Research parks eye federal funding and larger role in luring global companies

By Debbie Lawes

Canada's research and technology (R&T) parks are launching an ambitious strategy to convince foreign companies to locate more of their R&D operations here. Armed with a new economic impact study and strategic plan, the Association of University Research Parks (AURP) Canada is also lobbying on behalf of its 26 member parks for a more visible and active role in the national innovation agenda, including federal funding for capital expansions and accelerator services that support companies beyond the start-up phase.

The move represents a new era for university R&T parks, which until recently have been largely absent from any national discussions of new R&D, commercialization or innovation policies and programs.

"We now work closely with Invest Canada and DFAIT on approaches to foreign direct investment, and are strengthening our relationship with the Canadian Technology Accelerators in the US (managed by the Canadian Trade Commissioner Service)," says AURP Canada president Carol Stewart. "We're now recognized as key player in the innovation continuum, bridging the gap between incubation and commercialization and providing that cross-over between industry, government and academia."

Translating that voice into funding is a major goal over the coming year for AURP Canada, which was founded in 2007 as a chapter of the US-based AURP International. Many of AURP Canada's 26 members hope to grow their parks but struggle to raise the millions of dollars needed for new buildings and infrastructure. They also want to expand the offerings of their accelerator and incubation centres, which have successfully graduated many start-ups but lack funding to support companies during the next growth phase. About 75% of R&T parks in Canada have an accelerator or incubator that provides start-ups with mentoring, support networks, tools, and links to research and investment partners.

Stewart acknowledged that some parks — such as Waterloo's David Johnston R&T Park which she manages — have seen the private sector step up to pay for these builds. The majority of parks, however, will require a cost-shared scenario involving academia, industry and government.

In particular, AURP Canada has set its sights on the federal government's Building Canada infrastructure fund which in Budget 2013 received $47 billion over 10 years starting in 2014-15, with contributions to be matched with provincial and municipal governments. The fund supports projects that "contribute to economic growth, a clean environment and strong cities and communities". That's where AURP Canada's economic impact study will help.

Released June 11, the study by PricewaterhouseCoopers found that the 26 R&T parks account for more than 65,000 jobs and $4.3 billion annually to Canada's GDP – that's an increase from 2007 of 1,000 companies and 40,000 employees. PwC estimates these numbers will grow to nearly 100,000 jobs and just over $6.4 billion in GDP annually within five years.

AURP Canada has also recommended that Ottawa expand the criteria under the Building Canada fund to specifically include R&T parks. It wouldn't be unprecedented for the fund to support such projects. In 2011, the Building Canada fund provided $984,200 in grants to install water/sewer systems and roads for the BioCommons Research Park in Charlottetown PEI.

As well, Budget 2013 provides $60 million over five years to the Business Development Bank of Canada to help "outstanding and high-potential incubator and accelerator organizations" expand their services to entrepreneurs. A further $100 million will be devoted to firms "graduating from business accelerators".

Once viewed as primarily a real estate play, R&T parks have become a one-stop shop for tenants of all sizes. "We help companies set up," says Stewart. "We introduce them to our university presidents, business leaders and local politician – all the partners they need to be successful. We get them plugged in and up and running very quickly."

AURP Canada will use the PwC study and a strategic plan recently developed by Ottawa-based Global Advantage Consulting Group to develop a foreign direct investment strategy over the coming weeks.

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