OCE Vouchers & New Program Portfolio

April 29, 2013

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NEW PROGRAM PORTFOLIO OVERVIEW

1. Vouchers

2. Market Readiness

3. Collaborative Research

4. Entrepreneurship

5. Technology Transfer

6. Federal programs

> SmartStart (FedDev)

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VOUCHERS

• A truly “whole-of-government” approach< One-stop-shop for provincial and federal support< Applicants “check” the appropriate box for additional federal support

• Voucher portfolio< $20K Productivity & Innovation< $50K Commercialization< E-Business < Industry Association R&D Challenge

• OCE BDs are point of entry for industry; increase coverage to 1:1 with academic institutions

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128 - $20K INNOVATION AND PRODUCTIVITY VOUCHER

• Replaces existing Technical Problem Solving (TPS) program

• Open to entrepreneurs and SMEs ; colleges and universities are primary knowledge providers

• $20K to address technical challenges that will have a commercial impact; improve productivity; develop business strategy or export development plan

• Minimum matching cash contribution of $5,000 from the SME

• Partner leverage: Connect Canada graduate student internship add-on of $5,000 NSERC Engage add-on of $20K for first time collaborations between PI and SME IRAP add-on of up to $20K for access non-academic expertise/service providers

- 100% of projects will have at least one internship - 50% of projects will be first time collaborations- 25% of projects will need access to non-academic expertise (e.g. IRAP support)

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Industry Connect Canada* NSERC* IRAP* TotalLeverage per voucher 5K 5K 20K 20K 50K*Subject to partner discussions

60 - $50K COMMERCIALIZATION VOUCHER

• Open to university spin-offs and start-ups; tech transfer offices

• Prototyping and related commercialization activities; establish proof of commercial concept; product design; scope market size and profitability; plan business case and path to commercialization

• 25% match

• Two streams: Up to $50K from OCE to incorporated spin-offs or spin-ins Up to $35K from OCE for commercialization activities and $15K from NSERC for

market assessment to principle investigator (not incorporated)

- 25% of projects will be eligible for NSERC support

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Industry NSERC* TotalLeverage per voucher 12.5K** 15K 27.5K*Subject to partner discussions**25% of 50K

E-BUSINESS VOUCHER INITIATIVE WITH COLLEGES

• Target “main street” SMEs with a focus on e-business, digital and social media adoption to drive market expansion including exports (e.g. assistance to set up a web-site/on-line platform for international sales)

• Colleges would be primary knowledge provider

• Delivery through CONII to develop standard packages to lower administration costs and drive high volume

• Total Budget $250K

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$1.5M (3 @ $500K) INDUSTRY ASSOCIATION R&D VOUCHER CHALLENGE

• Indirectly support start-ups, SMEs and larger firms through their industry associations

• Industry association identifies problem or challenge

• Call goes out and academic institutions in partnership with SME end-users respond with proposals for projects that address the problem and provide a benefit to all (most) SMEs in that sector

• Typical funding $500K per voucher; requires matching industry funds

• Partner leverage:

• It is anticipated NSERC and IRAP will participate in each industry association voucher round

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Industry NSERC* IRAP* TotalLeverage 1,000K 500K 500K 2,000K*Subject to partner discussions

TOTAL PARTNER LEVERAGE FOR VOUCHERS

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Vouchers OCE Industry Connect Canada NSERC IRAP TotalTotal contributions 8,060K 4,390K 640K 3,005K 2,140K 18,235K

• Single application to OCE and one review process will be used for Vouchers to access funding from all partners:

- OCE- Connect Canada internship program (Auto21)- NSERC Engage, ARD, and I2I- IRAP funding to SMEs to access non-academic expertise

MARKET READINESS - $3M

• Helps move promising technologies developed in Ontario colleges, universities, and research hospitals out of the lab and into the marketplace

• Supports the launch and growth of sustainable spin-offs

• Follow-on support for $50K commercialization vouchers

• Two phases< Development, testing and validation (up to $150K)< Product launch and customer engagement (up to $250K financial instrument; requires

private sector co-investment of a minimum of 1:1)

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COLLABORATIVE RESEARCH - $6M +

• Supports industry-academic R&D projects that address problems and challenges identified by industry; high commercialization potential and market pull

• Includes sector thrusts (e.g. mining, energy)

• Industry matching

• Federal leverage through NSERC CRD program for sector strategy initiatives

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ENTREPRENEURSHIP - $6M

Experiential Learning Program (ELP)

• Funding to academic institutions for entrepreneurship programming that supports the entrepreneurial aspirations of Ontario’s students and helps them get the real-world experience they need to launch new ventures

Entrepreneurship Fellowships

• Help students and recent graduates commercialize their inventions and launch start-up companies

• Strategic sectors:< Neuroscience (co-funded in partnership with OBI)< Social Innovation (co-funded in partnership with SSHRC)< Other sectors under development

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TECHNOLOGY TRANSFER

• Technology Transfer Networks wind-down

No infrastructure (people and operating costs) funding post June 30, 2013

Central POP funding available via Voucher and Market Readiness Programs

FY12-13 central and institutional budget was $2.8M

FY13-14 central budget $4.5M ($50K commercialization vouchers - $3M and Life Sciences $1.5M)

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FEDERAL PROGRAMS

• FedDev SmartStart

• Approved student- or recent graduate-led start-ups receive up to $30K in seed funding to be matched by at least one other private investor

• Up to $5K for business skills training

• Private sector leverage through partnership with Extreme Startups

• FY13-14 $500K

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DRAFT PROGRAM SUMMARY (ANNUAL)(Confidential – under discussion)

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Program OCE ($ million) Matching ($ million) Total ($ million)Vouchers 8 10 18Market Readiness 3 6.5 9.5Collaborative Research 8 14 22Entrepreneurship 6 5 11Other including:- IBM SOSCIP- Energy Fund- CONII- Life Sciences POP- MTO- Total 12 41 53Total $37 million $76.5 million $113.5 million

PROGRAM CHANGES

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Current Program OCE CashIndustry

Cash In-kind Total O/HTPS $25,000 $5,000 $20,000 $50,000 YesMarket Readiness 1 $50,000 $12,500 $62,500 Yes

New Program OCE CashIndustry

Cash In-kind Total O/H$20K voucher $20,000 $5,000 $15,000 $40,000 No$50K voucher $50,000 $12,500 $62,500 No

PROJECTED OVERHEAD TO INSTITUTIONS (FY13-14)

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(000') OCE Investment Partner Leverage*Overhead on OCE

Funds Only IACP Programs Status Quo 24,919 25,006 3,511 New IACP Programs with Vouchers 25,419 29,029 4,057**

* including cash & in-kind and from Industry, IRAP, NSERC, Connect Canada etc. ** does not include any Partner Leverage O/H collected at institutions on $4M in incremental leverage

• Additional overhead to universities from non-IACP programs such as ELP and others.