A more connected world Powered by The Power of Innovation ICT Innovation Impact: R&D, Results and Return The 2007-2008 Prompt Report The Power of Innovation Table of Contents “Prompt-supported partnerships are an integral part of InterDigital’s corporate research activities. We regard our university-based partners as an extension of our R&D team, complementing our internal advanced technology initiatives. We are enthusiastic about the results of our current collaborations with McGill and Concordia Universities and believe that these initiatives ICT Innovation Impact: R&D, Results and Return... 2 will have a very positive impact on our technology Powered by Prompt roadmap. Prompt serves as an excellent talent scout for the industry, facilitating access to the wealth of Prompt at a Glance 4 expertise across Québec’s university network.” Letter from the Chair 6 Michel Desgagné Letter from the President and CEO 8 Vice-President, InterDigital Canada, InterDigital Communications Information and Communications Technologies… 10 Creating a ‘Smarter’, More Connected World... and a Stronger Economy University-Industry Major Projects: 2006-2008 12 “Prompt bridges a critical gap between small-to- Highlights: 2007-2008 14 medium-sized companies, helping to connect industry to the best minds in the academic community and new Success Stories 16 sources of funding. This allows growing companies such as iBwave to capitalize on knowledge and Leveraging Scientific Leadership 28 know-how in universities, applying these to their business. Prompt plays an essential role, as academic Prompt Board of Directors, 2007-2008 30 researchers do not often speak the same language or share the same perspective as their private sector Prompt Members, 2007-2008 31 partners. Prompt bring these two worlds together, in a cost-effective and efficient way.” Mike Cegelski Executive Chairman and Chief Strategic Officer, iBwave ICT Innovation Impact: R&D, Results and Return... Powered by Prompt For the entrepreneur... who aims to develop a working prototype… to demonstrate an exciting new technology to investors who can help bring it to market... For the small-to-medium-sized company... that requires more R&D capacity...to undertake lucrative next-generation research and fulfill a promise of high return... For the well-established company... that seeks the next disruptive technology…and the highly qualified people who can turn new ideas into world-class products... For the university research leader... who strives to gain greater leverage from public research investments and infrastructure...to develop brilliant minds...and to push the boundaries of science... For the government investor... who pursues cutting-edge ways to stimulate commercialization...to attract foreign investment... and create innovation models that generate real results—and real return... For the people of Québec... and others around the world...who believe in the power of discovery...in technologies that deliver cleaner air, water and the promise of a healthy future for our children...that accelerate the detection, diagnosis and prevention of disease…that reduce life-threatening errors in the emergency room…that improve the safety of our military heroes as they serve and protect...that bridge us to every corner of the globe. 2 Years Prompt Industry NSERC Total 2003-2005 $3 million $300,000 $5.1 million $8.4 million 2006-2008† $1.8 million $2 million $2.1 million $5.9 million 2008-2010 $4 million $4 million $6.5 million $14.5 million Since its inception in 2003, Prompt has stimulated: Overview: Prompt-supported R&D Major Projects, • A return of more than 2-to-1 for every dollar invested 2003-2010 by the Government of Québec, leveraging $14.1 million from the provincial government to stimulate R&D Years 2003-2005 2006-2008 2008-2010* partnerships valued at $30 million in cash contributions to universities, complemented by an additional $4.8 Number of 3 3 3 million of in-kind contributions from industry. Major Projects › Following Prompt’s ‘proof-of-concept’ phase (2003- 2005), this rate of return is steadily approaching Total Number of Targeted 12 14 22 R&D Partnerships 3-to-1. Number of 12 15 27 • A return of more than 7-to-1 for companies engaged Companies in Prompt-supported projects that benefit from Number of additional funding from the Natural Sciences and Universities 11 9 10 Engineering Research Council (NSERC) of Canada and other granting agencies, and scientific research and Number of Researches 180 200+ TBC experimental development (SR&ED) tax credits from provincial and federal governments. * Prompt will host an additional Call for Proposals for a Green ICT Major Project in spring 2009, with funds to be allocated by the end of year. Overview: Cash Investment in Prompt-supported R&D Major Projects, 2003-2010 Each Major Project is comprised of several targeted R&D partnerships that address specific challenges in a Years Prompt Industry NSERC Total given area of focus or theme. This ‘Major Project model’ 2003-2005 $3 million $300,000 $5.1 million $8.4 million addresses the unique needs of an ICT sector that is 2006-2008† $1.8 million $2 million $2.1 million $5.9 million comprised of many small-to-medium-sized companies. 