Thank you very much, Mr. Chairman, for the opportunity to speak to you today about the networks of centres of excellence, and specifically about the centres of excellence for commercialization and research and their role in the government's science and technology strategy.
We have provided, I believe, copies of the brief, as well as copies of additional material, so I will probably skip a few parts of my written remarks in order to stay on track and on time.
I will begin my presentation with a brief overview of the mandate and history of the Networks of Centres of Excellence, or NCEs. I will then describe in greater detail the Centres of Excellence for Commercialization and Research (CECR) program, including its mandate and selection criteria. I will end by giving a few examples of specific commercialization activities and projects that will be undertaken by the 11 new Centres over the next few years.
The networks of centres of excellence program was launched in 1989 to mobilize research excellence for the benefit of all Canadians by bringing together partners from the academic, private, public, and not-for-profit sectors. We are a partnership between Industry Canada and the three federal granting agencies: the Natural Sciences and Engineering Research Council, the Social Sciences and Humanities Research Council, and the Canadian Institutes of Health Research.
The program currently funds 16 networks across the country. They operate in the areas of health, advanced technologies, the environment and natural resources, and engineering and manufacturing. The committee members have been provided with the list and a description of the current networks.
From the start, these networks have proven that they can take bright ideas and turn them into tangible benefits for Canadians. In terms of numbers, over 2,000 organizations, Canadian and international, are participating in the program, and 800 of those come from the private sector.
Over a typical seven-year cycle, the NCEs secure nearly $500 million in cash and in-kind contributions from their partners. In 2006-2007, the Networks filed 100 patents and 20 licences.
And they have launched over 80 spin-off companies since 1997.
In budget 2007 the government announced nearly $350 million of additional funding to expand the NCE mandate. With this additional funding, the program now includes three major new programs: the centres of excellence for commercialization and research, which we call it the CECR; the business-led networks of centres of excellence, NCEs; and a national industrial R and D internship program. I will focus the rest of my remarks on the CECRs.
The CECR program's goal is to create world-class centres to advance research and facilitate commercialization of technologies, products and services. These centres operate in the priority areas mentioned in the S&T Strategy: health, information and communications technology, environment, and energy and natural resources. The program funds the Centres' operating and commercialization costs. Research and infrastructure costs must be covered by other federal programs, or through initiatives such as those run by the granting agencies and by the Canada Foundation for Innovation.
The first CECR competition was worth $165 million and was launched on June 26, 2007. The response from the community was exceptional: 110 eligible letters of intent were received during the first phase of the competition and 25 groups were invited to submit full proposals.
Proposals were evaluated on the potential benefits to Canada, the strength of their business plan, and the team track record. In addition, close attention was paid to two criteria related to commercialization: the ability to create, grow, and retain Canadian companies that can capture new markets with breakthrough innovations; and evidence that the proposed centre would accelerate the commercialization of leading edge technologies, goods, and services in the areas of priorities.
A private sector advisory board assessed the economic and commercial benefits and opportunities of each proposal and provided recommendations to the NCE steering committee.
The NCE steering committee is composed of the presidents of the granting agencies, the deputy minister of Industry Canada, and, as an observer, the president of the Canada Foundation for Innovation.
On February 14, eleven new CECRs were announced, and we have provided a full list of these. These eleven centres join the seven that had been previously announced by the government in budget 2007, which are located in Halifax, Vancouver, Montreal, Quebec City, Toronto, and Calgary.
Included in the brief I have indicated a number of examples of some of the breakthrough technologies and some of the commercialization expectations that these centres have put forward. In the interest of time, I will not read this part of the document.
I will conclude my remarks here, thanking again the committee for inviting us to answer your questions on this and any other programs we are currently managing.
Merci, monsieur le président.