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

funding and service delivery. and outcomes. priority areas and networking services. development. and product commercialization (IP) and skill transfer within the system, property and between academia, industry and government. integrated performance monitoring and continuous processes. improvement value through: AITF will create • effectiveness and integration of planning, Increased • and investments toward Alignment of programs • between business, technical coordination Improved • investment focus on and program Increased • facilitation of knowledge, intellectual Improved • accountability and outcomes through Improved

priorities of the PROVINCE.priorities make strategic and effective use and make strategic meet the research and innovation research and innovation meet the he purpose of the corporation is to the corporation of The purpose lberta Funding to of Alberta of Government

health; determined under the regulations; any other area agriculture; forestry; energy; the environment;

and innovation. research existing industries through and innovation activities targeted Albertans, research of technology-based at the development and growth sectors and aligned to Government of Alberta priorities, at the including, without limitation, activities directed of technology and the application commercialization of knowledge. or in a the Government in the following areas combination of the areas: • of new and Foster the development and growth • social well-being of Support, for the economic and The Government of Alberta has following given the Corporation the responsibilities:

– a strategically aligned and integrated is an integral part of Alberta Innovates Futures Alberta Innovates-Technology with key system. Under the banner of Alberta Innovates, the corporation works and innovation research provincial funded post-secondary institutions, industry and governmentinnovation support agencies, with publicly to further competitive in the global economy. and make Alberta more and innovation in the province research Mandate (2010) Mandate • innovation priorities of and Meet the research 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 BUSINESS PLAN 2016-19 3 7 10 11 16 30 44 47 52 52 53 54 54 55 55 te Goals and Performance Measures te ments al Planning and Leasing Arrange Competitive Context Consolidated Statement of Operations Capital Plan Priority Projects Approved Pre- Manda Table of Contents of Table Executive Summary Planning Context strategic Collaboration Risk Management Business Streams sectors, Corpora Budget Capit Key Outcomes allocations to lease Arrangements AITF operates 1 million sq. ft. of product and process development and scale-up facilities in Edmonton, Calgary, Edmonton, Calgary, development and scale-up facilities in process and AITF operates 1 million sq. ft. of product chambers. and 36 growth greenhouses, farm, three research hectare This also includes a 300 Devon and Vegreville.

6 Alberta Innovates-Technology Futures BUSINESS PLAN 2016-19 7 Alberta Innovates-Technology Futures BUSINESS PLAN 2016-19 Executive Summary lberta as the Alberta system since its inception across a number of key areas to support across a number of key areas Technology Futures (AITF) Innovates- Alberta have built portfolios to focus on innovation innovation portfolios to focus on built have economic and social benefits for Albertans. economic and social benefits lberta’s innovation innovation in Alberta’s has been a key player ince that time, AITF Since that Research Council in 1921. orporations Corporations Innovates and its sister Alberta

Associates program such as the Industry programs skillsets to the right to hire which allows SMEs their innovative technologies develop and market which Demonstration Program and the Product customers. This ability to directly links SMEs to first competitive advantage for support SMEs is a for innovation in as public support the Province, support indirect around Canada is largely centered and as Scientific Research mechanisms such credits; Development (SRED) Development Advisors and a Capital Technology which supports Alberta SMEs looking Access Team for funding beyond the public sector. funding support; for every dollar funded; and, was outside of the energy sector; in revenues to 10.4% of Canadian SMEs. and services compared multidisciplinary teams perform research hubs where and development work to find solutions to challenges facing industry; and Campus Alberta/Basic Research portfolio The Campus Alberta/Basic Research funding in support of early stage research provides and development activities including: • 4 Campus Alberta institutions; Over 40 Chairs across • of Excellence that act as collaborative Multiple Centres Commercialization to support provides stream The Commercialization SMEs by providing: potential high-growth • multiple through capital to SMEs Non-dilutive • our Business mentorship expertise through together these initiatives help to accelerate the Taken activities of Alberta entrepreneurs, commercialization economic outcomes for the and generate strong focuses on high-growth This business stream province. from the results potential technology-based SMEs and show the following outcomes achieved these programs on average over the last 4 years: • in for every $50,000 One net new job was created • growth revenue SMEs achieved $4.80 in incremental • and 74% of the growth 81% of the jobs created • 53% of AITF-supported SMEs exported goods team In the upcoming years the Commercialization aimed will be focused on launching new programs at scaling-up Alberta SMEs, enhanced reporting system integration activities within and improved the Regional Innovation Networks.

of ideas and having a strong it comes to the generation the translation of ideas to commercial talent pool. However is what ultimately generates economic applications, which Innovation Collaboratories. These changes the Province’s the provide have elevated the innovation agenda and to the necessary clarity for AITF to align investments AITF is focused on bridging the gap Going forward by accelerating the between ideas and value creation The development and adoption of new technology. specific focus areas following sections highlight AITF’s and the toolset available to support the achievement of the 2030 Innovation Targets. streams: major AITF is organized in three Functionally, Applied Research, Campus Alberta/Basic Research, the corporation In each stream, and Commercialization. 2030 Innovation supports the achievement of Alberta’s priority industry sectors. in the Province’s Targets facilitates collaboration This organizational structure small businesses, government, between industry, and Campus Alberta. uniquely positioned AITF is closely with EDT, Working to support both within the Alberta innovation system innovation the public and private sector and increase the gap Addressing outcomes for the province. is between ideas, application and commercialization defining purpose. This is accomplished through AITF’s as a facilitator to role primary activities: AITF’s three industry, enhance collaboration and linkages with small business, academia and government; de-risking expertise; and Applied Research innovation through in high-potential small and medium- investment direct activities together these Taken sized enterprises (SME’s). the economic base by increasing Alberta’s strengthen value-add exports, enhancing number of jobs, creating and spurring diversification. productivity, Proposition Value Economic Organization for is at the top of shows Canada (OECD) countries when Co-operation and Development Board to the Conference According outcomes, is lagging. and Trade of the new Ministry of Economic Development developed by (EDT), and the 2030 Innovation Targets 2030 Innovation Targets. system, and of any innovation outcome is the desired for Canada. Research a particular challenge has been places 15th among the 26 comparator of Canada, Alberta and innovation performance Alberta’s need to address markets and diversify the goods and services produced changes, such as the creation welcome recent served. We services and of products commercialization Successful Background of OECD countries and earnsjurisdictions in a survey innovation. a “C” grade on overall the urgent economic downturn underscores The current

8 Alberta Innovates-Technology Futures BUSINESS PLAN 2016-19 9 Alberta Innovates-Technology Futures BUSINESS PLAN 2016-19

gas (GHG) greenhouse for monitoring technologies knowledge; ecological and traditional reductions, livestock industry; science for the leading edge and Oriented Strand wood products engineered and, particularly in China; Board, innovation in Alberta. of health to influence the direction Responsive Culture to the needs is responsive which a culture Creating necessary to of the diverse client base we serve is as reducing win the race to innovation. Actions such over four grants to SMEs from the time to process the flexibility of months to six to eight weeks, increasing our largest and redesigning Industry Support Programs, to both Industry Consortium Program Applied Research management project engagement and share increase all examples of AITF’s are with industry, responsibilities commitment to continuous improvement. Financial Outlook AITF’s Budget and Announced in the 2016 Provincial accompanying the consolidation of the four Alberta Innovates Corporations, is a planned $45 million Government the of Alberta in funding from reduction to the new Alberta Innovates Corporation. This is due of all provincial required fiscal restraints to the current leadership, in collaboration agencies. The Corporation’s with the Government, will manage the budget reduction for cost savings, leveraging partnerships by searching possible extending existing value, and where to create commitments over longer periods of time. All four Alberta Innovates Corporations and the Economic working collaboratively to are Development and Trade manage the impact on outcomes. At this time, AITF’s is $13.7 million and portion of the $45 million reduction in program reductions will be primarily obtained from Alberta and spending within Basic Research/Campus Commercialization. • and approaches testing new – field Environment • of the extension – facilitating Food-Agriculture • demand for – expanding Fibre/Bio-Industrial • on the Health Collaboratory Health – actively participating will work in partnership with EDT, During the year AITF, of Emerging in the area a new Sector Office on creating partnerships have been built In each sector, Technologies. government and private sector clients to build with relevant sector-focused synergies and leverage expertise. AITF’s the likelihood and speed of outcomes, increases approach well-being and the social which drives economic prosperity of communities, companies, and individuals.

and forestry; in critical sectors such as food-agriculture accelerate technology adoption, increasing and competitiveness; productivity space in four locations (Edmonton, of research and Devon); and Vegreville Calgary, in scientific areas technicians and researchers a jurisdictional priority for Alberta. which are and mitigation leak detection, measurement improve in pipeline systems; methods for corrosion in Information and Communications areas in research and Omics. (ICT), Nanotechnology, Technology Sectors aligned are functional streams Activities in the three • joint industry and government initiatives, Create generates industry-funded research Applied Research its $60 million per year through of approximately $33 million and contract services and receives research used to: funding. These funds are per year in provincial stronger towards move the portfolio industry and targets. There innovation alignment to sector-focused these of the need to re-focus recognition is growing have access Alberta companies to also ensure programs highly qualified skilled personnel to a pool of job ready, sectors. key industry Alberta’s (HQ/SP) to support that may be overlooked by national programs. innovation priorities, government’s with the provincial competitive advantages and leverage the Corporation’s linkages with greater AITF will build Looking ahead, capacity is unique among Canadian Applied Research focus on innovation in and the Corporation’s provinces, opportunities Alberta enables us to identify and support • than 600 Alberta-based clients Support more • feet Maintain access to over one million square • than 450 Offer access to expertise of more will focus on Looking ahead, Applied Research industry competitiveness through supporting increased costs, developing value-added production reducing access for our SMEs to local and increasing products, and international markets. food- environment, key sectors of energy, in Alberta’s industry and health. Below are fibre/bio agriculture, Applied Research function supports the Applied Research AITF’s competitive businesses by development of globally accelerating the adoption of new both de-risking and scale of Alberta’s innovative technologies. The scope and • to research Energy – engaged in joint industry • focused Scholarships 400 Graduate Student than More activities in each sector: current some examples of AITF’s system THE KEY TO THE effectiveness of

lberta’s innovation innovation Alberta’s

Alberta Innovates-Technology Futures BUSINESS PLAN 2016-19 10 Alberta Innovates-Technology Futures BUSINESS PLAN 2016-19 11 Background exponentially Collaboration the speed and the increases both likelihood of successful outcomes. This is accomplished by expanding the investment pool, raising the quality of mentorship and building the networks necessary to get All of these the right information. sustainable contribute to stable, of transforming enterprises capable the economy. As a small jurisdiction, collaborative from a opportunities with partners of regions and organizations variety the chances helps to raise not only innovators of success for Alberta’s and entrepreneurs, but also the Province’s profile on the stage. international AITF has a long history of with industry, collaboration government and Campus Is Such collaboration Alberta. of critical to the effectiveness system. innovation Alberta’s

