Still silent on commercialization

Ontario has unveiled its largest research awards program since establishing the Ministry of Energy, Science and Technology (MEST) in the latest move in a game of one-upmanship between the province and the federal government. The Ontario Distinguished Researcher Awards (ODRA) allocates $90 million over five years to enrich the infrastructure support for senior researchers named to chairs under the federal Canada Research Chairs (CRC) program. The new funding will match support the federal government provides to the CRC program through the Canada Foundation for Innovation (CFI), which has allocated $200 million for CRC infrastructure support following the February/00 Budget.

It was that Budget which announced the creation of the CRC program, with $900 million over five years to establish 2,000 new research chairs across the country. Ontario is slated to receive more than 700 CRC chairs, hence the level of support given to the ODRA. MEST minister Jim Wilson says the ODRA is not meant to blindly match federal support for the CRC program, but to send a signal to the research world that those named to the chairs are world-class.

“The ODRA raises the bar and lets people know these are truly distinguished researchers and have the honour of having chairs named after them,” he says. There’s been a terrific response from the research community. People expected us to match and thought it would be a battle royale. We’re working on all fronts by looking after the people aspect of research and this is for the tools they need so they can do their job.”

The funding of the ODRA out of Ontario Innovation Trust (OIT) reserves leaves that fund considerably short of the money required to match CFI investments in the province. When it was boosted to $750 million in the 2000 provincial Budget, the capitalization was adequate, but the CFI subsequently was given $500 million in last fall’s Economic Statement and Budget Update, and another $750 million earlier this year in year-end money. The latter amount will not begin to flow until 2005. “If the OIT was to fully match all CFI investments in Ontario there will need to be more money although it’s difficult at this point to say how much,” says Dr Chris Riddle MEST’s acting assistant DM. “That was known when the federal government added to the CFI last fall.”

The ODRA is the second researcher awards program to be created by Ontario is less than one month, following the Budget announcement of $10 million over six years for the new Premier’s Platinum Awards (R$, May 28/01).

GOVERNMENT STILL SILENT ON COMMERCIALIZATION

But the government has yet to move on any aspects of commercialization, despite several proposals from the university community and the Ontario Centres of Excellence (OCE) program. Wilson says his administration’s priority in the last Budget was to balance the books and increase spending in the areas of health and education, leaving little left over for any major new innovation-related initiatives.

Ontario plans to be one of the lowest tax jurisdictions in North America within five years, which Wilson asserts also contributes to a climate where commercialization can occur. “That’s not without cost in terms of foregone tax revenue to create the proper environment for commercialization and research,” he says.“But there clearly is a gap there.”

The Advisory Committee on the Centres of Excellence chaired by David McFadden prepared a report for Wilson encouraging commercialization funding prior to the Budget. But the proposal remained unfunded and Wilson says he has not yet discussed it with either the OCE chairs or their presidents, adding that once he has done so he will also consult with other relevant ministries and meet with the Ontario Science and Innovation Council to review all the advice he has received on the Centres. He points out that the Advisory Council has also undertaken a larger review of the OCE program which will provide him with advice on its future once the current funding agreement runs out at the end of 2002.

“I hope to announce something in the not too distant future,” says Wilson. “The Centres are being challenged right now to come forward and explain their role in commercialization and how to enhance the role.”

The last time the OCE program was reviewed, the number of centres was cut from seven to four, funding was reduced 13% to $32.3 million over five years with a stronger focus on industrial relevance (R$, March 26/97). This time around, if the program is renewed, it will likely be shifted even closer towards the market and a new Centre for biotechnology could be added.

For OCE management, the silence on commercialization over the last two Budgets is troublesome. The first time, it was trumped by the university community which successfully pitched the need for research overhead funding, resulting in the Research Performance Fund (R$, May 12/00). But the absence of a new initiative in last month’s provincial Budget, while explainable, has caused concern. With about 18 months remaining in its the current OCE funding agreement, it’s becoming increasingly difficult to structure research program that are typically three years in duration.

“Just before the Budget this year, technology stocks were going into the dumper and health and education issues were at the top of the government’s agenda. It was a very difficult position for them to be in. S&T have long-term implications, but health and education are shorter-term issues,” says Ian Rowe, president of the Centre for Research in Earth and Space Technology (CRES-Tech). “It’s (the commercialization proposal) not dead but we don’t know the path out of the woods ... I don’t think it’s a lack of direction but I do think there’s a blurry vision of where we (the Centres) should go. I believe the minister’s staff, the minister and David McFadden still believe it’s the right thing to do, but the blurry part of the vision is whether or not in the absence of new money we should do more commercialization.”

While the government decides on how to handle the commercialization conundrum facing the OCEs, and the university and health sectors, at least one OCE has decided to move ahead. Communications and Information Technology Ontario (CITO) has established a small internship program with the Univ of Toronto’s Innovations Foundation. The program will begin with the training of four or five people in the areas of technology transfer and intellectual property management, with resources coming from CITO’s existing budget.

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