McMaster Information Session 2019-03-26 Hamilton, Canada PHOTO: Corporal Manuela Berger, CK01-2017-0278-012

Industrial & Technological Benefits Policy The Industrial and Technological Benefits (ITB) policy was established to promote significant business opportunities for Canadian industry through federal defence and security procurement projects. Based on the policy, companies awarded defence contracts are obligated to undertake business activities in Canada equal to 100 percent of the value of the contract. Defence and Canadian Coast Guard contracts valued at over $100M are subject to the policy; contracts valued between $20M and $100M are reviewed and ITB policy may be applied.

FedDev Ontario’s ITB Unit Our mandate is to promote economic growth and diversification in southern Ontario. We leverage Canada’s ITB policy to connect Ontario-based companies & researchers with opportunities to work with Prime contractors that have won, or are planning to bid on, major Canadian defence projects.

FedDev Ontario’s ITB Unit We do this by promoting Ontario’s industrial capabilities and our strong innovation ecosystem at regional, national, and international conferences and trade shows.

FedDev Ontario’s ITB Unit We also work closely with other Federal & Provincial government departments, industry associations, post-secondary institutions, research centers, and companies of all sizes to keep on top of current opportunities and learn about upcoming ones. These include:

FedDev Ontario’s ITB Unit This cooperation helps us reach a wide variety of organizations within Ontario’s aerospace & defence sectors to keep them informed about upcoming industry events and other opportunities to connect with Prime contractors/Tier 1 suppliers with ITB obligations. If you would like to learn more, please contact us. FedDev Ontario’s ITB Unit is: Senior Manager Harold Deck harold.deck@canada.ca (613) 325-3484 Marine Lead Christine McKnight christine.mcknight@canada.ca (613) 697-5726 Air Lead Craig McClelland craig.mcclelland@canada.ca (519) 404-6429 Land Lead Ken McConnell ken.mcconnell@canada.ca (613) 791-0912 www.feddevontario.gc.ca

FedDev Ontario Funding FedDev will invest over $1 billion in Ontario between 2018 and 2024 through our funding initiatives. We are seeking innovative projects that: Increase the number of high-growth firms Strengthen key clusters and build on areas of regional innovation strength Increase the commercialization of new and innovative technologies, products or processes Increase business investments in the adoption and/or adaptation of leading-edge technologies Create and maintain highly skilled jobs Increase the value of exports Promote inclusive growth and participation of traditionally underrepresented groups such as women, Indigenous Peoples and young entrepreneurs

TIME SENSITIVE: Steel and Aluminum Initiative On March 11, 2019, the Government of Canada announced the launch of the Regional Economic Growth through Innovation Steel and Aluminum Initiative. For-profit firms located in southern Ontario, that employ between 10 to 499 individuals on a full-time basis in Canada are eligible. Priority will be given to projects submitted before April 8, 2019. Funding targeted to Intensive users of steel or aluminum that can demonstrate plans for projects to enhance productivity or to increase competitiveness by adopting new innovative technologies. Projects need to be completed by March 31, 2020. Non-repayable contributions from $150,000 up to $1 million, to support up to a maximum of 45 percent of eligible project costs.

FedDev Ontario Funding Streams The Business Scale-up and Productivity Stream aims to accelerate the growth of firms and assist with the adoption and adaptation of new, innovative technologies that support scale-up, productivity, development of and entry into new markets to help companies become globally competitive. The Regional Innovation Ecosystem Stream aims to create, grow and develop strong and inclusive regional ecosystems that support business growth and innovation, as well as the entrepreneurial environment necessary to foster more innovative regional economies and increase the competitiveness of small- and medium-sized enterprises (SMEs). The Community Economic Development and Diversification Stream aims to develop, diversify and transform local economies by promoting small business development, community innovation and strategic collaborations.

