Battelle contemplating expansion into Canada as it pursues discussions with several large domestic players

The Battelle Memorial Institute is negotiating with at least four major Canadian research organizations as part of a planned expansion into Canada. Preliminary discussions are underway with the National Research Council (NRC) the Univ of Toronto, the Alberta Research Council and Toronto’s MaRS Discovery District, where the US contract research and research management giant is establishing an office.

The possible creation of Battelle Canada is part of a larger expansion strategy being undertaken by the Columbus OH-based organization. It already has a number of relationships with Canadian institutions on a project-by-project or technology-specific basis and Canada is reportedly on the top of its list of nations as it builds out its international strategy.

One of its longest standing relationships is with Primaxis Technology Ventures Inc, a Toronto-based early-stage venture capital firm formerly headed by Dr Ilsa Treurnicht (R$, December 20/00). Battelle invested about $9 million in Primaxis and Treurnicht — now CEO of MaRS Discovery District — sits on a Battelle research advisory board.

“Battelle … will have an office in MaRS and will be starting Battelle Canada right here. It will be a very key player in our programs (and) will anchor their activities in Canada going forward, says Treurnicht. “In the past five years, Battelle has developed a good understanding of the strengths of the Canadian innovation system and has identified Canada as a target region in which to engage. Battelle is currently expanding their international partnerships and this initiative is led by Dr Rich Adams.”

At a Toronto conference last spring, Treurnicht outlined Battelle's strengths, specifically referring to its deep expertise in nanotechnology and high-performance computing. She said Canada is “on top of Battelle’s list” of countries it is considering for expansion — a list that includes South Korea and Japan. Treurnicht cited access to specialized equipment in the US by Canadian researchers as one potential benefit to collaborating with Battelle.

Officials at Battelle would not comment on the not-for-profit trust’s international expansion plans. But it provided RE$EARCH MONEY with a statement acknowledging ongoing talks with Canadian institutions and the rationale for moving into Canada.

“We’re very interested in expanding our R&D work in Canada. We are in early discussions with the National Research Council and the University of Toronto regarding the most beneficial ways to partner with them, but final decisions have not been made. We’ve also had early discussions about a possible presence at the MaRS District,” says Battelle spokesperson Mark Berry. “Battelle is very interested in Canada because of its level of research funding. We believe we would bring considerable value because of our track record of problem solving (contract R&D), research program/lab management, and technology commercialization.”

STRATEGIC APPROACH TO NEGOTIATIONS

Battelle appears to be taking a sector-specific approach to partnering in Canada, based on the organizations it is in preliminary discussions with. The MaRS Discovery District has a largely biomedical and materials science focus — key Battelle strengths. MaRS is widely viewed as a vehicle for increasing the commercialization output of research conducted by the Univ of Toronto and its affiliated hospitals and is heavily support by the Province of Ontario.

In Battelle’s three meetings with the Alberta Research Council (ARC) over the past 18 months, discussions have focused on energy and materials research with application in the energy field. The most recent meeting last May was attended by Dr Rich Adams, Battelle’s VP international partnerships, who was accompanied by Treurnicht.

“We’re looking for a strategic fit and projects to work on jointly. I expect negotiations will accelerate in the fall, says Karen Beliveau, ARC’s VP external relations and alliances. “Battelle has a lot of expertise in managing labs and that may be an opportunity for an entrance into Canada. Our discussions are more on collaboration for developing a particular technology for comm- ercialization.”

Beliveau says there is no direct connection between ARC’s discussions with Battelle and ARC’s proposed Innovation Canada (I-CAN) initiative but “there could be down the road”.

I-CAN is an ambitious plan to establish an organization to link provincial research organizations and specialized contract research facilities across Canada (R$, December 11/03 & June 30/04). Such a plan could fit nicely with Battelle’s structure and mandate, as well as that of the NRC which once seriously considered restructuring itself on the Battelle model.

In recent years, NRC has considered a number of commercialization models to increase its spin-off and licensing activity, including a pilot project collaboration with Quebec-based Inno-centre (R$, December 16/98). Although the pact was renewed, it failed to generate much activity and was subsequently terminated. NRC’s commercialization strategy is currently under development and the agency is working in close collaboration with Industry Canada and its larger commercialization strategy.

A GLOBAL RESEARCH POWERHOUSE

Battelle dwarfs all Canadian organizations involved in industrial R&D and commercialization. It has more than 19,000 staff members, conducts nearly $3 billion in annual R&D and has five major technology centres, nine specialized facilities, at least 13 subsidiaries and dozens of offices through the US. The 75-year-old organization also manages or co-manages several federal laboratories such as Brookhaven National Laboratory, Oak Ridge National Laboratory, the National Renewable Energy Laboratory and the Pacific Northwest National Laboratory. It also manages two nanotechnology laboratories for the National Science Foundation.

“Battelle has an outstanding history of transforming innovation into commercial success from the original Xerox technology to compact discs, smart cards, arrayed wave guides for telecommunications and medical devices,” says Treurnicht. “It has historic strengths in many areas, including materials science ... Their broad base of research assets are very interesting to MaRS and fits with our convergence innovation strategy.”

Ed. Note: The National Research Council would not comment on its negotiations with Battelle for this story. The Univ of Toronto did not return phone calls.

R$