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Accelerating Innovation 2 Alberta Innovates-Technology Futures BUSINESS PLAN 2016-19 3 Alberta Innovates-Technology Futures BUSINESS PLAN 2016-19

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Accelerating Innovation 2 Alberta Innovates-Technology Futures BUSINESS PLAN 2016-19 3 Alberta Innovates-Technology Futures BUSINESS PLAN 2016-19 ACCELERATING INNOVATION Alberta Innovates-Technology Futures Futures Alberta Innovates-Technology BUSINESS PLAN 2016-19 2 3 Alberta Innovates-Technology Futures Futures Alberta Innovates-Technology THE PURPOSE OF THE CORPORATION IS TO MAKE STRATEGIC AND EFFECTIVE USE OF GOVERNMENT OF ALBERTA FUNDING TO MEET THE RESEARCH AND INNOVATION BUSINESS PLAN 2016-19 PRIORITIES OF THE PROVINCE. MANDATE (2010) Alberta Innovates-Technology Futures is an integral part of Alberta Innovates – a strategically aligned and integrated provincial research and innovation system. Under the banner of Alberta Innovates, the corporation works with key innovation support agencies, with publicly funded post-secondary institutions, industry and government to further research and innovation in the province and make Alberta more competitive in the global economy. The Government of Alberta has AITF will create value through: given the Corporation the following • Increased effectiveness and integration of planning, responsibilities: funding and service delivery. • Support, for the economic and social well-being of • Alignment of programs and investments toward Albertans, research and innovation activities targeted priority areas and outcomes. at the development and growth of technology-based sectors and aligned to Government of Alberta priorities, • Improved coordination between business, technical including, without limitation, activities directed at the and networking services. commercialization of technology and the application • Increased program and investment focus on of knowledge. commercialization and product development. • Meet the research and innovation priorities of • Improved facilitation of knowledge, intellectual the Government in the following areas or in a property (IP) and skill transfer within the system, combination of the areas: and between academia, industry and government. agriculture; forestry; • Improved accountability and outcomes through energy; integrated performance monitoring and continuous the environment; improvement processes. health; any other area determined under the regulations; • Foster the development and growth of new and existing industries through research and innovation. 4 Alberta Innovates-Technology Futures BUSINESS PLAN 2016-19 BRIDGING THE GAP BETWEEN IDEAS, APPLICATION & COMMERCIALIZATION Imaging Specialist Shauna Cameron, member of the Reservoir and Geosciences team, prepares samples for computed tomography at the AITF Mill Woods CT Lab, Edmonton, Alberta. 5 Alberta Innovates-Technology Futures Futures Alberta Innovates-Technology TABLE OF CONTENTS BUSINESS PLAN 2016-19 MANDATE 3 EXECUTIVE SUMMARY 7 PLANNING CONTEXT 10 Strategic Collaboration 11 Competitive Context 16 Sectors, Business Streams 30 RISK MANAGEMENT 44 CORPORATE GOALS AND PERFORMANCE MEASURES 47 BUDGET 52 Consolidated Statement of Operations 52 Allocations to Key Outcomes 53 CAPITAL PLANNING AND LEASING ARRANGEMENTS 54 Capital Plan 54 Lease Arrangements 55 Pre-Approved Priority Projects 55 6 Alberta Innovates-Technology Futures Futures Alberta Innovates-Technology BUSINESS PLAN 2016-19 AITF operates 1 million sq. ft. of product and process development and scale-up facilities in Edmonton, Calgary, Devon and Vegreville. This also includes a 300 hectare research farm, three greenhouses, and 36 growth chambers. 7 Alberta Innovates-Technology Futures Futures Alberta Innovates-Technology BUSINESS PLAN 2016-19 EXECUTIVE SUMMARY ALBERTA INNOVATES-TECHNOLOGY FUTURES (AITF) HAS BEEN A KEY PLAYER IN ALBERTA’s innovATION SYSTEM SINCE ITS INCEPTION AS THE ALBERTA RESEARCH COUNCIL IN 1921. SINCE THAT TIME, AITF AND ITS SISTER ALBERTA INNOVATES CORPORATIONS HAVE BUILT PORTFOLIOS TO FOCUS ON INNOVATION ACROSS A NUMBER OF KEY AREAS TO SUPPORT ECONOMIC AND SOCIAL BENEFITS FOR ALBERTANS. 8 Background Commercialization Alberta Innovates-Technology Futures Futures Alberta Innovates-Technology Successful commercialization of products and services The Commercialization stream provides support to is the desired outcome of any innovation system, and high-growth potential SMEs by providing: has been a particular challenge for Canada. Research shows Canada is at the top of Organization for Economic • Non-dilutive capital to SMEs through multiple Co-operation and Development (OECD) countries when programs such as the Industry Associates program it comes to the generation of ideas and having a strong which allows SMEs to hire the right skillsets to talent pool. However the translation of ideas to commercial develop and market their innovative technologies applications, which is what ultimately