#1MRC.CMRC IRAP Support of Food Innovation in MB Challenges and Opportunities Larry Taylor, Technology Advisor Agriculture, Food and Fibre NRC Canada National Research Council Canada Conseil national de recherches Canada Sep/2016 Canada#2Presentation Overview 1. The IRAP Business Support Model 2. IRAP Clients and Projects 3. IRAP Tools of the Trade 4. IRAP Funding Options 5. Client Input and Suggestions MRC CARC From Discovery to Innovation... 2 Industrial Research Assistance Program MRC.CMRC#3DO DO DOOD DODD DO IRAP MANDATE Create wealth for Canadian taxpayers by supporting SMEs to grow through innovation. 000 3 Industrial Research Assistance Program MRC.CMRC#4Focus on 7 Sectors 01000100 101011100 00 10% Aerospace 101101 ICT - Digital IRAP Life Sciences Health Agriculture & Food Energy & Environment Manufacturing Construction Industrial Research Assistance Program MRC.CMRC#5口 ༢༢ V NRC-IRAP locations NRC Research facilities MRC.CMRC IRAP Programs are delivered by a network of 250 ITAS in Canada " Of this about 30 are "Foodies' Industrial Research Assistance Program#6. . . The IRAP Client Company is "for profit” incorporated in Canada with fewer than 500 employees - SME Pursue growth by implementation of new technology or innovations. The innovation is aligned with the Strategic Plan. Open to develop a trusting relationship with IRAP and willing to consider new ideas. TRUST Industrial Research Assistance Program MRC.CMRC#7Client Relationship Products Financial Assessment Business Plan Market Innovative 7 Industrial Research Assistance Program MRC.CMRC#8Assistance is most often needed for.... Issue Business Strategy Manufacturing Funding Technical Assistance Network / Partners Financial Details Flawed Strategy or No Strategy. No Business Plan or info on the market, market assessment, competition Difficulty to scale up, how to do Lean, cost reduction to increase profit margins Often need funding for equipment items or workforce. To implement innovative technologies for growth. Need help with technical / research gaps in the business model. Need help with business partnerships, suppliers, MNEs that can help them to go global Need help getting financial in order, identify where money is lost, SR&ED, taxes and basic accounting. 8 Industrial Research Assistance Program MRC.CMRC#99 IRAP Support Tools Networking Partnerships Technical and Research Support Strategic Planning Business Support Industrial Research Assistance Program Marketing Support 000200 0000000 Financial Assistance 3333 APOLLO Intellectual Property Funding Tools MRC.CMRC#10A Funded IRAP Project Project that pursues “new” innovative technologies that will accelerate growth of the firm's business. Targets include: ● Creating new or better products Creating production efficiencies Improved sales/service offerings Innovative business strategies Results Greater revenues • Job creation . 10 Industrial Research Assistance Program MRC.CMRC#11. . IRAP Funding Covers Only eligible costs within the defined project. Eligible project salaries, contract fees (if approved) Does not cover capital expenditures. Does not cover 100% of project costs. Is a reimbursement of eligible expenses after paid. 11 Company must show that it is able to cover the costs for the entire project. Industrial Research Assistance Program MRC.CMRC#12IRAP Funding Tools IRAP Innovation Fund (small ARP) Primary funding tool for innovative technology projects with eligible SMEs المما %IDIA WNOVATION PLAN STRATEGY PLAN SUCCESS TEAM BUSINESS HOL PRODUCT COMPANY VISION Youth Employment Programs (YEP and Green Youth) *YEP - Helps SMEs hire skilled post-secondary graduate youth. ($20k) *GY - Support a "green" project with an eligible youth. Aged 16 to 30. ($10k) 12 Industrial Research Assistance Program MRC.CMRC#13IRAP Funding Tools Contribution to NFP Organizations - e.g.; FDC, CMC Program *Contribution to FDC to assist SMEs with small projects. Up to $7,000 - cost 10% *Certified Mgmt Consultant Program; Cost $150 for 40 hrs consult (~$8,000 value) Business Consultant Canada Accelerator and Incubator Program (CAIP) Contributions to Accelerators and Incubators to support early-stage SMEs that are investment ready and poised for growth. Startups E.g. - Manitoba Technology Accelerator 13 Industrial Research Assistance Program Equity $$$ Rent Services Success Risk Mitigation Investors Incubation Fee Facility MRC.CMRC#14Success Metrics - Growth Job Creation Increased Revenues Strategic Position International Trade Company provides annual report for 5 years after project 14 Industrial Research Assistance Program MRC.CMRC#15CTO Fund for the FDC Pool of "green lighted" funds for small projects . Manitoba SME client must be IRAP qualified Short-term technical project resolves specific issue . Maximum assistance of $7,000 - client pays 10% Final approval by Lead ITA 15 Industrial Research Assistance Program MRC.CMRC#16Benefits of the CTO For the SME Client Introduce client to local expertise - FDC • Resolve a technical issue at affordable cost For the FDC Incentive that brings in new clients and business For IRAP ● CTO project may lead to IRAP client, future projects EN E BENEFITS 16 Industrial Research Assistance Program MRC.CMRC#17Food related technical projects Food Project Oil or Protein Extraction Uses for co-products Microbial load mitigation Scale-up/Process refinement Recipe refinement Packaging/Labeling support 17 Industrial Research Assistance Program Alamy MRC.CMRC#18Poll of client issues/concerns Issue Expensive to Commercialize Lack of Facilities Scale-up Funding issues Regulatory and compliance Lack of Expertise of Firm Marketing issues Issue details Just plain expensive to go commercial as there are always new unforeseen costs. Every step seems to be expensive. Facilities for commercial scale-up not readily available or are expensive, few available commercial kitchens, or similar. Funding for capital items and labor is difficult, funds are often out of money. Relatively few investor options in Manitoba. Regulations and compliance is confusing often not consistent even within regulatory body. Need plain language support tool. Early stage inventors find it hard to go to the next level, "pioneers get the arrows and settlers get the land". Unsure how to bring to market, lack of access to retail, shelf space, distribution channels, local market is too small. 18 Industrial Research Assistance Program MRC.CMRC#19Suggestions from clients Issue Expensive to Commercialize Lack of Facilities Scale-up Funding issues Regulatory and compliance Lack of Expertise of Firm Suggestions summarized Creation of funding options to support start-up stages. More "creative" or flexible funding options. Subsidize the usage of the FDC facilities to assist firms to get to revenue self sustaining stage. Develop other facilities - shareable? Creation of funding programs which support capital items. Create an approach to lease/loan equipment. Simplify onerous programs. Develop a plain language support guide for regulatory and compliance. Create training events. Have specialists to mentor. Create a mentoring program to help new businesses learn how to go from start-up to commercialization. Marketing issues Creation of more business development staffing and events to assist development of a marketing plan/business model. 19 Industrial Research Assistance Program MRC.CMRC#20More Effectively Coordinate MB Assets Canadian Centre for Agri-Food Research Cigi Food Development Centre 000200 0000000000000 Grain 3333 Commission UofM Food Science RCFFN Link to other Provinces 20 20 Industrial Research Assistance Program Paterson Global Food Institute Funding Tools MRC.CMRC#21MRC.CMRC THANK 700 National Research Council Canada Conseil national de recherches Canada Canada