Industry Canada Technology Demonstration Program

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Information about Industry Canada Technology Demonstration Program
Business & Mgmt

Published on February 26, 2014

Author: PtboEcDev


Technology Demonstration Program October 2013

Technology Demonstration Program On March 21, 2013, Economic Action Plan 2013 announced the Government’s intention to create a Technology Demonstration Program, fulfilling a key recommendation of Beyond the Horizon: Canada’s Interests and Future in Aerospace, led by Mr. Emerson On September 4, 2013, Minister James Moore announced the launch of the Technology Demonstration Program with funding of $110 M over 4 years followed by $55 M annually

Technology Demonstration Program What is the Technology Demonstration Program?  Provides non-repayable contributions in support of large-scale technology demonstration projects in the aerospace, defence, space and security sectors.  Projects funded through this program are expected to be the basis for next-generation manufacturing and services in Canada.  The program will support technological development in areas that have significant potential for broad-based and long-term economic benefits to Canada.

Technology Demonstration Program Who is eligible to apply?  Eligible Recipients • Eligible Recipients must be either an OEM or a Tier 1 company (supplying directly to an OEM). • The lead corporation (Eligible Recipient) must be a for-profit corporation, incorporated pursuant to the laws of Canada and carrying on business in Canada.  Eligible Project Members • Projects are required to have at least one small or medium-sized (SME) Canadian-based corporation (fewer than 500 employees) to promote the development of the supply chain and at least one accredited Canadian university, college or affiliated research institute to promote knowledge transfer. • International members contributing their own financial resources may participate in the project. Possible to have limited access to TDP funding when necessary for its success for activities that cannot otherwise be sourced from Canada.

Technology Demonstration Program What is an eligible project?  Demonstration projects are expected to include activities up to the completion of Technology Readiness Level (TRL) 6, with a focus on TRL 4-6 activities. • Demonstration projects cannot generally be directly commercialized upon project completion.  Industry Canada will launch annual calls for proposals.  The program's goal is to support one large scale project each year; generally no more than three projects will be approved each year depending the strength of applications. • The program will cover up to 50 percent of total eligible project costs over the multiyear life of the project. • The duration of the R&D project is generally expected to be five years; on a caseby-case basis, a project with a shorter or longer duration will be considered.

Technology Demonstration Program Eligible Project (continued)  The Recipient will be expected to match the government’s contribution (through its own investment and/or other source of funds). 75% stacking limit  Program target of 50% allocation of TDP assistance to Project members  A significant portion of the project costs is expected to cover direct labour related to undertaking the R&D. Other eligible costs include materials, equipment, and overhead at a rate of 75 percent of direct labour.  R&D infrastructure - supported by the program (shared, accessible facilities) • A plan is required to maintain and make available the project’s infrastructure after the project is completed.  Applicants will be expected to have a post-project strategy to further develop the technology that emerges from TDP projects into product-specific applications in order to achieve commercialization potential.

Technology Demonstration Program Typical Projects # of projects approved Recipient Contribution per project TDP Assistance per project (50%) Total Project Size 1 $54 $54 $108 2 $27 $27 $54 3 $18 $18 $36 Typical 5 year project Typical Recipient Contribution per year Typical TDP Assistance per year Total per year $10.8 $10.8 $21.60 $5.4 $5.4 $10.80 $3.6 $3.6 $7.20

Technology Demonstration Program What is the application and approval process? APPLICATION PROCESS AND TIMELINE Statement of Interest (SOI) Review of SOI and Invitations Duration 3 months 1 month to Selected Applicants Project Proposal 3 months Due Diligence 2 months Approvals 2 months Contribution Agreement 1 month

Technology Demonstration Program 2013-14 Call for Proposals  Statement of Interest • Overview of a proposed project – nontechnical • Evaluated against the program’s 7 Evaluation Criteria • Significant consideration given to proposed projects that demonstrate strong economic benefits to Canada as well as exceed the minimum project targets/expectations • SOI phase: September 4, 2013 to December 6, 2013. • Following an SOI review, selected applicants will be invited to participate in the next phase – Project Proposal, with a due date of April 14, 2014

Technology Demonstration Program For more information  Visit: •  Contact: • Mark Wirth, Senior Investment Manager, Industrial Technologies Office ( or 613 946-0913)

Technology Demonstration Program Evaluation Criteria  Economic Benefits to Canada • Demonstrate benefit to lead corporation and each project member, how technology will be the basis for next generation manufacturing and services and have the potential to generate material economic benefit for Canada in the longer term  Broader Benefits to Canada • Demonstrate expected to generate social, environmental, health, security or other benefits to Canada  Collaboration • Demonstrate that the project will be bed by an OEM or Tier 1 company and includes at least one small or medium sized company and one accredited Canadian university, college or affiliated research institute  Innovation • Demonstrate project is technologically feasible  Management and Technological Capacity • Demonstrate that the lead corporation and its members have the financial capability to complete the project  Financial Capability • Demonstrate that the lead corporation and its members have the financial capacity to complete the project and that the program is leveraging incremental private sector R&D investment  Post Project Support • Demonstrate that the lead corporation and its members are committed to further develop the technology for potential commercialization and sustain the infrastructure after project completion

Technology Demonstration Program

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