Alberta Innovates Innovation Voucher Program
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1 Program Guide Introduction The Alberta helps small technology and knowledge-driven businesses in Alberta get their ideas and products to market faster. Companies can apply for vouchers worth up to $15,000 or $50,000 to be used with a service provider for business and technology development services. Objective The Voucher program is designed to enhance the ability of small businesses operating in Alberta to be successful in the marketplace. The Voucher program aims to: Assist small businesses to move more rapidly from concepts and ideas to commercial products or services, thereby gaining a competitive advantage in domestic and export markets; Value of Vouchers Innovation Vouchers are available in two denominations: A Voucher to a maximum value of $15,000 for an Opportunity Assessment (Feasibility Study). A Voucher for a maximum value of $50,000 for more substantial technology development activities such as product prototyping, lab verification, field testing, etc. Businesses are potentially eligible to receive (if successful in their application) one of each type of voucher throughout the duration of the program. However, a company cannot receive a $50,000 voucher without having completed an opportunity assessment to ensure there is a market for the idea and that it is technically feasible. Program Structure A small business applying for a voucher must first be approved for an Opportunity Assessment voucher. If the small business has already had an opportunity assessment/feasibility study conducted for their innovation outside of the voucher program, the study must be submitted for approval prior to consideration for the $50,000 voucher. The intent of the Opportunity Assessment voucher is to ensure that there is a market for the idea and that it is technically feasible. Once a company has successfully undergone an opportunity assessment with promising potential results, they may apply in future rounds for the $50,000 voucher, which is intended to be used for product development and testing. Six competitions are held each year. The deadlines are October 1 st, December 1 st, February 1 st, April 1 st, June 1 st and August 1 st. Results are announced six to eight weeks after the application deadline. Applications may be submitted jointly by Alberta based companies and a service provider, that meet the eligibility requirements set out by the voucher amount being applied for. Forms can be downloaded from Alberta Innovates Page 1
2 ELIGIBILITY FOR $15,000 VOUCHER COMPANY The company must meet each of the following criteria to be eligible: Be a small business with gross income, for the preceding fiscal year, not in excess of $5,000,000 and has fewer than 51 employees Provincially or federally incorporated and operating in Alberta Be a technology driven business developing innovative new products or services for growing markets in one of the provincial priority areas of agriculture, forestry, energy, environment and health The applicant must not have previously been awarded a voucher in the amount being applied for. This includes vouchers that have been received by the applicant, not cancelled and never used.* * Please note that under the new voucher program structure, the $15,000 Voucher is considered equivalent to the $10,000 voucher, where the applicant company used the $10,000 voucher to complete a feasibility study. Any company having previously received the $10,000 voucher is not eligible to apply for the $15,000 voucher. Where a company previously received a $10,000 voucher but did not use it to complete a feasibility study, they would be required to apply for the $15,000 Opportunity Assessment voucher prior to being eligible to apply for the $50,000 voucher. Success in the $50,000 voucher competition is contingent upon a favorable opportunity assessment. SERVICE PROVIDER The service provider must meet each of the following criteria to be eligible under the $15,000 Voucher: Be an independent consultant or firm with Certified Management Consultant (CMC) certification, or equivalent credentials ( Have the capability and resources to complete all proposed voucher work in-house Have knowledge specific to the sector of the proposed voucher project Service providers are expected to charge on a fee for service basis at reasonable market rate for the services being provided. No up- front administrative fees are permitted to be charged against a voucher. Charging flow through administrative fees is not permitted. ELIGIBLE EXPENSES Qualified expenses under the $15,000 Voucher amount include: Opportunity Assessment (Feasibility Study) This study must examine the following factors: o Technology Feasibility o Market Feasibility Alberta Innovates Page 2
3 o o o o Operations Human Resources Financial and Strategy ELIGIBILITY FOR $50,000 VOUCHER COMPANY The company must meet each of the following criteria to be eligible: Has successfully completed an Opportunity Assessment demonstrating potential for success of the commercialization of the technology OR can provide proof of execution and success of an equivalent study. 1 Be a small business with gross income, for the preceding fiscal year, not in excess of $5,000,000 and has fewer than 51 employees Provincially or federally incorporated and operates in Alberta Be a technology driven business developing innovative new products or services for growing markets in one of the provincial priority areas of agriculture, forestry, energy, environment and health The applicant must not have previously been awarded a voucher in the amount being applied for. This includes vouchers that have been received by the applicant but never used.* * Where a company previously received a $10,000 voucher but did not use it to complete a feasibility study, they would be required to apply for the $15,000 Opportunity Assessment voucher prior to being eligible to apply for the $50,000 voucher. Success in the $50,000 voucher competition is contingent upon a favorable opportunity assessment. SERVICE PROVIDER The service provider must meet each of the following criteria to be eligible: Be an incorporated entity, independent from the applicant Have the capability and resources to complete all proposed voucher work in-house Have knowledge specific to the sector of the proposed voucher project Service providers are expected to charge on a fee for service basis at reasonable market rate for the services being provided. No up- front administrative fees are permitted to be charged against a voucher. Charging flow through administrative fees is not permitted. ELIGIBLE EXPENSES Qualified expenses under the $50,000 Voucher amount may include: 1 In the case where a voucher applicant is further along in their development and has already undergone an independent feasibility study for their technology outside of the $15,000 Opportunity Assessment Voucher, the applicant is required to include the study with their application for a $50,000 voucher in order to be considered. Alberta Innovates Page 3
