Annual Report 2017-18

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Annual Report 2017-18 ANNUAL REPORT 2017-18 albertainnovates.ca TABLE OF CONTENTS 3. Executive Summary 6. Accountability Statement 7. Message from the Board Chairperson 10. Operational Overview 11. Reporting on Results 12. Transitional Corporate Goals 12. 1. Nimble and Responsive 14. 2. Resource Allocation Tied to Outcomes 16. 3. Innovation Culture 18. 4. Co-ordinated Single Entity 20. 5. Coalition Building 22. Business Line – Investments 28. Business Line – Bio 31. Business Line – Clean Energy 33. Business Line – Health Innovation 36. Management Discussion and Analysis 39. Management’s Responsibility for Reporting 40. Statutory Report 41. Audited Financial Statements 63. Appendix - Key Legacy Metrics ALBERTA INNOVATES 1 2017-18 ANNUAL REPORT ALBERTA INNOVATES 2 2017-18 ANNUAL REPORT Executive Summary Alberta’s economic recovery is underway. Following declines of 3.9% in 2015 and 3.6% in 2016 the province’s gross domestic product increased by 4.9% in 2017, the highest among Canada’s provinces.1 Other key economic measures, such as employment, earnings, trade, manufacturing, exports and retail sales experienced growth in 2017.2 Since its inception in 2015, the Alberta Ministry for Economic Development and Trade (EDT) has led progressive measures to diversify and strengthen the provincial economy by supporting business growth through innovation, and through trade development, investment attraction and delivering opportunities for job creation. Efforts to improve Alberta’s economic resiliency and structural balance coincided with the November 1, 2016, consolidation of Alberta Innovates (AI) or “the Corporation.” YEAR IN REVIEW 2017-18 was a transformational year for Alberta Innovates. The Corporation made progress in its reorganization as it worked toward five corporate goals previously identified in the 2016-17 Transitional Business Plan. The work of consolidating four distinct organizations into one cohesive agency, and advancing research and innovation across a wide range of endeavours, carried over into 2017-18. AI focused on key integration deliverables and on the ongoing activities and commitments of its four business lines – Bio, Clean Energy, Health Innovation and Investments (formerly called Cross-Sector Innovation). The Corporation also met AI’s operational objectives for the year, and partnered with industry, government, post- secondary institutions and innovative small businesses to deliver on the intended outcomes of its primary stakeholder, the Government of Alberta (GoA). 1 Statistics Canada: Gross domestic product by industry: Provinces and territories, 2017 2 http://economicdashboard.alberta.ca/#dashboard ALBERTA INNOVATES 3 2017-18 ANNUAL REPORT ALBERTA HIGHLIGHTS INNOVATES of 2017-18 activities at a glance Long-term strategic plan initiated to define priorities for Alberta Innovates to deliver tangible outcomes intended by $94.7 Annual investment of $286 the Government of Alberta. M million, another $80 million ALLOCATED TO AI in technical support for from EDT to develop and 4 TIGER TEAMS administer Climate Change greenhouse gas emissions complete a corporate integration PROGRAMS Innovation and Technology reduction projects. 72 project. Their recommendations have reviewed in depth. Changes (CCITF) programs. CCITF is been taken on by the newly established made to create efficiencies being led by the Clean Integration Management Office (IMO) 72 and reallocate resources Energy business line. for execution. PROGRAMS to priority areas. in 14 investment portfolios and four Health partnership launched including AI’s business lines of Transitional Business Employee Health Innovation business % Plan deliverables engagement 98 line, Merck Canada and completed. survey results shared across the organization. Alberta Health Services An employee engagement plan to to improve access to high-quality care for Programs span the innovation define AI’s new culture and foster aboriginal mothers. continuum from discovery to employee development is underway. deal-making. $47.2M Alberta Machine Intelligence Institute Emerging Technology (Amii) and Google DeepMind lab in external contract revenue Sector Collaboratory 81% 72% generated by InnoTech Alberta. established at University of Alberta – established in partnership the outcome of longstanding with the Alberta Ministry of leadership and support support applied contribute to 76 PhDs Economic Development and from the Post-Secondary research value-generation Highly qualified and skilled Trade (EDT), to co-ordinate Investments Team of personnel at InnoTech Alberta provincial research and Alberta Innovates. worked with industry, government innovation activities related and small to medium-sized to emerging technologies. enterprises to enhance company competitiveness Applied research into cellulose nanocrystals and bring new technologies (CNC) and lignin production and product applications advanced under new Alberta Bio 600 10 to market. AI-LED PROPOSALS EMPLOYEES LOCATIONS 6 Future programs, aimed at developing these submitted to the federal materials into high-value, commercial Innovation Superclusters bioproducts. The programs have strong Initiative. applied research industry partnerships. 