activities. As trusted advisors to commercialization and mentors, TDAs work with SMEs on productivity, development, innovation, business, marketing, product management activities. They act as pro- and project active connectors and navigators for SMEs to access due diligence, mergers and acquisitions (M&A), and also work among others. These experienced executives coaching team to provide with our commercialization growth development support to generate strong outcomes for Alberta SMEs. for engaging and advising SMEs responsible are TDA’s in business development and technology development and services, Innovation System programs Alberta’s Regional Innovation Networks (RINs), non-government organizations and government resources. private equity, corporate finance, investment banking, corporate and mentorship, financing solutions, and Industry Collaboration and Guidance SME Mentorship mentorship and Recognizing the importance of strategic successful, sustainable businesses guidance in creating AITF has out of innovations in technology or services, played by emphasis on the role begun to place increased and Technology our Executive Business Advisors (EBAs) position in this Development Advisors (TDAs). AITF’s equity an space is unique – our EBAs do not receive and the SMEs stake in the businesses they mentor, EBAs have served level support and guidance. All of our sector in senior executive positions in large private range of skills, including companies, and have a broad and structuring, business management, development accelerated in supporting a key role can play AITF by: Innovation Targets the 2030 towards progress for improved technology expertise sector and providing facilities access to pilot offering portfolio management; international implementing and expertise; and inter- building networks partnership programs; jurisdictional enterprises (MNEs) and Alberta’s among multi-national enterprises (SMEs) and small and medium-sized and expertise to delivering programs researchers; and scaling-up new products support SMEs developing and impact progress and monitoring or processes; of investments. no cost. these valuable mentorship services at receive with a The EBA position connects senior executives executive in need of portfolio of later stage SMEs who are

academia, government industry, Using input from ministries and agencies, the Collaboratories have to focus developed the Draft 2030 Innovation Targets and innovation investments in priority areas research game-changing value to have the greatest perceived detailed for each sector for Albertans. These targets are in the Competitive Context section of this business plan. to achieve these targets include Solutions proposed technology development and demonstration as well innovation. AITF has aligned its business as process and strategies to the 2030 Innovation Targets Outcomes as outlined in the Draft Alberta Research and Innovation Framework. has EDT, The Government of Alberta, through in the areas established Innovation Collaboratories fibre/bioindustry, environment, of health, energy, and emerging technologies. food-agriculture Government membership comprises of Currently, that make of Alberta departments and agencies programs. innovation investments and/or deliver for innovation These Collaboratories act as a catalyst guidance on Alberta’s within Alberta and provide and align the strategic innovation agenda to focus Sector Leads are innovation ecosystem. AITF’s Innovation Collaboratories, members of their respective portfolio of investments contributes to all and AITF’s five of these sectors. the Draft Innovation Collaboratories and 2030 Innovation Targets which AITF is working closely with One of the ways in Plan, Commercialization the Technology EDT is through and integrate a joint initiative exploring ways to align within the key organizations and support systems system in Alberta. technology commercialization detail in the This initiative is described in more section of this business plan. Commercialization and Trade Development Economic With of Economic of the Ministry the creation has raised the (EDT), Alberta and Trade Development focus on the need of, and placed the necessary profile in the province. and diversification for economic growth the priority our governmentThis demonstrates places supporting sectors, innovation, on job creation, and expanding and enhancing attracting investment, is a key partner in achieving market access. AITF number of key its activities in a this goal through economic sectors. Collaboration Provincial

Alberta Innovates-Technology Futures BUSINESS PLAN 2016-19 12 Alberta Innovates-Technology Futures BUSINESS PLAN 2016-19 13

hands-on through technologies and manufacturing workshops. and educational demonstrations will operate as a fully functional In 2016-2017, AMFI designed to de-risk and program technology transfer for local manufacturers, advanced technologies screen applicators, service companies, fabricators, coatings partners. AMFI will evaluate and and their supply chain new and existing technologies facilitate adoption of Sector supply chain. The into the Alberta Energy the between AITF, is funded by a partnership program Government and the federal government of Alberta, with the University of Alberta and works in conjunction AMFI has exposed more date, To and industry. than 250 companies to advanced manufacturing the world. across technologies from of modernthe understanding enhance fabrication AMFI is a Established in 2011, Innovation): designed to program development professional industry (PICoM): In partnership with several pipeline of participants, AITF is undertaking an evaluation as developing pipeline cleaning equipment, as well practices for pipeline sludge sampling recommended and transport; with energy industry participants, AITF is assessing the applicability of this technology to Alberta and reservoirs; industry participants, AITF is undertaking several to validate the use of chemicals projects research of heavy recovery combined with steam for improved oil and bitumen. (JIPs) Joint Industry Programs with several industry participants AITF has partnered to their to develop and test technologies relating (JIPs) act operations. These joint industry programs for as an alternative to industry consortium programs consultation to small group participants who prefer their competitive advantage. Some help preserve several years. of these JIPs have been operating for JIPs: current Below is a list of some of AITF’s • Monitoring Program Pipeline Integrity and Corrosion • Oil Recovery): In partnership EOR (Enhanced Microbial • In partnership with energy Steam Additives Testing: • and Fabrication (Alberta Manufacturing AMFI

of the oil and gas industry. new realities in line with the are priorities research AITF to ensure member R&D Established in 2009, MARIOS is a 31 suppliers and consortium which brings together both by AITF and end users. This consortium is managed by the oil sands sector to tackle materials, directed issues. equipment, and maintenance and reliability and The goal of MARIOS is to develop knowledge Established in 1984, AACI is a Program: Research managed world class, 12 member R&D consortium economically the purpose of developing and improving with creating AACI is credited bitumen resources. over $2 billion in annual economic impact for the players investing in R&D, AITF has taken some continued relevancy AACI’s steps to ensure proactive in oil prices. following the dramatic and sustained drop industry One method of achieving this is through partners actively selecting and managing the AACI This allows Groups. Strategic Task through programs downtime, validate technologies to significantly reduce in and productivity operational reliability and improve the oil sands industry. with by the oil sands industry by AITF and directed and technologies for heavy oil viable in-situ recovery of Alberta. Province Consortiums established several industry AITF has successfully solving industry-specific challenges. consortia aimed at to de-risk the designed are These consortiums by allowing organizations with innovation process and solve problems similar goals to pool resources collaboratively. • and Reliability in Oil Sands): MARIOS (Materials fund cheques” to simply “writing from shift away mentors through – to developing partnerships innovation businesses out of innovation, to cultivate sustainable strategic in AITF’s a key role TDAs play and Our EBAs and economic job growth to accelerate and facilitators SMEs, AITF is able and leadership to technically-minded • Industry (AACI) Core Council Alberta Research looking consortium consists of forward While this increase a tremendous AITF has witnessed diversification. to those and mentorship compared strategic guidance By offering mentorship only financial support. who receive our mandate. and better deliver on receiving of organizations and growth in the viability Opportunities operations. their relocate to having raw also available for organizations that look beyond are more that are goods to develop value-added products to market fluctuations. resilient International Collaboration Canada Alberta, as well as that It is well-recognized the This emphasizes is a small market. as a whole, stable connections of having strong, importance in internationaland demand natural markets for our products as well as our knowledge-based resources on internationaland services. Reliance demand also local enterprises, as global economic risk for increases a significant impact on the can have economic trends been industries. This has recently well-being of local oil and gas and the in the forestry demonstrated both supply increased demand and/or sector as decreased to reduce and driven producers has decimated prices Albertans and in lost jobs for operations resulting contribution to in economic an overall decrease the Province. sector has begun to While the Fibre/Bio-Industrial the oil and gas sector continues to struggle recover, of supply. with low demand and an over-abundance successes demonstrate On the positive side, recent firms when they the huge opportunities available to local able to network with international hubs knowledge are without

Resource National (IRAP), Program Assistance

WithinAITF is committed to any collaboration, This includes maintaining its investment philosophy. is “investment determining whether an opportunity including whether grade” based on a number of factors, of of strategic focus, areas scope it falls within AITF’s 2030 Innovation expertise and supports the Province’s Once this determination is made, AITF then Targets. possible funding considers leverage and examines all collaboration with our many including structures, innovation system partners. sharing of information and of these partnerships – from – to exploring additional co-funding opportunities direction focus on building this capacity over AITF will add more and impact the coming years to enhance the likelihood investments. of positive outcomes for our strategic focus on increasing we intend to Going forward fully develop opportunities for collaboration to more benefits Recognizing the potential these relationships. and depth the frequency increasing from that could result the Business Development Council Canada (NRC), and Sustainable Development Bank of Canada (BDC), Canada (SDTC). Technology collaboration to increase is unique opportunity There Provincially, partners. provincial between federal and our sister Alberta Innovates these partners include other governmentCorporations and agencies. A funding organizations also operate in number of federal including the Industrial space to AITF, a complementary Research Government and Federal Provincial Collaboration & InternationalNational Collaboration

Alberta Innovates-Technology Futures BUSINESS PLAN 2016-19 14 Alberta Innovates-Technology Futures BUSINESS PLAN 2016-19 15 Technologists in AITF’s Edmonton facility use an X-Ray diffractometer to provide characterization of powdered samples. Non- characterization of powdered Edmonton facility use an X-Ray diffractometer to provide in AITF’s Technologists and semi-quantitatively determine crystalline phases in unknown samples. used to identify destructive analytical methods are

Ralph Lange, Program Leader in Ecosystems & Plant Sciences, performing diagnostic testing Ralph Lange, Program facility. for Canola plants and seeds in Vegreville

Alberta Innovates-Technology Futures BUSINESS PLAN 2016-19 16 Alberta Innovates-Technology Futures BUSINESS PLAN 2016-19 17 Emerging Technologies th Heal

Fibre Bio-Industrial ture Skills, competencies and capabilities the organization available across needed and as they are where Sectors Food AITF accelerates the Agricul of value for Albertans by creation bridging the gap between idea and impact Environment Sector strategies define what we do Energy facilitates basic research, applied research, research, applied research, basic facilitates IN THE PROVINCE TO INNOVATION AITF’S CONTRIBUTIONS THE Government of alberta. PRIORITY focus areas BY orporation AREAS. The Corporation KEY OPERATIONAL THROUGH ITS PLAN OUTLINE SECTIONS OF THE BUSINESS THE FOLLOWING and commercialization for sectors identified as key and commercialization Basic Research Campus Alberta/ Applied Research Commercialization

Hooman Hosseinkhannazer, engineer with Norcada Inc., holds a custom-fabricated membrane engineer with Norcada Hooman Hosseinkhannazer, facility at the University of Alberta research device in the nanoFAB