2008-2010* $4 million $4 million $6.5 million $14.5 million By bringing together researchers with complementary skills and requirements in thematic programs, Prompt † Includes investment in Canada-China partnership is helping to establish communities of R&D interest with critical mass. This facilitates partnerships between academic and industrial researchers with ICT competence, and accelerates the development of new expertise. Total Number Number of Number of Number of Years of Projects Companies Universities Researches 2003-2005 12 12 11 180 2006-2008 14 15 9 200+ 2008-2010* 24 26 11 TBC 3 Prompt at a Glance Prompt is a non-profit corporation that stimulates industry-university R&D partnerships to increase the competitiveness of the Information and Communications Technologies (ICT) sector in Québec. Leveraging investment from the Government of Québec, the private sector and the Natural Sciences and Engineering Research Council (NSERC), Prompt facilitates the development of new alliances that increase the R&D capacity of Québec-based companies, maximize public investments in research and enable the development of highly qualified people by: • Providing funding for pre-competitive R&D partnerships that engage at least one company, and two universities...Prompt stimulates collaborative projects that must be completed within two years of funding to ensure synergy with industry timelines and market windows. • Brokering new relationships amongst researchers, developers and leaders in academia, industry, government and the investment community in Québec—and increasingly across Canada and around the world...Prompt is a catalyst for the creation of dynamic teams, the expansion of business networks, and the stimulation of new opportunities. • Creating a virtual technology showcase for innovators in Québec...Prompt serves as a key information source and voice for the ICT industry. Maximizing the impact of three employees, Prompt has stimulated nine Major Projects, comprised of 48 targeted university-industry partnerships. Generating more than $30 million in cash contributions to universities, these R&D collaborations engaged over 40 unique industry partners. Prompt is also leading several pan-Canadian and transcontinental initiatives, with an increasing “It is often very challenging for companies to identify and attract top R&D talent, particularly promising university students. Prompt provides an effective mechanism to source engineers with relevant expertise and experience. They bolster the ‘research’ side of the R&D equation, generating new ideas that can lead to novel product development. As an industry partner, Ultra Electronics benefits directly from the outcomes of Prompt-funded projects. We gain significant leverage on these initiatives–and have hired some of our best collaborators from universities across Québec.” Alan Barker President, Ultra Electronics, Tactical Systems 4 number of partners across the United States of America Financial Leverage That Drives Growth and China. ‘000 CAD$ 300 290 Investment 280 University fees The partnerships facilitated by Prompt are financed 270 $27,750 by the private sector, the Government of Québec and 260 250 the Government of Canada. As these initiatives often 240 NSERC 230 $100,000 receive additional funds from the Natural Sciences 220 and Engineering Research Council (NSERC) and 210 200 other granting agencies, and scientific research and 190 180 experimental development (SR&ED) tax credits from 170 provincial and federal governments, the value of every 160 150 Prompt Total amount dollar invested by a company can generate a return of 140 $85,000 more than a factor of seven. 130 invested in R&D 120 $257,250 110 100 Building on an injection of more than $6 million from 90 the Government of Québec in February 2008 and an 80 SR&ED related 70 savings ambitious strategic plan, Prompt will expand the scope 60 Business 50 $64,566 and number of its partnerships during 2008-2010. Given 40 $100,000 30 the increasing convergence of different technologies and Cost to business 20 X7.26 scientific disciplines,Prompt will aim to help companies 10 $34,434 0 capitalize on the increasing demand for information In the above simulation, the total tax benefits and SR&ED related cost savings can vary and communications technologies in all sectors of according to the size of the company. the economy—from life sciences to environment, aerospace, automotive, public safety and energy. An example: A company invests $100,000 in a joint research project These opportunities extend beyond the borders with a Quebec-based university. As scientific research and experimental development (SR&ED) tax credits are made available to the company of Québec—and Canada. As global opportunity expands, through the Governments of Canada and Québec, the total cost of the Prompt is increasing its emphasis on the development of project to the company becomes $34,000.