Industrial Research Assistance Program Nurturing Innovation in Industry

Industrial Research Assistance Program Nurturing Innovation in Industry Craig Wardlaw June 28 2007

The NRC: A National Organization • • • $800 million budget – 2005/6 $150 million in revenue $100 million in contributions to Canadian businesses through IRAP 20 institutes coast to coast 89 new company spin-offs since 1980 65 patents issued 2002 -03 95 incubating companies 4140 employees [2005] Over 1200 guest workers annually – many international Over 304 active license agreements 450 international projects NRC Research Facilities IRAP Offices

NRC-IRAP • The National Research Council - Industrial Research Assistance Program is Canada’s main innovation assistance program for small and medium-sized businesses (SMEs) • Invest in SMEs to help them develop innovative technology, increase their capacity to perform research and development, and to commercialize new technology products and processes • Regarded world-wide as one of the best programs of its kind

How Does NRC IRAP Respond to SME Challenges? IRAP strives to: – Increase the rate of growth of its client SMEs; – Increase the number of its client SMEs that successfully commercialize their products, services and processes; and – Increase the number of its client SMEs that reach and compete in new markets. IRAP provides: – Advisory & Networking Services – Financial Services (project funding) – Building Support Infrastructure IRAP consists of: – 235 Industrial Technology Advisors (ITAs) and 7 Business Analysts working with individual firms in 100 local communities (mainly at colleges and universities)

IRAP COMPANY ELIGIBILITY • All for profit companies are eligible • Incorporated in Canada • <500 employees • Engaged in technical products and services • Conducting research and development leading to improved or new products and services • Financially sound (able to support R&D activities) • Able to exploit results in Canada • Realistic markets

Bridging the Innovation Gap

IRAP’s Clients 51 to 200 employees Greater than 200 Employees 15% 3% 50 Employees or Less 82%

National Expenditures by Industry Sector

IRAP Business Model • IRAP technology advisors build strong relationships with a “client” and measure progress regularly • A number of projects may be funded over several years • Technology advisors assist with technical details of the work, networking, marketing advice, business management and staffing needs • IRAP’s intention is to provide the support at a time when the client is at high risk and then “graduate” the firm as a stable business entity

Financial Contributions IRAP contributions are targeted towards clients who can: ü present a clear validated business case for technology, ü demonstrate the capacity both financially and managerially to take an idea from concept to commercialization, ü demonstrate a clear need ü agree to work with IRAP and disclose business information (in confidence)

Funding Programs • Research and Development Activity – non-repayable financial assistance on a cost-shared basis for research to overcome technological uncertainties – IRAP funds mainly the salaries of R&D staff – up to 80% of project labour may be funded to a max. of 50% total project cost; proponent may have other gov’t funding also • Youth Employment Strategy Program – non-repayable financial assistance allowing clients to bring a specific technical or business expertise into the firm – new hires must be <30 years old and meet other eligibility criteria – companies must be existing NRC “clients”

Questions? http: //irap-pari. nrc-cnrc. gc. ca/ 1 -877 -994 -4727 Craig Wardlaw Saskatchewan, Environment and Energy Sector 306 -780 -6964