Government releases details of flagship program to support operations of major research and commercialization centres

The federal government has announced its flagship program for increasing private sector investment in research and greater collaboration between university-based researchers and the business community. The Centres of Excellence in Commercialization and Research (CECR) program is putting $165 million in operating funds on the table for a competition to select 11 world-class centres focused on four broad areas identified in the Budget and recent policy documents.

The areas in which the government says Canada holds the most potential for achieving globally competitive excellence are: environmental science and technologies; natural resources and energy; health and related life sciences and technologies; and, information and communications technologies.

The CECR is largely modelled on the existing Networks of Centres of Excellence (NCE) program, but distinguished by significant industrial input through a Private Sector Advisory Board (PSAB). The Board — to be populated with 10-12 members over the summer — marks a critical departure from the near universal use of peer review in selecting research grant recipients.

"We need to find the right mix of individuals and skill sets," says Jean-Claude Gavrel, director of the NCE Program Directorate. "The Board must include broad thinkers with strong industrial experience and a good grasp of research and commercial ventures."

Best estimates put the number of existing centres eligible to apply for CECR funding at more than 50, including so-called big science projects like the Canadian Light Source and the Sudbury Neutrino Observatory. The program is also open to new centres, providing they have a board of directors in place at the latter stages of the competition.

Successful proposals will receive $15 million over five years which will cover up to 50% of eligible commercialization costs and up to 75% of other eligible costs. Higher levels of funding will be considered if "a project holds the potential for significant benefits". A second, slightly smaller competition is expected in 2008.

The NCE program has also been tagged to administer two other new programs — a Business-led NCE program and an Industrial R&D Internship program modeled on the MITACS NCE. Details are anticipated in the coming weeks.

"These programs deliver on particular objectives that are not discipline-oriented but focused on increased commercialization," says Gavrel. "They all use the tri-agency model and the government is expecting more collaboration between the three granting councils. This is a way to do it."

CECR's program design involved extensive surveys and discussions with existing centres that have approached Industry Canada for support to determine the best focus of the program. Government officials have also held discussions with provincial governments, a recognition of past situations when the provinces complained that they were given no input for programs in which they were expected to contribute.

"We've discussed it at the provincial level so that the provinces have a way of expressing what the priorities are," says Gavrel, adding that the granting councils and the Canada Foundation for Innovation will also provide input to indicate components they already support or could support in the future. "This builds on top of that."

In addition to the provinces, proposals can include financing from a host of other players including the private sector.

role of private sector advisory board

The PSAB enters the multi-stage selection process at two points. It is initially responsible for vetting the initial letters of intent due August 20 and recommending a short list of proposals to the NCE Steering Committee. At that stage, full proposals are farmed out to the granting councils and CFI for their input before review by expert panels established by the NCE Secretariat.

The expert panels will include national and international experts who are tasked with producing detailed reports on the merits of the applicants. The PSAB then steps back in to review the reports and granting agency comments before sending "priority Centres" to the NCE Steering Committee for final approvals.

The Steering Committee is composed of the presidents of the three granting councils, the Industry DM and the president of the Canada Foundation for Innovation as an observer. Dr Suzanne Fortier, president of the Natural Sciences and Engineering Research Council, chairs the Steering Committee.

"The role of the committee is to make the whole system work. We need each one to be healthy and work well together," says Fortier. "We will get good advice both from peer review and the private sector advisory board."

With the introduction of three new programs under the NCE banner, the program now has a total budget of $127 million (see chart) and a major presence in the suite of government programs focused on S&T.

"We're extremely pleased. All of us here are really committed to tri-agency partnership programs and further pursuing work on the commercialization of research," says Gavrel.

Industry Canada, rather than the NCE Secretariat,2 will be administering the seven centres that were pre-selected and announced in the last Budget. Their selection has raised the hackles of many on the research community, since they were not subject to the same stringent conditions laid out in the current CECR competition process.

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