4 Prototype development, testing, certification and demonstration necessary to move technology product and /or service to market. Protection of intellectual property; Development of business plans and market studies for innovative products and services. Specialized services required to obtain pre-commercial seed and venture capital financing for new and innovative high-technology products and services, which may include recruitment and corporation set up. INELIGIBLE EXPENSES Expenses not eligible under the Voucher program (either $15,000 voucher or $50,000 voucher amounts) include: Any expenditure of time by in-house personnel of the applicant; Any administrative fee or surcharge for administering such expenditures; Training Courses; Software; Equipment purchases; Design and production of advertising material ; Sales and promotion activities; Costs associated with applying for government grants and programs; Costs of internships or support for students of knowledge institutions; Basic professional services such as ongoing routine accounting, tax and legal business requirements and financing fees; Routine testing and maintenance; Travel costs and entertainment costs; Hospitality costs. Any expenses outside of those listed above must be pre-approved by Alberta Innovates Technology Futures prior to the actual expenditure. Ownership of all purchased materials resides with the company. Re-applications In the case of an unsuccessful application, a company may reapply with the appropriate changes to the original application no more than once. A covering letter addressing the changes that have been made to the original application must be attached to the re-application, and the new information within the application must be highlighted in the hard copy. If the second application is unsuccessful, Alberta innovates Technology Futures will not accept further submissions of the proposal. Also see company eligibility criteria section. Alberta Innovates Page 4
5 Award Details Term of Award The Voucher must be redeemed by the service provider for payment within one year from the date of the competition deadline. If the project is not completed within this timeframe, the Voucher becomes void and must be surrendered to Alberta Innovates Technology Futures. Start Date Successful Voucher Projects are expected to start within one month of award acceptance. Award Process Once the award offer has been made to an approved applicant, the applicant will send back their award acceptance form along with payment for their 25% of the estimated project costs, as outlined and approved in the application, within the allotted timeframe. Pending clearance of the payment from the applicant, AITF will send payment of the 25% company contribution to the service provider, thereby advising the service provider and the applicant that the voucher is activated and that work may begin on the approved voucher project. If the 25% company contribution payment does not clear, the voucher is rescinded. Please note that no physical voucher will be issued. Any scope changes to the approved project, as in the original proposal, must be approved by AITF. The Voucher Scope Change Form can be found on the AITF website and must be completed by the applicant and the service provider. Any unapproved project costs incurred will not be covered under the Voucher Program, including work done prior to a voucher being activated. Upon completion of the voucher project work, the service provider will request payment of the voucher by filling out and submitting to AITF the Voucher Payment Request Form, available at along with all required documentation. The remaining 75% payment will be made by AITF directly to the service provider. In the case of the $15,000 voucher, the 75% portion of the voucher payment will be made to the service provider by AITF only upon completion of the project. For the $50,000 voucher, payments will be made based on achievement of milestones as outlined in the approved application form or upon project completion as outlined in the original approved application. Review Procedure and Selection All Voucher applications are reviewed by an independent External Review Committee. The Review Committee reviews all applications using an evaluation tool, ProGrid. The Review Committee then makes funding recommendations to Alberta Innovates Technology Futures. Recommendations are based equally on the criteria as outlined in the Evaluation Matrices, available on the AITF website: Voucher applications are pre-screened for completeness. Incomplete applications will be returned to the applicant and will not be sent for external review. Alberta Innovates Page 5
