industry canada technology demonstration program

Technology Demonstration Program

October 2013


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


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.


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.


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 multi-year life of the project.

• The duration of the R&D project is generally expected to be five years; on a case-by-case basis, a project with a shorter or longer duration will be considered.


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.


Typical Projects

# of projects approved

1 2 3 Recipient Contribution per project $54 $27 $18 TDP Assistance per project (50%) $54 $27 $18

Total Project Size $108 $54 $36

Typical 5 year project Typical Recipient Contribution per year $10.8 $5.4 $3.6 Typical TDP Assistance per year $10.8 $5.4 $3.6

Total per year $21.60 $10.80 $7.20


What is the application and approval process?

APPLICATION PROCESS AND TIMELINE DurationStatement of Interest (SOI) 3 months

Review of SOI and Invitations 1 month

to Selected Applicants

Project Proposal 3 months

Due Diligence 2 months

Approvals 2 months

Contribution Agreement 1 month


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


For more information Visit:

• http://ito.ic.gc.ca

Contact:

• Mark Wirth, Senior Investment Manager, Industrial Technologies Office ([email protected] or 613 946-0913)

http://ito.ic.gc.ca/

http://ito.ic.gc.ca/

mailto:[email protected]


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

industry canada technology demonstration program

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