generates economic and the Product Demonstration Program which outcomes, is lagging. According to the Conference Board links SMEs to first customers. This ability to directly of Canada, Alberta places 15th among the 26 comparator support SMEs is a competitive advantage for jurisdictions in a survey of OECD countries and earns the Province, as public support for innovation in BUSINESS PLAN 2016-19 a “C” grade on overall innovation. Canada is largely centered around indirect support mechanisms such as Scientific Research and The current economic downturn underscores the urgent Development (SRED) credits; need to address Alberta’s innovation performance and diversify the goods and services produced and markets • Business mentorship expertise through our served. We welcome recent changes, such as the creation Technology Development Advisors and a Capital of the new Ministry of Economic Development and Trade Access Team which supports Alberta SMEs looking (EDT), and the 2030 Innovation Targets developed by for funding beyond the public sector. the Province’s Innovation Collaboratories. These changes Taken together these initiatives help to accelerate the have elevated the innovation agenda and provide the commercialization activities of Alberta entrepreneurs, necessary clarity for AITF to align investments to the and generate strong economic outcomes for the 2030 Innovation Targets. province. This business stream focuses on high-growth potential technology-based SMEs and the results from Value Proposition these programs show the following outcomes achieved Working closely with EDT, AITF is uniquely positioned on average over the last 4 years: within the Alberta innovation system to support both • One net new job was created for every $50,000 in the public and private sector and increase innovation funding support; outcomes for the province. Addressing the gap between ideas, application and commercialization is • SMEs achieved $4.80 in incremental revenue growth AITF’s defining purpose. This is accomplished through for every dollar funded; three primary activities: AITF’s role as a facilitator to • 81% of the jobs created and 74% of the growth enhance collaboration and linkages with industry, in revenues was outside of the energy sector; and, small business, academia and government; de-risking innovation through Applied Research expertise; and • 53% of AITF-supported SMEs exported goods direct investment in high-potential small and medium- and services compared to 10.4% of Canadian SMEs. sized enterprises (SME’s). Taken together these activities strengthen Alberta’s economic base by increasing the In the upcoming years the Commercialization team number of jobs, creating value-add exports, enhancing will be focused on launching new programs aimed productivity, and spurring diversification. at scaling-up Alberta SMEs, enhanced reporting and improved system integration activities within Functionally, AITF is organized in three major streams: the Regional Innovation Networks. Campus Alberta/Basic Research, Applied Research, and Commercialization. In each stream, the corporation Campus Alberta/Basic Research supports the achievement of Alberta’s 2030 Innovation Targets in the Province’s priority industry sectors. The Campus Alberta/Basic Research portfolio This organizational structure facilitates collaboration provides funding in support of early stage research between industry, small businesses, government, and development activities including: and Campus Alberta. • Over 40 Chairs across 4 Campus Alberta institutions; Going forward AITF is focused on bridging the gap • Multiple Centres of Excellence that act as collaborative between ideas and value creation by accelerating the hubs where multidisciplinary teams perform research development and adoption of new technology. The and development work to find solutions to challenges following sections highlight AITF’s specific focus areas facing industry; and and the toolset available to support the achievement of the 2030 Innovation Targets. • More than 400 Graduate Student Scholarships focused • Environment – field testing new approaches and 9 in research areas in Information and Communications technologies for monitoring greenhouse gas (GHG) Alberta Innovates-Technology Futures Futures Alberta Innovates-Technology Technology (ICT), Nanotechnology, and Omics. reductions, and traditional ecological knowledge; Looking ahead, AITF will build greater linkages with • Food-Agriculture – facilitating the extension of industry and move the portfolio towards stronger leading edge science for the livestock industry; alignment to sector-focused innovation targets. There is growing recognition of the need to re-focus these • Fibre/Bio-Industrial – expanding demand for programs to also ensure Alberta companies have access engineered wood products and Oriented Strand to a pool of job ready, highly qualified skilled personnel Board, particularly in China;
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