Funding Stream 1: Business Scale-up and Productivity Eligible Applicants: Ontario-based Incorporated businesses and Indigenous organizations. Eligible Activities Commercializing/producing new innovative products, processes or services. Acquiring, adapting or adopting leading-edge technologies/ processes, including digitization and automation, and related skills development for improved productivity and increased capacity. Demonstration of leading edge technologies and/or processes in an operational setting. (TRL 7-9) Late-stage technological development to support new markets and/or new industrial applications of technology.

Funding Stream 1: Business Scale-up and Productivity Key Information: $500,000 to $10 million funding Up to 35% of project costs No-interest, repayable contributions Repayment period over 5 to 7 years Projects will: Accelerate the commercialization of new products and services Promote market expansion and mandate attraction Encourage technology adoption and adaptation

Funding Stream 2: Regional Innovation Ecosystem Eligible Applicants: Ontario-based not-for-profit organizations Eligible Activities: Growing Clusters and Consortia Ecosystem Capacity Building Key Information: Non-repayable contributions $500,000 to $10 million funding Up to 50% of project costs

Funding Stream 2: Regional Innovation Ecosystem Projects will: Grow and sustain strategic clusters and consortia to support businesses to scale up and commercialize innovative products, technologies and services. Enhance the development and reach of business accelerators and incubators, and other organizations, which support entrepreneurs, start-ups and innovative companies with high-growth potential. Support projects led by innovation-oriented organizations to increase and promote business productivity and global competiveness, and investment and talent attraction

Funding Stream 3: Community Economic Development and Diversification Eligible Applicants: Ontario-based Incorporated businesses, Indigenous organizations and not-for-profit organizations Project in a community outside of a major metropolitan area, in transition, and/or facing economic hardship Eligible Activities: Businesses Supporting Resilient Communities (for profit) Strengthening Community Ecosystems (not-for-profit) Key Information: Non-repayable contributions and repayable contributions $250,000 to $5 million funding Up to 50% of project costs

Funding Stream 3: Community Economic Development and Diversification Expected results: Businesses in southern Ontario invest in the development and commercialization of innovative technologies. Businesses in southern Ontario are innovative and growing. Communities are economically diversified in southern Ontario.

FedDev Ontario Funding Streams If you are considering applying for funding, we would like to hear your ideas. Talk to your FedDev ITB representative to get feedback and advice about eligibility and how to scope & position your project before completing the online application. When you’re ready, apply online at: http://www.feddevontario.gc.ca

Thank You

FedDev Ontario Funding Streams Annex 1 FedDev Ontario Funding Streams Stream 1: Business Scale-up and Productivity Stream 2: Regional Innovation Ecosystem Stream 3: Community Economic Development and Diversification Eligible Applicants Incorporated businesses Indigenous Organizations not-for-profit organizations Incorporated businesses* Indigenous Organizations* not-for-profit organizations* Funding Range $500k to $10 million $250k to $5 million Max % of Project Up to 35% of eligible project costs Up to 50% of eligible project costs Stacking Up to 75% non-capital, 50% capital Up to 100% Repayment Term of 5-7 years No End Date December 31, 2023 * Project must be located in a community outside of a large metropolitan area, in transition, and/or facing economic hardship and decline “Stacking” is the total amount of Federal, Provincial, and municipal government funding

Canada’s Key Industrial Capabilities Annex 2 Canada’s Key Industrial Capabilities Emerging Technologies Advanced Materials Artificial Intelligence Cyber Resilience Remotely-piloted Systems and Autonomous Technologies Space Systems Leading Competencies and Critical Industrial Services Aerospace Systems and Components Armour Defence Systems Integration Electro-Optical / Infrared (EO/IR) Systems Ground Vehicle Solutions In-Service Support Marine Ship-Borne Mission and Platform Systems Munitions Shipbuilding, Design and Engineering Services Sonar and Acoustic Systems Training and Simulation https://www.ic.gc.ca/eic/site/086.nsf/eng/h_00175.html