ON292

QC471

Overall Success Rates

Level 178

Level 212

Level 32

TAC Applications by Region

Atlantic4

Ontario11

Quebec21

Pacific1

Prairies5

Eligible Colleges

Pre-200713

200721

200836

200952

201069

Eligible Colleges by Province

AB8

BC6

MB3

NB1

NL1

NS1

ON19

PE1

QC28

SK1

Sheet1

IE Overall Success Rate

Sheet2

Sheet3

2008

2009

2010

Sheet4

Eligible Colleges by Province

Pre-2007

2007

2008

2009

2010

Eligible College Growth

*ARD update as of January 10, 2012

Chart4

5132

011

451

111

19315

Under review

Awarded

Not awarded

ARD grants per region

Sheet1

2008 IE Awards by Province

AwardedUnder reviewNot awarded

Prairies1352

Atlantic101

Ontario541

BC111

Quebec31195

Overall Success Rates

Letters of Intent120

Invited to Submit82

Full Applications72

Awards42

TAC Applications by Region

Atlantic4

Ontario11

Quebec21

Pacific1

Prairies5

Eligible Colleges

Pre-200713

200721

200836

200952

201069

Eligible Colleges by Province

AB8

BC6

MB3

NB1

NL1

NS1

ON19

PE1

QC28

SK1

Sheet1

IE Overall Success Rate

Sheet2

Sheet3

Under review

Awarded

Not awarded

Eligible Colleges by Province

Pre-2007

2007

2008

2009

2010

Eligible College Growth

Applied Research Tools and Instrument grants (ARTI)support the purchase of research equipment and installations to foster and enhance the ability of colleges to undertake applied research, innovation and training in collaboration with local companies ($7,000 to $150,000)

Technology Access Centre grants (TAC)enhance the ability of companies, particularly SMEs, to become more productive and innovative by enabling them to readily access college expertise, technology and equipment. This access to college capabilities is intended to enhance the productivity, competitiveness and innovation of the participating SMEs (pilot in progress)

Other CCI Grants

Industrial Research Chairs (IRCC)IRCC supports applied research leaders and the development of business-focused applied research programs at colleges (5 year terms, $100,000 - $200,000 per year)Other CCI Grants (contd)College - University Idea to Innovation (CU-I2I)develop and strengthen research links between colleges, universities and businesses to accelerate the development of existing company technologies and promote their commercialization (3 year grants, up to $250,000)

IRCC Update

Launched program on October 5, 2011 Application deadline was November 30, 2011 IRCC budget is ring-fenced (if funds are not used specifically for IRCC, they must be returned to TB) Received 45 IRCC applications Can award up to 18 Chairs in 2011-12, the remainder will be allocated through competition(s) in 2012-13 No further competitions planned until 2016-17*

IRCC Applications by Region*

CU-I2I Update

Technology pull objectives (name causing confusion) Possible University draw -> no cash requirements Launched program on November 15, 2011 No application deadline. Apply at anytime. No official applications yet. Some are in preparation. CU-I2I budget is ring-fenced (if funds are not used specifically for CU-I2I, they must be returned to TB) Can fund $1M in 2011-12, $2M in 2012-13, and $3M for subsequent years*

The Five Major Programs in RPP

UniversitiesCollegesStrategic Partnership ProgramIndustry-Driven Collaborative R&D ProgramCommercialization ProgramTraining in Industry ProgramColleges and Community Innovation Program (CCI)Strategic Project Grants (SPG)Partnership Workshops (PWP)Idea to Innovation (I2I)Industrial Undergrad Student Awards (i-USRA)Applied Research and Development (ARD) GrantsCollaborative Health Research Projects (CHRP)Interaction Grants (IG)Centres of Excellence for Commercialization & research (CECR)Industrial R&D Internships (IRDI)Applied Research Tools and Instruments (ARTI) GrantsAuto. Partnership Canada (APC)Engage Grants (EG)Industrial Postgraduate Scholarships (IPS)Innovation Enhancement (IE)Strategic Network Grants (SNG)Collaborative Research and Development (CRD)Industrial R&D Fellowships (IRDF)Technology Access Centres (TAC)Network of Centres of Excellence (NCE)Industrial Research Chairs (IRC)College-University Idea to Innovation (CU-I2I) Business-Lead Network of Centres of Excellence (BL-NCE)Industrial Research Chairs for Colleges (IRCC)

