Industrial Research Assistance Program (IRAP)
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1 Funding Opportunities & Programs (IRAP) Presented by Estelle Havva, B.Eng., MBA, CMA, CPA, NRC IRAP Aerospace Sector Team ITA March 23, 2017
2 2
3 Helping SMEs grow their business through customized guidance, advice, and referrals to the most relevant programs and services Toll Free Line
4 Thank you If you do not already have an ITA assigned to your firm, would you please call the below toll free line and you will be assigned the ITA for your region NRC: Canada s RTO
5 IRAP at a glance Since 1947 Present in all provinces, 120 locations Serving 13,000+ clients/ year Clients in all sectors Funding: 3,000+ clients Field Staff: 255 ITAs Partner Organizations: 200 Budget: $287M Gs&Cs Impact: $1 IRAP = $11 Return on Investment (ROI) 5
6 Where is IRAP? We meet with clients at their business location. 6
7 Mandate: Stimulate wealth creation in Canada through innovation. Mission: Accelerate the growth of small and medium-sized enterprises (SMEs) by providing them with a comprehensive suite of innovative services and funding. Vision Be the most impactful program of its kind in the world, where Canadian firms go first to transform their ideas into commercial success. 7 Industrial Industrial Research Research Assistance Assistance Program Program
8 IRAP advantage 8
9 IRAP business model FUNDING ($) IRAP International Youth Youth Green CAIP Concierge Business Advice Linkages Competitive Intelligence Technology Expertise ADVISORY SERVICES 9
10 Industrial Technology Advisors Private sector experience. Later in career cycle (typical 20+ years experience); Senior managers and/or entrepreneurs Most have engineering or science background. Over 40% have less than three years with IRAP. 10
11 Advisory services Our ITAs work with clients through every aspect of the innovation process, providing: technical and business advice referrals to other programs and services linkages and networking to appropriate resources / expertise searches strategic intelligence 11
12 IRAP Sector Teams Objectives Link innovative Canadian SMEs to global value chains. Support SME growth by providing access to current technology and business market intelligence on priority industry sectors. Increase the positive impact of NRC on innovative SMEs. Contribute to the competitiveness of Canadian industry Strengthen Canada s innovation system. CleanTech - Construction ICT - Manufacturing & Materials BioMedical BioProducts Aerospace - Mining 12
13 IRAP funding programs IRAP Core: Assists Canadian SMEs with their R&D projects with the intention and potential to grow the firm, and provides funding to a small # of organizations that provide direct services to innovative SMEs. Youth Employment Program (YEP): Helps SMEs hire highly-skilled post-secondary graduates Youth Employment Program Green: Helps SMEs increase their green innovation capacity through the hiring of youth Canada Accelerator and Incubator Program (CAIP): Provides funding to best-in-class accelerators and incubators to help more early-stage SMEs Concierge: Assists SMEs in navigating the many available innovation and support programs/resources and selecting the best options to help them innovate and grow. Canadian International Innovation Program (CIIP): Supports SMEs R&D collaboration with international partners in China, India, Brazil and Korea. Eureka, Eurostars: Supports SMEs R&D collaboration with European partners. CanExport (co-managed with GAC): Supports SMEs develop export markets. 13
14 Core IRAP funding - firms Target: SMEs with the potential and willingness to grow through innovation Purpose: To encourage investment in R&D activities that have clear commercialization goals Scale: 1,700 new and unique CAs/ year FINANCIAL: NRC-IRAP $1 Budget: $222M ROI: NRC-IRAP $1 $10 revenue for the firm $12 economic impact 14
15 Innovation cycle Where do we fit? Customer Feedback Competitive Analysis Adoption Adaptation Product Development Design Manufacturing Strategy Discover Unmet needs Business Opportunity Market Potential Formulate Innovation Strategy IP R&D Proof of Concept Demonstration Sales and Marketing MNE CAIP IRAP CHTD/ CIIP EUREKA / Eurostars Youth/ Green BCIP CIHR Youth/ Green CanExport Concierge 15
16 Who do we fund? Basic eligibility: IRAP offers funding to Canadian SMEs that have the potential and willingness to grow through innovation For profit SME incorporated in Canada 500 or fewer employees Assessment: The Business: business opportunity management capabilities and potential to achieve expected outcomes financial capabilities plan to commercialize the results The Project: Project plan and challenges R&D team s capacity to achieve success potential impact on the firm and Canada. 16
17 NRC A century of innovation 17
