One of the most anticipated competitions for S&T funding in recent memory has begun with the launch of the competition for $950 million in supercluster funding that will see up to five sectoral, knowledge-based initiatives selected to become future drivers of economic and job growth. Since its initial announcement in Budget 2016, groups in several areas — from agri-food to artificial intelligence and driverless vehicles – have formed to develop collaborative proposals that will now have an opportunity to compete for $950 million in funding between 2017 and 2022.

The launch of the Innovation Superclusters Initiative competition was announced in Ottawa May 24^th with letters of intent due July 21^st. A short list of applications will then be invited to submit full applications with the winners to be announced before March 31/18. The program will be managed by the Department of Innovation, Science and Economic Development.

The funding for superclusters — defined as a dense area of business activity engaging large and small firms, academia and non-profit organizations with the potential to turn R&D into globally recognized brands — is the single largest amount of money the Liberal government has committed to S&T since it took power in late 2015. Successful applicants must come from a business-led non-profit consortium that matches federal funding with cash or in-kind contributions — a stipulation raising concern due to the paucity of large firms (domestic or international) that are willing or able to commit the required $100-200 million. Matching funds and in-kind commitments (a maximum of 25% of the matching contribution) must be secured at the time of full application.

Target areas

The government has assessed which sectors have the potential to expand into superclusters and announced that it will accept proposals in the areas of advanced manufacturing, agri-food, clean tech, clean resources, digital technology, health/biosciences and infrastructure and transportation.

Successful proposals will be assessed according to five key criteria:

• Strategy for creating and growing new firms;
• Creating jobs that require advanced skill sets;
• Equipping Canadians for the knowledge and skills need for future employment in the supercluster;
• Attracting private investment; and,
• Generating “meaningful” economic activity.

Successful strategic plans must demonstrate their ability to build a shared competitive advantage for the cluster, boost private sector R&D spending, create new companies and commercialize new products, processes and services, and develop a critical mass of growth-oriented firms through strong public and private sector collaboration that scale, “connect to global supply chains, transition to high-value activities and become global market leaders”.

Eligible firms must be incorporated and active in Canada, which allows foreign-based multinationals to participate. A “minimum number” of small- and medium-sized businesses must be included in each proposal and each successful supercluster must be governed by an industry-led board of directors.

While it is not essential that intellectual property generated with the superclusters remains in Canada, applicants are “strongly encouraged to explain how this and any other activities render the IP Strategy to Canada's net benefit”.

A list of 48 frequently asked questions can be found here.

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