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13. Strengthening
Ottawa's Innovation and Commercialization Capacity
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That
Council approve funding of up to $250,000 for the Ottawa Life Sciences Council
(OLSC) and up to $100,000 for the Ottawa Centre for Research and Innovation
(OCRI), to leverage funds awarded by the Province of Ontario to enhance
Ottawa's innovation and commercialization capacity.
Que le Conseil
approuve un financement maximum de 250 000 $ pour le Conseil
bioscientifique d’Ottawa (CBO) et un financement maximum de 100 000 $
pour le Centre de recherche et d’innovation d’Ottawa (CRIO), afin d'utiliser
les fonds octroyés par la province d'Ontario en vue d'améliorer la capacité
d'innovation et de commercialisation d'Ottawa.
DOCUMENTATION
1.
Planning
and Growth Management, A/Deputy City Manager’s report
dated 22 June 2006 (ACS2006-PGM-ECO-0004).
2.
Extract
of Draft Minute, 04 July 2006.
Report
to/Rapport au :
Corporate Services and Economic Development Committee
Comité des services organisationnels
et du développement économique
and Council / et au Conseil
22 June 2006 / le 22 juin 2006
Submitted by/Soumis par : John L. Moser, Acting Deputy City
Manager/Directeur municipal adjoint par intérim,
Planning and Growth Management/Urbanisme et
Gestion de la croissance
Contact
Person/Personne ressource : Michael Murr, Manager, Economic Development
Economic Development and Strategic
Projects/Développement économique et Projets stratégiques
(613) 580-2424 x25195, michael.murr@ottawa.ca
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SUBJECT: |
Strengthening Ottawa's Innovation and
Commercialization Capacity |
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OBJET : |
RENFORCER
LA CAPACITÉ D’INNOVATION ET DE COMMERCIALISATION D’OTTAWA |
REPORT RECOMMENDATION
That Corporate Services and Economic Development Committee recommend Council approve funding of up to $250,000 for the Ottawa Life Sciences Council (OLSC) and up to $100,000 for the Ottawa Centre for Research and Innovation (OCRI), to leverage funds awarded by the Province of Ontario to enhance Ottawa's innovation and commercialization capacity.
RECOMMANDATION DU
RAPPORT
Que le Comité des services organisationnels et
du développement économique recommande au Conseil d’approuver un
financement maximum de 250 000 $ pour le Conseil bioscientifique
d’Ottawa (CBO) et un financement maximum de 100 000 $ pour le Centre
de recherche et d’innovation d’Ottawa (CRIO), afin d'utiliser les fonds
octroyés par la province d'Ontario en vue d'améliorer la capacité d'innovation
et de commercialisation d'Ottawa.
BACKGROUND
In today’s highly competitive global economy, regions that invest in innovation and commercialization will be home to the most rewarding jobs, the strongest companies and the best quality of life. Governments at all levels are moving quickly to put in place policies and programs that support the transformation of knowledge and technologies into marketable products, services and processes.
The Ottawa 20/20 Economic Strategy, as approved by Council in April 2003, recognizes the importance of innovation and commercialization. The Economic Strategy identifies the need to 'link innovation to the marketplace’ as one of five overall strategic directions and lists as an immediate priority action the need to 'develop a collaborative-based project between targeted clusters and research institutions that will increase the commercialization of research and technology.'
The Ottawa Partnership (TOP) has also identified innovation and commercialization as one of its three strategic priorities. In February 2006, TOP led a delegation of local business and community leaders to Queen’s Park to meet with Premier McGuinty and his cabinet colleagues and emphasized the urgency of increasing innovation and commercialization capacity in the city.
Ottawa’s approach is very much aligned with the provincial government. The Province of Ontario has made innovation and commercialization a key priority. In 2005, the Ministry of Research and Innovation was created to build a culture of innovation and commercialization, and to create funding programs that will help communities across the province deliver on their own opportunities for innovation. This includes the Ontario Research Commercialization Program (ORCP) and the Regional Innovation Network (RIN) program to support the commercialization activities of small and medium sized enterprises (SMEs), researchers and entrepreneurs and support the growth of Ontario’s technology-based companies.
The Ottawa Centre for Research and Innovation (OCRI) and the Ottawa Life Sciences Council (OLSC) lead the City’s innovation and commercialization efforts. Key programs include professional development, hands on business development assistance, and opportunities for companies to come together in an environment of collaboration to foster innovation and commercialization.