2 subsidiaries New executive talent joins the • InnoTech Alberta senior management team – Executive • C-FER Technologies VP Operations, Steve McMahon, and VP Marketing & Communications, Lyn Brown. ALBERTA INNOVATES 4 2017-18 ANNUAL REPORT ALBERTA HIGHLIGHTS INNOVATES of 2017-18 activities THE PATH FORWARD at a glance The Corporation will balance its activities to fulfill existing obligations while working toward full operational Long-term strategic plan initiated to integration, and begin the process of shifting its research define priorities for Alberta Innovates to and innovation priorities to maximize benefits for Albertans. deliver tangible outcomes intended by Annual investment of $286 $94.7M the Government of Alberta. Going forward, AI will build on two crucial deliverables million, another $80 million ALLOCATED TO AI from EDT to develop and that were completed in 2017-18 – the comprehensive in technical support for TIGER TEAMS 4 administer Climate Change program review and initiation of the new, five-year greenhouse gas emissions complete a corporate integration PROGRAMS Innovation and Technology reduction projects. 72 project. Their recommendations have strategic plan. The strategic planning process made it clear reviewed in depth. Changes (CCITF) programs. CCITF is been taken on by the newly established Alberta Innovates must make some fundamental changes made to create efficiencies being led by the Clean Integration Management Office (IMO) 72 and reallocate resources Energy business line. in focus. Investments in emerging technologies are a for execution. PROGRAMS to priority areas. minimum requirement for Alberta to compete nationally in 14 investment and internationally. An adjustment in AI’s investment portfolios and four Health partnership launched including AI’s portfolio will enable Alberta to capture emerging growth business lines of Transitional Business Employee Health Innovation business as technology diffuses throughout the global economy and % Plan deliverables engagement 98 line, Merck Canada and completed. survey increasingly obscures distinctions between sectors. results shared across the organization. Alberta Health Services An employee engagement plan to to improve access to AI will facilitate the growth and development of four core high-quality care for Programs span the innovation define AI’s new culture and foster emerging technologies and application areas in Alberta that aboriginal mothers. continuum from discovery to employee development is underway. have demonstrated momentum for high potential return and deal-making. lower risk: Alberta Machine Intelligence Institute $47.2M • Data-Enabled Innovation Emerging Technology (Amii) and Google DeepMind lab in external contract revenue Sector Collaboratory • Digital Technology for Business Transformation 81% 72% generated by InnoTech Alberta. established at University of Alberta – established in partnership the outcome of longstanding • Clean Technology with the Alberta Ministry of leadership and support • Innovative Production and Distribution support applied contribute to 76 PhDs Economic Development and from the Post-Secondary Highly qualified and skilled Trade (EDT), to co-ordinate research value-generation Investments Team of The Corporation’s unique position in the R&I ecosystem personnel at InnoTech Alberta provincial research and Alberta Innovates. worked with industry, government innovation activities related makes it the ideal agent to apply emerging technologies and small to medium-sized to emerging technologies. across multiple sectors. AI will leverage existing cross- enterprises to enhance sectoral R&I partnerships and collaborations and foster new Applied research into cellulose nanocrystals company competitiveness ones to accelerate the development, uptake and bring new technologies (CNC) and lignin production and product applications advanced under new Alberta Bio and spread of these technologies. 600 10 to market. AI-LED PROPOSALS EMPLOYEES LOCATIONS 6 Future programs, aimed at developing these submitted to the federal AI will also work on improving the client journey through materials into high-value, commercial Innovation Superclusters bioproducts. The programs have strong innovation, by streamlining and automating our internal Initiative. applied research industry partnerships. processes and operations to ensure target
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