NCE Secretariat Business-led Networks of Centres of Excellence December 2007 Jean-Claude Gavrel, Associate Vice President Pamela Moss, Senior Program Manager Natasha Gauthier, Communications Manager The NCE is a joint initiative of Industry Canada, NSERC, SSHRC and CIHR.

Today’s Agenda Overview of the NCE Secretariat S&T Strategy 2007 BL-NCE Competition

Program Created in 1989 The NCE mission: Program Created in 1989 The NCE mission: “ To mobilize Canada’s research talent in the academic, private and public sectors and apply it to the task of developing the economy and improving the quality of life of Canadians ”

NCE Scale 16 Networks operating as “Virtual” Institutes Mobilizing approximately 7,000 People: –university professors and researchers –industry and partner researchers –research associates and students Bringing together Canadian organizations –universities and hospitals –government agencies (federal/provincial) –industry and other partners

2,300+ students trained in research & innovation (per year) Over 27,000 refereed publications NCE Impacts (Typical 7 year cycle) Approx 320 Patents issued or filed Approx 540 Licenses granted or in negotiation 70 Spin-off companies Numerous Research Findings applied in new Policies and Practices (Knowledge Translation)

Three Components of Federal S&T Strategy Entrepreneurial Advantage –Fostering a Competitive and Dynamic Business Environment –Pursuing Public-Private Research and Commercialization Partnerships –Increasing the impact of Federal R&D Assistance Programs

Three Components of Federal S&T Strategy Knowledge Advantage –Focusing Strategically on Research in National Interest –Maintaining our G-7 Leadership in Public R&D Performance –Enhancing value for money, Accountability and Responsiveness of Three Granting Councils –Exploring New Approaches to Federally Performed Science and Technology

Three Components of Federal S&T Strategy People Advantage –Enhancing Opportunities for Science and Technology Graduates –Increasing the Supply of HQ and Globally Connected S&T Graduates –Getting Canadians excited about Science and Technology

Budget 2007 & NCE Secretariat: Public-Private Research & Commer. Partnerships (Entrepreneurial Advantage) –Centres of Excellence for Commercialization and Research (CECR) ($165M in 07-08; $30M/yr in future) –Business-led NCE (BL-NCE) ($46M starting in 08-09) –Private Sector Advisory Board for CECR and BL-NCE Enhancing Opportunities for S&T Graduates (People Advantage) –Industrial R&D Internship program ($7M over 2 years) –Expect to eventually support 1000 Internships

A Suite of “NCE” Programs “Classic” NCE ($82.4M per year) –Research-driven partnerships with longer-term goals –2 X 7 years, Complete Funding for res., admin, KT &TT CECR ($165M for 3-5 years) –Public-private research & commercialization partnerships –5 years, renewable in some cases, –Funding for operating & commercialization (50%-75%) BL-NCE ($46M over 4 years - $11M in 1 st year) –Private sector problem-driven research partnerships –4 years for 1 st phase, funding for research., admin, and KT/TT Industrial R&D Internships ($7M over 2 years) –R&D terms for graduate & postdocs in industry setting –Cost 50% - managed by NCE or others

Business-led NCEs Goal  to fund large-scale collaborative networks to perform research;  to enahnce private sector innovation;  and to deliver economic, health, social and environmental benefits to Canadians and to encourage an Entrepreneurial Advantage.

Business-led NCEs No restriction on the Canadian industrial sector that can apply for a Network. However, the research undertaken by the proposed Networks must be in one or more of the five (5) priority research areas: –Environmental science and technologies. –Natural resources and energy. –Health and related life sciences and technologies. –Information and communications technologies. –Management, business or finance.

Business-led NCEs Who Can Apply? Organizations eligible to receive funds are not-for-profit consortia* that represent the interests of private sector for- profit enterprises with substantial R&D operations in Canada, or potential to benefit from R&D, (ideally comprising a mix of sizes, research providers and research- users) These applicants must form research partnerships with a mix of Canadian academic, government and/or private sector researchers and innovators as appropriate to achieve their objectives. * Consortia must be incorporated at time of funding

Business-led NCEs The applicant must have: a clear vision of their represented sector/cluster’s shared needs over the next 5-10 years; the major R&D and commercialization challenges and barriers to that vision; and a comprehensive research plan that shows how the proposed network will set research goals and objectives that will address these challenges to ultimately enhance their innovativeness and competitiveness.

Business-led NCEs“Classic” NCEs Description Managed collaborative virtual network that delivers a research program Lead Private sectorAcademia Host Institution Not-for-profit consortia representing the private sector University / Some not-for- profit examples Network Leader/ Scientific Director Director of the not-for-profit consortium University affiliated (professor, clinician etc.) Research Agenda Private sector-driven research topics determined by establishing a vision University strategically determined research agenda with stakeholder input Duration Four (4) yearsSeven (7) years – renewable How do these Networks differ from “Classic” NCEs?

