CANADA'S OCEAN SUPERCLUSTER DRAFT FOR DISCUSSION
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1 CANADA'S OCEAN SUPERCLUSTER
2 Agenda What is Canada s Ocean Supercluster? Activity: Technology Leadership Activity: Cluster-building Funding Membership Next steps Q & A Networking
3 What is a supercluster?
4 We are an ocean nation.
5
6 2.7% OF GDP 1.8% OF GDP 1% OF GDP 2.5% OF GDP ~25% OF GDP
7 Gaps/Barriers in the innovation ecosystem Cost & risk Connectivity Capabilities Reach Cost, risk and complexity of ocean activity Lack of shared infrastructure Cross sector collaboration SMEs linked to large corporates Leverage complementary regional strengths Commercialization from PSE Skills & talent Diversity & Inclusion Competent capital in ocean space New entrants into ocean economy Export opportunity Supply chain opportunity International partnerships
8 COLLABORATIVE INNOVATION & CLUSTER BUILDING
9 5-year strategy TECHNOLOGY LEADERSHIP Strengthen links between cluster partners Foster Innovations applicable to multiple industries SHARED REQUIREMENTS & PRIORITIES PROGRAMS & PROJECTS Build capability in the innovation ecosystem Expand global reach of supercluster companies CLUSTER BUILDING Address global ocean challenges.
10 5-year outcomes Economic Impact Ecosystem Impact Improved cost structures, productivity, expanded production, enhanced sustainability, etc. New and expanded supply and export opportunities for ocean technology SMEs and suppliers GDP growth, per capita GDP growth Employment growth Increased business investment in R&D More start-ups and new entrants into the ocean economy Increase in the amount of "competent capital" investing in Canada s ocean economy More commercialization and IP-generating activity involving Canadian post-secondary and research labs More inclusion and participation by underrepresented groups Deepened pools of Canadian-based IP in ocean industries
11 TECHNOLOGY LEADERSHIP
12 Shared Challenges, Gaps, and Requirements MARINE ASSETS Over-reliance on human intervention Uncertainty about how assets and environment interact Limited underwater connectivity Costly transportation and logistics OCEAN ENVIRONMENT Harsh, variable, not well characterized Lack of cost effective monitoring tools Challenges collecting and transmitting data INNOVATION ECOSYSTEM Lack of connectivity across cluster Need for more density (startups, attraction, new entrants) Improve regional collaboration Lack of cross sector collaboration Lack of diversity and inclusiveness Need for high quality talent OCEAN ENTERPRISE Lack of integrated, automated systems Limited operational awareness
13 Collaborative Program Development 02 Cluster Input Socialization & refinement of potential projects based on member feedback. 04 Project Agreements Finalize funding, IP, and other elements of funded projects and activities. Idea Action 01 Discovery & Definition 03 Evaluation & Selection Collaborative ideation, definition of Prioritize projects and activities for common requirements and potential funding and execution. projects.
14 OVERVIEW AT JULY 2018
15 Project Development Process Initial scoping Development Finalization Agreements Preliminary Qualification Requirement and eligibility check Assessment How well does the project meet criteria? Selection Project Prioritization Allocation of project match
16 Minimum Eligibility Minimum of two (2) private sector investors, with no one funder contributing more than 2/3 of the private sector total. Project activities must take place in Canada. Project applications must be led by investors in the Ocean Supercluster. Projects are incremental (Projects are not underway and meet eligibility criteria) Projects are prepared and submitted in line with Ocean Supercluster processes.
17 Technology Leadership Project Criteria Criteria Business Case: ROI; commercial value; export opportunity; execution strategy Quality Partnerships: cross-sector, diverse, and/or large-scale Creates/accelerates innovative technologies and IP Capacity development and supply chain growth Includes indigenous communities and under-represented groups Minimum Eligibility
18 CLUSTER BUILDING
19 5-year cluster-building themes Foster opportunities for ocean technology startups and SMEs to work with large firms. Partnerships for Scale Access to Innovation Common facilities, equipment, and services to support the R&D of a broad array of startup and growing companies. Enhance capabilities, labour force skills, address industry needs for talent. Building Diverse & Skilled Talent Pools Global Advantage Global branding and network connections with leading global ocean clusters and other Canadian superclusters
20 Cluster-building activities Skill building initiatives, workforce development programs, Global talent attraction activities Commercialization programs for ocean innovations and research Accelerator programs for early stage ocean ventures Tech brokerage program which facilitates sales between big ocean companies and SMEs Soft Landing Program for ocean startups for better access to prototyping and testing
21 Year-1 Cluster-building priorities Pipeline: Supply chain collaborations & expansions Scaling companies & growing global connections New ocean start-ups and developing ocean sector talent
22 Diversity and inclusion Connectivity Barriers Capabilities Inclusion Regional diversity collaborations SMEs linked to large corporates Rural <> Urban partnerships Unconscious biases Accessible workplaces Inclusive language and policies Enrolment to PSE Skills for modern workforce Workplace learning New entrants into ocean economy Welcoming workplaces Supply chain opportunity More diverse boards
23 MEMBERSHIP
24 Membership Options Industry Investors Supply chain partners Large $15,000,000 Medium $5,000,000 Indigenous International Small $1,000,000 Academic Cluster Entry Level $250,000 Partners Non-Profit Government
25 FUNDING STRATEGY
26 Scope of funding Assumed $300M - $360M total cash funding over 5 years. ~85% through Technology Leadership - $260M - $306M ~15% through Cluster Building - $40M - $54M 26
27 Flow of Funds Private Percentage of total value of member investment paid in cash to OSC for admin and Cluster Building. Percentage of total value of member investment deployed directly on approved TLPs. TECHNOLOGY LEADERSHIP Funds Ocean Supercluster approved projects SHARED REQUIREMENTS & PRIORITIES Federal Funds Ocean Supercluster CLUSTER BUILDING All federal funding flows through OSC. A percentage is retained for admin and Cluster Building.
28 Funding technology leadership - approach 20% - COMMITTED TO SMALL PROJECTS OUTSIDE A PROGRAM (est. <$2M total project budget (Small Project) Column1 80% - COMMITTED ON A PROGRAM BASIS 5-6 Programs committed in years 1-3 ( $35M/ program; 2-3 years) Program Structure: 1-2 Keystone Projects (est. $8.0M/ project; 3 years) 2-4 Large Projects (est. $4.0M/ project; 2 years) X number of Smaller Projects (est. <$2.0M, 1.5 years)
29 Ex: Tools, processes & partnerships for improved ocean sensing & characterization OBJECTIVES Lower cost data acquisition Improve understanding of ocean operational sites Ecosystem-based management Capability workshops EX. CLUSTER BUILDING ACTIVITIES EX. PROJECTS: Advanced Sensors Enhanced Ocean Network Large Scale Demo Project space OUTCOMES Cost-effective monitoring and characterization tools More HQP Larger markets for SME technology Enhanced data-sharing Mentorship Co-op Opportunities Supply chain workshops Improve environmental awareness and stewardship
30 Next Steps Agreement of terms of Contribution Agreement Finalize by-laws and file articles of incorporation Finalize Unanimous Members Agreement Open membership Finalize operating policies and procedures Preliminary Program definition Elect Board 5-year Supercluster Strategy Year 1 Annual Plan First cluster activities
31
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