Jose Costa, P.Eng, MBA

1. OCE Catalyst for Innovation TMOCE’s Innovation and Commercialization ModelPresentation to the Alliance of Technology & Science Specialists of Toronto (ATSS) Jose Costa, P.Eng, MBA Manager, Business Development February 11, 2009

2. Who We Are • Leading driver of research commercialization in Ontario • Mandate to improve Ontario competitiveness through innovation • Key partner with industry, universities, colleges, students, research hospitals, investors and governments • Founded in 1987 – merged in 2004 • Independent, not-for-profit corporation

3. Who We Are • Province-wide footprint • Offices in Toronto, Mississauga, Waterloo, Ottawa, Kingston, Markham, London, Sudbury • Currently building on our northern and rural presence • Diverse, Experienced Team • 40 business development officers from diverse backgrounds – research, academia, industry and finance drive opportunities with researchers and industry • Governance • As an independent not-for-profit corporation OCE is governed by a Board of Directors • Each Centre for Excellence also has a dedicated Board of Management • Our Board members are strategic, passionate and serve in a voluntary capacity

4. Historical Perspective Taxpayers $ Province Researchers • <1987 • >1987 Taxpayers $ Province Researchers Industry $ OCE • Company putting in cash means project is industrially relevant

5. OCE Funding Model • Ontario Government: • $34.3 million OCE core funding (annual) • $27 million, Investment Accelerator Fund (over five years) • $1.2 million Ontario Internship Program • $15 million one time (2007) to deliver “Transformative Energy” projects • $4 million one time (2007) from Ministry of Energy to deliver the Atikokan Bio-Energy Centre • Ontario Power Authority • $1 million partnership - Technology Development Fund • Industry Partnerships • $35.9 million in 2007/08 • Federal Government • $15 million Centre for Commercialization of Research (over five years)

6. What We Do • Drive economic prosperity in Ontario through the development and successful commercialization of new technology • Develop the next generation of innovators and entrepreneurs who will enable Ontario companies to succeed in the knowledge-based global economy • Work with our partners to facilitate and champion a culture of innovation in Ontario

7. Mission New Technology • Knowledge • Solutions OCE UNIVERSITY COLLEGE INDUSTRY • Bridge the gap between university research and the needs of Ontario industry • Commercialize technology and knowledge created through research • Achieve wealth creation and job growth. Challenges • Opportunities

8. How We Do It • Bringing the key players together – an active catalyst in the innovation process • Industry – Identify problems that need innovative solutions • Research – The problem solvers • Commercialize – OCE connects problems with solutions and drives it into the marketplace • To drive the commercialization process OCE: • Funds research and commercialization activities and collaborations • Leverages OCE funds with industry partnerships • Through our commercialization programs we also play a unique role in supporting the development of start-up companies to push disruptive technologies into the market

9. Our Expertise • Each Centre is focused on an area vital to the growth and development of the Ontario economy: • Centre for Communications and Information Technology (CCIT) • Centre for Earth and Environmental Technologies (CEET) • Centre for Energy (CE) • Centre for Materials and Manufacturing (CMM) • Centre for Photonics (CP) NEW: Centre for Commercialization of Research (CCR) Key areas of convergence: • Biomedical technologies (CCIT, CMM, CP) • Clean-tech (CEET, CE, CP, CMM) • Digital media (CCIT, CP)

10. Materials and Manufacturing Automotive Chemical Polymers Nanotechnology Metals Biomedical Manufacturing Processes Energy Energy Markets Market Dynamics Human Response Energy Systems Bundling Technologies Emerging Energy Technologies Development of Skilled People Photonics High Intensity Laser Nanotechnology Laser Processing Biophotonics Fibre Optic Applications Communications and Information Technology Communications Digital Media Information Technology Earth and Environmental Technologies Clean Water Technologies Sustainable Energy Solutions Sustainable Infrastructure Resource Management Sustainable Agriculture and Agri-Food Focus

11. Network • 20 Universities • 24 Colleges • Research hospitals • 26 Innovation Networks Network and Program Areas • Five Sector-Focused Centres • Communications and IT • Earth and Environmental Tech • Energy • Materials and Manufacturing • Photonics • Large companies • SMEs • Industry associations • Angel investors • Venture capitalists Research Programs ( Innovate ) Commercialization Programs ( Accelerate ) Talent Programs( Cultivate )

12. Our Programs • Research: • The OCE Research Program is focused on meeting the competitive needs of Ontario industry by tapping into the remarkable potential for Ontario colleges, universities and research hospitals to act as generators of innovation • It consists of four targeted initiatives: • Interact: Research collaborations that create new industry-academic relationships • Proof of Concept: Feasibility studies that test an idea to mitigate the risk of further research investments • Champions of Innovation: Research projects that develop disruptive technologies with the potential to create new markets and form the basis for new start-up companies • Collaborative Research: Research collaborations between industry and academia that move technologies from the lab to the marketplace

