IRAP enhances suite of business innovation services with national voucher program

Latest Jenkins Panel recommendation

A new national voucher pilot administered by the Industrial Research Assistance Program (IRAP) is the latest program to be implemented based on recommendations of the expert panel on federal support for business R&D, headed by Tom Jenkins. The Business Innovation Access Program (BIAP) is the first national vouchers program — following provincial initiatives in Alberta, Ontario, British Columbia and Nova Scotia — and represents a critical component of the government's slowly growing suite of direct support measures for industry.

Starting April 1st with $20 million in funding over two years, BIAP has a broader innovation mandate than its provincial counterparts. Vouchers of up to $50,000 will be provided to small- and medium-sized enterprises (SMEs) seeking technical or business services from universities, colleges, research institutes and other service providers.

"This is not just technology, it's also for business. Distribution channels could also be funded and they can be national or international or a new sector or region for the company," says IRAP VP Bogdan Ciobanu. "We will also work with incubators and accelerators as they have mentors and entrepreneurs that work with companies."

IRAP will utilize its client relationship management system to assist businesses in identifying and securing the best source of support, augmented by its new concierge service. It promises to turnaround requests within two weeks.

BIAP will be delivered primarily through IRAP's Industrial Technology Advisors — many of whom are co-located with the institutions positioned to provide companies with assistance.

The program does not have a list of approved research partners nor will it issue a set calls for proposals. Instead, applications can be submitted at any time will be assessed at arm's length on their strengths and the capabilities of the people involved. Companies will also be able to split their vouchers over two or more institutions, giving the program considerable flexibility in how it is applied.

"There's a perception and understanding of innovation that is more holistic. It's not just R&D but the whole ecosystem and our programs have the necessary tools to help companies more holistically with their innovation," says Ciobanu. "The pilot will be assessed on the impact on the client, achieving goals and increasing commercialization. There will be an assessment before the end of the pilot, but it's a short time period so we will also use a continuous performance framework. We'll be measuring impact through growth of the clients we serve in terms of sales, number of employees, R&D expenses and profitability."

Once a company has identified a problem and an institution it believes can provide a solution, a quotation for the services is then solicited. An assessment will then determine whether the institution has what it takes to deliver and if the company has the capacity to absorb the technology.

"It's a straight forward scenario and we can also help companies find the appropriate organization and what to ask for," says Ciobanu. "For more complex and sophisticated proposals worth more than $50,000, we have the normal core IRAP program that we direct the company towards."

Alberta experience demonstrates value

While vouchers have been used in many countries, the first dedicated Canadian program was launched in 2008 in Alberta. Alberta Innovation Vouchers (AIV) was introduced as part of a suite of new programs that transformed the way the province supported research and innovation. The idea for AIV stems from an influential report issued by the Task Force on Value-Added and Technology Commercialization, headed by David Martin, then executive chairman of Smart Technologies Inc (R$, September 19/07).

Since its launch as a pilot with a single annual call for proposals and a defined list of eligible public research institutions, AIV has grown in stature and scope as a key entry point to provincial innovation services. AIV's administrators shared their experience with the Jenkins panel and later with IRAP and Industry Canada when the federal program was being designed.

Now permanent, AIV has an annual budget of $4.5 million (down from a high of $5.9 million) and issues quarterly calls for proposals. The program has also expanded to include private as well as public service providers. The management and funding of the program has been transferred to Alberta Innovates - Technology Futures (AITF) which was launched in early 2010. Vouchers of $15,000 and $50,000 are available.

The core objectives of AIV are to assist smaller companies accelerating their technologies to market, connecting them to available technology commercialization infrastructure and spreading innovation across the province.

"This is not a standalone program but part of a systemic approach suggested by the Task Force ... After a fourth round in 2011 we did a joint evaluation (and) re-launched the program with modifications," says Dr Alex Umnikov, branch head of innovation client services with Alberta Innovation and Advanced Education. "The biggest change is that we now work with private sector service providers."

Innovate Calgary and Tech Edmonton have been particularly successful in accessing AIV, as well as specialized law and consulting firms.

Key entry service

The program's success has been all the more remarkable considering Alberta's longstanding resistance to providing grants or other monetary assistance to business. AIV actually pays the service provider on behalf of the company, which must contribute funding equal to 25% of the value of the voucher.

AIV may undergo further changes once a current evaluation of Alberta's innovation system is completed. "We will try to better align the voucher program with other programs within the innovation system," says Cory Fries, AITF's VP corporate & legal services. "We're considering switching from a quarterly call for proposals to a rolling call system."

Fries says the AIV also serves as an entry point to the province's innovation assistance ecosystem with firms graduating to other programs such as the Product Demonstration Fund as their technologies mature.

The whole suite of programs is to make companies venture capital ready," says Fries. "We track that progress through the continuum of commercialization up to its introduction to the marketplace.."

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