June 2, 2006

INNOVATION DEMONSTRATION FUND

The McGuinty government is helping innovative companies develop cutting-edge technologies that will strengthen Ontario's economic advantage and provide high-value jobs for the future.

Innovation Demonstration Fund 

The four-year, $24-million Innovation Demonstration Fund helps companies develop promising new technologies by supporting them at the pilot or demonstration project stage. The fund focuses on new bio-based (made from biological or renewable materials), environmental and alternative energy technologies.  The result will be high-value jobs, future economic prosperity and improved quality of life for Ontario families.  

This program targets technologies that have gone through initial testing in the lab, but now need to be tested at the pilot or demonstration stage to see if the technology can be competitive when brought to market.  For example, specific equipment may have to be purchased to pilot the technology or additional expert staff may have to be hired.  A successful pilot often means these technologies have a much greater chance of success than ones at the "idea-only" stage.

The Innovation Demonstration Fund will provide initial financial support to companies that have promising ideas, but lack access to conventional sources of financing for a pilot or demonstration project.  All projects will be cost shared between the Ministry of Research and Innovation and the successful applicants.  Maximum support eligible projects will be able to receive is $2 million per year per project, not exceeding $4 million in total.

Investments will focus on early-stage technologies that have great potential to succeed.  Priority will be given to projects that have the potential to generate a global business.

Other important conditions for investment include:

• The company requires investment to get the technology "off the ground"
• There is high likelihood the company will be able to get future investments from other sources in 1 to 2 years
• The company has a significant, long-term operational commitment to Ontario.

The Innovation Demonstration Fund is just one component of the McGuinty government's $160-million Ideas to Market strategy ― announced in the 2006 Budget ― that will help companies turn research and ideas into new products and services for the marketplace.

Creating high-skilled, high-paying jobs is integral to Ontario's future economic prosperity.  The Innovation Demonstration Fund represents an initial step in a strategy to grow new technologies and help move innovative ideas to market.

Instructions and terms and conditions for applying to the Innovation Demonstration Fund are posted on the Ministry of Research and Innovation's website at: www.ontario.ca/idf.