OCRI and the OLSC have helped to make Ottawa a leading centre of innovation in Ontario. Each year, more than $4 billion is invested by Ottawa-based companies in research and development activities along with more than $1.5 billion in public sector research. Despite this success, Ottawa is underperforming relative to its potential, particularly in the translation of innovation and ideas into marketable products and services.
To strengthen Ottawa’s innovation and commercialization capacity, OCRI and the OLSC have the potential to access more than $2.5 million in provincial funding through the ORCP and RIN programs. OCRI and the OLSC are requesting funding from the City to fully leverage this funding.
DISCUSSION
This report presents a tremendous opportunity for Ottawa to take the next step to ensure the future success of our local economy. The activities outlined in this report will support technology-based entrepreneurs as they bring new technologies to market and create the next generation of companies. This enhanced innovation and commercialization capacity will ensure that Ottawa has a diverse economy to fuel the high quality of life and prosperity that we enjoy.
Innovation and commercialization are key components of our economic strategy. In Ottawa’s cluster based approach to economic development, the City has placed a great deal of importance on supporting and promoting new commercialization activities. The Department works closely with our partner agencies and The Ottawa Partnership (TOP) to deliver on the priorities set out in the Economic Strategy. Each of these organizations - TOP, OCRI and the OLSC - has developed programs designed to enhance innovation and commercialization activities. These programs have received significant support from the province and require City contributions to fully leverage this funding.
OTTAWA LIFE SCIENCES COUNCIL - RESEARCH
INNOVATION NETWORK
In 2004, the Province of Ontario initiated the Regional Innovation Network (RIN) program which supports the local delivery of innovation and commercialization services to the clients that need them - small firms, researchers, entrepreneurs and investors.
The Ottawa Life Sciences Council was identified as the Research and Innovation Network for Ottawa and Eastern Ontario and was successful in its application to receive funding, and deliver commercialization and innovation services. A total of $1.4 million in RIN funding is available over four years. A total of $750k in City funding and contributions of $700k from other partners are required over the life of the project to leverage the full amount. This funding and activity which commenced in 2005, provides enhanced services to Ottawa’s life sciences sector through three major categories of activity:
1. Investment Program
The investment program focuses on facilitating access to capital sources (angels, venture capital and corporate) as well as working to support the expansion/retention and attraction of companies. This will be accomplished by providing services such as investment matchmaking, assistance to help companies access global technologies, and administering 'Canada's Top 10 Life Sciences Companies' competitions and investor road show. The OLSC also works closely with companies with an established presence in the region to assist them in overcoming obstacles for growth and accessing government programs that promote expansion.
2. Business Opportunity Networks
The Business Opportunity Networks support sector development within areas identified as regional strengths and opportunities including: BioProducts, Energy and Environment Business Network, Therapeutics Development (i.e. new treatments such pharmaceuticals, stem cells etc), and Convergent Medical Assistive Technologies (i.e. medical devices). The networks bring together academics, researchers, investors, entrepreneurs, and regulators to facilitate technology transfer, researcher interactions with industry, collaborative projects, regulatory foresighting, clinical/environmental trials, competitive intelligence and market development.
3. Communications and Marketing
In order to be competitive provincially, nationally or internationally, businesses and individuals need to be aware of the quality and type of research occurring in Ottawa and the opportunities to work with Ottawa companies. Part of the strategic communications plan is an outreach component to ensure that the Ottawa message is delivered. The first step was to acquire a knowledge management system that allows the OLSC to effectively use and track its worldwide network of more than 3,820 companies and 8,760 individual contacts.
The OLSC has been successful in leveraging the provincial funding allocation for 2005 from partner contributions. As a result, the OLSC will require the City's contributions over the remaining three years ($250,000 per year.) This request for funds is solely for the OLSC's 2006 requirements. Funding approval for 2007 and 2008 will be brought forward in a subsequent report.
OCRI
- ONTARIO RESEARCH COMMERCIALIZATION PROGRAM
The Provincial Government established the $27M Ontario Research Commercialization Program (ORCP) to help create an efficient commercialization system in Ontario. The program will accelerate the movement of world-class research from Ontario's labs to the marketplace and support the growth and development of Ontario's technology based companies.
OCRI, together with partners from Waterloo, Toronto, and Markham have submitted a joint proposal to the Ontario Research Commercialization Program to accomplish this goal by developing a Regional Innovation Development Program (RIDP). This funding will support:
1. Entrepreneurship Development
OCRI will provide opportunities for technology entrepreneurs to increase their skill levels and share experiences with other entrepreneurs. This will enable entrepreneurs to apply general knowledge to a broad range of issues rather than simply providing them with solutions to specific issues that they are facing.