Alberta Innovates-Technology Futures BUSINESS PLAN 2016-19 18 Alberta Innovates-Technology Futures BUSINESS PLAN 2016-19 19 Background basic, curve is A key element of the innovation focused or pure research, which is typically on theoretical hypotheses. The traditional is the pursuit conception of basic research unfettered of new knowledge and discovery to by the demands of its future application the needs of commerce or society. However, there is increasing acknowledgement of policy makers and academia on the part can be achieved by of the benefits that investing in basic research with strategic the outset of projects, at consideration, in which the knowledge could be of the way used. It is the role of AITF’s Campus Alberta/ Basic Research team to weigh investment decisions from the perspective of both scientific promise and the social and economic benefits be derived from research initiatives. will that lberta / Alberta Campus Basic Research

across and highly skilled researchers Centres, research supports there are but only in nanotechnology all three, Currently, and facilities. for dedicated platform projects the best possible technology investments will lead to the 2030 Innovation can address in these areas Platform through Creation Value Technologies its value through generates Basic Research AITF technologies within of the platform management strategic and indirect with its direct and in collaboration are technology areas platform partners. The three term and ‘Omics’ (an encompassing Nanotechnology, based on sciences). Technologies containing many life multiple the ability to cut across these platforms have have the potential to provide industrial sectors and AITF has supported Chairs, platform investment, a This presents these facilities operate independently. by seeking considerable opportunity for optimization that the new strategies and action plans ensure platform where effectively focus on those areas identifying ways outcomes for Alberta. This includes skilled people and facilities projects, in which research and generate the next generation of Targets, technological solutions. (ICT), Technologies Information and Communications multiple challenges. In terms of a single solution to alignment and synergies. of focus will be to an area In the upcoming year,

approach a project-based investments to better reflect active account management. Improving to research to investments will ensure management with regard both the benefit of clear direction receive that all projects system where and access to an aligned innovation reside. additional services, expertise, and infrastructure increasing in Alberta, thereby placement and retention to solve and capacity the knowledge-based workforce facing the sectors. economic and societal problems is support creation The second primary channel for value Human through Creation Value Resources some and redefine actionable challenges or problems, and to maximize for training and development of HQ/SP innovation system, as these This is important to Alberta’s utilizes a variety Basic Research innovation for industry. is an there of youth programs, In terms higher priority. upon existing processes improve opportunity to greatly successful outcome to improve Reflective of the need when is generated sectors. Value priority industry connects the strategic intent to AITF successfully challenges, with the capacity solve sector derived based solutions found within to generate technology manages activities toward Campus Alberta, and Alberta. The tools at our outcomes that benefit for Chairs and Research disposal include funding needs and aligned to industrial that are Centres platform strategies. in Campus Alberta, AITF will driven investments sector defined to better incorporate consideration of specialists that drive and technology the researchers are of tools to achieve this outcome, including support for graduate students with scholarships, funding for post- youth in doctoral fellowships, and supporting Alberta’s education and experience in science and technology will become a projects other AITF-supported research not only funding to young people wanting by providing to start a business but also support educational experiences, mentorship, scholarships and access to the likelihood improve other AITF services that will greatly of achieving success, in terms of both educational and Alberta’s clients are primary end Basic Research’s and Science through Creation Value Projects Technology development of HQ/SP and linking the In particular, and continuous undertake assessment, redefinition in the processes of many current improvement The majority of these will be directed upcoming year. Technopreneurship the Youth through entrepreneurship Program. outcomes. entrepreneurial

Alberta Innovates-Technology Futures BUSINESS PLAN 2016-19 20 Alberta Innovates-Technology Futures BUSINESS PLAN 2016-19 21 Senior Research Technologist Dean Rolheiser monitors the drying process for Dean Rolheiser monitors the drying process Technologist Senior Research CNC pilot plant, Edmonton, Alberta CNC (Cellulose Nano-Crystals) in AITF Mill Woods

Accelerating Technology Adoption

Senior Research Technologist Marshall McKenzie, Ecosystem and Plant Sciences, Technologist Senior Research selects seeds for a germination trial at the AITF Greenhouse in Vegreville, Alberta in Vegreville, selects seeds for a germination trial at the AITF Greenhouse

Alberta Innovates-Technology Futures BUSINESS PLAN 2016-19 22 Alberta Innovates-Technology Futures BUSINESS PLAN 2016-19 23 Background AITF’s Applied Research stream is a unique amongst Canadian hub of innovation provinces. Both large and small industry than clients are able to access more support 450 researchers, technicians and of over one million square feet staff, infrastructure and capital research space primary focused on the needs of Alberta’s industry sectors. AITF’s focus is to leverage and this specialized expertise, facilities equipment to de-risk research and development for industry and generate the maximum benefit for Alberta. APPLIED RESEARCH

funding

with operations Research Applied its with complete matters such as policy and regulation, to evaluate objective and local scientific expertise in a competitive and validate decisions. This results balanced advantage for Alberta in the form of governance for all. to maximize benefit the gap AITF is working to better bridge Going forward by between ideas, application and commercialization leveraging has a This means that the Province representative. unique benefit of an external viewpoint on sensitive & Leverage Investment Increased for partnership funding present are Opportunities effect of a larger the cluster through and commitment the the private and both which includes ecosystem Unique Perspective participant in Alberta’s AITF acts as an objective as neither a governmentinnovation sector industry nor public sector. and federal provincial for Applied of the funding two thirds Approximately industry for JIP by operations is provided Research The balance projects. as well as individual programs strategically toward funding is directed of provincial initiatives including many JIPs. important sectoral SMEs. with Campus Alberta partners and programs

for evaluating in success, AITF has a well-defined process pilot or demonstration stage, at which point additional While not all investments result likely. investment is more and has witnessed this and funding ideas and projects, on a number of occasions. successful progression capacity supports accelerated Applied Research AITF’s De-risking and Acceleration are innovations. These collaborative endeavors business plan. technology development and adoption of innovative in improved into our primary sectors, which results organizations develop their ideas while also exposing their leaders and concepts to potential partners. With AITF and industry backing, these SMEs have an to the of developing their products probability increased early- of particular importance to These activities are little to no additional stage small enterprises that receive direct personnel and its highly qualified partnership, and other government organizations. For example, consortiums link industry players to collectively AITF’s their common issues, and attracts governmentresolve of high-potential and private investment for scale-up section of this fully in the previous discussed more and environmental competitiveness, efficiency, aligned with the performance. These operations are that support these priorities and targets. programs industry or government.helps these AITF support from and public between private The intersection Collaboration industry supports needs of on the current application Applied Research for innovation. is a vital component competitiveness and productivity, partnership increases With than 600 the province. economic value for more and consortiums, companies, industry groups resource the Collaboratory government priorities identified through to play in establishing and AITF has a key role process, companies in their supports Alberta-based directly accelerate the adoption of efforts to de-risk and businesses. This collaborative technologies in their deep industry connections clients, AITF has established between a bridge its key sectors to provide across industry and government partners. These relationships facilitate connections among SMEs, enable our staff to (MNEs), large Canadian multi-national enterprises

Alberta Innovates-Technology Futures BUSINESS PLAN 2016-19 24 Alberta Innovates-Technology Futures BUSINESS PLAN 2016-19 25 Our corrosion engineering program assesses materials performance in corrosive environments and evaluates integrity management environments assesses materials performance in corrosive engineering program Our corrosion analysis. test using electrochemical an engineer is conducting a specialized sour service Here, industry. solutions for the energy Accelerating s Outcomes for SME

A water sample is tested using the Wilson Analytical Hardened Fluorescent Spectrometer at Caradan Chemicals, Nisku, Alberta. Spectrometer Fluorescent A water sample is tested using the Wilson Analytical Hardened

Alberta Innovates-Technology Futures BUSINESS PLAN 2016-19 26 Alberta Innovates-Technology Futures BUSINESS PLAN 2016-19 27 BACKGROUND is known for its high entrepreneurial Alberta an A+ rating ambition, which is supported by Canada. The from the Conference Board of competitive province has internationally hospitals, universities, engineering schools, is known for and technical institutes, and research. producing world class scientific to innovation brings Commercialization the market and AITF seeks to increase benefits – jobs and commercialization via its revenue for SMEs – for Alberta industry support programs, mentorship Network. and Regional Innovation capacity Over the last two years, by leveraging best practices from other jurisdictions, of industry which combined with a wealth experience, AITF and EDT have relevant the programs focused on revamped technology commercialization. COMMERCIALIZATION

customer

conducting of practice annual its maintain the flexibility of our industry support on increasing years, AITF has focused Alberta SMEs. Over recent while at the same time enhancing our due programs for evaluating investment decisions. diligence process undertaken following significant These changes were In the consultation with SMEs and entrepreneurs. AITF will continue to actively upcoming business year, when necessary. and tweak programs improve and evolution In support of continuous improvement innovation system, AITF to meet the needs of Alberta’s will Continuous improvement on a recurring programs and refines AITF reviews they continue to meet the needs of basis to ensure Capital Access to Venture private sector funding from Access to late stage investors is essential to enable strategic and financial of area of Canada in the Board the Conference from to capacity our to strengthen is excited The Corporation program support versus one-on-one mentorship lead with of these with four the province, across TDA’s additional year. of the fiscal starting in the first quarter positions and then successfully commercialize companies to first Province. scale-up within the a “D” grade scores Alberta currently Unfortunately, This has the effect of capital (VC) investment. venture of seven in the addition business plan invests funding. This investment in Alberta SMEs financial not only reducing benefits that but also limits access to the qualitative managerial often accompany VC financing, including experience, industry expertise, entrepreneurial suppliers, knowledge, and networks of customers, and other funders. venture to attract EDT has worked heavily in this area in tandem capital firms to Alberta. AITF is working activities, and other partners such with the Ministry’s the Business as Alberta Enterprise Corporation and gap. this Development Bank of Canada to address mentorship and direct In addition, AITF provides SMEs. The capital access expertise to late stage high- is to help driving purpose of these programs attractive potential Alberta SMEs transition into growth including investments for late stage capital investors, is banks, which strategic investors and commercial necessary for scale-up. the fall of 2016. Looking ahead, we will continue to use and timely changes to this information to make relevant these surveys, major changes are as obtained through in for the R&D Associates program underway already Campus Alberta, government, our services for industry, and SMEs. past clients, surveys. Based on in-depth feedback from

these

for year,

the management and marketing skill-sets SMEs to hire flexibility and better align skills changes to increase and experience with what individual SMEs require. supports Associates Program Commercialization AITF’s Mentorship and guidance challenges and commercialization to address required and transform ideas and inventions into goods and participants previous services. Building on feedback from AITF has implemented significant of the program, Recognizing the importance of strategic mentorship and successful, sustainable businesses guidance in creating players and stakeholders. system commercialization necessary to implement technology opportunities realize out of innovations in technology or services, AITF has emphasis on the role and more begun to place more Development Advisors. TDA’s played by our Technology connectors and navigators for SMEs act as pro-active support organizations and and integrate key ways to align system commercialization the technology services within to are strategic partnerships The goals of these in Alberta. SMEs, support employment the success rates of increase and other technology Campus Alberta institutions, diverse the activities of these By coordinating a stronger organizations, AITF is helping to develop and Innovation System programs to access Alberta’s services, Regional Innovation Networks (RINs), Non- Government Organizations and Government resources. and AITF is exploring initiative between EDT This joint Plan Commercialization Technology AITF’s integrator and facilitator, In its capacity as an of the critical importance of the In recognition function to growing technology commercialization commerce, Alberta jobs and globally competitive with EDT to strategically invest AITF has partnered and as in high demand industry support programs focus, funding of this increased a result new revenue create in technology sectors, growth the economy. and ultimately diversify streams, Innovation the include EDT, collaborative partners Regional Innovation Networks (RINs), Collaboratories, the Development Alliances (REDAs), Regional Economic that system in Alberta technology commercialization accessible. is outcome-oriented, efficient, and highly by $5.0 million per activities increased significant gaps in the represent The following areas January 2016. on an ongoing basis from stages of and the scale-up technology commercialization have been identified the innovation curve in Alberta. These them. has taken an active position in addressing the Corporation as key issues by AITF and as a result,

