Federal Priorities For Commercialization

Office of the Bureau duOffice of the Bureau duNational Science Advisor Conseiller national des sciencesNational Science Advisor Conseiller national des sciences

Kevin FitzgibbonsOffice of the National Science Advisor

TechExpo 2004Ottawa05 October 2004

Office of the Office of the Bureau duBureau duNational Science Advisor National Science Advisor Conseiller national des sciencesConseiller national des sciences

Role and Priorities of National Science Advisor to the Prime Minister• Position created in April 2004• Provide sound, independent, non-partisan advice on the

government’s directions and priorities for S&T• Provide input on priorities for future investments in S&T

with benefits to society and the economy:• Commercialization and innovation • International S&T and challenges of the developing world• Horizontal collaborations between various departments,

agencies, institutions, and business

Office of the Office of the Bureau duBureau duNational Science Advisor National Science Advisor Conseiller national des sciencesConseiller national des sciences

US Canada Labour Productivity

Source: CME 2004

60

70

80

90

100

110

120

130

140

150

160

Ind

ices

(19

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Canada US

Office of the Office of the Bureau duBureau duNational Science Advisor National Science Advisor Conseiller national des sciencesConseiller national des sciences

Productivity/GDP Growth 1995-2002

Source: OECD – Conference Board 2004

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1.5

2

2.5

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Finlan

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Austra

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Sweden

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Canad

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Office of the Office of the Bureau duBureau duNational Science Advisor National Science Advisor Conseiller national des sciencesConseiller national des sciences

Manufacturing Production

Goods and Services Exports

Selling prices

Labour Productivity

Unit Labour Costs

After Tax Profit Margins

Research and Development

Technology Investment

Labour Training

Patent Commercialization

Canada’s Excellence Gap

Source: CME 2004

Office of the Office of the Bureau duBureau duNational Science Advisor National Science Advisor Conseiller national des sciencesConseiller national des sciences

Commercialization of Research Results

• High expectations; multitude of ideas but lack of clarity on best approaches

• Need a mind-set change in understanding dynamics and relationships – linear mode of innovation outdated

• Technology pull from firms, market place at least as important as technology push from labs

• Building a seamless interface between the two through collaboration and partnerships is key

Office of the Office of the Bureau duBureau duNational Science Advisor National Science Advisor Conseiller national des sciencesConseiller national des sciences

Virtually every OECD country and beyond sees the commercialization of research as a priority

Remains a priority of the Federal Government and Minister of Industry (after health, cities and child care . . . )

Expectations for the Speech from the Throne and Government Response to deliver on commitments in the Liberal Party election platform:

Promote increased venture capital Support technology transfer Underwrite NRC Network of Commercialization Centres Create a Canada Innovation Award

Context

Office of the Office of the Bureau duBureau duNational Science Advisor National Science Advisor Conseiller national des sciencesConseiller national des sciences

Skills Address technology commercialization skills gaps in business, tech

transfer offices and government programs

Risk Financing Look at the complete ecosystem of risk financing system in Canada to

move it to international standards

Regulations Factor commercialization considerations into smart regulations

Market development and networking Ensure strong international support networks for facilitating

partnerships at all stages of the innovation spectrum

Attitudes Shift from a supply focus to stimulating demand for R&D and new

technologies in the private sector through partnerships

Commercialization of Research Results New directions and challenges

Office of the Office of the Bureau duBureau duNational Science Advisor National Science Advisor Conseiller national des sciencesConseiller national des sciences

A fundamental priority for the NSA and for Canada

Underpinning philosophy and focus: It’s all about markets

It’s all about creating and enabling Canadian based firms to grow as viable businesses

Governments can and do have a role to play

What is required is not a massive program response but rather a coordinated and cohesive set of pragmatic actions

Need for a whole of government approach

Commercialization of Research Results: Position of the NSA

Office of the Office of the Bureau duBureau duNational Science Advisor National Science Advisor Conseiller national des sciencesConseiller national des sciences

• $270 M announced in 2004 Budget for BDC and FCC to support high tech-venture capital and seed / pre-seed investments in partnership with the private risk capital community

• Recommendations of ACST report on seed, pre-seed and VC financing and commercialization skills:– $240 M of public funds to leverage $465 M from private

investment– $65 M investment for risk financing skills through an

entrepreneur in residence program, mentoring, and a national network of commercialization nodes

Private sector-government discussions on initiatives that across angel, professional VC and institutional financing communities

Commercialization of Research Results: Risk Financing

Office of the Office of the Bureau duBureau duNational Science Advisor National Science Advisor Conseiller national des sciencesConseiller national des sciences

• External Advisory Report Released in September

• Comprehensive (73 recommendations) covering– International, Federal-provincial, Intra-Federal

coordination–Manufacturing and product approval (automotive)– Life Sciences–Environmental Assessment –Oil And Gas –Etc.

• Focus on clarity, consistency, efficiencies cooperation and communications

Smart Regulation

Office of the Office of the Bureau duBureau duNational Science Advisor National Science Advisor Conseiller national des sciencesConseiller national des sciences

• $25 M increased IRAP funding for SME innovation

• Two funds announced in 2004 Budget– $50 M/5 years for commercialization of University and

Hospital Research– $25 M/ 5 years for commercialization of federal lab research

• Advisory Committee, representing private sector expertise (VC, angel, entrepreneurs, scientific experts) to adjudicate competitive process – Committee to meet in October 2004 to agree on ToR– First call for proposals winter 2005

• Process managed by Industry Canada

Commercialization Funds

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