Canada’s Centres of Excellence Programs

1. Canada’s Centres of Excellence Programs Association of Faculties of Medicine of Canada Board meeting, Ottawa - November 14, 2008 Jean-Claude Gavrel Associate Vice-President, NSERC Networks of Centres of Excellence

2. Contents • Canadian R&D landscape at a glance • Federal Government’s commitment to S&T • NCE programs • Impacts on innovation

3. Canada’s R&D at a glance (2006) • GERD 2006: $28.1 billion • GERD/GDP 1.94% (GDP $1.4B) • Business is largest R&D performer ($15.4B) • Top 100 companies  53% of R&D • 200 firms with more than $10M, 1,200 more than $1M • Higher education R&D second ($10B) • Federal government 2nd largest R&D funder ($5.3 B) • $2.3B intramural, $2.6B HE, $0.7B Bus. • Plus forfeits approx $2B in R&D tax credits

4. (1) Leader’s Roundtable on Commercialization, April 2006 Canada Ranks in Middle of Pack On Concentration of Highly Cited Scientists Highly Cited Scientists Per 1M Population Switzerland U.S. U.K. Sweden Canada Australia Germany France Japan Italy 10.9 9.9 5.7 5.3 4.3 4.3 2.5 1.9 1.5 0.9 Source: The Boston Consulting Group

5. (1) Leader’s Roundtable on Commercialization, April 2006 Canada lags in Innovation as measured by Sales from New or Improved Products Canada vs. Europe(per cent of firms) 80 70 59 60 41 40 31 20 0 More than one quarter of sales Less than one quarter of sales Note: Numbers may not add up, due to rounding Source: CBoC; Statistics Canada, Survey of Innovation, 1999; Europe: CIS-2, Eurostat; Calculations by Pierre Mohnen and Pierre Therrien

6. Universities Central to Research in Canada • At $10B /year, universities represent 1/3 of Canada’s total R&D expenditures (federal support approx. $2.8B/ year) • 1/3 of all R&D jobs. • Universities train engineers, masters and Ph.Ds needed by industry, govt. and user sectors to carry out and apply R&D • Masters and PhDs create new spin-off companies UBC campus, Vancouver, BC

7. Canada’s Federal Support for University Research • SUPPORT FOR PEOPLE • Canada Graduate Scholarships ($132M/yr) • Canada Research Chairs Program • ($300 M/yr) • SUPPORT FOR RESEARCH • Granting agencies: • - CIHR ($740M/yr) • - NSERC ($780M/yr) • - SSHRC ($300M/yr) • Genome Canada ($840M to date, approx $100M/year) • SUPPORT FOR INFRASTRUCTURE • Canada Foundation for Innovation • ($4+B since 1997- approx $300M/y ) • SUPPORT FOR INDIRECT COSTS • Indirect Costs Program ($330M/yr) SUPPORT FOR MOBILIZATION Networks of Centres of Excellence ($82.4 M/yr)

8. Entrepreneurial Advantage Translate knowledge into practical applications to improve our wealth, wellness and well-being People Advantage Grow the base of knowledge workers by developing, attracting and retaining highly-skilled people. Knowledge Advantage Build on research and engineering strengths, generate new ideas and innovations, and achieve excellence. Canada’s federal S&T Strategy Vision: building a sustainable national competitive advantage through S&T Core principles: Promoting World-Class Excellence, Focusing on Priorities, Fostering Partnerships, Enhancing Accountability

9. 2007 S&T Strategy & NCE Secretariat Three new programs to further address the "innovation gap" between valuable research results and the new, marketable products and services that drive economic growth: Entrepreneurial Advantage through Public-private research and commercialization partnerships : • Centres of Excellence for Commercialization and Research (CECR) • Business-led NCE (BL-NCE) Knowledge Advantage through opportunities for S&Tgraduates : • Industrial R&D Internship program (IRDI) Managed by the NCE Secretariat with the support of a Private Sector Advisory Board (PSAB)

10. A suite of Partnership Programs • NCE ($82.4M per year) • Research-driven partnerships; longer-term goals • 2 x 7 years, Complete funding for research, admin, KT/TT • CECR ($165M-2008 competition; $62M-2009 competition) • Public-private research & commercialization partnerships • 5 years funding for operating & commercialization (50%-75%) • BL-NCE ($46M over 4 years) • Private sector problem-driven research partnerships • 4 years for funding for research, admin, KT/TT (50%-75%) • Industrial R&D Internships ($8.5 M for first 2 years) • R&D terms for graduate & postdocs in industry setting • Cost shared @ 50%

11. NCE program mandate since 1989 “To mobilizeCanada’s research talent in the academic, private and public sectors and applyit to the task of developing the economy and improving the quality of life of Canadians”

12. NCEs are Virtual Institutes • Research areas relevant to needs of “receptor” community and partners • Research projects complementary and link into coherent research program • Research directions reviewed and updated regularly to reflect changing needs • Partnership: uni.; govt.; ind. • Governed by Board of Directors • Led by Scientific Director • Supported by administrative centre

13. The NCE Recipe • Selected on the basis of excellence and relevance: • Researchers/research program • Networking/partnership • HQP training • Knowledge/Technology Transfer • Management • Supported long-term support (14 years); large scale ($5-10M/yr) • Accountable for success (annual reporting and full review every 3.5 years)

14. Health, Human Development and Biotechnology (18) Allergies AllerGen Arthritis CAN Cardiovascular strokes CSN StemCell SCN Advanced Foods & Materials AFMNet BSE/TSE PrioNet Early Child development CllrNet Care of the Elderly (NI) NICE Obesity (NI) CON Anti-bullying PREVNet Genetic Diseases CGDN (1989-2007) Vaccines & Immunotherapeutics CANVAC (1999-2007) Bacterial Diseases CBDN (1989-2005) Protein Engineering PENCE (1989-2005) Evidence Based Health Management HEALNet (1995-2002) Respiratory Health Network Inspiraplex (1989-1998) NeuroScience Network (1989-1998) Ageing CARNET (1989-1994)