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Program Global Partnership vendors for larger companies. and Initiative (ASBIRI). These programs Research initiatives help position Alberta SMEs to be successful as the pilot Alberta Small Business Innovation and (PDP) as well Demonstration Program the Product Research in the innovation curve. At the Applied helps to link SMEs with their first customer through of stages AITF supports this objective at a number of the Province. on the economic prosperity SMEs and large facilities where stage, we provide industry players can test their technology and process stage, AITF innovations. At the commercialization positive impact organizations is having a significant to service larger companies. of Alberta entrepreneurs for local This expansion of market opportunities of technology, development, commercialization and the ability to launch new joint ventures the potential industries is imperative to unleashing Linking SMEs into the supply chain major Alberta’s Building a localized supply chain for designed are Zhejiang in China. These programs product for business-to-business matching for markets. into each other’s products internationalnational and to build globally objectives: job creation in enterprises, resulting competitive in for Alberta and Ontario. New beneficial projects with 2016, AITF manages key priority relationships of Province the State of Jalisco in Mexico and the with consistent are goals for innovation Alberta’s of living for and a higher quality growth, economic innovation system must achieve this, Alberta’s all. To to enhance our global relationships build multi-lateral of Excellence to deliver on mutually Ontario Centres and enable Alberta SMEs economic connectivity other and investment from to leverage both R&D to develop key and international relationships to and research targeted business-to-business with priority regions opportunities commercialization AITF has a strong the globe. In Canada, around we leverage the with Ontario where relationship national AITF leverages EDT, In collaboration with jurisdictions. HEALTH ENERGY Environment FOOD-AGRICULTURE Fibre/bio-industrial Emerging Technologies

Chemical Technologist Brittany Orfino prepares canisters for testing Volatile Organic Compounds (VOCs) Volatile Organic canisters for testing Brittany Orfino prepares Chemical Technologist facility. Alberta Research Services lab at the AITF Vegreville, in the Analysis and Testing

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when working collaboratively with internal and external partners to align funding and execution. the achievement By defining strategies that will lead to able to focus are of innovation goals, the Sector Offices with a high and projects their investments in programs towards progress likelihood of achieving appreciable the targets. These investments comprise the provincial sector time, AITF’s portfolio of each Sector Office. At this of highly new and staffed with a small group offices are heavily on the delivery experienced individuals who rely Applied of AITF (Campus Alberta/Basic Research, areas The Sector Offices and Commercialization). Research, on Applied Research reliance have a particularly strong linked to directly as historically many of the programs managed by this team. industry sectors were is an Over the coming years, commercialization the Sector Offices, and they for focus area increasing in connecting SMEs with: MNEs will play a key role the supply chain, mentors to support to strengthen operational and strategic planning, and investors to development and scale up. The support product Sector Offices will bring SMEs into the Applied and develop their facilities to further explore Research innovative technologies. At the same time, building tangible linkages with Campus Alberta is critical, and will be achieved by encouraging talented researchers with directly AITF to work more and technicians from post-doctoral students and experienced researchers within Campus Alberta. es Sector offic Fibre/Bio- Sector Offices in Food-Agriculture, AITF’s Health and Emerging Environment, Industrial, Energy, industry, – acts as facilitators between Technologies governments, agencies, Collaboratories, and other of the Sector Offices is to direct partners. The purpose to achieving the 2030 Innovation activities that lead Innovation Collaboratories. set by the Province’s Targets local as well as This entails a deep understanding of factors impacting Alberta’s global and macro-economic this understanding industries. The Sector Offices leverage

sector are also outlined. specific contributions within each specific contributions within orporation works with, and its the Corporation cosystem. a listing of key partners partners Ecosystem. a listing of key nnovation Innovation clarity of purpose for the nnovation targets which provide targets Innovation opportunities, and the Draft 2030 including both challenges and including both challenges province’s key industry sectors, province’s key industry sectors, a current state outlook on the a current state he following section provides The following section provides Sectors

Sector griculture griculture -A Food

preferences to seize and leverage changing global consumer required community are Both industry and the research as organic, non-genetically modified, for higher value consumer goods, including health conscious options such food processing friendly production, in environmentally these opportunities, continuous improvements capture To be essential. To and value-added industries are livestock crop, quality by Alberta’s technologies and product industry of a long-term sustainable food-agriculture committed to the development successful, Alberta must remain and resilient quality of life in our rural communities and a diversified dividends in the form of improved which returns food and Alberta’s and technologies that will assist developing programs AITF will continue economy. provincial one global rating in food safety. number agricultural industry to serve local and global markets and build on Canada’s works to sustainably and society as a whole, as the sector industry, A number of challenges face the food-agriculture food safety and expectations for competitiveness while continuing to meet the public’s and productivity increase to be one of four to component, is projected with Alberta being a key food-agriculture Canada, Western security. of 2.3 billion, by 2050. of 9.5 billion, an increase for the estimated world population six surplus food supply regions and diversify our economy. as we look to grow opportunity for the province This is a tremendous Sector Outlook and services. of agricultural products landscape supports a variety diverse Alberta’s ($8.8 billion) contributed almost 20% Statistics Canada data, Alberta to According the popularity of ethnic foods and demand for instant access are foods. Other noteworthy trends and gluten-free such as Changes to the trade landscape with agreements information by consumers and industry. to production sector Alberta Food-Agriculture that a nimble and responsive opportunities will create Partnership the Trans-Pacific can realize.

of $46.0 billion in 2013. Canola, wheat and exports of Canadian Food-Agriculture while cattle crops largest revenue-generating three barley make up the province’s the largest livestock markets. According poultry represent (beef and dairy), hogs and this represents and Forestry, of Agriculture the Alberta Ministry to statistics from land and $12.3 billion in total farm cash of farm 50 million acres approximately and livestock production. crop which was split evenly between receipts,

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the Ministry of Agriculture and Forestry location as Vegreville to position AITF’s a Provincial Crop Centre of Excellence; diversification research for industrial hemp and flax fibre utilization in value-added textiles and biocomposite materials; institutions and government partners to address the number one challenge of the beef industry; and opportunities for SMEs to service the and become food-agriculture industry, successful enterprises in the globalized local marketplace. cereal and oilseed crop varieties that are more resilient to environmental stress; evolving plant disease challenges and consumer quality demands; i.e., food safety, food-agriculture industry, security and quality; of the newest leading edge science for livestock with a particular emphasis on • Investment in crop and industry • Campus Alberta Facilitation of industry, • Focus on developing supply chain AITF’s Contribution those of the efforts contribute to AITF’s which Forestry, Ministry of Agriculture and Food- with AITF’s shares common goals Sector Offices and AITF’s Agriculture sector. focused on Applied Research programs are the following areas: near term outcomes in • of the latest tools to develop Utilization • a partnership opportunity with Exploring • Facilitating the extension and acceptance

86,000 42,234 natural resources ssociations and Commissions Associations and Food industry ’s Agriculture based on 2016 measures $6.3 Billion while responsibly managing Sales from ingredient, food, and Ensure that agricultural, food, and Increase crop and livestock quality 50 Million Acres from $13.7 billion (2014) to $25 billion beverage production meets or exceeds public expectations and values by 10% and productivity by 30% from 2013 levels, CANOLA COUNCIL OF CANADA / FOOD PROCESSORS AND MARKETERS INDUSTRY / PRIVATE AND FORESTRY OF AGRICULTURE LIVESTOCK GENTEC / MINISTRY Partners in this sector *Partial List of AITF’s Alberta beverage product manufacturing increases

(Real GDP) otal Reduce Waste Drive Investment Increase Sales Partners* Employed in the Sector Number of Census Farms in 2011 2014 Number of Albertans Directly Farm Land lberta’s to Alberta’s 2014 T 2014 Contribution Economy Draft 2030 Innovation Targets Statistics Key Sector

Sector

highly dependent on the industry for employment, sustaining this than 50 Alberta communities, many of which are rural heartland. With emphasis on the renewed sector is critical for ensuring the health and vibrancy of Alberta’s production industry has historically and continues to invest significant capital in facilities to improve While the forest to diversify and add value and efficient value recovery, needed to enhance productivity Innovative strategies are income stability while high labour and logistics costs, and provide to compensate for comparatively to products for the as a foundation sector has been recognized generations. The forest for future managing the environment still many however, are, There its ability to efficiently manage and deliver fibre. emerging bio-industrial sector due to emerging this before optimization issues that must be addressed development, economic, and product process within the public the industry is seeking specialized facilities and expertise sector can come to fruition. As a result, as produce as well and products processes to help design, develop and demonstrate new bio-refining infrastructure of these facilities and The creation highly skilled scientists, engineers and technologists for bio-based processing. in Alberta. technical services is vital to the establishment of this new industrial sector commodity subject to the global increasingly are as commodity products pressure downturn In significantly impact capacity and employment in Alberta. which can either closer that are against producers years, Alberta has been competing recent The massive contraction in the US quickly. more fibre to the market or able to grow the export destination for Alberta lumber and panels) in housing market (the largest Canada, and while across and slowdowns in mill closures decade resulted previous levels. have yet to return to pre-2007 total exports the market is recovering, and US dollars has been positive for the decline in the exchange rate between the Canadian the recent However, forest traded in US dollars. Faced with these fluctuations, are due to the fact that most commodity products sector, competitive they need to globally that to maintain their long-term viability and remain companies recognize product and practitioners of sustainable forest products of traditional forest as producers build on their existing strengths new and value-added products. management practices while also finding oil and gas sector has meant that this sector has not been a primary operating alongside Alberta’s efficiency and safety, industry is a vital economic driver for more focus for government and private sector investment. Given that the forest AITF plans to add additional capacity to meet the needs of the sector in the upcoming year. diversification in the province,

Sector Outlook of the most challenging – some has faced – and overcome industry forest Canada’s

industrial io-industrial /B Fibre sector is under Fibre/Bio-Industrial The conditions in its history. market and economic

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product companies and uptake industries to address real world opportunities and challenges with commercial implications; Consortium to inform and coordinate activities related to forest products; including FP Innovations, Natural Resources Canada, the National Research Council, and Economic Diversification to leverage Western resources in support of activities of mutual interest and benefit; partners, including the Alberta Forest Products Forest Resource Improvement Association (AFPA), Association of Alberta (FRIAA), Foothills Model Forest, to address Alberta-centric environmental challenges with bio-industrial solutions; Nano-Crystals (CNC), and discover new uses for lignin and biochar applications; and wood products and Oriented Strand Board, particularly in China as they have banned all tree Industry harvesting in their Country and Alberta’s is in a comparatively advantageous position to service this significantly increased global market. Contribution AITF’s on developing, efforts are centered AITF’s de-risk, at the lab demonstrating and helping and pilot scale, the commercial applicability of and pilot scale, the commercial viable technologies leading-edge, economically in the forest sector. Within this area, we are in the forest sector. and the by-products focused on pulp and paper well as engineered wood of the pulping process as with companies and products. AITF works directly competitiveness by other researchers to improve to diversify production into identifying opportunities expanding market reach higher margin products and into new segments and new geographic regions through the following: • Strengthen industrial partnerships with forest • Establish the Alberta Forest Products Innovation • Deepen relationships with national partners, • Develop strategic relationships with provincial • Commercialize products using Cellulose • Expand demand for AITF licensed engineered

