ontario commercialization network a new approach to tech-based economic development

Ministry of Research and Innovation

1

Ontario Commercialization Network

A New Approach to Tech-Based Economic Development

November 24, 2006


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Overview

• MRI Commercialization Programs (Finance, Skills and Technology Gaps)

• Goal of Ontario Commercialization Network (OCN)

• OCN Model

• OCN Hub (MaRS and OCE)

• Sector Innovation Networks

• Knowledge and Technology Transfer Networks

• Regional Innovation Networks

• Lessons Learned


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Addressing the Pre-Commercialization Finance, Skills and Technology Gaps

OntarioResearch

Fund(Research Institutions)

$31.4Ontario

ResearchComm.

Program(Tech

Transfer)

Global Markets

Later StageFinancing($100 M +)

Early StageFinancing($5 -15M)

Angel/SeedStage

VC

SalesEarly

ProductionEngineering

ManufacturingR&D Project

Lab PrototypeIntellectualProperty

FundamentalResearch

Market NeedsAnalysis

Skills Gap

Product Strategy/Early Management

$29M Investment Accelerator Fund

(pre-seed)

$17MBusiness Mentorship and

Entrepreneurship Program

$90MVentureCapital

(seed stage$1-5 M)

Financing Gap

Technology Gap

Addressed via ORIC* Efforts

*Ontario Research & Innovation Council

RIN /

OCN

Program


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N

EW

S

Sarnia

Building a Commercialization Ecosystem

Golden Horseshoe

Guelph/Waterloo

Windsor

London

PeterboroughEastern Lake

Ontario

Ottawa

Chatham

Western GTA Toronto

York

OntarioCommercialization

Network

Northern Ontario


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The Ontario Commercialization Network

The goal of the OCN is to build an efficient and effective commercialization network / “ecosystem” that will:

– Have both a regional and sectoral focus

– Actively engage the private sector to support the flow of capital (financial and intellectual)

– Use a market driven and client focused approach

– Develop a highly networked and collaborative community of commercialization stakeholders (“the ecosystem”)

– Improve transfer of knowledge and technology to the private sector to capture the benefits of investments in R&D

– Provide more efficient and effective service delivery system to support technology-based entrepreneurs, start-ups and SMEs

– Build an entrepreneurial culture


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OCN Model to support Tech-based Economic Development

Municipal & Regional Economic Development

Regional Innovation Networks

Sector Innovation Networks

Provincial Innovation Network

Pro

vin

cial &

Fed

era

l Li

nka

ges

Inte

rnatio

nal Lin

kag

es

Knowledge and Tech Transfer Networks


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Provincial Innovation Network: The “Hub”

MaRS:

• MaRS connects the communities of science, business and capital to create a more efficient commercialization marketplace.

• The MaRS community is built through co-location, catalytic programs and services, and structured networks.

• The MaRS community is physically anchored in the MaRS Centre and extends virtually through the MaRS Portal and MaRS Networks.

• MaRS delivers commercialization programs and services focused on building a pipeline of globally significant companies.


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Provincial Innovation Network: The “Hub”

OCE Inc.

• Support research: OCE invests in industrially relevant research in Ontario’s universities, colleges and research hospitals.

• Support commercialization: OCE initiatives are designed to move technologies to the marketplace through technology and market assessment, intellectual property protection, prototype development, and pre-seed funding to establish start-up companies.

• Support development of talented people: OCE activities focus on training and developing the next generation of Ontario innovators and entrepreneurs.


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Sector Innovation Networks (SINs):

• SINs are not-for-profit organizations that have a strong sector focus with provincial scope and capacity to deliver commercialization and other expertise

• Build the knowledge base on the sector -- researchers, R&D infrastructure, companies, etc.

• Identify global strengths and where these strengths lie within the provincial landscape

• Develop sector-based innovation and commercialization strategies

• Implement commercialization programs and services aligned with the “the hub” of the OCN

• Facilitate linkages and build networks -- science, industry and capital with a sector focus


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Knowledge and Technology Transfer Networks

• Knowledge and Technology Transfer Networks as primarily regionally based and link multiple institutions (universities, research hospitals and colleges) under a single network

• The primary purpose of the networks are to share resources and align policies and procedures

• The networks will incorporate private sector input into the tech transfer process

• The networks will make it easier for the private sector to access resources and technologies (IP)

• Knowledge transfer activities primarily involve linking students and faculty to industry driven commercialization projects (technical and/or business related)

• A provincial network is being developed where “industry experts” will provide support to all of the tech transfer networks across the province


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Regional Innovation Networks (RINs)

