Ontario Commercialization Network Building a Commercialization Ecosystem

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Ontario Commercialization NetworkBuilding a
Commercialization Ecosystem

• December 11-12, 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
• MRI Programs

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Addressing the Pre-Commercialization Finance,
Skills and Technology Gaps

Addressed via ORIC Efforts
Financing Gap
Ontario Research Fund (Research Institutions)
Global Markets
Technology Gap
Later Stage Financing (100 M )
Early Stage Financing (5 -15M)
29M Investment Accelerator Fund (pre-seed)
31.4 Ontario Research Comm. Program (Tech
Transfer)
90M Venture Capital (seed stage 1-5 M)
Angel/Seed Stage VC
17M Business Mentorship and Entrepreneurship
Program
Skills Gap
Sales
Early Production
Engineering Manufacturing
RD Project Lab Prototype
Intellectual Property
Fundamental Research
Market Needs Analysis
Product Strategy/Early Management
Ontario Research Innovation Council
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Northern Ontario
Ottawa
Ontario Commercialization Network
Eastern Lake Ontario
Peterborough
York
Western GTA
Toronto
Guelph/Waterloo
Golden Horseshoe
London
Sarnia
Chatham
Building a Commercialization Ecosystem
Windsor
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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) from
  the private sector
• 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 RD
• 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
Provincial Innovation Network
Provincial Federal Linkages
International Linkages
Sector Innovation Networks
Knowledge and Tech Transfer Networks
Regional Innovation Networks
Municipal Regional Economic Development
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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 deliver 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 Ontarios 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, RD 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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Sector Innovation Networks

• List sins

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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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Knowledge and Technology Transfer Networks

• List the networks (dmitri and catherine)

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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 regions 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)
• Development 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
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Regional Innovation Network Model

• MNEs
• SMEs
• Start ups
• Entrepreneurs
• Researchers

RINs (diagnostic service)
Economic Development Organizations
Provincial Commercialization Program
Services (expert advice)
Commercialization
Networking Linkages to Regional Resources
Core Economic Development Activities
Market / Competitive Intelligence
Investment
International Linkages
Expansion Retention
Linkages to Commercialization Resources
Strategic Alliances (Companies Researchers)
Business Mentor
Technical / Technology
Export Development
Investment Attraction
Angel Network
Technology Adoption
Creating New Economic Opportunities through
Collaborations
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Regional Innovation Networks

• Ottawa Centre for Research and Innovation (OCRI)
• Eastern Lake Ontario Regional Innovation Network
• Greater Peterborough Region DNA Cluster
• BioDiscovery Toronto
• Western Toronto Greater Area Convergence Centre
• York Biotech
• Golden Horseshoe Biosciences Network
• Guelph Partnership for Innovation
• Waterloo Research and Technology Park Accelerator
  and Communitech
• London Regional Innovation Network
• Southwestern Ontario Bioproducts Innovation
  Network
• Northern Ontario Commercialization Initiative

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Appendix AMRIs Commercialization Programs
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ORCP Goal and Program Structure

• ORCP Goal
• To create an efficient and effective
  commercialization system that leverages Ontarios
  world-class RD base and accelerates the transfer
  of knowledge and technology residing in publicly
  funded research institutions (e.g., universities,
  research hospitals and colleges) to the private
  sector (e.g., investors and industry/SMEs).
• Program Structure
• Component A - Accelerate the Transfer of
  Knowledge and Technology to the Private Sector
• Component B - Proof of Principle Fund (POP)
• Component C - Building Industry Receptor Capacity

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ORCP Component C Projects


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Business Mentorship and Entrepreneurship Program
(BMEP)

• The 17 million Business Mentorship and
  Entrepreneurship Program (BMEP) will focus on
  growing Ontarios entrepreneurial capabilities,
  increasing capacity for early-stage investments,
  and assisting companies with the skills and
  expertise to bring ideas to market faster.
• BMEP will have four components
• Entrepreneurial Training Program To provide
  training for new and existing entrepreneurs in a
  broad range of entrepreneurial skills.
• Business Mentor Program To identify and address
  key business and technology issues in innovative,
  high growth potential companies.
• Serial Entrepreneur/ Business Executive
  Repatriation Program To attract entrepreneurs
  and investors to Ontario and build a strong
  network of talented individuals that are
  experienced in growing and investing in
  technology-based start-ups and SMEs.
• Angel Network Program To develop a province-wide
  infrastructure for Angel investors and create
  regional and sector-focused Angel investor groups
  in Ontario.
• The BMEP will be delivered by the MaRS Discovery
  District (MaRS), in partnership with the Ontario
  Centres of Excellence (OCE), the National Angel
  Organization (NAO) and the 11 Regional Innovation
  Networks (RINs).