Pulp Mills 6 ood Product Mills 50 13,000 Newsprint Mill and species recovery 1 to reference conditions $4.5 Billion Biodiversity is maintained Sawmills or enhanced at levels relative 50 Engineered W Alberta has safe, secure, and reliable by 20% and accelerate reclamation of Reduce landscape disturbance intensity 7 of the aquatic ecosystems and improving disturbed lands to promote native habitat Partners in this sector *Partial List of AITF’s griculture and Forestry Agriculture – BioSolutions / Alberta Innovates Alberta industry Economic Development & Trade / Private Alberta Resources Canada, including CANMET Energy Natural and NAIT , University of Calgary , including University of Alberta Campus Alberta FP Innovations overall water use efficiency by 30% (2010) water resources, while enhancing the health

Restoring Alberta’s Landscapes Conserving Biodiversity Sustainable Water Management Partners* Facilities/Operation Number of lberta’s Economy Economy Alberta’s in the Sector Contribution to Number of Albertans Employed Annual Communities Focused on the Sector 2014 Number of Draft 2030 Innovation Targets Statistics Key Sector

Sector ENERGY

positioning in the sector are and large producers advancements in technology and innovation, SME’s Through global marketplace. themselves to become vital suppliers of technologies and services to the a lower carbon future is the global energy transformation towards challenge identified for the energy sector The third the energy for Several technical challenges must be overcome gas reduction. greenhouse and the drive towards water and land must be conscious. The quality of air, competitive while being environmentally industry to remain including inputs production by infrastructure, and managed, and efforts can be constrained monitored carefully to identify implementable being explored methods, all of which are and processing natural gas, and recovery Sector group works closely with our Environment Energy Sector group AITF’s opportunities for improvement. collaboration. to identify opportunities to enhance outcomes through Transportation landlocked. are including the energy sector, resources, The second major challenge is that Alberta’s an issue not faced by other oil margins for Alberta producers, and decrease costs significantly limit market access access to pipeline and port infrastructure. suppliers with greater cost of fracturing is impacted by the global markets, in particular the low comparative energy market First, Alberta’s viable the industry must identify efficiencies and remain To East oil producers. in the US and the low cost of Middle well- natural gas industry is exploring ways to improve Alberta’s input costs. On a similar front, drastically reduce and process technology through well productivity the cost of exploration and increasing economics by reducing key are improvements and adoption as well as process As a whole, technology development improvements. The urgency of maintaining global oil and gas industry. the competitiveness of Alberta’s components to increasing in 2014 to $100 per barrel than more to fall from as the price of oil continues competitiveness has only increased in 2016. in 2015 and to as low as $30 per barrel $50 per barrel approximately and environmental energy sector: global competition, location, facing Alberta’s major challenges three are There stewardship. and Cold Lake mainly in the Athabasca and the oil sands. Located coal, minerals, in the world oil reserve crude proven the third-largest oil sands are Alberta’s areas, for companies opportunities The sector provides and Venezuela. after Saudi Arabia as well as energy resources and processing involved in the support of extraction Sector Outlook conventional oil, includes natural gas, diverse energy portfolio, which Alberta has a

exports generate billions energy companies. Alberta’s critical supply chain service economy. critical to the province’s year and are every of dollars in revenues

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The consortium and productivity in the oil sands industry. links oil sands producers, materials and equipment include Pipeline Integrity and Corrosion Management (PICoM), a Joint Industry Program, which facilitates collaborative R&D projects to improve detection, inmeasurement and mitigation methods for corrosion Energy Sector Applied Research pipeline systems. AITF’s stream also supports R&D around spill response for pipelines, and leverages the internationally recognized C-FER, to expertise of its wholly-owned subsidiary, support innovation in this area; consortium. The goal of MARIOS is to develop knowledge and validate technologies to significantly reduce downtime and improve operational reliability suppliers, fabricators, and technology providers to are subsidized by AITF to enhance exposure and sharing of innovative ideas and technologies; consortium that partners industry with government within to advance field focused technologies. Work this program involves identifying and evaluating improvements in operating practices and developing new exploitation strategies; agreement to work with the Heilongjiang Academy of Sciences to collaboratively pursue research and development of new products from the oil and bitumen largest oilfield. resources in Daqing Oilfield, China’s collaboratively solve industry-wide problems. SMEs have and the energy industry, history of providing R&D for of energy reserves a deep understanding of characteristics has the specialized expertise, in Alberta. In addition, AITF in-situ recovery of heavy oil facilities and equipment for mining processes. and bitumen and surface resolution of the key AITF is contributing to the issues discussed in the energy sector outlook – global competitiveness, logistical challenges, and in environmental management – through programs • in Oil Sands (MARIOS) The Materials and Reliability • AACI, an in situ heavy oil research and development • AITF has entered into a multi-year collaborative Our researchers have a long and Innovation Framework. its Applied Research stream. • addressing logistical challenges Programs focused on esearch programs which help to reach DraftApplied Research programs which help found in the Alberta Research 2030 Innovation Targets Contribution AITF’s is committed to investing in The Energy Sector Office

 133,000 electricity generation $91 Billion $112 Billion emission reduction technologies economics improve by decreasing: Oil sands production efficiency and by accelerating solutions to reduce methane emissions by 45% by 2025 of bitumen to be globally competitive will contribute up to 30% of Alberta’s and ensure a dynamic portfolio of GHG lberta’s climate change goals Support Alberta’s Renewable sources, like wind and solar, by 25% and expanding access to market fresh water use by 50%, GHG emissions Support the successful commercialization 166 Billion Barrels Partners in this sector *Partial List of AITF’s CORPORATIONS INNOVATES of Energy / ALBERTA Department Alberta ALLIANCE / ECONOMIC DEVELOPMENT AND TRADE Climate OIL SANDS INNOVATION CANADA’S ASSOCIATIONS / INDUSTRY Change and Emissions Management Corporation RESEARCH COUNCIL NATIONAL by 50% on a per bbl basis, and supply cost oil and gas exports market value of Alberta’s of new value-added products to increase the

alue

Partners* Renewable Energy Increase V Improve Oil Sands Efficiency Reduce GHG Emissions & Market Access 2014 Energy 2014 Gross Revenues from All Hydrocarbons Resource Exports Albertans Employed in the Upstream Energy Sector 2014 Oil Sands Reserves

Draft 2030 Innovation Targets Statistics Key Sector

emissions; 2 ector S ENVIRONMENT by 2030; and at 100 Megatonnes oil sands production emissions from 2

in technology innovation (as well as other priorities carbon tax will be re-invested Alberta’s Revenues generated through the impacts associated with the phase out of coal). The Alberta expert panel on climate change has such as reducing the province technologies that would position risks in funding breakthrough take greater that the province recommended innovation system to significantly an opportunity for Alberta’s Climate Leadership Plan provides Alberta’s as a global leader. as emerging sectors (such as the “cleantech” sector). sectors as well current its impact and support the Province’s increase Climate Leadership Plan goals, and meeting the environmental The innovation system is critical in achieving Alberta’s of Alberta’s in the production carbon intensity improvements dramatic energy efficiency and in particular as it will require meeting the oil sands emissions cap will drive significant (and particularly our energy sector). For example, resources including in bitumen production, technologies, such as driving improvements changes in knowledge base and current next generation SAG-D and solvent-based extraction and other alternatives for steam generation processes. for supporting an approach working with EDT and other Ministries to recommend innovation system is currently Alberta’s Climate Leadership Plan. the technology and innovation component of Alberta’s • by 2025 by 45 percent methane emissions associated with oil and gas production reducing • phasing out the use of coal for power generation; • power; renewable the contribution from increasing • capping CO of which is elements of its Climate Leadership Plan, the implementation the core In November 2015, Alberta announced of frequency as evidenced by the increasing global industry, is a growing and protection stewardship Environmental action. Predictions support climate change by governmentscollaborative global dialogue and commitments to aggressively of dollars, not the billions global climate challenges indicate the need to invest trillions address the cost to effectively around the world to work in partnership This emphasizes the need for governments across committed, into infrastructure. currently Alberta is well positioned and accelerate innovation. sector to leverage resources with each other as well as with the private government-private as we have experience in these types of enterprise partnerships, and for leadership in this economy, be applied globally. can solutions developed here one-quarter coming is $360 billion, with approximately gas mitigation annual financial investment in greenhouse Globally, billion. In comparison, in 2013 global investment in fossil fuel exploration was $674 public sector organizations. from commitment to meet global climate a significantly higher climate management will require suggest that effective Forecasts $980 million and Climate Change Canada estimate annual spending between change targets. Budgets for Environment that this will be used to leverage private sector investment. and $1 billion until 2018 with the expectation producers energy Alberta one of the most environmentally-responsible economy and make Alberta’s expected to strengthen Sector Outlook a challenge is both the environment managing driven province, In a natural resource to Although Alberta continues sector. for the public and private and an opportunity in water for excellence a reputation oil’ stigma, it has also garnered battle the ‘dirty and services products environmental Alberta’s and waste management. treatment with estimated 1,300 companies business of approximately core industry is the of $2.8 billion annually. revenues

plan are: in the world. The key elements of Alberta’s • price on CO setting a province-wide

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and supporting mechanisms to engage Alberta SMEs in provincial environmental priorities (e.g. TECTERRA for geomatics sector) and to link MNEs and SMEs around provincial priorities. policies, regulations for Alberta government national and international expertise; to environmental management approaches industry related to the integration of air, integration of air, industry related to the considerations land, water and biodiversity and monitoring systems; Management Systemto Integrated Resource (IRMS) partners for cumulative effects management, drawing on provincial, in targeted sectors (e.g. agriculture) and helping to water), applications (biodiversity, diversify the economy and position existing markets for future opportunities; technologies for monitoring, greenhouse land and gas (GHG) reductions, other air, water impacts as well as making effective use of indigenous wisdom and traditional ecological knowledge; and infrastructure for emerging environmental issues (e.g. aquatic and terrestrial mesocosm facilities, napthenic acids analysis); thermochemical processing and technology de-risking; • Building markets for ecosystem services AITF’s Contribution AITF’s sector, Within the environment contribution is: • and expertise to government Technical • decision support systems Providing advanced • Field testing of new approaches and • Specialized analytical capabilities, equipment • Pilot-scale facilities for biogas and • Leadership of JIPs and consortia related / TECTERRA

1,330 84,000 investment in Alberta $2.8 Billion $4.2 Billion by 25% while maintaining Export sales from biomass environmental sustainability resources in Alberta increase bioindustrial sector will attract an additional $3 billion private sector 50% reduction in organic waste to which produce value-added products Industry operating in the value-added landfill through innovative technologies Partners in this sector *Partial List of AITF’s PARTNERSHIPS DATA BIODIVERSITY MONITORING INSTITUTE / ALBERTA ALBERTA ALLIANCE INNOVATION OIL SANDS / CANADA’S ENVIRONMENT & PARKS ALBERTA (CCEMC) Change and Emissions Management / Corporation Climate ECONOMIC DEVELOPMENT & TRADE PETROLEUM TECHNOLOGY ALLIANCE OF CANADA

