NRC highlights aerospace, automotive and construction as it realigns resources as part of new sector-based strategy

Aerospace, automotive, construction and bioproducts technologies have emerged as the top-line priorities in the National Research Council's (NRC) freshly minted business plan. Launched last month, the plan aims to realigning Canada's premier R&D agency into a sector-focused organization whose activities are increasing driven by industry needs and its role in strengthening the national system of innovation.

The transformation began in earnest last month and was accompanied by the elimination of a small group of R&D programs (see page 6) as the NRC strives to maintain relevance in the face of a rapidly changing business and technology environment. The cancelled and re-focused programs will free up approximately $9 million or 1% of NRC's $869-million annual budget, which will be invested in priority areas identified in the strategy.

The business plan is the operational engine for the NRC's latest strategic plan which was unveiled in the summer of 2006. It revolves around nine sectors identified as areas in which the NRC can make the greatest contribution. The first three sectors to be implemented are aerospace, construction and automotive, followed by another three in 2008 and the last three in 2009.

"The purpose of this is to put together a comprehensive contribution that NRC can make across the organization in key sectors," says NRC president Dr Pierre Coulombe. "What we would like to do with the new strategy is move a little bit away from the concept of institutes in isolation. We'd like to avoid that and build up larger programs capturing the expertise within our various institutes."

As the strategy and business plan make clear, the needs and input of industry will play a more prominent role in defining NRC's sectoral approach. Consultation with the aeronautics industry, for instance, led NRC officials to conclude that composite materials was an area where it could best assist.

"Industry will be playing a more significant role in our key sector plans to make sure that we remain relevant … We may be the only targeted research organization in Canada that can take the time, that has the expertise and the infrastructure to conduct long-term programs on behalf of industry. That's why it's important to be connected with industry more and more. If we're not careful in selecting these programs, we're going to be wasting a lot of effort."

For aerospace, the Institute for Aerospace Research will take the lead and pull in research expertise from other institutes such as Boucherville QC-based Industrial Materials Institute (IMI) and the National Institute for Nanotechnology.

Automotive will most likely be led by IMI which has expertise in advanced materials, biomaterials and composites. It will also include collaboration with AUTO21, a Network of Centres of Excellence.

In addition to selecting sectors, the NRC business plan also calls for the establishment of national programs. After narrowing down the field to four, NRC chose two areas — bioproducts and fuel cells/hydrogen — for national programs, with bioproducts the first to be implemented. NRC has entered into a collaborative agreement with Agriculture and Agri-Food Canada with a launch planned for 2008.

Other potential areas for national programs, such as site remediation and the environment and chronic diseases, were considered too immature or better suited to other research funding entities'

Coulombe says that while the idea for national programs originated with the NRC, the objective is to accelerate commercialization of promising R&D by covering the complete innovation spectrum through the involvement of the academic and business sectors. Other partners include Natural Resources Canada, Health Canada, Environment Canada, the Natural Sciences and Engineering Research Council (NSERC), universities across Canada, the Business Development Bank (BDC) and industry.

"What we do now is put together NSERC and BDC for talks on the definition of national programs," he says. "We would like NSERC to top-fund programs at universities. On the other hand, specifically for bioproducts, we told BDC that there are opportunities for you taking an equity position in new spin-offs. More importantly, make sure the companies in your portfolio are aware and sensitized and open to opportunities in bioproducts."

The new business plan will also take into account industry's need for a single gateway approach to doing business with the NRC. Coulombe says work is underway to position the nine sectors and existing clusters as entry points rather than specific institutes.

"We will make sure that our contributions to those sectors are known," he says. "It will also give IRAP (Industrial Research Assistance Program) ground to work with companies in these sectors. IRAP will try to channel some of its knowledge and contributions to support those sectors."

After years of attempting to obtain increases to its A-base, NRC has adopted a different tact with government. The new business plan and accompanying realignment will be achieved primarily with existing resources and revenues from business and other clients. The strategy has a five-year window and could be extended an additional five years, allowing time to demonstrate results.

One area that will require new federal support is metrology. Coulomb e says Canada enjoys a leadership position in the field along with the US, Germany and Australia and must invest to maintain that position.

"The strategy is silent on metrology but we all recognize that it is a key asset for Canada," he says. "We have to continue to be seen as leaders in the field. It has a high dollar impact for exporters in this country."

further changes

While NRC rolls out its new business plan, it is also moving on other key program components including its cluster initiatives. The three tranches of cluster funding are being aligned so that they all come up for renewal at the same time. Coulombe says this will allow for decisions on which clusters are candidates for permanent funding, which should continue with sunsetting funds and which should be terminated or transferred to the private sector or provincial authority.

The NRC has also decided to abandon its pursuit of a Toronto-based life sciences institute and explore the feasibility of establishing a larger entity encompassing pharmaceutical institutes and companies from Montreal and Vancouver as well as Toronto.

"The Canada Foundation for Innovation funded a project in Vancouver dealing with the same project (Univ of British Columbia's Centre for Drug Research and Development, R$, December 11/06)," says Coulombe. "We are now repackaging it into a broader project to bring together the expertise and the projects of those three large communities ... It's a work in progress."

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