FedDev rolls out new R&D collaboration program targeting southern Ontario SMEs

The federal government is rolling out a new pilot program to stimulate R&D and commercialization among smaller firms in southern Ontario by collaborating with the region's post-secondary institutions. The Applied Research and Commercialization Initiative (ARCI) will provide $15 million to institutions that put together winning proposals that leverage promising R&D into new products, process and jobs.

The pilot is the result of a concerted advocacy effort by Polytechnics Canada (PC) which encouraged Ottawa to consider a commercialization vouchers program similar to programs in Alberta and several European countries. ARCI will be delivered through the Federal Economic Development Agency for Southern Ontario (FedDev Ontario), which received $1 billion over five years in the 2009 Budget to stimulate economic activity and job creation in economically depressed south Ontario. Each institution is eligible for up to $750,000 and is open to universities, colleges and polytechnics.

For PC, the pilot represents yet another indication that the government is becoming more familiar with the innovation potential represented by colleges and polytechnics. It closely follows the decision in Budget 2010 to double the College and Community Innovation Program (administered by the Natural Sciences and Engineering Research Council) from $15 million to $30.

open to all post-secondary institutions

PC president Nobina Robinson says that ARIC was originally pitched as a program for colleges and polytechnics, but the government wasn't comfortable with picking winners and losers among post-secondary industry partners. The compromise was to establish ARIC and make it and expand eligibility to include all post-secondary institutions, including universities.

"They had to make it allowable to universities. Maybe we will see if their technology transfer offices can deliver. Are colleges the doers or the universities?" says Robinson. "The program will help mobilize faculty and students to entice companies to do R&D and we can also direct them to other funds … A key question will be whether we create the high-quality jobs better than the universities."

Following the 2010 Budget, Dr Gary Goodyear, secretary of state for science and technology with responsibility for FedDev, told RE$EARCH MONEY that his government will increasingly look to colleges as part of its efforts to increase commercialization (R$, March 19/10).

"Colleges in my view are more of an untapped resource for the federal government. They can contribute but they haven't been asked to do so," said Goodyear, "We have an increased need to utilize our colleges and the skills they have as we move towards the future economy."

Goodyear sees potential of colleges

Robinson says that in his role as secretary of state for science and technology Goodyear has been compelled to focus on the systematic and programmatic aspects of the granting councils. But when wearing his hat for FedDev, she says Goodyear is able to try out new mechanisms like ARIC.

"The federal government is willing to find and mobilize new mechanisms outside of the granting councils and using the regional development agencies is a new signal," says Robinson. "Now we can mobilize a totally different application process and have the agility to help companies and colleges prove the concept and create a different kind of job."

A key provision of ARCI's terms and conditions is to allow colleges to use its funding to replace faculty that require time to work on collaborative R&D projects with industry. Faculty time has been a major issue for colleges and polytechnics as they have traditionally not included R&D when accounting for the duties of faculty.

The pilot's aim is to get funding into the hands of R&D project managers as quickly as possible. To that end, the deadline for the initial competition is the end of June, with money expected to be available by August or September. All projects must be completed by March 31/12. Robinson says the future of the program will depend on the quality and outcomes of the projects being proposed. If they're successful, PC will begin advocating to make ARIC permanent within a year.

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