The National Capital Institute of Telecommunications (NCIT) is the latest powerful example of the growing realization that collaborative research and development is an essential bedrock component to the ultimate growth and prosperity of any jurisdiction. In the case of the NCIT, it's the burgeoning telecommunications sector of the Ottawa region, which is blessed with a vibrant mixture of government laboratories, schools of higher learning and more than 100 firms including Nortel Networks Corp and JDS Uniphase Corp.

Many of these players are founding members of the NCIT, which recently received $36 million in cash and in-kind contributions over five years to jump-start an ambitious slate of research projects. By focusing on pre-competitive areas of technology considered vital to the growth of Internet-based communications, the NCIT's backers hope it can stimulate the expansion of the telecommunications cluster, while training and retaining the talent required to fuel that growth.

"That's our hope and goal," says Frank Mellor, NCIT's president who recently concluded a 25-year career with Nortel. "It is through very focused research that we can lever the strengths of our institutional members to create intellectual property (IP) that we might not have gotten otherwise in this region. We can't duplicate what those members are doing, but we can increase the mix and interaction rates."

NCIT successfully applied to both the Canada Foundation for Innovation (CFI) and the Ontario R&D Challenge Fund, with the province matching the CFI's $5.3 million contribution through the Ontario Innovation Trust. Armed with substantial government commitments, NCIT promoters then secured commitments from the private sector and area universities, to complete the start-up funding package.

Mellor says membership fees from additional private sector partners and more government funding will be required to fully implement the NCIT's 15 to 20 research projects in five thrust areas (see box above). Much of the initial government funding will go towards infrastructure requirements, the NRC and CRC have donated laboratory space free of charge, with the latter providing the top floor of a new building on CRC property. "We're currently planning on ramping up to an expense rate which we couldn't sustain unless we can attract new sources of funding," says Mellor, adding that he is currently exploring the possibility of gaining access to NSERC grants, likely through one of its collaborative university-industry programs.

"We've got a few more companies that are in the process of joining," says Mellor. "In a year I would like to see (a total of 10) companies."

IP rights have been given careful consideration during the start-up phase, with the decision that ownership of the IP stays with the inventor. Instances of joint IP ownership (likely the vast majority) will be dealt with on a case-by-case basis and participating firms will be granted a non-exclusive license for commercialization. At the moment, there is no provision to pay royalties to IP holders, although Mellor says that could change as the Institute evolves. He adds that discussions are already occurring that may result in researchers receiving bonuses or fees as compensation.

Membership fees have been determined by company size, with large firms required to pay a minimum of $200,000 in cash each year for five years in addition to in-kind support. Smaller firms pay $25,000 a year for five years, but they don't automatically receive royalty-free rights to the IP and will have to negotiate terms.

Work has begun in earnest by members of NCIT's industrial technology committees to define the research projects of each technology thrust, with is most advanced in the area of optical technologies. Mellor says he can't divulge the exact nature of the optical projects, but offers that they will focus on moving to the level of capacity and performance beyond what industry is developing.

"What we're looking at is what's going to happen after the 40 gigabit system and what kinds of technologies, devices and materials are required to be able to work a 80-plus gigabits," he says. "We'd like to see technology development which industry can take and do the pre-engineering work, which would potentially make the products available in four or five years. In other thrust areas that are software-intensive we'll do more quickly but the more you're dealing with basic materials research, the longer it takes."

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