1. Industrial Research Assistance Program (IRAP)
October 2016

2. NRC – A century of innovation
Audience: Clients / Stakeholders
Industrial Research Assistance Program

3. Research & Development Technical and Advisory services
NRC business lines
Audience: Clients / Stakeholders IRAP is one of NRC’s main business lines and the primary mechanism for providing innovation support to Canadian SMEs.
Strategic
Research & Development
Technical and Advisory services
Industrial Research Assistance Program (IRAP)
Science
infrastructure
Industrial Research Assistance Program

4. Where is IRAP? We meet with clients at their business location.
Audience: Clients / Stakeholders
Industrial Research Assistance Program

5. Mandate: Stimulate wealth creation in Canada through innovation
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.
Audience: Client / Stakeholder 5
Industrial Research Assistance Program
Industrial Research Assistance Program

6. 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)
Audience: Client/Stakeholder IRAP performance data indicate that most projects result in a positive Return on Investment (ROI) with a cost-to-benefit ratio of (Source: 2012 IRAP Program Evaluation). Note – these figures are approximate averages. The 3,000 funded clients includes all # of funded firms that roll into this fiscal year from previous fiscal years.
Industrial Research Assistance Program

7. IRAP advantage ITA Smart Money Relationships Local Presence Network
Audience: Client / Stakeholder Smart Money = providing the right amount of funding at the right time.
Industrial Research Assistance Program

8. IRAP business model ADVISORY SERVICES IRAP Concierge International
FUNDING ($)
IRAP
Concierge
International
Business Advice
Youth
Linkages
Youth Green
Audience: Client / Stakeholder IRAP includes IRAP core and Contributions to Orgs. International includes: CIIP and Can Export
Competitive Intelligence
CAIP
Technology Expertise
ADVISORY SERVICES
Industrial Research Assistance Program

9. IRAP clients by industry sector
Source: FY
Audience: Client / Stakeholder
Agriculture & food
Construction & related products - services
Energy & resources
Health & life sciences
ICT ( Digital economy)
Manufacturing & materials
Others
Industrial Research Assistance Program

10. IRAP client profile # of Firms # of Employees
Audience: Stakeholder 01 to 10 employees – to 20 employees – to 50 employees – to 100 employees – to 300 employees employees - 41
# of Employees
Industrial Research Assistance Program

11. 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.
Audience: Client / Stakeholder
Industrial Technology Advisors (ITAS) are at the core of IRAP’s delivery. There are some 255 ITAs located in communities across Canada. ITAS serve as trusted advisors, they assist clients through every aspect of the innovation process, providing the unique blend of expertise, information and resources to help meet client needs and help them succeed.
Industrial Research Assistance Program

12. 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
Audience: Client/ Stakeholder 12
Industrial Research Assistance Program

13. 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.
Audience: Stakeholders IRAP sector teams represent key industry groupings . Their role is to be the “go-to experts” on their particular sector for IRAP, NRC and other government departments, by keeping up-to-date on the latest trends, innovations and advancements in their area of focus for the benefit of SMEs.
Each sector team has a lead and an IRAP ITA representative from geographical areas in which there is Canadian SME capacity in the technology sector. Each team also has a resource from NRC Knowledge Management. The teams coordinate and collaborate through regular meetings, with the team leader in an overall coordinating role.
CleanTech - Construction – ICT - Manufacturing & Materials BioMedical – BioProducts – Aerospace - Mining
Industrial Research Assistance Program

14. 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.
Audience: Clients/ Stakeholders NRC-IRAP offers financial assistance through core funding, as well as temporary funding targeted to specific purposes.
Industrial Research Assistance Program

15. 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
Budget: $222M
Audience: Stakeholder (For client audience – remove funding $)
IRAP core funding includes both: Contributions to Firms: NRC-IRAP provides non-repayable contributions to SMEs in Canada, on a cost-shared basis, for the research, development, adaptation and/or adoption of innovative or technology-driven new or improved products, services or processes in Canada.
Contributions to Organizations: NRC-IRAP provides financial assistance to non-commercial
organizations to either help them build their capacity to support SMEs (such as an industry association) or to provide complementary innovation support programs to SMEs.
FINANCIAL: NRC-IRAP $ $10 revenue for the firm
ROI: NRC-IRAP $ $12 economic impact
Industrial Research Assistance Program