15. Information & Communications technologies (7) Photonics CIPI Geomatics GEOIDE Mathematics MITACS Robotics & Intelligent systems IRIS (1989-2006) Microelectronic Devices, Circuits & Systems Micronet (1989-2005) Telecommunications CITR (1989-2003) Telelearning Network of Centres of Excellence (1995-2002)

16. Environment and Natural Resources (6) Sustainable Forests SFM Clean Water CWN Arctic & environment ArcticNet Space & environment CNSR (1989-1998) Ocean enhancement OPEN (1989-1994) Aquaculture AquaNet (1999-2006)

17. Manufacturing/Automobile & Engineering (2) New materials and smart structures ISIS Automobile of the 21st Century Auto21

18. Other (6) Molecular & Interfacial Dynamics CEMAID (1989-1994) Advanced Cement Technologies Concrete Canada (1989-1998) Mechanical Wood-Pulps Network MWP (1989-2004) Biotechnology for Insect Pest Management Insect Biotech (1989-1994) Design CDRN (2005-2007) Global Economics EDGE (2005-2007)

19. The NCE Contributions • Stimulate production of advanced, world class research in areas of strategic growth and opportunity for Canada • Train and retain world class, highly qualified, entrepreneurial people • Encourage transfer and diffusion of technology and knowledge to industry and society. • Engage private sector in R&D culture

20. 20 years of impact • 39 networks since 1989 (18 ongoing) • ICT, health, environment, natural resources, engineering • Involvement of over 1,700 NCE partners annually • 1000’s of patents, 100’s of licenses • Over 150 spin-off companies • Innovative training of students • (IP, entrepreneurship) • Proof of concept support (TechnologyGAP, etc.) • Policy and practice impacts (AB Forest Management, National Stroke Strategy) • Support of government priorities

21. The “secret” of the collaboration model Academia Partners NCE Collaborations Private Sector Partners Research Problem Simultaneous Push-Pull

22. NCE Programs Steering Ctee Presidents & Deputy Minister Private Sector Advisory Board Secretariat 23 Staff International Peer Review CFI Independent Networks and Centres

23. Centres of Excellence for Commercialization and Research (CECR) Goal: Create internationally recognized centres of commercialization and research • 4 priority areas (Health, Energy/Natural Resources, ICT, Environment) • Funds for operating and commercialization activities (75%/50%) cost-shared with partners • 5 years; commercialization centres expected self-sustaining • Evaluated through two-stage peer review involving a Private Sector Advisory Board • Three criteria: • Benefit to Canada, • Track record/potential of applicants, • Business Plan

24. Institute for Research in Immunology and Cancer CECR in Therapeutics Discovery (IRICoR), Montreal, QC • MaRS Innovation (MI),Toronto, ON • The Prostate Centre’s Translational Research Initiative for Accelerated Discovery and Development (PC-TRIADD)Vancouver, BC • Pan-Provincial Vaccine Enterprise (PREVENT), Saskatoon, SK • CECR in the Prevention of Epidemic Organ Failure (PROOF), Vancouver, BC 11 CECRs announced February 14, 2008 Advanced Applied Physics Solutions Inc. (AAPS), Vancouver, BC Bioindustrial Innovation Centre (BIC), Sarnia, ON Centre for the Commercialization of Research (CCR),Ottawa, ON Centre for Drug Research and Development (CDRD), Vancouver, BC Centre of Excellence in Personalized Medicine (CEPMed), Montreal, QC Centre for Probe Development and Commercialization (CPDC), Hamilton, ON

25. Business-led NCEs (BL-NCE) Goal: Increase industry R&D capacity through public-private collaborations • Sector-driven/problem-driven research partnerships • 5 priority areas (S&T 4 plus social MBF) • Focused on generating significant benefits for Canada • Eligible research performers can include private sector • Maximum 50% of research, commercialization and operating costs (co-funded by partners) • Two stage peer review as for CECR (PSAB and three criteria)

26. Industrial R&D Internships Goal: Introduce graduate students and post doctoral fellows to practical business problems • 4-mth internships in private sector • Modeled after MITACS internship program • Offer industry opportunity to access world class research • “Managed” program involving business development officers linking industry with students • Cost shared with industry • ACCELERATE Canada consortium of 13 NCEs (and other partners) announced April 16, 2008

27. New CECRs and NCEs in 2009 • 4-5 BL-NCEs (in 5 priority areas) • 4-5 CECRs (focus environment/ICT) • $15M for new 5-year cycle NCEs

28. Examples of Impacts from NCEs • 2006 revisions to Canadian Highway Bridge Design Code allow use of fibre reinforced polymers to strengthen and reinforce concrete and wood bridges and structures—provisions based largely on ISIS research • Sustainable Forest Management Network, responsible for new strategies in forest harvesting taking into consideration ecological, economic and social dimensions of sustainability. • CSN: best practices developed for stroke prevention, care and rehabilitation could prevent 160,000 strokes, avert disability in 60,000 Canadians, and save $8 billion in health care costs over 20 years

29. Drivers of Change – from AUCC • Heightened recognition worldwide of critical links between Univ. R&D and national prosperity/quality of life; • Global race to attract and retain research talent and highly qualified university graduates; • Growing costs and complexity of University R&D; • Increased emphasis on measuring impact of University R&D • Strong impetus to partner across institutional, sectoral and geographic boundaries.

30. … AND BUSINESS! C A N A D A www.nce.gc.ca Thank you, merci,