1. Presentation to Genome Canada September 27, 2011 ACOA’s Approach to Commercialization

2. Commercialization contributes and enhances economic benefits and enables firms to be more competitive; ACOA has invested over $900M in R&D-related projects under its innovation programming; and Investing in commercialization will increase the likelihood of success of those projects. Why Focus on Commercialization? BUILDING A STRONGER ECONOMY TOGETHER ENSEMBLE, POUR UNE ÉCONOMIE PLUS FORTE

3. Lack of management expertise/experienced CEOs; Attraction/retention of HQPs (marketing and technical); Access to capital; Access to latest market intelligence; and Better customer/end-user engagement earlier in the innovation process. Atlantic Canada Commercialization Challenges BUILDING A STRONGER ECONOMY TOGETHER ENSEMBLE, POUR UNE ÉCONOMIE PLUS FORTE

4. Springboard Atlantic; AIF Commercialization Framework; Saint Mary’s University Commercialization Accelerator Program; First Angel Network; Business Development Program assistance for marketing, trade and innovation; and Productivity and Business Skills Initiative. ACOA’s Approach to Commercialization BUILDING A STRONGER ECONOMY TOGETHER ENSEMBLE, POUR UNE ÉCONOMIE PLUS FORTE

5. Springboard Atlantic is a network of 19 Atlantic universities and colleges; The network’s objectives include: Increase commercialization of research within Network; Liaises with industry and facilitates industry sponsored research; Supports the creation of new companies based on platform technologies; and Markets and licenses technologies to industry and entrepreneurs. Currently in Phase III of project with an $8.5 million contribution over three years. Springboard Atlantic Inc. BUILDING A STRONGER ECONOMY TOGETHER ENSEMBLE, POUR UNE ÉCONOMIE PLUS FORTE

6. Investing in Innovation Investir dans l’innovation $5M/3-year AIF Commercialization Framework established in 2008; Pillars of Framework include: Commercialization Consulting program; Investor readiness training and access to international markets; Commercialization Training/Coaching project; and Strategic sector/cluster support. Framework activities are currently being reviewed to determine potential projects for renewal. AIF Commercialization Framework 6

7. Investing in Innovation Investir dans l’innovation Saint Mary’s University Commercialization Accelerator Program Collaboration between SMU and MIT Sloan School of Business to provide Atlantic Canadian companies with CEO level mentoring. Other ACOA Commercialization Support 7

8. Investing in Innovation Investir dans l’innovation First Angel Network Not-for-profit organization with the mandate of bridging the gap between entrepreneurs and capital in Atlantic Canada through communication, education and networking. Other ACOA Commercialization Support (cont’d) 8

9. Investing in Innovation Investir dans l’innovation Business Development Program (BDP) supports: Development and use of new or improved technology or products in regional SMEs; Marketing costs to encourage SMEs to secure additional marketing expertise, develop plans for improved sales, and to develop national and export markets; Development and adoption of better business and technical skills in SMEs to increase competitiveness (Productivity and Business Skills Initiative). Other ACOA Commercialization Support (cont’d) 9

10. Commercialization was identified by the Agency as a priority area during the last Program Renewal exercises (2008-2010); Work on the development of an ACOA commercialization strategy began in May 2010; and Allowed the Agency to review its commercialization activities and address areas of challenge. ACOA Commercialization Strategy BUILDING A STRONGER ECONOMY TOGETHER ENSEMBLE, POUR UNE ÉCONOMIE PLUS FORTE

11. AIF Results to Date Fostering private sector commitment in S&T: Close to 760 partnerships created; private sector participation continues to be significant; and the percentage of institutional projects with a private sector partner has increased (100% in AIF VIII). Leveraging investments: Almost $850 million leveraged from private sector, universities, research institutes, and other gov’t programs. Magnet for talent: New scientists and researchers are being attracted to Atlantic Canada (over 1250 HQPs to date). 11

12. AIF Results to date (cont.) Getting to Market: More than 250 technologies, products, processes and services developed through the AIF have been successfully commercialized, resulting in just under $250 million in incremental sales (AIF Rounds I-IV). Strengthening the Knowledge Base: With hundreds of technologies, products, processes and services in progress (i.e. not yet commercialized), there is significant commercialization potential yet to be achieved for AIF recipients as R&D projects from other rounds are completed. 12

13. Four key challenges related to commercialization: 1.Complexity of innovation/commercialization programming; 2.Innovation/commercialization programming is more focused on research and development and less on commercialization; 3.Access to capital; and 4.Skills and experience gaps. Strategy Findings BUILDING A STRONGER ECONOMY TOGETHER ENSEMBLE, POUR UNE ÉCONOMIE PLUS FORTE

14. Fostering a culture of collaboration between Atlantic Canadian commercialization players; Cohesive and balanced investments across the innovation and commercialization spectrum; and Fostering skills to effectively navigate the commercialization process. Way Forward – Three Key Principles BUILDING A STRONGER ECONOMY TOGETHER ENSEMBLE, POUR UNE ÉCONOMIE PLUS FORTE