Policies & Guidelines

Guidelines for Organizations Participating in Research Partnerships Programs 

Description

NSERC offers a number of programs to support academic research in partnership with the private and public sectors. Although private or public companies are the most obvious means of exploiting research results commercially, other kinds of organizations may also be appropriate partners, particularly in early-stage or exploratory research, or research that contributes to the development of public policy.

Partner Eligibility Guidelines

The requirements for partnerships under the Research Partnerships Program (RPP) vary depending on each program and its objectives. Please consult individual program descriptions for more specific partner requirements.

As a minimum, any proposed partner, whether an established company, a start-up, an industry association, or a government department must have a credible plan for exploiting research results for the social, environmental or economic benefit of Canada. The partner must show that it has the expertise and resources to put the plan into effect, or the means, as well as the intention, to acquire this capacity.

Industrial Partners

• In general, an industrial partner is defined as a Canadian-based business providing products or services which derives the majority of its revenues from the sale of these products and services and not from government aid. Such partners must be willing and able to exploit the research results for the economic benefit of Canada.
  
• Multinationals may be eligible if they have commercial activities which take place in Canada, such as R&D or manufacturing related to the proposed research, and if the funded activity will result in significant economic benefit to Canada.
  
• Foreign firms may be eligible as a partner, provided an eligible Canadian-based industrial partner plays a major role in the project and will exploit the research results for the economic benefit of Canada.
  
• An industrial partnership can consist of a single firm, an industrial association or producer group, a formal or informal consortium, or a grouping of these. In the case of consortia, financial support to the project derived from industrial sources can be leveraged and there must be active involvement in the research project from one or more member companies, or the consortium itself, if it can demonstrate the capacity to guide the project and disseminate the results for its member companies.
  
• Public utilities.
  
• Start-up companies (companies in the R&D phase) that have sound business plans and secure financial backing may be accepted as industrial partners. However, they must demonstrate that they have, or have the potential to acquire, the capability to exploit the research results.

Other Partners

For the Idea to Innovation Program, Canadian-based venture capital firms are eligible in Phase IIa through direct support of the research or by investing in an R&D company in anticipation of developing the capacity to undertake commercial activity. Please see the program description for full details.

For the Strategic Project and Network Grants, government organizations are eligible as partners if they collaborate in all stages of the research project, provide guidance concerning the exploitation of the results and can apply the results in a way that strengthens public policy. Please see program descriptions for full details.

If you are still unsure about the eligibility of a particular organization, contact NSERC staff.

Eligibility requirements for NSERC's Scholarships and Fellowships programs are described in the Guide for Students and Fellows on NSERC's Web site.

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 a co-investigator. Situations where the researcher is a part owner are reviewed on a case-by-case basis; the company is usually considered eligible if the following conditions are met:

• There is significant investment by sophisticated investors, indicating that there has been an objective assessment of the commercial potential of the research and the company's viability
  
• The company has its own facilities, physically separated from the university researcher's laboratory (e.g., located off campus or in a university incubator facility)
  
• The company employs its own professional staff, apart from the university personnel; this staff is able to receive and incorporate the results of the university research into company operations
  
• The company is under the effective day-to-day management control of someone other than the university researcher
  
• The company has a board of directors with external members (i.e., some of those members, including the Chair of the Board, are at arm's length)
  
• The commercial activity conforms to the university's established policies relating to the disclosure of commercial interest and conflict of interest
  
• The university is prepared to ensure that the academic interests of students and postdoctoral fellows are protected

Contributions from Non-Eligible Organizations

Contributions to project costs by non-eligible organizations are welcome but are not taken into consideration in determining appropriate cost-sharing ratios. Direct or indirect support of a project by an ineligible organization can not be leveraged, and companies that receive and pass on such support must demonstrate that their total contribution includes significant amounts from their own resources.

Guidelines on Eligibility and Value of In-Kind Contributions

The industrial in-kind contribution to a university-industry collaboration is documented in order to assess the level and nature of the partner involvement and the importance of its contribution to the success of the project. NSERC will recognize only those in-kind contributions which are considered essential to carry out the work and which have been thoroughly documented and justified.

In-kind contributions considered essential to the research could be in the form of cash equivalent goods or services that represent an incremental expense the industrial partner would not normally incur and which would have to be purchased by project funds if not donated. In-kind may also include the time of the industrial partner’s scientific and technical staff providing direction and participating in the project. In some cases the industrial partner may provide access to special equipment.

Contributions to the indirect costs of research, such as secretarial or accounting services, cost of time attributed to research management, general overhead costs at the industrial partner, or other indirect costs are not leveraged. While post-project activity at the industrial partner may be critical for the ultimate commercial exploitation of the results, these activities would not be essential to carry out the immediate project and would not therefore be recognized by NSERC for the purposes of determining a cost-sharing ratio.

Regular industrial membership or subscription fees in industrial consortia, or payments to cover general operational costs or overhead charges to institutions eligible to receive NSERC grants are not eligible as industrial contributions to NSERC grants programs.

Each case is considered on its merits, and while an aim of valuing the in-kind contribution is to arrive at equitable cost sharing, quantitative assessments may prove difficult. NSERC exercises discretion in making the final decision.

The Eligibility and Value of In-Kind Contributions

This list is not all-inclusive. If in doubt as to the acceptability of a particular item, consult NSERC.