ontario commercialization networks

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Ministry of Research and Innovation 1 Ontario Commercialization Network A New Approach to Tech-Based Economic Development November 24, 2006

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Ontario Commercialization Networks

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  • 1. Ontario Commercialization Network A New Approach toTech-Based Economic DevelopmentNovember 24, 2006 Ministry of Research and Innovation

2. Overview

  • MRI Commercialization Programs (Finance, Skills and Technology Gaps)
  • Goal of Ontario Commercialization Network (OCN)
  • OCN Model
  • OCN Hub (MaRS and OCE)
  • Sector Innovation Networks
  • Knowledge and Technology Transfer Networks
  • Regional Innovation Networks
  • Lessons Learned

Ministry of Research and Innovation 3. Addressing the Pre-Commercialization Finance, Skills and Technology Gaps Ministry of Research and Innovation Ontario ResearchFund (ResearchInstitutions) $31.4 Ontario Research Comm. Program (TechTransfer) GlobalMarkets Later Stage Financing ($100 M +) EarlyStage Financing ($5 -15M) Angel/Seed Stage VC Sales Early Production Engineering Manufacturing R&D Project Lab Prototype Intellectual Property Fundamental Research Market Needs Analysis Skills Gap Product Strategy/Early Management $29MInvestment Accelerator Fund (pre-seed) $17M Business Mentorship and Entrepreneurship Program $90M Venture Capital (seed stage $1-5 M) Financing Gap Technology Gap Addressed via ORIC* Efforts *Ontario Research & Innovation Council RIN / OCN Program 4. Ministry of Research and Innovation Sarnia Building a Commercialization Ecosystem Golden Horseshoe Guelph/Waterloo Windsor London Peterborough Eastern Lake Ontario Ottawa Chatham Western GTA Toronto York Ontario Commercialization Network Northern Ontario 5. The Ontario Commercialization Network

  • The goal of the OCN is to build an efficient and effective commercialization network / ecosystem that will:
    • Have both aregionalandsectoralfocus
    • Actively engage theprivate sectorto support theflow of capital (financial and intellectual)
    • Use amarket drivenandclient focusedapproach
    • Develop ahighly networkedandcollaborative communityof commercialization stakeholders (the ecosystem)
    • Improvetransfer of knowledgeandtechnologyto the private sector to capture the benefits of investments in R&D
    • Provide moreefficientandeffective service delivery systemto support technology-based entrepreneurs, start-ups and SMEs
    • Build anentrepreneurial culture

Ministry of Research and Innovation 6. OCN Model to support Tech-based Economic Development Ministry of Research and Innovation Municipal & Regional Economic Development Regional Innovation Networks Sector Innovation Networks Provincial Innovation Network Provincial & Federal Linkages International Linkages Knowledge and Tech Transfer Networks 7. Provincial Innovation Network: The Hub

  • MaRS:
  • MaRS connects the communities of science, business and capital to create a more efficient commercialization marketplace.
  • The MaRS community is built through co-location, catalytic programs and services, and structured networks.
  • The MaRS community is physically anchored in the MaRS Centre and extends virtually through the MaRS Portal and MaRS Networks.
  • MaRS delivers commercialization programs and services focused on building a pipeline of globally significant companies.

Ministry of Research and Innovation 8. Provincial Innovation Network: The Hub

  • OCE Inc.
  • Support research: OCE invests in industrially relevant research in Ontarios universities, colleges and research hospitals.
  • Support commercialization: OCE initiatives are designed to move technologies to the marketplace through technology and market assessment, intellectual property protection, prototype development, and pre-seed funding to establish start-up companies.
  • Support development of talented people: OCE activities focus on training and developing the next generation of Ontario innovators and entrepreneurs.

Ministry of Research and Innovation 9. Sector Innovation Networks (SINs):

  • SINs are not-for-profit organizations that have a strong sector focus with provincial scope and capacity to deliver commercialization and other expertise
  • Build the knowledge base on the sector -- researchers, R&D infrastructure, companies, etc.
  • Identify global strengths and where these strengths lie within the provincial landscape
  • Develop sector-based innovation and commercialization strategies
  • Implement commercialization programs and services aligned with the the hub of the OCN
  • Facilitate linkages and build networks --science, industry and capital with a sector focus

Ministry of Research and Innovation 10. Knowledge and Technology Transfer Networks

  • Knowledge and Technology Transfer Networks as primarily regionally based and link multiple institutions (universities, research hospitals and colleges) under a single network
  • The primary purpose of the networks are to share resources and align policies and procedures
  • The networks will incorporate private sector input into the tech transfer process
  • The networks will make it easier for the private sector to access resources and technologies (IP)
  • Knowledge transfer activities primarily involve linking students and faculty to industry driven commercialization projects (technical and/or business related)
  • A provincial network is being developed where industry experts will provide support to all of the tech transfer networks across the province

