For Professors – Overview – Partnerships Programs

Idea to Innovation (I2I) Program

Duration	Application Deadlines	How to Apply
Up to three years	January 12, 2007 April 10, 2007 July 3, 2007 October 1, 2007	Forms 101 and 100 Form 183A – Phase II only
Program Contacts

Objective

The objective of the Idea to Innovation (I2I) program is to accelerate the pre-competitive development of promising technology and promote its transfer to Canadian companies. The program supports research and development projects with recognized technology transfer potential by providing crucial assistance to college and university faculty members in the early stages of technology validation and market connection.

Description

The program provides funding to college and university faculty members, through defined stages, for research and development activities leading to technology transfer to a new or established Canadian company. Two distinct funding phases are proposed which are characterized by the maturity of the technology or the involvement of an early stage investment entity (see Partner Eligibility below for definition) or an industrial partner. These phases are limited in time. In the first phase, the direct costs of research will be entirely supported by NSERC; in the second phase, they will be shared with a private partner. The technology development may begin with a Phase I (Proof-of-Concept) project followed by a Phase II (Technology Enhancement) project, or, if the development is at a later stage, can start directly with a Phase II project. In any case, a maximum of three years' funding will be available for any given project.

Eligible research and development activities include (but are not limited to):

• refining and implementing designs;
• verifying application;
• conducting field studies;
• demonstrating proof-of-concept;
• preparing demonstrations;
• building engineering prototypes; and
• performing beta trials.

The discoveries must be disclosed by the investigators according to institution policy and the industry liaison office (ILO) (or its equivalent) must endorse each proposal. All proposals must include a technology transfer plan, appropriate to the maturity of the technology, that describes how the work will proceed through the next stages in the validation process up to the eventual market entry. The ILO is expected to assist the applicant(s) in evaluating and protecting the new technology, service or process; developing proposals; preparing a technology transfer approach; making business contacts; and negotiating licensing or other such arrangements with potential partners. Up to a maximum of 10 per cent of the award may be used to co-support some of the activities undertaken by the ILO.

Eligible technology transfer activities include (but are not limited to):

• market studies;
• consulting fees (for business plan, market survey);
• patenting expenses; and
• expenses associated with creating a partnership (travel).

Half the cost of the technology transfer activities may be supported by NSERC up to a maximum of 10 per cent of the total award. The institution must justify these expenses and commit itself to bear at least half of their cost. Staff activities are not considered an eligible expense and cannot be used to leverage NSERC funds.

Phase I – Proof-of-Concept Stage

Phase I proof-of-concept projects are designed to advance promising scientific concepts or technologies in order to attract early stage investment and/or to build the intellectual property (IP) (e.g., broadening patent claims or strengthening licensing opportunities) in anticipation of transferring the technology to a new or established company. Any technology proposed in Phase I projects must be sufficiently mature, have its basic parameters already explored and have undergone sufficient testing to establish its potential to work in a product environment. Funding is available for up to 12 months, at a maximum of $125,000, and is non-renewable. NSERC will assume 100 per cent of the direct costs of research for Phase I projects.

Each project is expected to have a “go/no-go” decision point at the end of Phase I when either seed funding will be provided by an early stage investment entity or the technology will be further developed with an established or start-up company.

All Phase I proposals require a plan describing how a partnership will be established with a Canadian company that has the capacity to commercialize the research results. Although a business partner is not a prerequisite for Phase I applications, a demonstration of interest may strengthen the proposal. It is expected that technologies developed for the direct benefit of the receptor organization or industrial partner will be submitted as Phase II applications. This may not apply if the intention is to create a spin-off company.

Phase II – Technology Enhancement

Phase II projects are designed to provide scientific or engineering evidence establishing the technical feasibility and market definition of the technology, process or product. Phase II projects require an early stage investment entity (Phase IIa) or a company (Phase IIb) to share the costs of the project. The supporting organization is expected to participate actively in the planning of the project. The proposals fall into two categories according to the partner involved as described below.

Phase IIa – Early Stage Investment Partner

Proposals with an early stage investment entity must be designed with a “go/no-go” decision point, after six to 18 months, representing the achievement of a predefined scientific or engineering milestone that justifies moving forward by further developing the technology either through a new (i.e., start-up) or established company. NSERC can support up to two-thirds of the costs of the project with the early stage investment entity providing the balance in cash. Funding requested from NSERC should not exceed an average of $125,000 per year.

