Atlantic Innovation Fund

Round VIII

February 5, 2008

AGENDA• Provide an overview of AIF

• Define an “Ideal AIF project”

• Describe Common Pitfalls

• Q&A

• Provide contacts and our assistance

AIF at a Glance

• 7 Rounds launched and completed to date

• 247 projects approved; $635 million committed

• Round VIII launched May 5, 2010

• Expected announcement January, 2011

AIF Objectives

• New technologies, products, processes or services

• Commercialization of R & D

• Partnerships that strengthen innovation capacity

• Maximum benefits from national R&D programs

AIF Focus

• Based on merit

• Sectors where Atlantic Canada has comparative advantage

• Development of clusters

• Economic impact

• Collaboration

Eligibility

• Discrete R&D projects

• Eligible proponents include:– Private Sector Firms– Universities and Colleges– Research Institutions

Eligibility (continued)• Eligible sectors:

– Natural and applied sciences; – Social sciences and humanities, where linked

to technology development & commercialization

• No block funding

Funding Limits• Non-repayable contributions: 80% max. for

projects undertaken by non-commercial Proponents

• Conditionally repayable contributions: 75%

max. for commercial projects requiring assistance above $1M

• Assistance per project : $3M max.

Other Key Considerations

• Project Length: maximum 5 years

• Intellectual Property

• Environmental screening

• Ethics requirements for projects involving human/animal research

Content of Letter of Intent• Applicable Sector• Project/research proposal description (incl.

objectives, key team members & collaborators)• Anticipated deliverables and challenges• Estimated project costs, AIF request and

sources of other funding• Identified key project collaborators• Commercialization potential • Project Governance

Letters of Intent

• Mandatory for project proposal to be considered

• Due by June 15, 2010 at 2 pm

• Standardized format in terms of content

• Must use template available on ACOA’s website (See Guide Annex B-1 of RLIPP)

Content of Project Proposal• Executive Summary• Project Description • Description of Proponent, Key Collaborators and

Project Team• Technical Details• Financial Information• Commercialization Potential/Strategy• Economic Benefits• Building Capacity

Project Proposals

• Proposals due by September 1, 2010 at 2 pm

• Separate proposal for each stand alone project

• Standardized format in terms of content

• University projects submitted by the institution, not by individuals

Complete Proposal Package

• Project Proposal

• Administration Form (Annex A)

• Declaration Form (Annex A)

• Costs and Financing Information (Annex C)

• Results Measurement Information (Annex D)

Compliance

• Need to address at minimum the essential criteria

• All Annex’s must be provided at the time of submission

• Project must be ready

Evaluation Process

• ACOA Account Managers will conduct initial project assessment and consult with scientific/technical reviewers

• Sector Teams will provide strategic overview and prioritize projects

• AIF Advisory Board will review and recommend projects to Minister for approval

Criteria EvaluationScientific/Technical Scientifically and/or technically

sound Support new or improved

technologies Builds on research excellence

Management & Financial Management capabilities Adequate financing Leverages funding

Commercialization Commercialization potential Private sector participation

Capacity Building Strategic sectors/technologies Fills a gap in the Atlantic system of innovation

& improves innovation Capacity Is pan-Atlantic in scope Builds critical mass through

networks/cooperation Attracts new firms, institutions and

researchers Fosters national and international affiliations

Economic Benefit Significant economic benefits for

Atlantic Canada Be Incremental

Ideal AIF Project• Good science, innovative R&D• Strong technical expertise• Good financial structure (e.g. leveraging) • Strong commercialization potential• Draws on collaborative expertise of

universities, research centers and private sector

• Can be contracted and started within 6 months of AIF award

Common PitfallsScientific/Technical• Lack of Technical Detail • Lack of Details on Technical Risks & Risk

Mitigation Strategies/Contingencies Lack of Supporting Preliminary Data No Demonstration of Innovativeness and

Uniqueness of Research No identification of who is doing what in the

Research Plan Lack of Description of Deliverables/End Products

Common PitfallsCommercialization• Lack of Demonstrated Private Sector Commitment Weak Commercialization Partner Unclear Definition of End Products and their Market

Relevance Lack of Supporting Market Research and Assessment

of Competition No Commercialization Strategy or Path to

Commercialization not well defined

Commercialization

Common Pitfalls

Management• Lack of Demonstrated Experience in Managing Large

Scale R&D Projects Lack of Experience in Commercializing Research Results Lack of Evidence of a Strong Scientific and Commercial

Advisory Board Lack of a Strong Project Governance Structure Lack of Dedicated Project Manager Management Record of Past AIF Projects

Common PitfallsFinancial• Lack of Confirmed Financing History of Obtaining Financing Unclear Lack of Private Sector Cash Demonstrating Commitment Cash is King No Contingency or Back Up Plan for Alternative Funding

Sources Maximum Leverage of Co-funding is Encouraged – 50%

versus 80% Ask Requesting Maximum AIF Contribution - $3Million

Common PitfallsBuilding Capacity• Duplication of Existing Regional Research

Capacity Over budgeting to Build Research Infrastructure

Beyond Project Needs Lack of Evidence of Strong, Meaningful

Partnerships/Collaborations Pan Atlantic Collaborations Must be Meaningful,

International Desirable

Key Dates• Mandatory Letter of Intent by

June 15, 2010 – 2 pm.

• Complete proposal submitted by

September 1, 2010 – 2 pm.

• Announcement of Round VIII AIF awards expected in January 2011.

• Contracts to be completed within 6 months of AIF award.

Additional Information

• Further details, application templates and & updates can be viewed under the Atlantic Innovation Fund banner in the program information section at:

www.acoa-apeca.gc.ca