Ontario Network of Excellence A World-Class Innovation System

1. Ontario Network of ExcellenceA World-Class Innovation System October 2009 v04 Stakeholder Presentation

2. Context

3. Commercialization Assets - 2008 Northern Ontario 19 41 19 19 19 18 Ottawa 40 19 7 27 27 26 34 Sector Innovation Networks (SIN) 1 – Health Technology Exchange 2 – Ontario Genomics Institute 3 – Ontario Centre for Environmental Technology Advancement 4 – BioEnterprise 5 – Ontario Agri-Food Technologies 6 – Communitech 7 – Ottawa Centre for Research and Innovation Res. Parks / Incubators 20 - Bioindustrial Innovation Centre 21 -Stiller Centre in London 22 - Waterloo Accelerator Centre 23- MaRS Incubator 24 - McMaster Biotech Incubator 25 - Queen’s/ Novelis 26 – Ottawa 27 – Northern Ontario Centre for Advanced Technology (NORCAT) Kingston Peterborough 17 35 16 25 York Regional Innovation Networks (RIN) 8 – Southwestern Ontario Bioproducts Innovation Network 9 – London Regional Innovation Network 10 – Waterloo Accelerator Centre 11 – Guelph Regional Innovation Network 12 – Golden Horseshoe Biosciences Network 13 – Western Greater Toronto Area Convergence Centre 14 – BioDiscovery Toronto 15 – York Biotech 16 – Peterborough DNA Cluster 17 – Eastern Lake Ontario Regional Innovation Network 18 – Ottawa Life Sciences Centre 19 – Innovation Initiatives Ontario North 38 15 30 Mississauga 14 2 23 39 Provincial Hubs 27 – Northern Centre for Advanced Technology (NORCAT) 28 – MaRS Centre 29 – MaRS Landing 30 – Ontario Centres of Excellence HQ 31 – OCE Satellite Materials and Manufacturing 32 – OCE Satellites – Environmental Tech 33 – OCE Satellites – Materials and Manufacturing 34 – OCE Satellite – ICT and Photonics 35 – OCE Satellite - ICT 38 – Innovation Synergy Centre in Markham 39– Ontario Society for Excellence in Technology Transfer (OnSETT) 40 – Sault Ste. Marie Innovation Centre (SSMIC) 41 – Northwestern Ontario Innovation Centre Guelph/ Waterloo 4 13 28 1 22 5 11 33 3 Toronto 6 10 29 32 24 12 Hamilton/Niagara Sarnia London 8 20 9 21 31 Chatham 8 Windsor 8

4. The Components of the Ontario Network of Excellence Innovation System Discovery & Knowledge Transfer Technology & Product Development Business Acceleration Customer Development • Technology assessment & market analysis • Technology Bundling • Technical problem-solving • Collaborative Applied Research • Proof of Concept (POC) and Prototype • Engineering and industrial design input • New Knowledge • Intellectual Property Protection • Proof of Principle (POP) • Knowledge and Technology Transfer • Institutional Entrepreneurship • Entrepreneurial Training • Business Mentorship • Investment (angel and seed stage) • Access to Regulatory Expertise • Access to Clinical Trials • Customer connections • Government procurement (early adoption) • Strategic alliances • Customer input into the innovation system • Global supply chains Talent Development

5. Customer (End-User) Focused Innovation System Product Acceptance Discovery & Knowledge Transfer Technology & Product Development Business Acceleration Customer Development Market Intelligence Customer development, market intelligence & product acceptance are critical across all components of the ONE innovation system.

6. The New Ontario Network of Excellence

7. An innovation system that is responsive to the needs of Ontario’s world-leading researchers, entrepreneurs and high growth potential companies to make Ontario a leading jurisdiction in the global economy and generate economic prosperity. Vision

8. A world-class, client-focused innovation network that will ensure clients have province-wide access to: The best available resources and expertise (regardless of location); A full continuum, from idea-to-market, of programs and services; Resources available at the speed of business; The right resource, at the right time and with the right level of support, aligning resources with the growth potential of the company or the size of the opportunity; A flexible network that can quickly respond to new and emerging market opportunities where Ontario could have a global competitive advantage; and Programs, services and other resources in all regions of the Province. Mission

9. To build globally competitive companies by offering a suite of programs focused on bringing new products and services to the global marketplace. To leverage the capacity of Ontario’s research institutions to support industry-driven commercialization activities. To build a world-class knowledge and technology transfer network for Ontario’s public research institutions to extract more value from world-class research discoveries and provincial investments in research and infrastructure. Goal

10. The Network will operate in accordance with the following principles: Client FocusedThe Network will be oriented to support the needs of its clients to help them meet marketplace demands. The Network and its supporting programs & services will be delivered at the speed the market demands, responsive to global opportunities and easy to navigate. Clear Organizational MandatesThe Network will be structured in a way that makes it easy for clients to determine which resources can best help them as they move through the process of taking an innovation to market. Accessible Quality Support Across the ProvinceThe Network will be designed with multiple entry points across the province. This design will: i) ensure easy client access to programs & services; ii) allow the Network to bring the best resource and expertise in the province to support the defined needs of any client, regardless of the location of either; iii) create a regional focal point for innovation and commercialization; and iv) allow programs & services to be tailored to the regional innovation landscape. CollaborativeThe Network resources will be fully integrated to create a highly collaborative environment that will ensure clients receive the right resource, at the right time and with the appropriate level of support. Accountable and Transparent Governance The Network requires co-ordinated, effective governance with broad oversight and authority for the entire Network while supporting strong leadership of the individual component organizations. Standardized, Quantifiable Measurement System The Network will have a common measurement framework to ensure each Network member is focused on the agreed upon measurable goals and outcomes (both short and long term). Guiding Principles

