Evidence of meeting #42 for Industry, Science and Technology in the 39th Parliament, 2nd Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was funding.
Director, University, Industry Liaison Office, Simon Fraser University
There's another component to it that perhaps Dr. Branda could speak to, being a researcher at SFU who works under that policy.
Dr. Neil Branda Professor and Canada Research Chair in Materials Science and Director, Molecular Systems, 4D LABS, Simon Fraser University
One of the reasons I came to SFU was the freedom policy, and I'd normally get into trouble making a lot of these comments.
Professor and Canada Research Chair in Materials Science and Director, Molecular Systems, 4D LABS, Simon Fraser University
It's always very cliché when you talk to professors about why we went to universities and didn't take higher-paying jobs in industry. The answer is always intellectual freedom. And that is true until something works and has value, and then universities like to take it over.
I think having the IP in the inventor's hands is absolutely critical to making sure it's done well. Now, the universities can have a role in facilitation. I think Mike Volker's office does a very good job of that. They help us when they can. They give us a choice of how much to engage them, how much to ask for their help, and I think there has to be a balance there.
Professor and Canada Research Chair in Materials Science and Director, Molecular Systems, 4D LABS, Simon Fraser University
I think it's very well put that it depends on the research sector. There are some sectors that we identified in biotech where it would be much more dangerous to go forward without good IP protection. He's absolutely right about that.
That being said, my experience these days with a lot of investors is that they want direct tech transfer into a company if it spins off, because, especially in the area I'm in, which is material science, a lot of developments may be made peripheral to the initial products that you're aiming for. So even though that product may not work, they don't want a licence any more, they want to have direct ownership of the IP. Having fewer people involved in IP ownership makes it easier for the companies.
We've had many Canadian and American companies come to us at 4D LABS because we own our IP, saying it's refreshing that they don't have to deal with a larger body of people who get in the way; they can deal with the individual.
NDP
Peggy Nash NDP Parkdale—High Park, ON
Thank you.
Mr. Watzke, I'm curious, what happens with the IP in your facility?
Dean, Applied Research and Director, Technology Centre and Dr. Tong Louie Living Laboratory, British Columbia Institute of Technology
At BCIT we have a very inventor-friendly IP policy. There's one distinction--I'm not even sure my colleagues know this about our policy--and it's a lot about value. Since we don't have as many resources as some other institutions, what we do is make sure, before we start to foster or try to protect the IP, that we think there's some value there.
Then once we do that--as I said, it's often inventor-owned--where our policy is special is that when royalties start to come back, when that first dollar starts to come back, we start sharing with the inventor immediately. We don't wait until the institute has started to recover its expenses. Now think about that. That does make a difference.
We're not in the QLT game, but I have a faculty person right now who got his royalty cheque. We just started getting money from one of the licence agreements, and he got his $1,000, then we got our $700. It started right from the first cheque that came in.
Conservative
The Chair Conservative James Rajotte
Thank you.
Thank you, Ms. Nash.
We'll go to Mr. Simard, and then to Mr. McTeague.
Liberal
Raymond Simard Liberal Saint Boniface, MB
Thank you very much.
Mr. Volker, my stereotype of an angel investor or venture capitalist is an older person who's retired and wants to have a little bit of fun. Can you tell me what an angel investor looks like? Is he or she older, younger? Is it a corporation looking to diversify? What do they look like?
Secondly, how difficult is it to get them to invest in science and technology firms as opposed to when somebody is producing a widget, which is a lot more tangible? Maybe you can tell us about that.
Director, University, Industry Liaison Office, Simon Fraser University
Well, to your last point, the people I deal with are all science and technology angel investors--i.e., they're successful technology entrepreneurs who've made money building their own businesses and now are willing to put some of that back, both in time and money. That's the differentiating feature. They're not just investors, they're also mentors at the same time. There are a few silent investors, but not too many.
As far as the profile goes, there are some very young ones. In my fund, for example, I have some in their 20s, I have some in their 80s. It's quite a range. There are serial entrepreneurs who like to score and then score again and again. Then there are those who like to score once, and then they spend their time helping many others develop their businesses. It's quite a mix.
Liberal
Dan McTeague Liberal Pickering—Scarborough East, ON
Related to that, and perhaps any of you can answer this, the current economic climate with respect to the credit crisis has certainly led to doubts about the availability of commercial credit, which might impact venture capitalists. Have any of you in your experiences or with those you deal with in the private sector heard that there is a situation where credit available to new innovation or technology is drying up?
Director, University, Industry Liaison Office, Simon Fraser University
I've certainly not seen it. I always maintain there's no shortage of capital for good projects.
Our job, and the challenge, is the matchmaking, because I hear the other side. What my office does is to try to bring those together.
Liberal
Dan McTeague Liberal Pickering—Scarborough East, ON
Good.
Usually at this time there are a few minutes left for the chair.
I might just do that, Chair, if you wish.
Conservative
The Chair Conservative James Rajotte
I do have two more members, so you have some more time, Mr. McTeague.
Liberal
Raymond Simard Liberal Saint Boniface, MB
Is there a labour-sponsored fund in B.C., and how is it working? Does it have a mandate to assist the start-ups and smaller corporations?
Director, University, Industry Liaison Office, Simon Fraser University
It does that, but it doesn't have a mandate to do so.
Liberal
Raymond Simard Liberal Saint Boniface, MB
It doesn't have the mandate. It's probably the labour-sponsored fund that just bought ENSIS in Manitoba, actually. We have had two labour-sponsored funds that were actually disastrous; they didn't do very well.
I've asked about this in Saskatchewan and also here, but is your fund working fairly well here?
Director, University, Industry Liaison Office, Simon Fraser University
Yes.
Conservative