16. 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.
Audience: Stakeholder While the main focus of IRAP core funding is on SMEs, the program also assists SMEs indirectly through contributions to organizations providing services to help SMEs access knowledge, commercialize their products, and compete in the marketplace. These types of investments further broaden the impact of IRAP and strengthen communities of support for SMEs.
Orgs
SMEs
Value for Canada
Services
Industrial Research Assistance Program

17. 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: $5 M
Duration: of internships:
6 to 12 months
Audience: Stakeholder (For client audience, remove funding$)
IRAP delivers its Youth programs under the Youth Employment Strategy (YES) – the Government of Canada’s commitment to help young Canadians (ages 15 to 30) obtain career information, develop skills, find good jobs and stay employed.
Industrial Research Assistance Program

18. 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:
3 to 6 months
Audience: Stakeholder (For client audience, remove funding $) The YEP Green program is currently a one-year program (2016/2017) Green criteria: To be considered “green”, a company must align with one of the following criteria:
The nature of the firms business should align with green economic sectors or industries
The youth internships is expected to produce some form of environmental benefit.
FINANCIAL: NRC-IRAP $ $10 revenue for the firm
ROI: NRC-IRAP $ $12 economic impact
Industrial Research Assistance Program

19. Innovation cycle – Where do we fit?
Customer Feedback
Competitive Analysis
Adoption
Adaptation
Product Development
Design
Manufacturing Strategy
Discover
Unmet
needs
Business Opportunity
Market Potential
Proof of Concept
Sales and Marketing
Formulate Innovation Strategy IP
Demonstration
Audience: Stakeholder
R&D
IRAP
CHTD/ CIIP EUREKA / Eurostars
Youth/ Green
BCIP
CIHR
Youth/ Green
MNE
CAIP
CanExport
Concierge
Industrial Research Assistance Program

20. Who do we fund?
Basic eligibility:
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.
IRAP offers funding to Canadian SMEs that have the potential and willingness to grow through innovation
Audience: Clients IRAP offers several different funding programs that compliment its advisory services.
Our formula - providing the right money at the right time to the right client. We work with firms to de-risk their innovation costs and co-invest in heir growth and development. Meeting the basic eligibility criteria does not necessarily guarantee funding. Before entering into a financial commitment with a client, both the firm and the project are evaluated on an individual basis during a consultation with one of IRAP Industrial Technology Advisors (ITAs).
Typically a new client will get under $50K in funding for an initial project Additional projects average between $90K to $200K in funding
Industrial Research Assistance Program

21. Helping SMEs grow their business through customized guidance, advice, and referrals to the most relevant programs and services
Audience: Client / Stakeholder Provides a single access point where small and medium‑sized enterprises (SMEs) can find high‑quality, timely advice to help them innovate and accelerate their growth.
Concierge Advisors are located across Canada with extensive networks, expertise and industry knowledge.
Customized guidance: selecting the most appropriate resources, and direct referrals to a network of partner programs and services.
Helping SMEs grow their business through customized guidance, advice, and referrals to the most relevant programs and services
Industrial Research Assistance Program

22. 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
Audience: Stakeholders IRAP offers its program delivery expertise and services to OGDs to help them delivery complimentary innovations assistance programs for SMEs. IRAP offers full program delivery on behalf of OGDs or select services (i.e. technical and business assessments, etc.) Complete Solutions:
Employment and Social Development Canada - Youth Employment Strategy (YES)
Global Affairs Canada - Canadian International Innovation Program (CIIP)
Department of Finance Canada - Canada Accelerator and Incubator Program (CAIP)
Innovation, Science and Economic Development Canada - Canadian HIV Technology Development (CHTD) program
Select Services
Western Economic Diversification Canada - Western Innovation Initiative (WINN)
Public Works and Government Services Canada - Build in Canada Innovation Program (BCIP)
Atlantic Canada Opportunities Agency - Atlantic Innovation Fund (AIF)
Innovation, Science and Economic Development Canada Strategic Aerospace and Defence Initiative (SADI)
Global Affairs Canada - CanExport
Canadian Institutes of Health Research - Health Innovations Partnerships Program (eHIPP)
Canadian Northern Economic Development Agency (CanNor)
Alberta Innovates Technology Futures (AITF)
Red Deer College (RDC)
Industrial Research Assistance Program

