Report to/Rapport au :

 

Corporate Services and Economic Development Committee

Comité des services organisationnels et du développement économique

 

and Council / et au Conseil

 

June 19, 2007 / le 19 juin 2007

 

Submitted by/Soumis par : Nancy Schepers, Deputy City Manager/Directrice municipale adjointe,

Planning, Transit and the Environment/Urbanisme, Transport en commun et Environnement

 

Contact Person/Personne ressource : Rob Mackay, Acting Director/Directeur intérimaire, Economic and Environmental Sustainability/Viabilité économique et de la durabilité de l’environnement

(613) 580-2424 x22632, Rob.Mackay@ottawa.ca

 

City-wide

Ref N°: ACS2007-PTE-ECO-0010

 

 

SUBJECT:

Strengthening Ottawa's Innovation and Commercialization Capacity

 

 

OBJET :

RENFORCER LA CAPACITÉ D’INNOVATION ET DE COMMERCIALISATION D’OTTAWA

 

 

REPORT RECOMMENDATION

 

That Corporate Services and Economic Development Committee recommend Council approve funding of:

 

1.                  Up to $350,000 to the Ottawa Centre for Research and Innovation (OCRI) to leverage funds awarded by the Province of Ontario to enhance Ottawa's innovation and commercialization program capacity; and

 

2.                  Up to $150,000 to The Ottawa Partnership to leverage funds awarded by the Province of Ontario to implement the Partnership Phase of the Ottawa Innovation Hub concept.

 

RECOMMANDATION DU RAPPORT

 

Que le Comité des services organisationnels et du développement économique recommande au Conseil d'approuver :

 

1.                  Le versement d'un montant maximal de 350 000 $ au Centre de recherche et d'innovation d'Ottawa afin de compléter les crédits consentis par le gouvernement de l'Ontario pour renforcer la capacité d'innovation et de commercialisation d'Ottawa;

 

2.                  Le versement d'une somme maximale de 150 000 $ au Partenariat économique Ottawa afin de compléter les crédits consentis par le gouvernement de l'Ontario pour la mise en œuvre de la phase « partenariat » du projet de carrefour de l'innovation d'Ottawa.

 

 

BACKGROUND

 

On 4 July 2006, Ottawa City Council approved $350,000 in funding to support the innovation and commercialization activities of Ottawa Centre for Research and Innovation and the Ottawa Life Sciences Council (Report ASC2006-PGM-ECO-0004). This funding was provided on the basis of the activities being strongly aligned with both the City of Ottawa Economic Strategy and Provincial innovation and commercialization policy, and the endorsement of The Ottawa Partnership (TOP).

 

The Ottawa 20/20 Economic Strategy, as approved by Council in April 2003, recognizes the importance of innovation and commercialization. The Economic Strategy identifies the need to 'link innovation to the marketplace’ as one of five overall strategic directions and lists as an immediate priority action the need to 'develop a collaborative-based project between targeted clusters and research institutions that will increase the commercialization of research and technology.'

 

The Ottawa Partnership has also identified innovation and commercialization as one of its three strategic priorities. In February 2006, TOP led a delegation of local business and community leaders to Queen’s Park to meet with Premier McGuinty and his cabinet colleagues and emphasized the urgency of increasing innovation and commercialization capacity in the city.

 

Ottawa’s approach is very much aligned with the provincial government. The Province of Ontario has made innovation and commercialization a key priority. In 2005, the Ministry of Research and Innovation was created to build a culture of innovation and commercialization, and to create funding programs that will help communities across the province deliver on their own opportunities for innovation. This includes the Ontario Research Commercialization Program (ORCP) and the Regional Innovation Network (RIN) program which support the commercialization activities of small- and medium-sized enterprises (SMEs), researchers, and entrepreneurs, and supports the growth of Ontario’s technology-based companies.

