Ontario launches voucher and procurement programs to assist knowledge-based firms

The Ontario government has announced two new funding programs to address an early-stage financing gap faced by growing technology companies and government as a first purchaser. Launched last month by the Ministry of Economic Development and Growth (MEDG), they are part of the new Business Growth Initiative (BGI) unveiled by the province earlier this year.

The programs are still in development but Finance minister Charles Sousa revealed their size and scope last month in his 2016 Ontario Economic Outlook & Fiscal Review.

The Small Business Innovation Challenge (SBIC) pilot program provides $28.8 million over five years for small- and medium-sized enterprises (SMEs) that can meet public sector challenges by developing, testing and modeling with innovative technology solutions. SBIC is modelled on the US Small Business Innovation Research (SBIR) program and managed by the Ontario Centres of Excellence. The public procurement scheme addresses a long-standing concern among smaller firms that governments aren't willing to become the first buyer of their technology, making it difficult to gain sales and marketing traction internationally.

The Scale Up Vouchers program provides $32.4 million over four years to assist "high-impact companies overcome barriers to their next stage of growth". Eligible activities include developing and recruiting specialized talent, intellectual property protection and accessing new markets.

"This is for high-growth companies scaling up quickly to do things like hire a chief technology officer or a marketing expert," says MEDG press secretary Daniel Bitonti. "It will provide money in as quickly as a week so that an SME can get to market or an international trade show."

The BGI is a five-year, $400-million initiative aimed at leveraging Ontario's highly skilled workforce to enhance innovation in the knowledge-based economy. It will introduce initiatives to enhance technology hubs within industrial clusters where Ontario has a competitive advantage (biochemical, auto sector, clean technology and mining), bolster partnerships among businesses and post-secondary institutions that "promote, nurture and reward innovation, new technologies, products and services", and support a strategic investment office to attract investment.

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