23. 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.
Audience: Stakeholders (this program is still in pilot form) High Potential Firms – firms that demonstrate potential for substantial growth that will have a significant economic impact in the short term. Players:
Business Development Bank of Canada (BDC);
Export Development Canada (EDC);
National Research Council of Canada Industrial Research Assistance Program (NRC-IRAP);
Global Affaires Canada Trade Commissioner Service (GAC-TSC); and
Regional Development Agencies (RDAs) 23
Industrial Research Assistance Program

24. 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
Audience: Client / Stakeholder 24
Industrial Research Assistance Program

25. MNE Strategy MNE ITAs Benefits to SMEs ITAs SMEs
Establish a relationship of trust Identify/ understand needs
ITAs
MNE
Connect with SMEs to seek solutions for MNE
Benefits to SMEs
Connect SMEs with MNEs
Audience: Stakeholders IRAP’s MNE Strategy explained:
The ITA acts as account holder who develops relationships with the MNE
The MNE identifies, to the ITA, different technical or R&D hurdles it needs help resolving.
The ITA reaches out to IRAP clients (SMEs) that either (a) have the solutions already or (b) have the capability to provide solutions for the MNE.
The ITA connects these clients with the MNEs
The clients will provide a solution (product or services) to the MNEs which in turn, provides them with three major benefits :it provides the SME with a test client, it can increase sales and gives them global access.
SMEs
ITAs
Coach SMEs
Industrial Research Assistance Program

26. Contributions Budget (2016-2017)
Audience: Stakeholders $ are rounded to the nearest millionth Actuals: Firms $158,214,000 Orgs $ 13,800,000 Youth $ 5,000,000 Budget 2016 Incremental $ 50,000,000 Green Youth $ 10,000,000 CAIP $ 24,446,000 IRAP conversion Ops to GC $ 9,000,000 CIIP $ 5,853,000 CanExport $ 11,000,000 Total contribution budget $ 287,313,000
Industrial Research Assistance Program

27. IRAP success stories
Industrial Research Assistance Program

28. 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
Headquartered in Vancouver, British Columbia, Aquatic Informatics received NRC-IRAP support to help identify gaps in the water informatics market and aid in the hiring of skilled graduates. With technical and advisory services from NRC-IRAP, Aquatic Informatics enhanced its leading software suite AQUARIUS, and developed a pilot program to help create a business model for international growth in the environmental monitoring industry.
Industrial Research Assistance Program

29. 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
With NRC-IRAP support, Saskatoon-based PapaBravo Innovations developed a line of rechargeable, exhaust-free, electric vehicles for the mining sector. With IRAP’s help in developing a focused R&D technology plan, and funding to hire skilled employees, PapaBravo soon found itself fielding purchase orders from as far as Australia. The company caught the eye of another Canadian firm, which acquired PapaBravo and its technology in 2015.
Industrial Research Assistance Program

30. 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
Support from NRC-IRAP enabled Waterloo-based Aeryon Labs Inc. to design and develop a high-definition camera payload for its small, unmanned aerial vehicles (sUAVs). Able to recognize a human face from 300 metres away or capture a serial number on a hydro tower from a safe distance of 30 metres, the technology paved the way for Aeryon to expand its list of civilian, industrial and military customers to some 35 countries.
Industrial Research Assistance Program

31. 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
Beyond financial help, which accelerated Kinova’s early research and development, NRC-IRAP helped the Montreal firm by structuring its stages of development, and by adapting JACO, the company’s robotic arm product, for export worldwide. Now a leader in innovative personal robotics for persons with reduced mobility, Kinova has customers in more than 25 countries, and counts Google, NASA and Microsoft as its clients.
Industrial Research Assistance Program
Industrial Research Assistance Program

32. 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
Thanks to more than a decade of financial advice, support and technical input from NRC-IRAP, Verafin of St. John’s, Nfld. was able to develop, from prototype to commercial product, its cutting-edge financial fraud and money-laundering detection software. Today, it finds itself with more than a thousand customers worldwide in an ever-growing sector. In the process, Verafin has earned numerous industry awards, and has seen its ranks rise from three employees to well over 160. 32
Industrial Research Assistance Program

33. Thank you 33
NRC: Canada’s RTO