Aerospace Sector Information
SessionSeizing the OpportunityJanuary 2015
Presentation Overview
• Innovation – a Global perspective
• NSERC – the big picture
• Canada’s Aerospace Sector overview
• NSERC industry support
• Defining the opportunity
A process through which economic or social value is extracted from knowledge — through the creation, diffusion, and transformation of ideas — to produce new or improved products, services, or processes.
-- Conference Board of Canada
HERD AS PERCENTAGE OF GDP, TOP OECD COUNTRIES (2009)
CANADA LEADS THE PACK…
5
BERD AS A PERCENTAGE OF GDP, TOP OECD COUNTRIES (2009)
CANADIAN BUSINESSES ARE LAGGARDS IN R&D EXPENDITURES!
6
Source: A comparative analysis of the sciences and innovation profiles of ODEC and selected countries: December 2011
SCIENCE AND INNOVATION PROFILE IN CANADA
7
Federal S&T Structure
PARLIAMENTPARLIAMENT
Prime Minister
Prime Minister
CABINET CABINET Minister of IndustryMinister of Industry
Science, Technology and Innovation
Council
Science, Technology and Innovation
Council
Research Performed in Labs
• National Research Council (NRC) • Science-Based Department and Agencies e.g., Environment Canada, Natural Resources Canada (NRCan), Health Canada
Research Performed in Labs
• National Research Council (NRC) • Science-Based Department and Agencies e.g., Environment Canada, Natural Resources Canada (NRCan), Health Canada
Research Funding• National Research Council’s Industrial Research Assistance Program (IRAP)• Canada Revenue Agency’s Scientific Research and Experimental Development(SR&ED) tax credits
Research Funding• National Research Council’s Industrial Research Assistance Program (IRAP)• Canada Revenue Agency’s Scientific Research and Experimental Development(SR&ED) tax credits
Research Funding
3 Granting Agencies: Natural Sciences and Engineering Research Council (NSERC), Social Sciences & Humanities Research Council (SSHRC), Canadian Institutes for Health Research (CIHR)
Foundations: Canada Foundation For Innovation (CFI), Genome Canada
Post-secondary research inuniversities, colleges and
teaching hospitals
Post-secondary research inuniversities, colleges and
teaching hospitals
IndustryIndustry
Industry CanadaIndustry Canada
Minister of State (S&T)Minister of State (S&T)
Federal Tri-Council Funding Agencies
HealthSocial
Sciences & Humanities
Natural Sciences & Engineering
SSHRC NSERC MRC
Canada’s Granting Councils>20 years ago
NSERC
CIHR
CFI
21st Century Approach
SSHRC
The NSERC Organization
Total national staff ~400o Headquarters in Ottawa: ~379 staffo Regional Offices: 5 offices, 4 staff each (*5 in Ontario)
Pacific
Prairies
OntarioQuebec
Atlantic
NSERC-Ontario:• Promotion• Relationship Development• Follow-up
In a nutshell … $1.1 Billion BudgetNSERC helps make Canada a country of discoverers and innovators for the benefit of all Canadians
PrioritiesPeople:Building our human capital in the natural sciences and engineering
Discovery:Unleashing the creative power of our researchers
Innovation:Connecting & applying the strength of our research capacity to the challenges & needs of industry & society
26.8%
37.3%
31.5%
4.4%
People
Discovery
Innovation
Admin.
NSERC Support Spans the Research Continuum
Strategic Partnerships(Government Priorities)
Business-LedNetworks
Discovery Grantsresearch and training
Industry-Driven programs
Commercialization of Research
RESEARCH & TECHNOLOGY MATURITY
MAR
KET
READ
INES
S
TRAINING IN INDUSTRYTRAINING IN UNIVERSITIES
College and Community Innovation
Program
16
The Canadian Aerospace industry
• Number of companies in the Canadian aerospace industry: 700* companies of all sizes
• The Canadian aerospace industry contributed more than $27B in direct and $42B in indirect revenues to Canada’s economy in 2012, and employed 170,000 FTEs
• Canada’s aerospace manufacturing sector is ranked 5th among OECD countries in terms of revenues and GDP and 1st in terms of relative importance over total manufacturing (2010).