Collaborative Research & Development Grants (CRD)Apply any timeUp to 5 years (most are 2-3 years)Average grant about $50,000 (can be up to $1M)Company contributes cash (at least half of NSERC)Companys internal capacity is key85% success rate

Engage Grants ProgramNew collaboration between company and researcherUp to $25,000 from NSERCNo cash from companyIP stays with companyStraightforward application No deadline 3-4 week turnaround to decisionObjective is to foster a long-term collaboration (though this may not be the outcome)

Industrial Scholarships and FellowshipsExample Undergraduate Student Research Award Industrial USRA-I - $4500 (NSERC)-$1125 (Company, min)-16 week placement at company-undergraduate bachelors student in science or engineering

NSERC provides a wide variety of programs that meet the varying needs of business, from short-term to long-term R&D projects. NSERC invests over $300 annually million in funds to support more than 1,500 industry-academic R&D partnerships.Value proposition

1) By cost-sharing with NSERC, Canadian businesses can fund relevant R&D for as little as 17 cents on the dollar when combined with tax credits for R&D investment.Value proposition

CRD Tax Example

Funding Model

COMPANYPROJECTINDUSTRYOCETOTALOCE:INDSTRYINDUSTRYTOTALDURATIONINVOICEAFTER TAX

EMPLOYEESTOOLKITCASHCASHCASHCASH RATIOIN-KINDCASH+IN-KINDMONTHSFREQUENCYCREDITS/QTR

SMALL1000COLLABORATIVE$100,000$100,000$200,0001:1$50,000$250,00024$12500 (8X)$7,500

TRENDS/ISSUESREAL TIME RESEARCH

NIH

IP

overhead

$ TO PAY STUDENT

Fielding Eg

British Columbia Investment Tax CreditSR&ED Tax CreditCheques back from creditsNet Cost to Company

Industry Cash$25,000$(2,500)$(8,750)$11,250$13,750

Industry In-Kind$25,000$(2,500)$(8,750)$11,250$13,750

NSERC CRD Cash$50,000

Project Value$100,000$22,500$27,500

Sheet3

2) Researchers who undertake applied research in partnership with companies are often at the forefront of their respective specialties often with recent state of the art equipment available. Companies benefit from their insights and advances. Value proposition

3) All major R&D funding proposals are reviewed by experts and this can help companies ascertain whether there may be any technical or feasibility concerns/issues. Value proposition

4) Links to universities and colleges can be a plus for businesses seeking investment capital, especially from private sources. Value proposition

5) NSERC's industrial scholarships and fellowships allow companies to hire, at substantial savings, the appropriate level of expertise for almost any R&D task. From undergraduate students for short-term problem solving to postdoctoral fellows for longer term, and sometimes game-changing research, these highly skilled people make important contributions to their employers.Value proposition

6) Since 1997, the federal government and its partners have invested more than $4billion in university and college research infrastructure and equipment.

Many of these well-equipped facilities are one-of-a-kind and would be too costly for any single company to set up and operate.

University and college technical staff are on hand to help companies maximize the use of these facilities.Value proposition

Jack Deyirmendjian613-996-2145 jack.deyirmendjian@nserc-crsng.gc.ca

Marie Thibault (ARD, TAC, CU-I2I)613-996-9402Marie.thibault@nserc-crsng.gc.ca

Patrick St-Pierre (IE, IRCC)613-944-7533Patrick.St-Pierre@nserc-crsng.gc.ca

Rick Warner 604-666-8811 rick.warner@nserc-crsng.gc.ca

Suzanne Liou (ARD)613-996-5984Suzanne.liou@nserc-crsng.gc.ca

Creed Millman (IE, ARTI)613-996-4894 creed.millman@nserc-crsng.gc.caQuestions & Contacts

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