In order to achieve these goals, OCRI will deliver training opportunities in a variety of formats, such as:
OCRI will capitalize on Ottawa's existing capacity by engaging expertise and support from Ontario Centres of Excellence, the local Angel Network, local venture capitalists and the Ottawa Cluster Groups (Wireless, Software, Photonics, Semi Conductor, Security and Life Sciences).
2. Research Linkages
Academic and institutional researchers do not often cross paths with members of our local business community. As part of the ORCP program, OCRI will act as a liaison between Ottawa's private sector and research community. These liaisons will build a greater understanding of the opportunities and needs of the private sector within the research community and vice-versa.
When approved, OCRI will receive $400,000 per year from the province to deliver the RIDP activities. In order to access this funding, OCRI will be leveraging significant in-kind contributions but will also require a contribution of $100,000 per year from the City.
TOP Innovation Hub
As previously mentioned, the Ottawa Partnership (TOP) has identified the need to increase Ottawa's innovation and commercialization capacity as one of its three strategic priorities. TOP has endorsed the activities of both OCRI and OLSC in their innovation/commercialization efforts and is currently working to set the direction for steps to follow. TOP's approach - creating an 'Innovation Hub' will build upon OCRI and OLSC's innovation/commercialization capacity by bringing together the necessary ingredients for commercialization and facilitating the various needs and steps along the innovation pipeline. This 'Innovation Hub' will align with and build on the success of Toronto's MaRS initiative to ensure that Ottawa remains one of Canada's leading centres for innovation and commercialization. By enhancing the city's commercialization capacity in advance of this step, the 'cluster effect' will be magnified and the potential for success increased. The Province of Ontario has indicated it's support for this initiative, and has committed up to $450,000 to develop the plans and business case that will ensure that Ottawa remains a global leader in innovation and commercialization.
The combined funding request from the OLSC and OCRI is $350,000 for 2006. The City's funding support will leverage a total of $1.85M from the province and other partners.
|
Activity |
City Contribution To end of 2006 |
Provincial Contribution To end of 2006 |
Private Sector & Partner Contributions To End of 2006 |
Total Contributions To end of 2006 |
|
OLSC - RIN |
$250,000 |
$ 700,000 |
$ 450,000 |
$1,400,000 |
|
OCRI- ORCP* |
$100,000* |
$ 400,000* |
$ 300,000* |
$ 800,000* |
|
TOP - HUB |
$ 0 |
$ 450,000 |
$ 0 |
$ 450,000 |
|
Total |
$350,000 |
$1,550,000 |
$ 750,000 |
$2,650,000 |
*Pending application approval from Ontario Ministry of Research and Innovation
It is anticipated that further funding requests of $350,000 per year will come forward in 2007 and 2008 to support on-going activities associated with the RIN and ORCP projects. Over the life of these projects, ending in 2008, the City's contributions will leverage $4.2M in funding from the province and other partners.
CONSULTATION
The basis of this report, advancing commercialization and innovation activities, represents one of the pillars of The Ottawa Partnership’s (TOP) action strategy. This action strategy was confirmed by members of the public and business community during the TOP Economic Forum held in late 2005. These activities were presented to TOP on May 26th and received TOP’s endorsement. Partner Agencies, such as OCRI and the Ottawa Life Sciences Council were also consulted in preparation of this report.
FINANCIAL IMPLICATIONS
The funding for the first year of these initiatives is available within the Economic Development Division’s 2006 Capital Budget allocation. Funding for activities in subsequent years will be dependant on future budget allocations.
DISPOSITION
Upon Council approval of the recommendation, Economic Development staff will proceed to formalize a funding agreement with the Ottawa Life Sciences Council. Economic Development staff will confirm that funding has been approved through the Ontario Research and Commercialization Program prior to formalizing a funding agreement with the Ottawa Centre for Research and Innovation as appropriate.
Strengthening Ottawa's Innovation and
Commercialization Capacity
RENFORCER
LA CAPACITÉ D’INNOVATION ET DE COMMERCIALISATION D’OTTAWA
ACS2006-PGM-ECO-0004
That Corporate Services and Economic Development
Committee recommend Council approve funding of up to $250,000 for the Ottawa
Life Sciences Council (OLSC) and up to $100,000 for the Ottawa Centre for
Research and Innovation (OCRI), to leverage funds awarded by the Province of
Ontario to enhance Ottawa's innovation and commercialization capacity.
CARRIED with Councillors P. Hume and R. Jellett dissenting