Projects that achieve critical milestones may be pursued during another 12- to 24-month period with either the newly created company or an established Canadian company providing the cost-sharing arrangement for Phase IIb projects are met.

Phase IIb – Partnership with a Canadian Company

Phase IIb proposals with a Canadian company are expected to be completed within two years and funding requested should not exceed $350,000 for the duration of the project. NSERC may fund up to half the cost of the project, with the company providing the other half through a combination of cash and in-kind contributions. Each case will be evaluated on its merits; however, it is expected that the cash component should equal at least 40 per cent of the amount requested from NSERC.

The industrial partner must have, or be able to acquire by the end of the project, the technical capability to undertake any further development necessary to take the product or process to market. The company receiving the technology should be prepared to carry out the preliminary market study, product/process development, engineering, and sales and marketing planning required to establish that a technology is viable, and to enter the market successfully.

The industry liaison office is expected to assist the applicant(s) and the partner in developing proposals, identifying markets and negotiating licensing or other such arrangements.

Application Procedures

Application forms and guidelines for this program are available on the NSERC Web site.

Applications are submitted by a college or university researcher (or research group) and, for Phase II projects, in association with an eligible partner. In the latter case, the institution and early stage investment partner or company should have in place, prior to application, a licensing (or similar) agreement relating to the right to exploit the invention or discovery. All proposals are expected to be developed in close collaboration with the institution’s industrial liaison office or its equivalent. The industry liaison officer involved in the application should be identified in the technology transfer section of the proposal.

Review Procedures

All proposals are reviewed by the Program Selection Committee with input from external reviewers as required. The program’s Selection Committee includes individuals with expertise in marketing, academic and industrial project management, and successful technology transfer. External reviewers are chosen for their scientific/technical knowledge and/or practical experience in the research field.

Selection Criteria

All applications (Phase I and Phase II) will be evaluated against the following criteria:

• Scientific/technical merit
• scientific basis for the expected commercial application;
• clarity and focus of research objectives;
• novelty, technical complexity, technical risk and feasibility; and
• appropriateness of work plan, milestones, deliverables and decision points.
• Team expertise and project management
• breadth and depth of team expertise in the proposed fields of activity;
• adequacy of personnel and material resources allocated for research and technology transfer activities;
• quality of project management; and
• financial management capabilities.
• Potential for technology transfer and commercial benefits
• commitment of the institution through its technology transfer office (or equivalent);
• appropriateness of the technology management and transfer plan;
• anticipated benefits for a Canadian company; and
• justification of the benefits of NSERC financing.

Criteria specific to each phase are detailed further in the application guidelines.

Partner Eligibility

NSERC will evaluate the eligibility of sponsors before accepting proposals for review. The following organizations may be considered as eligible partners in the program.

Early stage investment group: This term refers to either venture capital, a seed capital funding entity, angel investors, university technology transfer corporations, incubators or other similar funding or technology transfer organizations. Organizations that have received public funds as seed funding, but are functioning in a competitive environment and are required to achieve self-sufficiency within a pre-determined time period, may be considered as equivalent to industry.

Companies: Normally, participating companies must be Canadian. Companies outside Canada may also be considered as partners provided they can demonstrate that there will be clear and direct benefits to the Canadian economy as a result of their participation. As partners, companies must demonstrate that they have, or have the potential to acquire, the capability to commercialize the technology under development.

Researcher-owned companies: A researcher's own consulting company or sole proprietorship is not eligible to collaborate on a project in which the researcher is the applicant or co-investigator. Situations where the researcher is a part owner are reviewed on a case-by-case basis and the company’s stage of development will be taken into consideration in determining the eligibility. The commercial activity must conform to the institution's established policies relating to the disclosure of commercial interest and conflict of interest.

Reporting Requirement

A report to assess the practical and financial outcomes of funded projects will be required at the end of all projects. The report requires the input of the technology transfer office. For Phase II projects, the amount of the second instalment is negotiable; consequently, the applicant(s) must provide an interim report as well as statements of actual expenditures and of anticipated future costs. Based on the results obtained or problems encountered, grantees may propose amendments to the project objectives, milestones or budget. The next instalment will not be released until the partner has confirmed that it has met its current year’s commitment and that it intends to support the project in the next year.

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