investing in innovation presentation to caura east 2013

Investing in InnovationInvestir dans l’innovation

Investing in Innovation Presentation to CAURA East 2013


• A federal government agency headquartered in Atlantic Canada.

• Goal is to improve the economy of Atlantic Canadian communities through the successful development of business and job opportunities.

• Offices across Atlantic Canada.

ABOUT ACOA


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Regional Presence

ACOA ECBC


Two principal programs:

Atlantic Innovation Fund: Supports private sector projects between $1-3M and non commercial

projects below $3M Annual expenditures approx. $40-50 million

Business Development Program (Innovation Component): Supports smaller projects (under $1M); Annual expenditures approx. $35 million

ACOA programs aim to strengthen/encourage innovation by supporting activities like R&D, technology acquisition, commercialization, etc.

ACOA’s Support to Innovation

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AIF Objectives

Increase activity in, and build capacity for, innovation and research and development (R&D) that lead to new technologies, products, processes or services

Increase R&D commercialization

Strengthen regional innovation capacity by supporting partnerships and alliances between private sector and universities/research institutions

Maximize benefits from the national R&D programs


AIF Commitments by Region

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Region Private Sector Led

Universities/Colleges

Other Non- Commercial

Total #

Maximum AIF Contribution

($M)NS 53 31 12 96 227.6NB 33 43 12 88 201.8NL 35 31 7 73 205.4

PEI 35 18 2 55 135.4

HO 0 1 5 6 23.5

Total 156 124 38 318 793.7


AIF Commitments by Sector

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Sector Number of

projects

AIF Contribution

($M)

Total Project

Costs ($M)Aquaculture 27 67.8 151.9Biotechnology 33 82.8 159.9Energy 26 74.7 145.8Environment 14 23.2 44.2ICT 69 163.6 282.1Health and Medical 58 142.0 317.6Manufacturing/Processing 57 156.9 399.8Ocean Industries 24 57.9 115.8Other 10 24.8 40.5Total 318 793.7 1,657.6

Investing in InnovationInvestir dans l’innovationInvesting in InnovationInvestir dans l’innovation

Wabush Mines, Cliffs Natural Resources Manganese Separation Wabush Mines assessed and evaluated a manganese separation technology on a production prototype to determine whether the technology could be transferred to a full facility rollout. The company’s R&D was successful in reducing the manganese content of its iron ore deposits to acceptable levels, increasing the remaining life of the mine by approximately 20 years.

Examples

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LED Roadway Lighting Ltd.Amherst-based LED Roadway Lighting Ltd. is hoping to light up neighborhoods around the world with its new LED streetlight technology. The eco-efficient light market is quickly expanding, bringing with it big savings for municipalities and businesses.

Examples

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http://moss.acoa-apeca.gc.ca/sites/POEMS2/Success%20Stories/Approved%20Photos/C-Vision.jpg


Ocean Nutrition Canada LtdFrom Fish Oil to Functional FoodsA growing recognition of the health benefits of fish oils and good old fashioned research has turned a once tiny business into the world’s leading supplier of marine-based dietary supplements and bulk nutraceutical ingredients.

After company researchers discovered a breakthrough technology that transformed fish oil into a fine powder, ONC opened its first micro-encapsulation plant in 2001 and now sell products all over the world. ONC was purchased in 2012 by DSM for $540 M.

Examples

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MDS Coating Technologies CorporationFighting off ErotionHelicopters and other aircrafts operating in conditions of sand, dirt and volcanic ash are continuously exposed to a silent form of attack – erosion of their engines by a harsh environment.

MDS Coating Technologies Corporation in Summerside, PEI, have developed a number of special protective coatings which guard against erosion and corrosion of aircraft engines. These erosion resistant coatings are designed specifically for the protection of gas turbine engine compressors and can extend the engine life by up to 10 times, avoiding expensive repairs, reduced performance, increased fuel burn and unscheduled down time for the aircraft.

Examples

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AIF Results to Date• Fostering private sector commitment in S&T: Close to 760 partnerships created;

private sector participation continues to be significant; and the percentage of institutional projects with a private sector partner has increased (100% in more recent rounds).

• Leveraging investments: Almost $850 million leveraged from private sector, universities, research institutes, and other government programs.

• Magnet for talent: New scientists and researchers are being attracted to Atlantic Canada – 1250 HQPs.

• Getting to Market: More than 250 technologies, products, processes and services developed through the AIF have been successfully commercialized, resulting in just under $250 million in incremental sales (AIF Rounds I-IV).

• Strengthening the Knowledge Base: AIF investments align with national S&T priorities (e.g. Advantage Canada and Canada’s S&T Strategy) and regional priority sectors (e.g. Bio, Health, ICT, Energy, Oceans).

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Testimonial


Testimonial

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Ideal AIF Project

• Good economic return and benefits• Innovative R&D• Strong Technical Expertise• Proven Management• Good Financial Structure (e.g. leveraging)• Strong Commercialization Potential• Meaningful Partnerships/Collaborators• Contracted within 4-6 months of approval• Draws on Expertise of Universities, Research Centres and Private

Sector


Common AIF Pitfalls

• Research too early stage (basic)• Commercialization strategy or path to commercialization not well

defined• Unclear definition of end products and/or market relevance • Lack of supporting market research• Lack of understanding and/or details on competitive products and

markets • Lack of experience in commercializing research results• Lack of confirmed financing• Lack of cash contribution/demonstration of commitment, “cash is king”• Percentage of AIF contribution requested too high, lack of leveraging• Lack of evidence of strong, meaningful partnerships “cash is king”• Lack of scientific and technical detail in a proposal

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• For more information on ACOA and its innovation programming, please consult the Agency’s web site:

www.acoa-apeca.gc.ca

For More Information

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http://www.acoa-apeca.gc.ca/

investing in innovation presentation to caura east 2013

Documents

acoa investing

examples8 investing

examples9 investing

development rd

atlantic innovation

atlantic canada

innovation presentation

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