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Investment Accelerator Fund (IAF)

• The 29 million Investment Accelerator Fund
  (IAF), focused on closing the financing gap at
  the early stages of risk capital investment.
• The IAF will
• Provide funding to validate new technologies
  being developed by start-ups with breakthrough
  technologies and high-growth potential.
• Provide a business mentorship service that
  bridges that gap until an interim or permanent
  team of highly-skilled professionals can be put
  in place.
• Target only early stage investments with a
  preference for investments made with a
  co-investor.
• Focus on investments in the range of 250,000 to
  500,000
• Attract substantial follow-on investment from
  angel investors and venture capitalists.
• Ensure that investment decisions are based on
  market driven returns to ensure the highest
  credibility with private investors
• The IAF will be delivered by the and with the
  Ontario Centres of Excellence (OCE) in
  partnership with the MaRS Discovery District
  (MaRS) .
• MaRs and OCE are the provincial focal points of
  commercialization with their extensive linkages
  to researchers, companies, investors and Regional
  Innovation Networks (RINs) across Ontario.

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IDF Innovation Demonstration Fund

• The IDF is a 4 year, 24 million funding program
  administered by MRI that focuses on the
  commercialization and initial demonstration
  (pilot stage) of globally competitive,
  innovative technologies, processes and/or
  products.
• Preference will be given to bio-based,
  environmental and alternative energy
  technologies.
• IDF will provide financial support covering up to
  50 percent of eligible costs. The funding
  potentially available ranges from a minimum of
  100,000 to a maximum of 4,000,000 (not to
  exceed 2,000,000 per year per project).
• Applicants must demonstrate how
• The proposed technology demonstration at the
  pilot stage will provide a competitive advantage
  for Ontario or other significant benefits.
• The technology, product or process is best in
  class and will lead to a globally competitive
  business and market opportunity.
• Following a successful pilot, the technology
  product or process will be moved into the global
  market.
• Financial Assistance under 300,000 will take the
  form of a secured non-interest bearing forgivable
  loan. Financial Assistance over 300,000 will
  take the form of one of the following funding
  vehicles
• Non-interest Bearing Secured Forgivable Loan
• Secured Repayable Loans
• Secured Incentive Term Loans (could be principal
  deferred and interest free for a period of time
  interest would be repayable on a pro rata basis
  depending on performance targets)
• Royalty Agreements and
• Equity participation.

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OFCIP Ontario Fuel Cell Innovation Program

• OFCIP provides 3 million in annual funding
  through 2007-08, with a focus on
  commercialization and moving products to the
  manufacturing stage.
• OFCIPs strategic objectives are to
• Nurture the development of small and medium
  enterprises involved with fuel cell and fuel cell
  compatible technologies in Ontario, leading to
  cutting-edge jobs and investment
• Increase the performance, reliability,
  durability, and economical viability of fuel cell
  and fuel cell-compatible technologies
• Increase public, consumer, and investor awareness
  and acceptance of fuel cell technologies
• OFCIP will cover up to 50 percent of eligible
  costs (up to 33 if federal funding is also
  received) with a maximum support of 500,000 per
  project
• Individual companies or consortia of legal
  entities may apply
• OFCIP will consider supporting projects that meet
  the following criteria
• Involve the commercialization, manufacturing or
  pilot demonstration of fuel cells and fuel
  cell-related technologies
• Provide technological, environmental, social and
  economic benefits to Ontario
• Support the establishment of a fuel cell industry
• Activities must take place in Ontario
• Proponents must be involved and continue to be
  involved in Ontarios economy