13. Our Programs • Commercialization: • The OCE Commercialization Program helps researchers and innovative technologies develop into successful Ontario companies through: • Market Readiness: Supports the development of real world applications for new technologies – OCE helps to successfully navigate the next stage of commercialization and transfer to a new or existing company • Martin Walmsley Fellowship: Awarded each year to an academic innovator seeking to transfer technology developed with OCE support into a business venture • Investment Accelerator Fund: Provides high potential Ontario technology companies with early-stage investment of up to $500K • Investment is made in the form of convertible debenture or nominal equity position in order to attract follow-on investment • IAF is accessible to all independent Ontario-based tech companies (new start-ups, early stage companies) • Newly established Centre for Commercialization of Research: Strengthen research to commercialization outcomes; OCE model is scalable, replicable and can take Ontario technology to the world stage

14. Intent: Technology and Market Assessment I.P. Protection Prototype Development Demonstration Business Plan Development New Company Start-up Criteria: Strength of the technology Potential economic impact Relevance to Ontario Skills and experience of the “team” Plan for ultimate commercialization Provides up to $100,000. Funds can flow to the university/college or to a start-up company. Market Readiness

15. Our Programs • Youth and Talent: • From Grade School to Grad School • Instilling passion for science and technology in students through our partnerships with: • Let’s Talk Science , Ontario Science Centre, Shad Valley, Junior Achievement • Talent Program • The OCE Talent Program generates the next-generation innovators and entrepreneurs. It consists of five initiatives that support innovators at various stages of their development: • Connections: Supports research collaboration between final-year undergraduate students and companies – creating an early opportunity to conduct industry-relevant research • International Scholarships: Gives student researchers opportunities to work with international leaders in their field • Conference Travel Awards: Supports opportunities for student researchers to present their research and to network with peers • Value Added Personnel (VAP): Helps student researchers develop essential skills to complement their technical expertise • First Job: Makes it possible for companies to hire young researchers with significant academic experience and potential • Strengthening Entrepreneurship: Through partnerships with Centre for Business, Entrepreneurship and Technology (UofW) and Xerox Centre for Engineering and Entrepreneurship

16. Value-Added Personnel Business Development and Entrepreneurship IP and Technology Transfer  Marketing and Sales  Strategic and Business Planning New Ventures  Management and Teamwork Project Management Negotiations  Ethics  Networking and Communications Career Management  Business Etiquette

17. Project Criteria • Science or engineering advance / challenge / risk • Must have ONTARIO partner  Ontario impact • COLLABORATIVE projects • Not contract research • Reasonable expectation to deliver commercial results within 2 (3) years • Not simply “on-going” research • Reasonable expectation of impact to the company • Revenues, technology license, know-how transfer • Company has capacity to leverage the results • Ability to invest cash and in-kind

18. What is Project Success for OCE? • License Transfer • Start-up Company • Highly qualified personnel • Company revenues • Jobs • Mandate to benefit Ontario

19. Results • Delivering Results: 2007 - 2008 • $24 million in 598 projects, leveraging $35.9 million of investment from partners (all projects not just research) • 721 Primary Investigators and 2,616 student researchers engaged in OCE projects • 1,337 individuals involved in OCE projects moved to positions within industry • 38 start-up companies (OCE total 122) • $451.0 million in incremental capital attracted by start-ups

20. Examples of current projects: • Automotive: Electro-kinetics for paint booths • Aerospace: Distributed Control System for landing gears • Chemical: Flocculants for water treatment, New coatings • Polymers: Powder coatings • Nanotechnology: water splitting with TiO2 • Metals & Metal Products: in-process surface porosity detection • Biomedical: Wound dressing,Deep Brain Stimulation • Manufacturing Processing: Robotic TIG welding • Design: CFD for Spray Nozzle Design

21. Our Success • OCE Success Stories • Stormfisher Biogas • Rapid Mind • Slipstream • Rimon Therapeutics • Atreo Medical • Regen

22. Secret to our Success • Unparalleled networks (Academia, Industry, Government, Investors, International) • Our Team • Province-wide reach • An independent advisor to government • Proactive search for innovation • Outcome driven • PARTNERSHIPS

23. Upcoming Events • Monthly Mind to Market Breakfast Series • Excellent stakeholder and networking opportunity for MEDT staff • Discovery 2009 – Canada’s foremost innovation event May 11-12, 2009 • Excellent exposure to the broader Ontario research and commercialization sector

24. Unique Position • Non-competitive • Complementary to other programs • NRC IRAP • SR&ED • Broad network with Experience and Expertise • Business and entrepreneurs • Researchers • Investors • Technology assessment • Technology transfer • Seeding spin-offs and developing venture teams

25. Flexibility • Joint programs • Leverage funds, access networks and expertise • Medical and Assistive Technologies: HTX-OCE-IRAP • Large company clusters and consortia • Focused, strategic initiative • Anchor company + researchers + complementary companies • IBM – Semantic Web / Virtualization • International collaboration • India, Spain, Israel, UK, Germany • Focused on delivering results • Accelerate commercialization that grows Ontario companies

26. Working with Industry • Our business is to accelerate R&D • Raise the bar • Breakthrough new applications • New ideas • Fewer blind alleys • That builds revenues • Improve competitiveness • Improve productivity • Create and expand markets • Through • Collaborative research with leading researchers • Very smart money, active commercialization support • Access to a broad business and technical network

27. What we offer researchers • Investment ($) in research commercialization • Collaborative projects with industry • Cash and in-kind investment from industry partner • Student experience • Interaction with industry • Commercialization Support • Market analysis, proof of concept • Seeding spin-offs • Improved access to venture capital • Powerful network

28. www.oce-ontario.org