(2010)* Drive Investment Reduce Waste Increase Sales Partners* 2010 Alberta Private lberta’s Economy Economy Alberta’s # of Albertan’s Employed in the Sector # of Companies in Environmental Products/Services Sector Investment in Environmental Protection** Contribution to Annual Note: Base year is 2015 unless otherwise stated. Draft 2030 Innovation Targets Sector Statistics Key Provincial

Sector HEALTH

workers than two million supports more and indirectly directly The health sector sophisticated infrastructure oversees the country, across of communities in hundreds and an aging population. growth driven by two factors: population and clinical practice but finding innovative teaching, clinical research Alberta is known for excellence in medical many challenges. developed in Alberta still present technologies that are pathways for new health and medical collaboratively Working in this sector. our SME environment can be done to support and promote more However, a partner and/or technology adopter is key for innovators seeking prototype with Alberta Health Services (AHS) as demonstration and early application experience at scale. health lead to improved that will data can be used to drive research that existing and new health The recognition in Alberta. While is delivered healthcare and the way health is perceived outcomes has the potential to transform of electronic and deployment in data infrastructure it is anticipated that investment this shift is still a work in progress, will drive clinical data uses. This ‘opening up’ will reform, in conjunction with statutory or regulatory medical records, and use applications to analyze, present analytical tools and Alberta SMEs can create where lead to an environment costs to Albertans. of health care trend health outcomes and manage the upward care, this data to improve medicine. The Draft intervention as opposed to preventative health system is focused on acute Alberta’s Currently, and has the potential to shift this focus. This is an important step forward attempting are 2030 Innovation Targets of Albertans. the health and well-being costs and improve to dramatically reduce research and supports leading-edge technology, of advanced and procurement predominantly are costs Alberta, health care potential. In with significant commercial system. of the healthcare the effectiveness way to improve viewed as a potential Public and private partnerships are and the private sector as critical to maximizing health and socio-economic AITF views the engagement of industry adopted at scale. are benefits that accrue when technologies

Sector Outlook an economic asset. is both a social benefit and healthcare Canadians, To

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participation in the Health Innovation and other strategic initiatives Collaboratory, led by government partners. health innovation in Alberta through active clients develop their products and services through to commercial market; with geographically distant clients; community through and with system partners including Alberta Innovates – Health Solutions (AIHS), BioAlberta, Alberta Health Industry Association (AHIA), and TEC Edmonton’s Health Accelerator; regulatory requirements (ISO 13485, ISO 9001) and stage-gate project management to assist SMEs, researchers and the investment are primarily health needs. Our activities directed to late stage medical product development, commercialization and access to markets. • in Providing knowledge and advisor services • Utilizing the RINs and TDAs to connect • Actively building networks among MNEs, • to influence the direction of Working AITF’s Contribution focus is on the commercialization AITF’s that meet Alberta’s of products and services

400 7-9% 240,600 and health outcomes Albertans and beyond Innovative chronic disease $9.7 Billion social and health benefits for Alberta has a high performing cost at or below the Canadian for research, development and (Plus Non-Reimbursed Expenses) in avoidable mortality and a 10% for Albertans with chronic disease 100% of human health data, social Alberta to become a top 10 location health care system with a per capita average and improved service quality innovations in North America, leading to determinants of health data, and health- of Albertans, including an 10% decrease and enable decision making and research commercialization of health and wellness improvement in quality adjusted life years Partners in this sector *Partial List of AITF’s dvanced MNT Products (ACAMP) Centre for Advanced Alberta Solutions Health Innovates (AHIA) / Alberta Association Industry Health Alberta of Health Ministry of Economic Development & Trade / Alberta Ministry Alberta Clinical Networks / TEC Edmonton / Strategic / Campus Alberta BioAlberta Western Economic Diversification management decreases the disease burden and readily accessible to improve outcomes related data in the province are secure, linked, opulation Cost Growth Growth, Aging Population Population Improve Robustness of Health Data Improve Quality of Care Reduce Burden of Disease Health & Wellness Innovation Other Key Indicators Number of Facilities/ Operations lbertan’s Albertan’s Employed Annual Burden to Alberta’s Economy Partners* Draft 2030 Innovation Targets Statistics Key Sector

Technologies Emerging

convergent for cross-sectors aligned to fulfill their needs. Formal processes are investments other sectors to ensure from engagements will be developed over 2016-17 fiscal year. historic Alberta innovates the and leverage emerging and advanced technologies across The need to better coordinate may lead to advances in crop sectors can be highlighted by the following examples: Developments in genomics even the the Health Sector and Sector, the Fibre/Bio-industrial Sector, development within the Food and Agriculture monitoring, applicability in environmental Energy Sector; while developments in sensor technologies and analytics have sector office will work closely with the other sectors to raise and health. The Emerging Technology energy production, and technology requirements gather research will also of developments and their potential. Emerging Technology awareness industrial and health of emerging technologies in our core and commercialization The goal is to accelerate the adoption technology of globally competitive and effectiveness while supporting the growth competitiveness sector to improve ICT, the existing innovation system portfolio of investments and initiatives in the clusters. The Sector office will focus on in support of investments, the mandate to help better integrate, leverage and streamline with Nano, and ‘Omics’ areas convergent opportunities targeting and define and execute strategies and programs other sector strategies and programs, for Alberta (e.g. Internet sensing and analytics). of Things, on platform technology investments by focusing on strategic intent to capitalize The sector office will support EDT’s other key innovation challenges. Similar to Alberta’s priority sectors Alberta’s convergent opportunities that will solve and Innovation Framework Research in the Alberta 2030 Innovation Targets priority sectors, EDT has identified Draft opportunities may arise over time and be added to this portfolio (e.g. materials (ARIF). Additional platforms and convergent computing). engineering, clean tech, photonics, quantum t a diversified 21st century knowledge intensive economy, intensive economy, solutions to support a diversified 21st century knowledge Capitalize on platform technologies-enabled impacts and to maximize societal benefit. to mitigate adverse environmental Sector Outlook to support Emerging Technologies a new sector office for AITF has created who Campus Alberta, and Industry (EDT), and Trade Economic Development investments in Alberta’s value from to generate more a need explicitly expressed (ICT) Nano technology, Technologies of Information and Communications the areas consultations with stakeholders, EDT and AITF have and ‘Omics’. Upon extensive innovation platforms as follows: jointly articulated a vision for

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, AICML and ecterra, ACAMP and AITF investments Leverage existing provincial MNT Products in Alberta Centre for Advanced ASBIRI, NanoFab (ACAMP), Nano Accelerator, (UofA) Chairs and commercialization programs to include new capabilities to foster the ongoing development of microelectronics design and with private sector partners the aim is to provide new market opportunities and the HQ/SP in collaboration manufacture in Alberta Working schooled in Alberta to work in a commercial setting to support local SME needs. of an Internet of Things Industrial Interoperability Demonstration Lab, with simulations of key industrial processes including the Digital Oilfield. Partners such as T private sector partners will contribute the geospatial, electronic and artificial intelligence technology across resource management sectors. and Health Sector Offices in detailing data systems and Data Analytics requirements in the Health system and for Integrated Resource, Land and Environmental Management to direct campus Alberta and SME funding support to addressing identified requirements. synergies and SME engagement by leveraging a coordinated approach of existing provincial and federal investments in the emerging technology space to support the multiple sectors including: initiatives ongoing in AITF’s pipeline monitoring; reservoir monitoring and modeling; IRMS; environmental monitoring; precision farming; livestock genetics and Health. AITF’s Contribution Office of Emerging The recently created Sector with stakeholders in the is engaging Technologies opportunities and process of assessing strategic plans, leveraging developing associated execution resources and programs wherever possible existing Corporations. Opportunities of the Alberta Innovates include: being explored at present • • Develop a plan to support the implementation • Support the ongoing work of the Environment • Design programs and projects that maximize

4,634 40,378 and repurposing jobs market share by 20% $1.4 Billion $14.2 Billion digital literacy and connectivity Support the Cleantech sector to lberta’s global thereby increasing Alberta’s manufacturing The value of Alberta’s The ICT industry in Alberta generates advanced materials, instrumentation, increase industry sales revenue by 25% more than $20 billion in annual revenues Partners in this sector *Partial List of AITF’s ndustry and entrepreneurial Groups Industry Private MNT Products Centre for Advanced ACAMP - Alberta Centre for Machine Learning Innovates TECTERRA / Cybera / AICML – Alberta & RIN / campus alberta partnership Data / Alberta WD / Service Alberta NRC – IRAP, to $40 billion through the development of and the province is the best in Canada for sector will increase from $18.8 billion (2014)

Advanced Manufacturing & Workforce Development Digital Economy Green Economy Partners* of Employees 2015 Number of Companies 2015 Number 2011 Exports 2013 Revenues Draft 2030 Innovation Targets Sector Statistics Key Provincial

Senior Research Engineer Jonathan Heseltine of C-FER Technologies in Edmonton, Alberta, investigates Engineer Jonathan Heseltine of C-FER Technologies Senior Research integrity of steam injection wells in the oil sands. the cement alternatives to improve

Alberta Innovates-Technology Futures BUSINESS PLAN 2016-19 44 Alberta Innovates-Technology Futures BUSINESS PLAN 2016-19 45

with . These statistics demonstrate the limited talent pool for which AITF competes 1 : Medium : Medium

downturnprivate industry and other government and layoffs has increased bodies and agencies. While the current also highly mobile. If uncertainty is are the pool of candidates, it is critical to note that highly skilled professionals of Canada, or other countries, plentiful in other regions seen as being more high in Alberta, and opportunities are talent can easily migrate. Potential Impact revenues the Governmententerprises and government of Alberta. Contract research clients, and funding from budgeted to decline by an are revenues Contract research C-FER Technologies. wholly owned subsidiary, at AITF’s of a hiring decisions must be strategic and candidates must meet the technical requirements As a result, Engineering at the university level STEM (Science Technology Nationally, knowledge-based work environment. 53.5% of earned doctorates (PhDs) and 25.8% among just 24.5% of all fields of study, Math) fields represent in 2016 degrees master’s additional controls and expenses have been reduced, and development. Discretionary term demands of research month. financial position month to have been put in place to monitor AITF’s acknowledging to think of out-of-the box solutions and maintain flexibility, maintained. Staff has been encouraged based clients for resource long term outcomes. Our business support protecting while still fiscal pressures current helping companies come down the cost experience curve. has switched towards small number of with a relatively income, which is highly concentrated the corporation’s of a third account for almost pressure and government. is increasing support services to Alberta industry critical While there its capacity to provide AITF to sustain critical human innovation requires and of research nature the long term streams, on both revenue seen the full impact of the has not likely belief that the province place. It is management’s assets in and infrastructure downturn. 2 years, continues, it will put significant strain on the organization. Over the last If the economic decline a large one time contract earned 11%, this is despite have declined by approximately revenues contract research year. additional 10% in the upcoming fiscal Potential Impact AITF to maintain and improve enabled stream economic times this revenue During strong oil and gas sector clients. 2015 Statistics Canada: Postsecondary Student Information System (PSIS) Report, November,