18 NRC business lines Strategic Research & Development Technical and Advisory services Industrial Research Assistance Program (IRAP) Science infrastructure 18
19 IRAP clients by industry sector Source: FY % 40% 35% 30% 25% 20% 15% 10% 5% 0% Agriculture & food Construction & related products - services Energy & resources Health & life sciences ICT ( Digital economy) Manufacturing & materials Others 19
20 IRAP client profile # of Firms Firms funded by size (# of employees) FY to to to to to # of Employees 20
21 Core IRAP funding - Orgs Helps SMEs by funding non-commercial organizations that provide innovation support services to SMEs that are complementary to IRAP s services. Orgs Services SMEs Value for Canada 21
22 Youth Employment Program (YEP) Target: Technology-focused SMEs looking to build their technical capacity Purpose: To support SMEs is increasing their innovation capacity through the hiring of post-secondary graduates Scale: Graduates: 250 Budget: $5 M Duration: of internships: 6 to 12 months 22
23 Youth Employment Program GREEN Target: Technology-focused SMEs looking to build their technical capacity Purpose: To support SMEs is increasing their green innovation capacity through the hiring of youth (ages 15-30). Scale: Funded placements : 1,000 + Budget: $10M Duration of internships: FINANCIAL: NRC-IRAP $1 3 to 6 months ROI: NRC-IRAP $1 $10 revenue for the firm $12 economic impact 23
24 Working with stakeholders IRAP offers program delivery expertise and advisory services to other federal and provincial organisations including: Proposal assessments Program design Program management Full program delivery 24
25 Accelerated Growth Services (AGS) Provides firms with a single point of access to all appropriate federal government support. Targeted at high-potential firms to help them scale up and achieve global competitiveness. Cross federal government initiative led by BDC and ISED including GAC, IRAP, EDC and the RDAs. Provincial partners are also being recruited. High performance firms will be assigned a dedicated officer or cross-government team to support them as they access government services, helping them innovate, expand exports, and grow. 25
26 Helping SMEs succeed globally Connecting clients to the global value chain Large enterprise initiative Sector Teams New tools to support international growth Canadian International Innovation program New member of Eurostars Increased participation in Eureka CanExport 26
27 MNE Strategy ITAs Establish a relationship of trust Identify/ understand needs MNE Connect with SMEs to seek solutions for MNE Benefits to SMEs Connect SMEs with MNEs SMEs Coach SMEs ITAs 27
28 Contributions Budget ( ) IRAP Contribution Programs Firms 158,000,000 Orgs 14,000,000 Youth 5,000,000 IRAP Appropriation 177,000,000 Sunset Programs Budget Incremental IRAP funds 50,000,000 STPYP - Green Youth 10,000,000 CAIP 24,000,000 Total IRAP Sunset Programs 84,000,000 IRAP Contributions Programs 261,000,000 IRAP Conversion of Ops into GCs 9,000,000 OTHER Non-NRC programs managed by IRAP CIIP - Global Affaires Canada 6,000,000 CanExport 11,000,000 IRAP Contribution Budget 287,000,000 28
29 IRAP success stories 29
30 Managing floods of water data All the NRC-IRAP ITAs we've had have been great very flexible, knowledgeable, and easy to talk to. They allowed us to be agile in our process, and each of them had a good understanding of our business. - Ed Quilty, President and CEO, Aquatic Informatics Vancouver, BC 30
31 Cleaner air for Canadian mines Really, the sky s the limit, and that needs to be credited back to IRAP support. We wouldn t have been able to bring on the people we needed at the times we needed them if IRAP hadn t been there to help us. - Patric Byrns, CEO, PapaBravo Saskatoon, SK 31
32 New heights in Canada s unmanned vehicles industry The funding gave us the opportunity to accelerate our research, increase resources and get the payload to market sooner. Two thirds of the HDZoom30 project was supported by NRC-IRAP, which helped ensure our success." - Sean McCabe, VP Engineering, Aeryon Waterloo, ON 32
33 Improving lives for people with impaired mobility "When I was younger, I had three uncles who were severely handicapped, and even then I dreamed of giving more freedom and dignity to people with impaired mobility. My dream became reality thanks to NRC IRAP. - Charles Deguire, CEO and Co-founder, Kinova Boisbriand, QC 33
34 Fighting financial fraud "When we launched our business we didn't know if it would be successful. Without IRAP's funding, and the critical advisory services that it provided, we wouldn't have been able to develop the prototype of our FRAML software, its applications and its artificial intelligence component. This support from NRC-IRAP has also enabled us to commercialize our product." - Brendan Brothers, Director of Product Marketing, Verafin St. John s, NL 34
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