6 Conditions of Receipt of Voucher Approved Use of Award Vouchers cannot be used to pay for services already funded through other municipal, provincial or federal government grant programs. Vouchers cannot be used to pay for customized, specialized client specific work, nor can service providers accept payment for such work if it is covered through any other municipal, provincial or federal program initiatives. Vouchers cannot be transferred to another individual or business. Vouchers may only be used to pay for work as outlined in the written agreement in the application between the service provider and the small business. This agreement is subject to approval by Alberta Innovates Technology Futures and should also outline the estimated costs of the proposed work and a clear timeline to completion. Voucher recipients will use the Voucher as partial payment to a service provider. The partial payment can be up to 75% of the total eligible cost of the project or the value of the voucher, whichever is less. Voucher recipients are required to contribute the remaining 25% in cash payment up front to AITF for the project before the voucher will be activated. Reporting Voucher recipients must, if requested by Alberta Innovates Technology Futures, provide a written report detailing the status of the approved project in a timely manner. Voucher funding is contingent upon satisfactory performance and achievement of milestones described in the application. During the term of the project and for a period of seven years thereafter, voucher recipients must keep accurate and complete records of the activities related to the funded Voucher project. Any records required to be maintained pursuant to this Agreement are subject to the protection and access provisions of the Freedom of Information and Protection of Privacy Act. During the three years following the completion of the award, Alberta Innovates Technology Futures may collect information on impacts and outcomes resulting from the award funding, such as new or enhanced products and processes, intellectual property generated, new customers, new or increased sales, market capture, and other significant outcomes. Voucher recipients must agree to participate in program evaluations that may be undertaken by Alberta Innovates Technology Futures from time to time at their own cost, both during and after completion of the voucher project. Payment of Awards The Service Provider will be paid the 25% company portion up front by AITF. Reimbursement for $15,000 vouchers will be paid in a lump sum for project costs upon completion of the project, up to the maximum value of the voucher. Reimbursement for $50,000 vouchers may be paid upon successful achievement of project milestones as outlined in the approved application form or upon project completion, up to the maximum value of the voucher. Payments will be made within a reasonable time after submission of the completed Voucher Payment Request Form. Alberta Innovates Page 6
7 Intellectual Property (IP) Intellectual property developed during the Innovation Voucher award will fall under the company s IP policy. If IP generation is expected as a result of the Innovation Voucher award, an IP agreement must be in place between the service provider and the small business to govern its ownership. Acknowledging Alberta Innovates Technology Futures All presentations and public messages arising from Alberta Innovates Technology Futures funding must acknowledge the support of Alberta Innovates Technology Futures. Please contact Alberta Innovates Technology Futures for assistance. Public Information Alberta Innovates Technology Futures reserves the right to publish and/or disseminate nonconfidential information regarding its grants. As a public body, Alberta Innovates Technology Futures is regulated by the Freedom of Information and Protection of Privacy Act (FOIPP) of Alberta. As such, Alberta Innovates Technology Futures will not communicate personal data of supported voucher recipients to anyone outside of Alberta Innovates Technology Futures. Changes and Termination Voucher recipients will be expected to achieve the milestones of the project as outlined in the application. Any substantial changes must be consistent with the overall intention of the approved award. The voucher recipient and service provider must receive approval from Alberta Innovates Technology Futures prior to any significant changes to the project. If the project is interrupted with the intention that it will be resumed, the voucher recipient and the service provider must seek and receive approval from Alberta Innovates Technology Futures prior to the interruption. Alberta Innovates Technology Futures must also be notified if the project is terminated by the voucher recipient or the service provider. When the award ends or is terminated, the voucher recipient is required to sign off on the Voucher Payment Request Form from the service provider, indicating their knowledge and acceptance of the completed work as agreed to in the approved application form. Failure to complete all required documentation will result in the final voucher payment being withheld and in the company being deemed ineligible to apply for future funding from Alberta Innovates Technology Futures. Conflict Resolution In the case of a dispute between the service provider and the voucher recipient, it is the responsibility of the disputing parties to reach a resolution. Alberta Innovates Technology Futures will not act as a mediator. Liability Alberta Innovates Technology Futures shall not be liable whatsoever to the voucher recipient for any direct or consequential loss, injury, or damage suffered by the voucher recipient. Indemnity Clause The voucher recipient shall indemnify and hold harmless Alberta Innovates Technology Futures, its employees and agents from any and all third party claims, demands, actions or costs (including legal costs on a solicitor-client basis) for which the voucher recipient is legally Alberta Innovates Page 7
8 responsible, including those arising out of negligence or willful acts by the voucher recipient, or the voucher recipient s officers, employees or agents. Insurance The voucher recipient acknowledges that the voucher recipient is responsible for all claims, demands, actions or costs (including costs on a solicitor-client basis) ( claims ) associates with the Project for which the voucher recipient is legally responsible. The voucher recipient accepts full responsibility for any and all costs associates with such claims and is responsible for insuring against such claims. The voucher recipient further acknowledges that no protection is available to the liability for these claims whatsoever. Program Audit As part of an ongoing effort to improve and enhance the Innovation Voucher program, Alberta Innovates Technology Futures reserves the right to audit any account pertaining to a voucher. Alberta Innovates Page 8
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