Likelihood of occurrence: medium

1 with the long developed, balancing short term fiscal pressures and budget has been carefully business plan AITF’s focus on business development and support of our clients will be these challenging times, a strong During 2. succession planning in critical areas. and Aging workforce or replaced. experience which is not easily reproduced highly-specialized in terms of skills and Many AITF staff are for commercial – contract research streams two revenue through of Alberta AITF funds its mandate for the Province Mitigation strategy: 1. and government both industry clients. from economic environment due to current streams Declining revenue ikelihood of occurrence: High L Assessment Risk manages the actively management process, Risk Management Enterprise of AITF’s As part plan. business on the organization’s ability to deliver impact the could adversely risks which management: identified by senior risks were The following significant : Medium : Medium

innovation priorities, which have been formalized in the Draft 2030 Innovation and to setting research approach corporations and Campus Alberta to focus activities. These targets will be used by the Alberta Innovates Targets. the challenges posed by large group supports the Collaboratory model, we recognize While AITF strongly Leads will contribute Sector AITF’s Innovation Collaboratories, collaboration. As members of their respective to have the greatest perceived to the priority areas resources align AITF’s their leadership skills, knowledge and held accountable to outcomes by Sector leaders and management are game-changing value for Albertans. Alberta Innovates The newly announced consolidation of the four of Directors. independent Board AITF’s and collaboration within Alberta’s coordination to improved Corporations, will significantly contribute innovation system. greenhouses, farm, three research This includes a 300 hectare and Vegreville. Devon Edmonton, Calgary, AITF also possesses a substantial inventory of research chambers. In addition to our facilities, and 36 growth about $100M. The purpose of our facilities and capital asset value of equipment with an estimated replacement of innovation and new technology into our primary sectors, which leads to assets is to accelerate the adoption as detailed in our Capital Plan, However, of Alberta industry. competitiveness and financial performance improved of capital and is heavily dependent on the Government funding to of Alberta for capital AITF has limited sources side of our business. With the current for the applied research facilities and infrastructure maintain the required year, economic downturn, management has made the strategic decision to under invest in capital in the current significant not without are It is critical to note, such actions in the near future. this trend with an eye to reversing capacity, on the maintenance of current downside. When capital investment is short-term oriented, and focused and development support to meaningful, and game-changing research ability to provide it limits AITF’s Alberta businesses. capital supports current for and ensure capital maintenance and investment. Management will actively advocate Plan and replacement A long term Planned Capital Expenditure these strategies and is funded accordingly. in the market place. relevant technological and physical assets remain AITF’s strategy will be initiated to ensure choose to retire. individuals as they of key the prudent replacement budget allows for business plan and AITF; the highly qualified candidates pool of current the may increase energy sector in particular lay-offs in the The extensive to adopt Alberta is also looking EDT and Campus in partnership with The organization, for recruitment. available new graduates in opportunities to train and develop increased which would provide flexible work arrangements, team. Applied Research AITF’s STEM fields within change to complex challenges such as climate to respond approach cross-sectoral needs to take an integrated, players is needed to drive the amongst system coordination, Increased in our energy sector. and structural shifts of the innovation system. outcomes required

government being made in developing a cross Collaboratories, significant strides are the Innovation Through 4. Aging capital and technology infrastructure facilities in development and scale-up and process feet of product operates over one million square AITF Potential Impact for Applied Research and EDT will work to determine priority areas AITF in partnership with the Collaboratories Mitigation strategy: strategy: Mitigation ikelihood of occurrence: medium L Likelihood of occurrence: medium risk to the greatest whose loss would pose and individuals the key positions has actively identified Management 3. innovation system Alberta’s of activities within Coordination Alberta’s and increasingly has changed significantly, and innovation landscape In the last five years the research Potential Impact Mitigation strategy:

Alberta Innovates-Technology Futures BUSINESS PLAN 2016-19 46 Alberta Innovates-Technology Futures BUSINESS PLAN 2016-19 47 s is s) to e Goals & Corporat performance indicators (KPI’ performance indicators hat gets measured gets done – gets measured What space, developing meaningful KPI’ space, organizations develop goals and key organizations asures Performance Me as a result both public and private sector both public and private as a result particularly challenging for many entities. particularly communicate priorities to stakeholders and priorities to stakeholders communicate n the innovation In the innovation how they will be measured.

60% 2 to 1 100% 100% 2018-19 Target

95% 50% 100% 1.5 to 1 2017-18 Target Outcome Measure 80% 88% 40% 1 to 1 2016-17 Target Research a/Basic t the of Chairs with financial contributions from a. Percentage private sector for Chairs b. Ratio of private sector funding to AITF funding of Chair funding aligned with the 2030 a. Percentage Innovation Targets recipients of Graduate Student Scholarship (GSS) a. Percentage the 2030 Innovation contributing toward directly working in areas Targets 80% 88% 40% 1 to 1 Actual 2015-16

institutions to focus investments with industry partners and post-secondary AITF will leverage its relationships and measures the expected outcomes As a result 2030 Innovation Targets. the achievement of the towards by AITF funded and programs measuring numbers of individual projects below showcase a movement away from the alignment of and of knowledge within the Province, retention to the quantification of industry collaboration, investments to the 2030 Innovation Targets. to compared as in Campus Alberta/Basic Research measures While AITF is pleased with the evolution of the the 2030 achievement of towards on the impact and progress to report is required the past, additional progress to working with Innovation System Partners to contribute to outcome AITF looks forward Innovation Targets. focused innovation investments. Alberta/Basic Research within Campus centric key performance measures us Alber Camp of knowledge. retention and research the development of use-inspired Increase Expected Outcome Outcome Measure Goal 1:

working in areas of new GSS recipients 1.3a Percent the 2030 Innovation contributing toward directly Targets of Chair alignment with the 2030 1.2a Percent Innovation Targets 1.1b Private sector to AITF funding ratio for Chairs with financial of Chairs on projects 1.1a Percent private sector contributions from collaborative partnerships with Industry 1.1 Strong Targets 2030 Innovation 1.2 Investment alignment toward graduate and post graduate training in areas 1.3 High-quality, the 2030 Innovation Targets contributing toward directly

Alberta/Basic Research, – Campus functional business streams designed for the three evolve its KPI’s key performance metrics and Looking ahead, monitoring and Commercialization. Applied Research priority of management. diverse portfolio is a key AITF’s value from demonstrating the allowed AITF to in Alberta has ecosystem by the innovation of purpose achieved clarity The recent Goals

Alberta Innovates-Technology Futures BUSINESS PLAN 2016-19 48 Alberta Innovates-Technology Futures BUSINESS PLAN 2016-19 49

Outcome Measure Joint from revenues of total contract research a. Percentage Industry projects launched to support the attainment of the a. New programs 2030 Innovation Targets rate c. Annual client retention d. Number of clients served during the fiscal year

ch Applied Resear Innovation within Alberta’s the activities of Applied Research Looking ahead, AITF is working to better integrate of joint industry focused on measuring the degree outlined below are the outcomes and KPI’s System. As a result an important This represents and alignment of activities to the 2030 Innovation Targets. and government research on the amount of revenues centered were for Applied Research KPI’s shift for the Corporation. Previously, upcoming priorities. In the and alignment to key provincial earned versus the quality of joint industry research within Applied Research. anticipated to be made to the KPI’s are further refinements year, Expected Outcome collaborative partnerships with Industry 2.1 Strong 2.2 Support the achievement of 2030 Innovation Targets* organization research 2.3 Responsive, customer-centric still under development were tracked against Sector Grand Challenges as the 2030 Innovation Targets were and programs * 2015-16 revenues joint industry and government and social value through of economic, environmental GOAL 2: Accelerate the creation investments and partner collaboration. in funding, applicant with the following – up to $25,000 each provide and AI-BIO will support up to eight projects AITF and for commercialization. capacity and facilities. researchers, pilot plant, access to AITF’s AITF’s from up to one kilogram of CNC AITF Chairs Co-funded with Other Alberta Innovates Corporations AITF Chairs Co-funded with Other Alberta Solutions Energy and Environment co-funded by AIHS or Alberta Innovates are program Strategic and Industry Chair Five Chairs within AITF’s and early detection of disease, clean energy extraction, prevention solar energy, include renewable areas (AIEES). Their primary research bio-molecular simulation, and drug discovery. Various Alberta Innovates Corporations Various Livestock Gentec with AI-BIO in 2010 to continue the Alberta Bovine University of Alberta. Livestock Gentec was created based at the Livestock Gentec is an AI-BIO centre support to this AITF provides benefits of genomics to the Canadian livestock industry. and bring the commercial research Genomics Program’s participation. annual funding and board endeavour through that aims to for a two-year project CCEMC program the AI-BIO additional funding from is receiving AITF Chair Carlo Montemagno with Alberta’s to generate high value chemicals compatible system that uses industrial GHG emissions optimize a scalable engineering infrastructure. petrochemical Climate Change & Emissions Management Corporation (CCEMC) / Ingenuity Lab with AI-BIO Emissions Management Corporation Climate Change & advanced biomaterial. advance the knowledge and use of CNC, an that funding for R&D projects to provide AITF and AI-BIO have collaborated with potential feasibility of CNC in high-value applications support early-stage work to demonstrate technical is intended to The new program Cellulose Nano-Crystals (CNC) 2.0 Challenge with Alberta Innovates Bio-Solutions (AI-BIO) (CNC) 2.0 Challenge with Alberta Cellulose Nano-Crystals lberta Innovates Corporations – Corporations with other Alberta Innovates Initiatives and Innovation Joint Research Alberta with its sister Within of key joint projects AITF has a number Alberta portfolio, / Campus Basic Research A few key examples are: Innovates Corporations. 850 62% 47% 2018-19 Target

1 750 60% 42% 2017-18 Target Outcome Measure(s) 650 60% 37% 2016-17 Target tion of SMEs Score Net Promoter a. Aggregate a. Ratio of net follow-on funding raised subsequent to AITF’s funding support to be helpful of AITF-funded SMEs who found TDA’s a. Percentage assistance of AITF-funded SMEs who received b. Percentage a TDA from by AITF-funded SMEs subsequent to funding a. Net jobs created 600 60% 33% 2015-16 Commercializa on supporting techology based SMEs to achieve commercial focused AITF manages a diverse array of programs and jobs created in revenues measuring the growth concentrated on are in this business stream success. The KPI’s of these SMEs. by AITF-funded SMEs and the Corporations support 2 Expected Outcome(s) Measure Outcome

of 50 - (% AITF Detractors). An NPS Score of AITF and is calculated as follows: (% of AITF Promoters) ‘Promoters’ of customers who are to be excellent. is considered or greater

served during the fiscal year 2.3 Number of clients rate 2.2 Annual client retention revenues research of total contract 2.1 Percentage Joint Industry and government projects from initiatives 3.1 Effective deployment of commercialization by technology-based SMEs 3.3 Sustainable job creation able to raise follow-on capital from 3.4 AITF-funded SMEs are private sources 3.2 Regionally accessible business mentorship expertise investment. investment, loans and shareholder foreign capital, angel investment, strategic & Private investments include the following: Venture the net percentage It represents party. was assessed by a customer survey conducted by an independent-third Score’ The ‘Net Promoter initial investment in the SME. after AITF’s to be ‘follow-on’, only if it was secured An investment is considered 2 1 an integrated through success for Alberta SMEs and entrepreneurs Goal 3: Accelerate commercial system. commercialization Predictive Ecosite Mapping with Alberta Innovates Energy and Environment Solutions (AIESS) and Environment Energy Ecosite Mapping with Alberta Innovates Predictive Ecosite information is needed by industry, Ecosite Mapping Project. supported the Predictive Solutions, and EDT AI-BIO, AIEES and Environment This and for industry to obtain development approvals. on the status of biodiversity, government, planning, reporting and others for land-use inventory by applying machine learning to digital elevation data and techniques this natural resource piloted a new way for creating project partner. by a commercialization partners. The mapping platform will be commercialized by industry existing ecosite information provided architecture. root and stress to nutrient and moisture between resilience relationship looking at the partnering in a project AI-BIO and AITF are knowledge that will allow identification of use efficiency, and nitrogen resistance stress has identified varieties that differ for drought This project conditions. wheat varieties that yield well in stressful genes that can be used to develop barley and environmental, having many high-value applications in the agroforestry, residues of biomass by pyrolysis Biochar is a carbon-rich solid produced products. biochar-based customers and industrial partners aiming to develop and commercialize and energy sectors. AITF and AI-BIO support wheat with AI-BIO water and nutrient use in barley and Improving Biochar with Alberta Innovates - Bio Solutions (AI-BIO) Biochar with Alberta lberta Innovates Corporations – with other Alberta Innovates Corporations and Innovation Initiatives Joint Research Innovates with its sister Alberta has a number of key joint projects portfolio, AITF Applied Research WithinAITF’s key examples are: Corporations. A few

