Industrial Research Assistance Program Nurturing Innovation in Industry Craig Wardlaw

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

2. 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

3. 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

4. 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)

5. 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

6. Bridging the Innovation Gap

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

8. National Expenditures by Industry Sector

9. 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

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

11. 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”

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