• RINs are a regionally based, multi-stakeholder, not-for-profit organizations driven by the private sector

• RINs serve as the foundation of the commercialization ecosystem (“the OCN”) to:

– Identify a region’s comparative advantages

– Establish a vision and mission for the future

– Identify and align commercialization and other economic development resources available at the regional level (commercialization roadmap)

– Develop and implement programs and services to address gaps as part of an annual implementation planning process

– Create a focal and entry point for clients to access commercialization and other resources at the regional, provincial and federal levels


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Ontario Commercialization Network Implementation Framework

OCNHUB RIN

• Linkages to regional resources

& programs

Entrepreneurs

SMEs

Researchers

Start-ups

MNEs

Cu

sto

me

rs / C

lien

ts(E

ntre

pre

ne

urs

)

ProactiveOutreach

Linkagesto Resources

Gateway Web Portal &

Client ManagementSystem

ValueProposition

To Customers

Accelerating Deal Flow Across the Network

Business Mentorship and Entrepreneurship Program

Investment Accelerator Fund

Glo

bal B

usin

ess /

Glo

bal S

cie

nce /

Glo

bal C

ap

ital

OCN• Client

Diagnostic & Coaching

Research Institutions

& Tech Transfer

Office


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Regional Innovation Network Model

RINs(diagnostic service)

• MNEs •SMEs

• Start ups• Entrepreneurs• Researchers

EconomicDevelopmentOrganizations

Linkages toCommercialization

Resources

StrategicAlliances

(Companies &Researchers)

Angel NetworkTechnology

Adoption

Provincial Commercialization Program & Services

(expert advice)

Market / CompetitiveIntelligence

Investment

Technical /Technology

ExportDevelopment

InternationalLinkages

“Creating New Economic Opportunities through Collaborations”

CommercializationNetworking & Linkages to Regional Resources

Core Economic Development Activities

Investment Attraction

Expansion & Retention

BusinessMentor


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Regional Innovation Networks

1. Ottawa Centre for Research and Innovation (OCRI)

2. Eastern Lake Ontario Regional Innovation Network

3. Greater Peterborough Region DNA Cluster

4. BioDiscovery Toronto

5. Western Toronto Greater Area Convergence Centre

6. York Biotech

7. Golden Horseshoe Biosciences Network

8. Guelph Partnership for Innovation

9. Waterloo Research and Technology Park Accelerator and

Communitech

10. London Regional Innovation Network

11. Southwestern Ontario Bioproducts Innovation Network

12. Northern Ontario Commercialization Initiative


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Lessons Learned

1. Tech-based economic development requires a detailed study / plan and community development process involving local stakeholders to identify strengths and weakness within the region.

2. Research institutions can help breakdown municipal boundaries and create regional innovation systems (networks). Typically these systems are not aligned with municipal boundaries.

3. Research institutions can help drive the planning process, but it is critical to transition the process to be more industry driven when the process moves from planning to implementation.

4. Cluster theory useful as an analysis tool, but has limited applicability to the Ontario landscape as an implementation tool or model.


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Lessons Learned (cont’d)5. Regional innovation system (network) model seems to have a number of

advantages over the cluster model. These advantages include:

Better alignment with current technology trends re: technology convergence

Regional innovation systems (networks) can work in smaller regions and can result in beneficial collaborations between urban and rural communities

Private sector investment aligned with technologies not industry sectors. “Hot” technologies such as sensors cross many sectors such as environmental technologies, energy technologies, advanced materials, etc.

Business issues, for the most part, do not vary by industry sector, thus business support infrastructure at the regional level can be “generic”


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Lessons Learned (cont’d)6. RINs need a clear vision and mission, but need to take incremental steps to

achieve the desired outcome. Trying to “leap frog” to a new paradigm has a higher chance of failure.

7. It is important to “anchor” regional innovation systems (networks). For Ontario, MaRS and the Ontario Centres of Excellence (OCE) are anchoring the RINs and SINs and providing a focal point to support collaborations across the OCN and implement provincial programs.

8. Inter-RIN collaborations are important but need to be led by an independent organization such as a sector innovation network (SIN). For example, the Health Technology Exchange (HTX) works closely with a number of RINs focusing on medical devices as an area of strength.

9. The OCN can be viewed as an “ecosystem”. An ecosystem can be defined from a business perspective as a complex set of relationships and whose members benefit from each other's participation via symbiotic relationships. Its critical to have an “honest broker” to manage the relationships in the early stages.

10. It critical to learn and adapt as required to keep the “ecosystem” in balance.

ontario commercialization network a new approach to tech-based economic development

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