 

OCRI, which now includes the former Ottawa Life Sciences Council (OLSC), leads the City’s innovation and commercialization efforts. Key programs include professional development, hands on business development assistance, and opportunities for companies to come together in an environment of collaboration to foster innovation and commercialization.  OCRI’s innovation and commercialization specific activities include facilitating knowledge and technology transfer between companies within, and between, sector clusters, and assisting technology-based companies to further develop their marketing and business operations expertise.

 

OCRI has helped to make Ottawa a leading centre of innovation in Ontario. Each year, more than $4 billion is invested by Ottawa-based companies in research and development activities along with more than $1.5 billion in public sector research. Despite this success, Ottawa is underperforming relative to its potential, particularly in the translation of innovation and ideas into marketable products and services.

 

The City of Ottawa's funding contribution of $350,000 in 2006 has helped OCRI to leverage an additional $2.15 million from the Province and private sector and partner contributions (including $300,000 toward the Ottawa Innovation Hub) to undertake specific innovation and commercialization activities.

 

Concurrent with these activities, TOP initiated its Ottawa Innovation Hub project, which seeks to dramatically accelerate the commercialization of innovation in Ottawa.  This initiative has a longer-term focus and complements the ongoing innovation and commercialization programming of OCRI.

 

During the ‘Development Phase’ of the initiative, the project team consulted with nearly 200 high tech companies in the Ottawa area to determine the needs of the innovation community, and to identify gaps that inhibit commercialization of new technologies.  The approaches used by other city-regions to foster technology and innovation commercialization have also been explored.  The development phase concluded that there is sufficient opportunity and support for this initiative to proceed with the next phase – the ‘Partnership Phase’.

 

This report presents a tremendous opportunity for the City of Ottawa to continue to advance a key pillar of the Ottawa 20/20 Economic Strategy to support local innovation and commercialization activities.  The activities outlined in this report will support technology-based entrepreneurs as they bring new technologies to market and create the next generation of companies.  This enhanced innovation and commercialization capacity will ensure that Ottawa has a diverse economy to fuel the high quality of life and prosperity that we enjoy. 

 

 

DISCUSSION

Innovation and commercialization are key components of the City's economic strategy.  In Ottawa’s cluster based approach to economic development, the City has placed a great deal of importance on supporting and promoting new commercialization activities.  The Department works closely with OCRI and TOP to deliver on the priorities set out in the Economic Strategy.  Both of these organizations have developed programs designed to enhance innovation and commercialization activities.  These programs have received significant support from the province and require City contributions to fully leverage this funding.

 

OCRI LIFE SCIENCES/BIOTECHNOLOGY - RESEARCH INNOVATION NETWORK

 

In 2004, the Province of Ontario initiated the Regional Innovation Network (RIN) program which supports the local delivery of innovation and commercialization services to the clients that need them - small firms, researchers, entrepreneurs and investors.

 

The former Ottawa Life Sciences Council (OLSC) was identified as the Research and Innovation Network for Ottawa and Eastern Ontario and was successful in its application to receive funding, to deliver commercialization and innovation services.  In 2006, the OLSC merged with OCRI.  OCRI Life Sciences/Biotechnology is the division of OCRI now delivering the RIN program.  A total of $1.4 million in RIN funding is available over four years (2005 to 2009).  A total of $750,000 in City funding and contributions of $700,000 from other partners are required over the life of the project to leverage the full amount.  The City of Ottawa contributed $250,000 to this initiative in 2006.  This funding and activity provides enhanced services to Ottawa’s life sciences sector through three major categories of activity:

 

1. Investment Program

The investment program focuses on facilitating access to capital sources (angels, venture capital and corporate) as well as working to support the expansion/retention and attraction of companies.  This will be accomplished by providing services such as investment matchmaking, assistance to help companies access global technologies, and administering 'Canada's Top 10 Life Sciences Companies' competitions and investor road show.  The OLSC also works closely with companies with an established presence in the region to assist them in overcoming obstacles for growth and accessing government programs that promote expansion.

