FedDev Ontario rolls out $200M Advanced Manufacturing Fund to boost creation and adoption of leading edge technologies

Canada's industrial heartland is receiving $200 million over five years in federal funds to enhance global competitiveness through the development of cutting-edge manufactured products and technologies. The Advanced Manufacturing Fund (AMF) targets "large-scale, transformative manufacturing activities" in Ontario that not only boost the size and scale of companies but lead to the creation of clusters and supply chains involving industry, post-secondary institutions and research institutions.

The program will be delivered by the Federal Economic Development Agency for Southern Ontario (FedDev) as part of its $920-million renewal in the 2013 Budget (R$, April 3/13). FedDev will provide between $10 million and $20 million or up to 50% of project costs for those that demonstrate market relevance, spillover benefits and effective response to innovation.

Intellectual property issues will be managed on a project-by-project basis and applications will be accepted on a continuous basis although there are two nominally timed intake periods for 2014 and 2015.

"We expect bigger projects that are driven by the ground, so to speak — transformative, game-changing projects with spill-over benefits into the economy. It could be 3D printing or printable electronics or it could be the prototyping or demonstration of a technology to get it out sooner," says FedDev minister of state Dr Gary Goodyear. "This is for all of Ontario — it's open to FedNor (Federal Economic Development Initiative for Northern Ontario) as well — to develop, not adopt, new technologies."

Reaction to the AMF has been positive with research institutions and industry associations welcoming the government's recognition of the need to inject greater technological sophistication into Ontario's manufacturing sector. Manufacturers have been hammered in recent years with many firms closing shop or transferring to other jurisdictions to remain competitive. Since 2005, job losses have exceeded 300,000.

Despite the shrinkage, the province's manufacturing sector continues to be a powerful economic engine, racking up $270 billion in output in 2012.

"This is an excellent start and I encourage the Ontario government to invest as well," says Ian Howcroft, VP, CME Ontario, a division of Canadian Manufacturers and Exporters. "We support this type of strategic investment to enhance technological improvements."

For CMC Microsystems, the AMF is a close fit to its vision of a manufacturing sector that embraces its applied micro- and nano-systems research. CMC president and CEO Dr Ian McWalter says an advanced manufacturing renaissance is emerging and Canada needs to be part of it.

"The AMF is a timely and exciting initiative. It speaks directly to our own mission of building Canada's advanced manufacturing sector through innovation in microsystems," says McWalter. "Nano- and micro-technologies, and the people who create them, are often at the core of innovation, and this fund enables all of the players – public and private – to respond to opportunities for becoming more competitive. We look forward to providing our leadership and expertise in helping to further develop Canada's global advantage in advanced manufacturing. "

The AMF seeks to leverage expertise from other innovation players such as the National Research Council and post-secondary institutions. Goodyear says the new concierge service of the NRC's Industrial Research Assistance Program (R$, December 6/13) provides the ideal vehicle for companies and not-for-profits seeking the best expertise and cutting-edge technologies.

"The concierge service could direct companies to FedDev, or a company can seek out IRAP to do work through the NRC or through a university. It's not one or the other. There are a plethora of opportunities," says Goodyear. "Companies need to grab and seize the next opportunities to move Ontario ahead on competitiveness where we can't compete on wages. It's about the invention and adoption of technologies."

The AMF is aimed at both companies and not-for-profit organizations and the terms of assistance vary accordingly. Manufacturing companies are eligible for repayable contributions of up to $20 million representing 50% of total recognized project costs. Not-for-profit organizations (research institutions, centres of excellence, post-secondary institutions) can also receive the same amount of funding and a similar 1:1 leverage ratio, but the contributions are non-repayable. Both types of funding recipients must demonstrate "evidence of industry support (non-government sources) for at least 50% of the remaining project costs".

FedDev programs evolving to meet needs

The new suite of FedDev programs have evolved those offered during its first five years. When the program was announced in 2009, Canada was in the grip of a severe economic downturn and FedDev programs were designed as much for economic relief as the stimulation of innovation. In 2013, with a much improved economy but faced with the rapid development of emerging economies, FedDev's programs are now designed to give companies competitive advantage.

"In the early days after the economic crisis, our goal was to create jobs and move money out. But as the economy changed we shut those programs down and looked for better projects which are multi-year and involve less from FedDev," says Goodyear. "We want to create an environment for business to succeed but they must get out on the field and play. The world is going through a technological revolution and we need to work smarter by utilizing new technologies"

US also has major AM initiative

Canada is not the only nation looking to advanced manufacturing (AM) to retain and attract investment and high-paying jobs. The US has an ambitious, multi-billion-dollar, AM strategy —entitled the Advanced Manufacturing Partnership (AMP) — that was rolled out in 2011 (R$, June 4/12). The strategy includes an evolving network of manufacturing-innovation institutes, and billions of dollars for colleges to undertake new workforce and training collaborations.

The AMP is led by an industry-dominated steering committee that functions as a working group of the President's Council of Advisors on S&T, working closely with the White House's National Economic Council and the Office of Science and Technology Policy. The partnership's overarching objective is to scale up promising innovations and identify new strategies to help the US gain competitive advantage in transformative, early-stage technologies.

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