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.