Alberta Innovates-Technology Futures BUSINESS PLAN 2016-19 50 Alberta Innovates-Technology Futures BUSINESS PLAN 2016-19 51 1 1 65 85% 65% TBD TBD 2018-19 Target 1 1 65 85% 65% TBD TBD 2017-18 Target 1 1 65 85% 58% TBD TBD 2016-17 Target 1 1 65 53% 93% TBD TBD Actual 2015-16 Measures Outcome to set these will work available it is difficult to set targets for individual years. We trending years, however since we do not have year-over-year will be showcased in our Annual Report. on Actual results reporting Regardless targets in the upcoming year. SMEs by AITF-funded 3.3a Net jobs created subsequent to funding SMEs who received of AITF-funded 3.2b Percentage a TDA. assistance from SMEs who found of AITF-funded 3.2a Percentage to be helpful TDA’s of SMEs Score Net Promoter 3.1a Aggregate funding raised 3.4a Ratio of net following-on funding support subsequent to AITF’s time in 2015-16 based on a survey conducted of SMEs funded over the last three for the first on this measure AITF collected the data to report 1 – Health Solutions in developing is actively working with Alberta Innovates Futures Alberta Innovates-Technology designed to enable Alberta Small and is Initiative. This program and Research the Alberta Small Business Innovation those solutions to identified industry and public sector challenges, including Medium Enterprises (SMEs) in developing in the Health Sector. Joint Research and Innovation Initiatives with other Alberta Innovates Corporations – Joint Research - - 551 197 197 197 8,101 4,611 1,096 6,500 1,288 Target Target (5,212) 37,880 43,232 12,987 48,824 92,193 28,717 36,175 41,680 41,877 2018-19 157,282 157,085

- - 525 4,391 1,044 6,500 1,390 (1,113) (1,113) (5,110) (1,113) 37,880 43,232 13,327 12,369 46,499 91,080 30,668 38,632 42,793 41,680 Target Target 159,267 160,380 2017-18

- - 976 500 4,104 6,285 1,226 (3,866) (3,866) (5,059) (3,866) 37,880 43,232 13,051 11,560 43,457 88,592 30,993 39,041 46,659 42,793 Budget 154,760 158,626 2016-17

36 (36) 479 897 861 212 861 6,867 4,032 1,746 4,932 (4,684) 40,422 43,800 11,217 54,556 97,479 39,064 25,679 45,798 46,659 Actual 163,119 162,222 2015-16

- - 790 (462) 7,596 4,077 2,731 4,796 (3,517) (3,517) (5,258) (3,517) 41,722 48,082 10,230 50,046 96,643 40,389 31,759 45,401 41,884 Budget 165,274 168,791 2015-16 Comparable

(54) 536 870 54 3,495 4,375 4,847 (4,613) 41,940 42,962 10,407 55,614 41,286 22,089 Actual (7,912) 104,682 168,057 180 2014-15 (7,858) (7,912) 53,710 45,798 160,199

Transfers Transfers

otal Revenue otal Expenses Government T

Revenues Government of Alberta Grants Funds Restricted Provincial Funds- Prior Year Restricted Provincial External Contract Revenue Funds Other Provincial of Alberta Province from Contract Revenue Sales Product Other Revenue t Expenses line of Business Applied Research Net Operating (Deficit)/Surplus Annual Operating (Deficit)/Surplus in Capital Assets (Decrease) Net Increase Basic Research Commercialization Loss (Gain) on Disposal of Capital Assets Capital Investment and Net Change in Capital Assets New Capital Investment Less: Amortization (Loss)/Gain on Disposal/Write-down Change in Net Assets Accumulated Surplus, Beginning of Year Annual Operating (Deficit)/Surplus Accumulated Surplus, End of Year Plan ($ in thousands) Financial Year Three Futures Alberta Innovates-Technology for all Funds Statement of Operations Consolidated Budget

Alberta Innovates-Technology Futures BUSINESS PLAN 2016-19 52 Alberta Innovates-Technology Futures BUSINESS PLAN 2016-19 53 $2,288 $5,192 $1,816 $9,294 Albertans ($’000) and well-being of Enhances the health $9,050 Mitigates $11,400 $46,320 $25,869 environmental environmental impacts ($’000) ($’000) $8,383 $10,559 $42,904 $23,961 of production natural resources development and Enables the cost- effective discovery, and Innovation System Research Key Outcomes of the Alberta ($’000) $14,794 $60,108 $33,570 $11,744 of the economy Drives the growth and diversification Total Total ($’000) Budget $39,041 $88,592 $30,993 $158,626 2016-2017 Line of Business Commercialization Applied Research Basic Research TOTAL $ in thousands Futures Alberta Innovates-Technology Outcomes 2016-17 Key and innovation initiatives should be the same as those listed in the budget table above. * Research

to test and adopt new technology. advanced facilities required and sustain the ongoing operations of AITF. to support safeguards

Looking to the future year AITF will be working on building an Despite needing additional funding for capital investment in the upcoming assets, and building and Corporate capital assets, determining the utilization of key inventory of Applied Research the larger innovation ecosystem, and and priorities of AITF, a long term capital plan with an eye to the direction capacity. Research Applied sustainability of Alberta’s In the 2016-17 planning cycle AITF EDT and Alberta Infrastructure. additional funding from AITF will also request Capital Priorities of Year detailed in the Three which are projects $6.75 million for 2 major capital has requested plan was written AITF was awaiting final consideration for this funding. this business plan. At the time this business the government funding from operating the challenges posed by the current The 2016-17 business plan recognizes levels to Nonetheless, AITF will continue to invest at previous research. and the weakening in demand for contract to upgrade aging assets. equipment and with the latest research maintain our ability to support our clients • the appropriate integrated systems (particularly IT systems) with Corporate capital: Investments provide equipment and Alberta internal AITF funding for research two sources: from Capital funding has traditionally come As the Government of Alberta steers the province accommodation projects. for program funding Infrastructure efficiencies and generate value to maximize the need to create turbulent economic times, AITF recognizes through equipment capital funding to of internal $6 million research capital utilization. AITF has invested approximately to develop been working closely with the EDT and Trade AITF has projects. subsidize high priority accommodation In addition, the capital shortfall. with a view to address planning and budgeting process an innovation infrastructure effective utilization and management of our implemented at AITF to ensure an asset management system is being assets for priority programs. • world class scientists and technologically public sector clients access AITF’s Industry and Applied Research: and Corporate Capital. – Applied Research categorized into two streams investment needs are Capital planning and owned and operated facilities, most of which are and office inventory of research AITF occupies a significant development and and process feet of product over one million square AITF operates by Alberta Infrastructure. farm, three research hectare This includes a 300 Vegreville. Devon and Edmonton, Calgary, scale-up facilities in a substantial inventory of addition to our facilities, AITF also possesses chambers. In and 36 growth greenhouses, persistent, ongoing value of about $100 million. AITF has asset replacement equipment with an estimated research the applied research, to meet infrastructure and expand our innovation to maintain, update, reconfigure, requirements priorities. and provincial sector, Arrangements and Leasing Plan Capital AITF Requirements Capital

Alberta Innovates-Technology Futures BUSINESS PLAN 2016-19 54 Alberta Innovates-Technology Futures BUSINESS PLAN 2016-19 55 Funding Sources Potential: Alberta EDT, Infrastructure, GOA Potential: EDT, AITF, Alberta Infrastructure, GOA Potential: Alberta EDT, Infrastructure, GOA Potential: Alberta EDT, Infrastructure, GOA Total 3-Year $1,874 $1,400 $19,285 $88,000 $110,559 Scope of Operations $0 Target Engineering Consulting and for C-FER’s Full Scale Testing Pipelines and Structures Space to support operations of AITF Industrial Sensors group Characterization Group Water $6,500 $1,400 $65,900 2018-19 $58,000 $0 Target $6,500 $1,124 $31,624 2017-18 $24,000 $0 $750 $6,285 $6,000 $13,035 2016-17 Estimate Termination date Termination 2 to 24 2 to 12 2 to 60 Timeline (project months months months months 24 to 60 Proposed 31, 2019 March June 30, 2019 July 31, 2018 dependent)

Size Scope and Justification Project feet 36,650 square feet 12,925 square feet 5,030 square $1.9M Cost: Project Total Redevelop high head and administrative space to support the effectiveness and growth aligned to of Calgary programs priorities in the SME’s, provincial and Environment Petroleum, Management programs. Water $11.6M Cost: Project Total Miscellaneous corporate systems and equipment identified from annual budgeting process. Redevelop knowledge centre a sector office space to create that engages work environment collaboration. people and inspires MOU strategic capital plan implementation to support space immediate and longer-term of AITF and NRCan. requirements Cost: $103.5M Project Total Note: 2016-17 estimate is for AITF priority safety addressing issues.

of Project Type Major Capital Ongoing Capital Investment Major Capital Major Capital

Location

Location

by Projects 3. C-FER East Pylypow 2. Edmonton Pylypow 1. Victoria All Sites – Miscellaneous Program Equipment, Minor Facility and Projects Corporate Systems Calgary – AITF AITF Calgary Program Expansion Edmonton – AITF Sector Office Collaborative Work Environment Development Understanding Memorandum of Devon – AITF Alberta – Canada Collaboratory in Cleaner Oil Sands Development Lease Arrangements Commercial

Priorities Funding Plan Capital Three-Year $ in thousands 2016-2019 Edmonton 250 Karl Clark Road Edmonton, AB T6N 1E4 780.450.5111 Vegreville PO Bag 4000, Hwy 16A & 75 Street Vegreville, AB T9C 1T4 780.632.8211 Calgary 3608 – 33 Street NW Calgary, AB T2L 2A6 403.210.5222 Devon 1 Oil Patch Drive Suite A129 Devon, AB T9G 1A8 780.987.8744