11. Governance Structure MRI Commercialization Program Reports to Minister • Sustaining / Accelerating Growth • Ontario Venture Capital Fund (OVCF) • Emerging Technologies Fund (ETF) Address Financial Crisis Expert Panel Health Ontario Network of Excellence Advisory Board Expert Panel CT/BIO • Business Acceleration • Innovation Demonstration • Industry-Academic Collaboration • Innovation Network Expert Panel ICT/DM Simplification of existing programs Remains the same ORFAB Ontario Research Fund

12. Network Members Network Members include: • Located across the province serving as the local face -- networking, delivering programs, building connections, and contributing to regional economic development. • Network members will: • Operate under Network principles and/or delivery models; • Operate with well-defined organizational mandates; • Use common tools (e.g. client management systems), common protocols (e.g. client in-take & diagnostic processes), and common branding for the Ontario Network of Excellence; and • Support the coordination of Ontario Network of Excellence programs & services. • Clients will be able to access the Network’s programs & services through any member.

13. Mesh Network Model The Network will be based on a “mesh” network with multiple entry points rather than a hub and spoke model. A mesh network is designed to bring the best resource and expertise in the province to support the defined needs of any client, regardless of the location of either. A successful mesh network is achievable by ensuring all members are capable of both exchanging and gaining access to information and resources across the network. This model requires a funding structure that enables organizations to build trusting relationships with other member organizations as well as to ensure alignment and foster collaboration. Centralized Coordination OCE will be responsible for the coordination of the programs & services where companies want to collaborate with a public research institution including applied research and/or access new discoveries or technologies. MaRS will be responsible for the coordination of programs & services that directly support entrepreneurs and companies such as training, business mentorship, market intelligence, product development and access to equity capital. Regional Delivery A coherent and effective provincial network requires programs that are developed and supported centrally, but delivered regionally — where the innovators are. While services must be available throughout the province, resources must also follow demand, ensuring areas with a critical mass of ideas and talent receive enough support to compete globally. Regional Innovation Centres (RICs) will be established. RICs are regional-based not-for-profit corporations that will deliver Ontario Network of Excellence programs & services. Sector-based Expertise This will include specialized services such as: knowledge of the sector, academic resources (e.g. researchers, equipment, etc.), specific regulations, and other knowledge to help clients bring products or services to market Sector-based expertise will be provincially focused and coordinated to deliver sector specific expertise to clients. Sector Innovation Centres (SICs) will be established. SICs are sector-based not-for-profit corporations that will deliver Ontario Network of Excellence programs & services. Delivery Model

14. Network Members located across Ontario Network Members located across Ontario Network Members located across Ontario Network Members located across Ontario Network Members located across Ontario Sector-based Expertise Industry-Academic Collaboration Programs & Services Business Acceleration Programs & Services CLIENT Ontario’s Researchers, Entrepreneurs & Innovative Businesses

15. Funding to cover overhead costs of members - RICs & SICs Operating expenses geared towards critical mass of companies and research Coordination role for MaRS and OCE – anchor the Network Funding must be aligned with Ontario Network of Excellence mandate Demand-driven funding for programs & services. Movement towards performance-based funding. Funding Model

16. Ontario Network of Excellence Program (ONEP) Cover eligible overhead costs of Regional Innovation Centres (RICs) and Sector Innovation Centres (SICs) that will be Network members. Client focused programs: Industry-Academic Collaboration Program (IACP) Business Acceleration Program (BAP) Innovation Demonstration Fund (IDF) Ontario Emerging Technologies Fund (OETF) Supporting Programs

17. Goal: To cover eligible overhead costs of Regional Innovation Centres (RICs) and Sector Innovation Centres (SICs) that will be Network members. Activities: Influence the direction and provide momentum to regional focal points for innovation and commercialization. Funding needs to ensure regional access to the Network, while also being geared to critical mass of companies and research and demand-based funding. There will be a “tiered” regional model. In general, overhead costs include: staff (executive director & administrative support), office space or co-location facility, office expenses, and outreach and marketing. Managed by MRI. Ontario Network of Excellence Program (ONEP)

18. Goal: To build a world-class knowledge and technology transfer network for Ontario’s public research institutions to extract more value from all provincial investments in research and innovation through effective technology transfer networks. To leverage the full capacity of public research institutions to support industry-driven commercialization activities. Activities: Knowledge Exchange and Technology Transfer Filing invention disclosures and patents Licensing Institutional proof of principle funding Internships Industry-driven commercialization projects including access to engineering and science departments and business schools Management of contract research Collaborative Research involving industry and academic partners Applied research Technical problem solving Talent Under graduate internships International scholarships Graduate level students and post-doctoral fellows Student entrepreneurship Industry-Academic Collaboration Program(IACP)

19. Goal: To accelerate the start-up & growth of entrepreneurial talent and globally-competitive innovative companies of all sizes (from start-up to multinationals based in Ontario). Activities: Entrepreneurial Training; Market Intelligence; Business Mentorship; Business Strategy and Strategic Alliances; Prototype and Product Development; and Access to Investment Capital (including the Investment Acceleration Fund (IAF) and Angel Networks). Business Acceleration Program(BAP)

20. MRI http://www.mri.gov.on.ca/english/programs/MRI.asp MaRS http://www.marsdd.com/advisoryservices/advice/howtoworkwithus.html OCE http://www.oce-ontario.org/Pages/Home.aspx Accessing Resources