Ontario introduces Market Readiness Program, announces funds for regional innovation

Ontario's research and innovation strategy is taking a major step forward with the announcement of a $46-million Market Readiness Program (MRP) and $31.4 million in funding for 16 regional programs through its Ontario Research and Commercialization Program (ORCP). After years of policy development and preparation, the timetable of the provincial strategy has accelerated with the creation of the Ministry of Research and Innovation (MRI) in 2005 under the leadership of premier Dalton McGuinty and the appointment of Dr Alastair Glass as its DM (R$, February 14/06).

The level of resources being committed to research and innovation, while not huge, is significant and could have a considerable impact on moving research out of publicly funded institutions and into the marketplace. The new programs are designed to exploit exploit the province's rich research base by focusing on funding and talent to drive the commercialization process forward.

"I took this job because the premier has a passion for this agenda. It's very important to him so there are no obstacles," says Glass, "In terms of our overall strategy, we have an exceptional research base. In Ireland where I worked before, they're struggling to put a research base together. Our job is easier but we have to lubricate the pump."

The MRP is part of the province's commitment of $160 million over four years to implement its Ideas to Market strategy. That was announced in the spring Budget (R$, March 31/06) and follows the $24 million Innovation Demonstration Fund which was launched in June.

The MRP targets two critical gaps in the innovation chain - early-stage product development ($29 million) and business and entrepreneurship skills ($17 million). The Investment Accelerator Fund will provide between $250,000 and $500,000 to knowledge-based companies to conduct technology development, market analysis, prototype development, early customer trials and promotion and patenting costs. The Business Mentorship and Entrepreneurship Program focuses on providing firms with key management skills required to move products into the marketplace.

"We're building the culture and the bridges," says Glass. "We need more market-driven research. It's not linear from the lab to the market so we need to improve the connectivity between the two ends of the scale."

Glass says the lack of management strength for early-stage firms is a well-recognized gap where there's a public role to play. By building a culture of innovation among all stakeholders and developing more high-quality companies, increased investment will inevitably flow into the province.

ORCP funding was announced in the 2004 Budget when the initial planks of its commercialization strategy were unveiled (R$, May 27/04). It's purpose is to strengthen technology transfer and knowledge exchange at the local level, as well as interconnecting regional innovation players in a coordinated network.

The largest component of the Ideas to Market strategy is a $90-million Early-Stage Venture Capital Fund which is still being developed for an announcement this fall.

"That's the next big leg that needs to come out," says Bill Mantel director of MRI's commercialization branch.

Also feeding into MRI's strategy is the Ontario Research and Innovation Council, whose membership was recently announced (see page 7). The Council has met about six times and is preparing a report for the premier on steps required to build a culture of innovation and increase the supply of talent.

The MRI is developing an overall strategic plan with a draft version expected by September and a public release later this year.

"The way to keep companies here is to have those strengths (culture of innovation) and have the best environment," says Glass. We need to get the investment here and develop inertia."

R$