Business-led NCEs“Classic” NCEs Direct Research Costs Only 50% of direct research costs can come out of BL-NCE funds – balance to be made up of private sector cash & in-kind contributions Majority of research costs paid out of NCE funds – contributions from the private sector are strongly encouraged Administrative Costs Only 75% of administrative costs can come out of BL-NCE funds – balance to be made up of private sector cash & in-kind contributions Majority of administrative costs paid out of NCE funds – contributions from the private sector are strongly encouraged Research Area Targeted to 5 Priority Areas identified in the S&T Strategy and Budget 2007 Open or targeted competitions Funding source NCE funds flowing through the 3 granting agencies (NSERC, CIHR, SSHRC) Research Providers University labs Private sector labs Government labs (see below) Mainly university labs Role of Government Scientists No direct funding but eligible for student support if Adjunct Professors – bring own resources to the NCE

Business-led NCEs would deliver…. Outputs  strengthened links among firms, private sector research institutes, colleges and universities, and provincial and federal government labs.  targeted investments in research, training, and technological development to implement priorities identified by industry with potential to contribute to raising the industry to world leadership

Business-led NCEs would deliver…. Impacts  improvement in the global and innovation focus of the firms involved;  more and deeper networks and relationships among sector firms and with the sources of knowledge in the economy;  additional skilled jobs for highly qualified graduates in industry;  increased proportion of firms’ sales from innovative products; Objective a more competitive, more productive Canadian economy.

The Competition Process Two stage review, involving a Private Sector Advisory Board (PSAB) with expert input. Stage 1 – Letter of Intent (LOI) –Reviewed by NCE staff for compliance –Reviewed by PSAB for recommendation to NCE Steering Committee - three granting agencies Presidents, Industry Canada DM and CFI President (observer)

Competition Process – Stage 2 Applicants of LOI selected by Steering Committee will be invited to submit full applications to be reviewed as follows: –Full proposals circulated to experts for evaluation of research relevance for a sector –Individual expert panels (EP) set up for each invited applications with site visit –Applications, EP reports and other inputs are submitted to PSAB for final recommendations –NCE Steering makes final decision and submits Centres selected for funding to Government

The BL-NCE Evaluation Criteria (1) Benefits to Canada - The potential to increase private sector R&D capacity and to strengthen public-private sector collaboration to address significant research challenges that meet business needs; - The opportunity offered by the network to create, grow and retain jobs in Canada; - The opportunity to accelerate the commercialization of leading edge technologies, goods and services in priority areas for Canada; - The strength of domestic and international collaborations to ensure that benefits spill over to a wide array of firms, sectors and regions of the country.

The BL-NCE Evaluation Criteria (2) Track Record and Potential of Applicants –Past achievements and ability to lead and direct the network’s research program; –Ability to identify and select the best possible expert researchers in academia, government and/or the private sector to carry out and achieve the research objectives; –Ability of the private sector partners to assist in the training of and to potentially hire innovative and world class researchers in areas and technologies critical to Canada and for private and public sector; –Ability to attract investment.

The BL-NCE Evaluation Criteria (3) Strength of the Business Plan –Excellence, focus and coherence of the research program; –The strength of the path to market or business application for the proposed research; –Interest level of the private sector and willingness to contribute to the network with cash or in-kind contributions; –Effectiveness of the plan to manage and exploit IP; –Quality of proposed governance & management; –Accountability and effective financial decision making.

Content of Letter of Intent Cover Letter from Not-for-Profit Consortia Application Form (includes the budget and a summary form) LOI Proposal –Articulation of the Vision –Discussion of proposed benefits to Canada; –Information to help assess the track record and potential of the key applicants; the main research providers and the BOD –Business Plan for the Network: its program, partnerships, IP and commercialization, and management

Letters of Support A limit of 10 on the number of letters –Maximum 2 pages per letter Should include letters from key Stakeholders including: –Companies involved in the consortia –VPs of research from academic institutions that will be involved in the research –Heads of government departments & agencies that will be involved in the research –Other research providers

Timeline for BL-NCE Competition Competition LaunchedNovember 6/07 LOI DeadlineJanuary 30/08 PSAB/Steering ReviewMarch /08 Invitation Stage 2April /08 Full Proposal DeadlineJuly 31 /08 Expert Panel Site VisitsSeptember /08 PSAB/Steering DecisionNovember /08 Launch of up to 5 new BL-NCEsEarly 2009

Questions? Additional Information: Pamela Moss Website: