Precarn to review options for continuation of 20-year-old commercialization program

The appointment of Dr Henri Rothschild as president and CEO of Precarn Inc sets in motion a strategic review that will determine the fate of one of Canada's most enduring commercialization programs. Currently focused on robotics and intelligent systems, its future direction and potential source of financial support will be determined over the coming weeks with greater clarity once the federal Budget is delivered on January 27.

Rothschild takes over from Dr Tony Eyton who stepped into the breach last July following the departure of Dr Paul Johnston (R$, July 7/08). The organization has been attempting to re-cast itself as a manager of R&D programs and projects in addition to its core mandate following its failure in 2005 to obtain funding for an ambitious new strategic plan that included a far broader mandate (R$, March 9/05). Industry Canada has provided core funding to Precarn in four, five-year envelopes with the most recent funding due to run out in 2010.

"I want to get a better sense of what possible platforms for support exist within all levels of government. My interests are not seeking new functions and new mandates," says Rothschild. "I'm a strong believer in the original mandate of Precarn. It's always been its strength and I don't think that should change."

The decision to evaluate the organization comes after consideration was given to merging Precarn with the other funding bodies headed by Rothschild — International Science and Technology Partnerships Canada (ISTPCanada) and the Canada Israel Industrial Research and Development Foundation (CIIRDF). CIIRDF and Precarn were the successful applicants for managing ISTP Canada, which operates on $20 million in funding over five years. Rothschild says that merger option was quickly rejected as premature.

"I was prepared to take on (the position) for an indeterminant period of time — but in my mind very determinant — in order to evaluate the strategic future direction of Precarn and put whatever needed to be put in motion to deliver on that in close collaboration with the Precarn board," says Rothschild. "The idea for Precarn, which came about over 20 years ago with Fraser Mustard and Gordon McNabb — two amazing individuals whose vision then is prescient now as ever before –— is something that has to be kept alive. If I didn't believe that I wouldn't have taken on this mandate."

Rothschild says the timing for a strategic review of Precarn is excellent. There's a growing possibility that S&T may move up on the federal priority list, given the economic crisis that has grabbed the world and the determination of the new US administration to employ S&T as a key mechanism for maintaining continued global leadership.

"We know that the governments of Canada are going to be dealing very seriously with the issue of innovation in the coming years as they did in the 1990s," he says. "This will occur for a number of reasons, not the least of which is the Obama administration coming in. It has signaled very very clearly that the US is going to set the bar higher in investments in science and technology."

Since 2005, Precarn has diversified its funding base by seeking new alliances at the regional and sectoral levels. Most recently, it opened a satellite office in Edmonton to manage an Alberta fund for technology development funded by provincial and federal sources. Last year it launched a fund targetting the automotive and environmental sectors and dedicated scarce resources to a new program that addresses the early-stage funding gap for small companies. Upon his departure last summer, Johnston says his strategy of diversification and focus to secure new funding sources had "mixed success" (R$, July 7/08).

Rothschild says that by emphasizing its original focus of linking technology end users to technology developers and Canada's S&T capacity, Precarn can continue to serve a valuable function. He also notes that the model was never conceived to be limited to robotics and intelligent systems but can apply to a wide range of technologies. And by increasing strategic linkages to ISTPCanada and CIIRDF, Precarn can help to boost Canada's international S&T activities.

"We have three organizations with three hats and the hats can be worn on top of one another," says Rothschild. "It makes all the sense in the world."

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