 

2. Business Opportunity Networks

The Business Opportunity Networks support sector development within areas identified as regional strengths and opportunities including: BioProducts, Energy and Environment Business Network, Therapeutics Development (i.e. new treatments such pharmaceuticals, stem cells etc), and Convergent Medical Assistive Technologies (i.e. medical devices). The networks bring together academics, researchers, investors, entrepreneurs, and regulators to facilitate technology transfer, researcher interactions with industry, collaborative projects, regulatory foresighting, clinical/environmental trials, competitive intelligence and market development.

 

3. Communications and Marketing

In order to be competitive provincially, nationally or internationally, businesses and individuals need to be aware of the quality and type of research occurring in Ottawa and the opportunities to work with Ottawa companies.  Part of the strategic communications plan is an outreach component to ensure that the Ottawa message is delivered.   The first step was to acquire a knowledge management system that allowed the OSLC (now OCRI Life Sciences/Biotechnology) to effectively use and track its worldwide network of more than 3,820 companies and 8,760 individual contacts.

 

OCRI Life Sciences/Biotechnology was successful in leveraging the provincial funding allocation for 2005 from partner contributions.  In 2006, the City contributed $250,000 to leverage $700,000 in Provincial funding and $450,000 in private sector and partner contributions.  OCRI Life Sciences/Biotechnology requires the City's continued funding support over the remaining two years ($250,000 per year in 2007 and 2008) in order to leverage Provincial contributions.  This request for funds is solely for the OCRI Life Sciences/Biotechnology 2007 requirements.  Funding approval for 2008 will be brought forward in a subsequent report.

 

Regional Innovation Network Progress

OCRI Life Sciences/Biotechnology has advanced a number of projects over the past year.  This includes the delivery of professional development seminars such as the Medical Devices and Assistive Technology Luncheon Series, the BioEntrepreneurs Luncheon Series, the Bioproducts, Energy and Environmental Technology Business Network Breakfast Series, the Ottawa Life Sciences Professional Development Series, and BioNorth.  A recruitment portal dedicated to serving the life sciences industry in Ottawa and Eastern Ontario (Biojobs) has been created.  The ‘Canada’s Top 10 Life Science Companies’ competition has been developed and run.  The Centre for Biopharmaceutical Manufacturing (CBM) has been established.  And the Ottawa Life Sciences Achievement Awards Program has been instigated.

 

OCRI  - ONTARIO RESEARCH COMMERCIALIZATION PROGRAM

 

The Provincial Government established the $27 million Ontario Research Commercialization Program (ORCP) to help create an efficient commercialization system in Ontario. The program accelerates the movement of world-class research from Ontario's labs to the marketplace and supports the growth and development of Ontario's technology based companies.

 

OCRI, together with partners from Waterloo, Toronto, and Markham succeeded with a joint proposal to the Ontario Research Commercialization Program to develop a Regional Innovation Development Program (RIDP).   This funding supports:

 

1. Entrepreneurship Development

OCRI, through the ORCP, now provides opportunities for technology entrepreneurs to increase their skill levels and share experiences with other entrepreneurs.  This enables entrepreneurs to apply general knowledge to a broad range of issues rather than simply providing them with solutions to specific issues that they are facing.

 

In order to achieve these goals, through the ORCP initiative, OCRI delivers training opportunities in a variety of formats, such as:

 

OCRI capitalizes on Ottawa's existing capacity by engaging expertise and support from Ontario Centres of Excellence, the local Angel Network, local venture capitalists and the Ottawa Cluster Groups (Wireless, Software, Photonics, Semi Conductor, Security and Life Sciences).

 

2. Research Linkages

Academic and institutional researchers do not often cross paths with members of our local business community. As part of the ORCP program, OCRI acts as a liaison between Ottawa's private sector and research community.  These liaisons build a greater understanding of the opportunities and needs of the private sector within the research community and vice-versa.

 

OCRI receives $400,000 per year from the province to deliver the RIDP activities.  In order to access continued Provincial funding, OCRI will be leveraging significant in-kind contributions but will also require a contribution of $100,000 per year from the City.  This request for funds is solely for the 2007 requirements.  Funding requests for 2008 will be brought forward in a subsequent report.