Ministry of Research and Innovation 11. Regional Innovation Networks (RINs)

  • RINs are a regionally based, multi-stakeholder, not-for-profit organizations driven by the private sector
  • RINs serve as the foundation of the commercialization ecosystem (the OCN) to:
    • Identify a regions comparative advantages
    • Establish a vision and mission for the future
    • Identify and align commercialization and other economic development resources available at the regional level (commercialization roadmap)
    • Develop and implement programs and services to address gaps as part of an annual implementation planning process
    • Create a focal and entry point for clients to access commercialization and other resources at the regional, provincial and federal levels

Ministry of Research and Innovation 12. Ministry of Research and Innovation Ontario Commercialization NetworkImplementation Framework OCN HUB

  • RIN
  • Linkages to regional resources & programs

Entrepreneurs SMEs Researchers Start-ups MNEs Customers / Clients (Entrepreneurs) Proactive Outreach Linkages to Resources Gateway WebPortal & Client Management System Value Proposition ToCustomers Accelerating Deal Flow Across the Network Business Mentorship and Entrepreneurship Program Investment Accelerator Fund Global Business / Global Science / Global Capital

  • OCN
  • Client Diagnostic & Coaching

Research Institutions & Tech Transfer Office 13. Regional Innovation Network Model Ministry of Research and Innovation RINs (diagnostic service)

  • MNEs
  • SMEs
  • Start ups
  • Entrepreneurs
  • Researchers

Economic Development Organizations Linkages to CommercializationResources Strategic Alliances (Companies & Researchers) Angel Network Technology Adoption Provincial CommercializationProgram & Services (expert advice) Market / Competitive Intelligence Investment Technical / Technology Export Development International Linkages Creating New Economic Opportunities through Collaborations Commercialization Networking & Linkages to Regional Resources Core Economic Development Activities Investment Attraction Expansion & Retention Business Mentor 14. Regional Innovation NetworksMinistry of Research and Innovation

  • Ottawa Centre for Research and Innovation (OCRI)
  • Eastern Lake Ontario Regional Innovation Network
  • Greater Peterborough Region DNA Cluster
  • BioDiscovery Toronto
  • Western Toronto Greater Area Convergence Centre
  • York Biotech
  • Golden Horseshoe Biosciences Network
  • Guelph Partnership for Innovation
  • Waterloo Research and Technology Park Accelerator and Communitech
  • London Regional Innovation Network
  • Southwestern Ontario Bioproducts Innovation Network
  • Northern Ontario Commercialization Initiative

15. Lessons Learned

  • Tech-based economic development requires a detailed study / plan and community development process involving local stakeholders to identify strengths and weakness within the region.
  • Research institutions can help breakdown municipal boundaries and create regional innovation systems (networks). Typically these systems are not aligned with municipal boundaries.
  • Research institutions can help drive the planning process, but it is critical to transition the process to be more industry driven when the process moves from planning to implementation.
  • Cluster theory useful as an analysis tool, but has limited applicability to the Ontario landscape as an implementation tool or model.

Ministry of Research and Innovation 16. Lessons Learned (contd)

  • Regional innovation system (network) model seems to have a number of advantages over the cluster model. These advantages include:
      • Better alignment with current technology trends re: technology convergence
      • Regional innovation systems (networks) can work in smaller regions and can result in beneficial collaborations between urban and rural communities
      • Private sector investment aligned with technologies not industry sectors. Hot technologies such as sensors cross many sectors such as environmental technologies, energy technologies, advanced materials, etc.
      • Business issues, for the most part, do not vary by industry sector, thus business support infrastructure at the regional level can be generic

Ministry of Research and Innovation 17. Lessons Learned (contd)

  • RINs need a clear vision and mission, but need to take incremental steps to achieve the desired outcome.Trying to leap frog to a new paradigm has a higher chance of failure.
  • It is important to anchor regional innovation systems (networks). For Ontario, MaRS and the Ontario Centres of Excellence (OCE) are anchoring the RINs and SINs and providing a focal point to support collaborations across the OCN and implement provincial programs.
  • Inter-RIN collaborations are important but need to be led by an independent organization such as a sector innovation network (SIN).For example, the Health Technology Exchange (HTX) works closely with a number of RINs focusing on medical devices as an area of strength.
  • The OCN can be viewed as an ecosystem. An ecosystem can be defined from a business perspective as a complex set of relationships andwhose members benefit from each other's participation via symbiotic relationships. Its critical to have an honest broker to manage the relationships in the early stages.
  • It critical to learn and adapt as required to keep the ecosystem in balance.

Ministry of Research and Innovation