* Firms where aerospace is their primary business activity
Aerospace: a strong export industry (80%)
Aircraft39%
Engines28%
Avionics11%
Landing Gear6%
Flight Simulator4%
Other Parts12%
Product Exports by Segment
54% of exports to USA – 24% Europe – 11% Asia
Canadian aerospace industry size of firms
85%
11%
4%
Company Size
Small (1-99 FTEs)
Medium (100-499 FTEs)
Large (500+ FTEs)
Over the last ten years: sizeable increase in number of medium-sized firms, slight decline in small ones
Tier structure of Canadian aerospace industry
Aerospace across the country
5%
60%
27%
8%
Manufacturing
Atlantic
Quebec
Ontario
Western
11%
21%
22%
46%
MRO*
* Maintenance, Repair and Overhaul
NSERC + NSERC -
Aerospace: one of the most R&D intensive sectors of the Canadian
economy
Aerospace Manufacturing
Total Manufacturing
Total Industries
0 2 4 6 8 10 12 14 16 18 20
R&D Intensity
R&D Intensity on GDP
Large firms responsible for 92% of R&D intensity
NSERC RP Funding & Industry Contributions
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 $-
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
Aero 2002-12Cash
In-Kind
NSERC
Aerospace Companies & NSERC
Courtesy of CRIAQ…Mostly manufacturing companies
Defining the opportunity
• NSERC currently benefits from strong partnership with CRIAQ able to reach out to several companies in QC
• Strong participation from Ontario and Quebec companies but…
• Partnership initiatives together with CARIC, OAC, OCE provide new access for ON based companies
• Current context is favorable to increased collaborative R&D
OCE Partnership – First Call
Ontario Aerospace R&TD Challenge OCE 1:1 cash + in-kind with 50% cash min. NSERC ROF + CRD
Enabling cross-sector partnerships with industry associations to address sector-wide research and development challenges.
5 Major Research Partnerships (RP) ProgramsUniversities Colleges
Strategic Partnership Program
Industry-Driven Collaborative R&D Program
Commercialization Program
Training in Industry Program
Colleges Community Innovation Program (CCI)
Strategic Project Grants (SPG)
Partnership Workshops (PWP)
Idea to Innovation (I2I) Industrial Undergrad Student Awards (i-USRA)
Applied Research and Development (ARD) Grants
Collaborative Health Research Projects (CHRP)
Interaction Grants (IG)
Centres of Excellence for Commercialization & Research (CECR)
Industrial R&D Internships (IRDI)
Applied Research Tools and Instruments (ARTI) Grants
Auto. Partnership Canada (APC)
Engage Grants (EG)Engage Plus Grants (EPG)
Industrial Postgraduate Scholarships (IPS)
Innovation Enhancement (IE)
Strategic Network Grants (SNG)
Collaborative Research and Development (CRD)
Technology Access Centres (TAC)
Network of Centres of Excellence (NCE)
Industrial Research Chairs (IRC)
College-University Idea to Innovation (CU-I2I)
Business-Lead Network of Centres of Excellence (BL-NCE)
Industrial Research Chairs for Colleges (IRCC)
Project
NSERC
Industry Academia
Grants, scholarships, awards ($)
$, In-kind, background IP, training
HQP, facilit
ies, equipment
expertise
Ideas, advice, future employees
Peer-Review,awards ($)
Future research knowledge
INNOVATION PORTFOLIO:NSERC Research Partnerships Model
Connections to the academicenterprise
Solutions to R&D challengesTraining, advancement of k
nowledge
NSERC Partnership Budget
$335M
Key Evaluation Criteria
1. Applicant 2. Company3. Project
Engage Grant
Engage Grant(EG) (University)
• New relationship• Up to $25k• 6 months• No company cash• Company owns the IP• No application deadline• Fast 4-6 week turnaround
Engage Plus Grant
Engage Plus Grant(EG) (University)
• Continue project and relationship with Engage
• $12.5k company cash + $12.5k award
• 6 months• Company owns the IP• No application deadline• Fast 4-6 week turnaround
Strengthening and Maintaining a Longer Term Collaboration
Collaborative R&D Grant (CRD)
Industry driven R&D project Shared costs: Each $1 cash
and $1 in-kind from company levers up to $2 from NSERC
Flexible* Entire R&D spectrum* Duration 1-5 years* Small to large projects* Apply at any time
Success rate: 85%
“We are definitely ahead of the curve today as a result of this collaborative R&D project… significantly reduced our material costs …placed us in a much stronger position technologically“
John Persic, VP R&D, Microbonds
Applied R&D (ARD) Grant
Applied R&D Grant(ARD) (College)
o Three levels of grants:1. Up to $25K (6 months)
o Requires new relationship, industry partner contribution
o 4-6 week internal review target2. Up to $75K / year, up to 3 years:
o Industry partner(s) contribute 1/3 of project costs
o External peer review3. Over $75K / year, up to 3 years:
o Industry partner(s) contribute ½ of project costs
o External peer review committee
Thank you!
Igniting New Research Partnerships Through Engage Grants
• 445 new collaborations in first year, 88% with SMEs
• 272 companies new to NSERC Partnerships (>10% increase)
• 187 researchers new to Partnerships Programs
• Decisions in 4-6 weeks