 

ORCP Progress

Progress to date includes the hiring of two local project managers (Business Development Officers) for the ORCP program to liaise between businesses and researchers (‘Business Opportunity Networks’ component of ORCP).  The ORCP initiative also includes the ‘Market/Competitive Intelligence’ component which entails development of a “members-only” web access to an electronic library for business and marketing intelligence, delivery of Competitive Technical Intelligence by NRC-CISTI, delivery of Business Insights Healthcare Unlimited reports, and competitive intelligence research reports from Pricewaterhouse-Coopers.  Under the ‘Entrepreneur Development’ component of ORCP, fundamentals of operating a technology-based small- to medium-sized enterprise (SME), venture fairs, conferences, workshops, and networking events are designed with business training for the technically‑oriented in mind.  The fourth component of the ORCP project is exploration of convergence between technical sectors (such as the information and communications technology sector with the life sciences sector in the area of bioinformatics).  With the merger of OCRI and the Ottawa Life Sciences Council (OLSC), convergence opportunities are being investigated.

 

TOP INNOVATION HUB

 

As previously mentioned, The Ottawa Partnership (TOP) has identified the need to increase Ottawa's innovation and commercialization capacity as one of its three strategic priorities.  TOP has endorsed the activities of OCRI and the former OLSC in their innovation/commercialization efforts and is currently working to set the direction for steps to follow.  TOP's approach - creating an 'Innovation Hub' - complements and builds upon OCRI's innovation/commercialization capacity by bringing together the necessary ingredients for commercialization and facilitating the various needs and steps along the innovation pipeline.  This 'Innovation Hub' will align with and build on the success of Toronto's MaRS initiative to ensure that Ottawa remains one of Canada's leading centres for innovation and commercialization.

 

The Province of Ontario has indicated it's support for this initiative, and committed $300,000 in 2006 to develop the plans and business case to ensure that Ottawa remains a global leader in innovation and commercialization.  Major activities representing the development phase for the Innovation Hub project have been concluded.  The findings of these activities have led to a proposal to establish a new public-private partnership to take the initiative to the 'Partnership Phase'.  The partnership phase entails development of a detailed business case that includes the creation of a governance model for the public-private partnership, confirmation of specific private and public sector support, finalization of the innovation mall activities and service offering, and selection of the location.

 

The Province of Ontario has committed $150,000 to support the 'Partnership Phase' of this initiative, subject to a matched contribution by the City.

 

The combined funding request from OCRI and TOP is $500,000 for 2007. The City's funding support will leverage a total of $1.3 Million from other partners.

 

Activity

City Contribution

2007

Provincial Contribution

2007

Private Sector & Partner Contributions

2007

Total Contributions 2007

OLSC - RIN

$250,000

$   250,000

$              0

$   500,000

OCRI- ORCP

$100,000

$   600,000

$   300,000

$1,000,000

TOP - HUB

$150,000

$   150,000

$              0

$   300,000

Total

$500,000

$1,000,000

$   300,000

$1,800,000

It is anticipated that a further funding request of $350,000 will come forward in 2008 to support on-going activities associated with the RIN and ORCP projects.

 

 

CONSULTATION

 

The basis of this report, advancing commercialization and innovation activities, represents one of the pillars of The Ottawa Partnership’s (TOP) action strategy.  This action strategy was confirmed by members of the public and business community during the TOP Economic Forum held in late 2005.  These activities were presented to TOP on May 26th and received TOP’s endorsement.  Partner Agencies, such as OCRI were also consulted in preparation of this report.

 

 

FINANCIAL IMPLICATIONS

 

The funding for this second year of initiatives is available within the Economic Development Division’s 2007 Capital Budget allocation, account 904281 (Economic Development) PR#10528567.

Funding for activities in 2008 will be dependant on future budget allocations.

 

 

SUPPORTING DOCUMENTATION

 

N/A

 

 

DISPOSITION

 

Upon Council approval of the recommendation, Economic Development staff will proceed to formalize a funding agreement with OCRI and The Ottawa Partnership (TOP).