NGOJF Fund Overview

The Strategic Opportunities Program is a part of the Next Generation of Jobs Fund (NGOJF). This fund is the cornerstone of the government’s economic development strategy to stimulate economic growth and create a sustainable and globally competitive workplace for the next generation of workers.

The purpose of the NGOJF is to support research, development and commercialization in innovative industries and attract new investments in strategic areas of Ontario’s economy. NGJF is a discretionary and non-entitlement program. Ontario has the sole right to approve funding, and all decisions are final.

NGOJF is a five -year $1.15 billion program to support job creation or retention in strategic areas of great potential for Ontario. The NGOJF program will:

• Create and sustain jobs for Ontarians
• Lever private sector investment in Ontario
• Improve competitiveness of Ontario businesses
• Foster innovation
• Support Ontario’s Go Green Plan.

There are three streams of investment activity:

1. Jobs and Investment Program: targeted to support business expansion/retention and attract foreign investment. The program will help support companies involved in green auto research, parts production and assembly; clean fuels research, development and commercialization; manufacturing, processing, environmental technologies; services (ICT & Financial), anchor investments to support cluster development (including services sector); and opportunity based/ unique investments. For full details please see the “Jobs and Investment Program – Program Guidelines”
2. Biopharmaceutical Investment Program: targeted to encourage research-based pharmaceutical companies to invest in Ontario. For full details please see the “Biopharmaceutical Investment Program – Program Guidelines”
3. Strategic Opportunities Program (SOP): to proactively create capacity to build industries of the future and more effectively target strategic opportunities for future investments in Ontario. SOP is targeted to support investments in innovation and commercialization infrastructure to achieve global leadership for Ontario’s future economic prosperity, and to support job creation in areas of great potential for Ontario in three focus areas (see below).

SOP Overview

SOP will initially focus on strategic opportunities in the following focus areas:

• Bio-economy and clean technologies;
• Advanced health technologies; and
• Digital media and information and communications technologies.

The Ministry of Research and Innovation (MRI) will provide up to 25% of the total eligible costs of an approved proposal with a minimum proposal size of $25 million over 5 years.  These costs must be incurred and paid after the date that a complete proposal is received by the Ministry.  The SOP is a discretionary and non-entitlement program.  Therefore even if a proposal meets all of the program’s objectives and criteria, there is no guarantee that funding will be awarded.  Approved funding will be provided in the form of a conditional grant or other funding mechanisms evaluated on a case-by-case basis.  Industry partners must contribute a minimum of 30% of the total eligible costs.

SOP is designed to: 

• Identify industry, academic and community leaders within the province;
• Leverage existing and new industry-led consortia, and build mutually beneficial collaborations across stakeholders -- provincially, nationally and internationally;
• Assess and determine specific “strategic opportunities” within the three focus areas where Ontario has or could develop a global competitive advantage.

SOP will be implemented to ensure investments will be:

• Based on market oriented / industry developed strategies (both existing and new);
• Focused on the strategic opportunities where Ontario has or could develop a global competitive advantage;
• Aligned with government priorities;
• Focused on the innovation “value chain” (i.e. from the conception of the idea to the development and release of the product into the global marketplace); and
• Designed to support innovative, market-oriented, industry-led commercialization projects, initiatives and services.

This approach will create a collaborative, transparent, yet competitive process to ensure that Ontario is leveraging all of its strengths and assets and is addressing key gaps to create a global competitive advantage in the areas of focus.

SOP Process

Identifying Strategic Opportunities

The Ontario Ministry of Research and Innovation (MRI) will identify the highest priority strategic opportunities within each of the 3 focus areas and develop a high level strategy in each of the focus areas to steer investments under the SOP, and to help align other areas of government investment and policy.

If you are interested in the SOP, please complete the SOP Inquiry Form [hyperlink] and email the completed form to MRI at strategicopportunities@ontario.ca. A representative from the Ministry will contact you within 2 business days.

Investing in Strategic Opportunities

Interested industry-led consortia must submit an SOP Proposal to be eligible for funding under the program.   The SOP Proposal will include detailed information on the identified strategic opportunities.  Please note: if you are an industry-led consortium and are planning to submit a proposal prior to the completion of the industry outreach process and posting of identified strategic opportunities, you must consult with MRI prior to preparing or submitting a proposal.

As noted above, the SOP is a discretionary and non-entitlement program.  Even if a proposal meets all of the program’s objectives the Government of Ontario is under no obligation to award funding as there may be other proposals that, in the sole opinion of MRI, more effectively meet the objectives and criteria of the program.

Proposal Submission:

In order for organizations to get involved in the SOP, industry-led consortia must submit a SOP Inquiry Form and email the completed form to MRI at strategicopportunities@ontario.ca.

Proposal Submission Process

1. Proponents should contact the Ministry of Research and Innovation (MRI) to determine if SOP is the appropriate NGJF funding stream to follow. Submissions may be received at any time during the five-year window of the program subject to program changes or prior to full allocation of the program funding.
2. MRI staff are available to provide advice to proponents as they define the parameters of eligible projects and prepare a proposal. However, proponents should be aware that any such Ministry assistance does not provide assurance that the submission will be acceptable and conditionally approved.
3. Once a proposal is submitted, proponents will be advised whether the proposal is judged to be full and complete, or whether further information may be required.
4. Proposals will be reviewed by external experts and staff of relevant ministries to determine which proposals will be recommended for funding.
5. The SOP is a discretionary and non-entitlement program. Therefore even if a proposal meets all of the program’s objectives and criteria, there is no guarantee that funding will be awarded. All proponents whose projects are conditionally approved will be notified in writing. Eligible costs for reimbursement for the Strategic Opportunities Program include only those costs incurred and paid after the date that a full and complete proposal is received, as determined by Ontario.
6. Where a proposal has been conditionally approved, a letter of offer will be sent to the proponent, setting out principal business terms for the proponent. In order to obtain funding, the proponent will be required to meet all conditions set out in the terms, provide a full business plan and enter into a funding agreement with the Ministry. No payments will be made until the funding agreement has been signed and any conditions for disbursement have been fulfilled. The terms of the funding agreement would contain provisions in favour of the Ministry including but not limited to: conditions of disbursement; subject to annual funding allocation; representations and warranties; positive and negative covenants; reporting and audit requirements; provisions relating to non-arms length transactions; insurance and indemnities in favour of the Government of Ontario; events of default; and remedies for default including but not limited to repayment of funds.

Service Standards

The Ministry will review and make a decision on proposals to the SOP within 45 Calendar days of receiving a complete proposal. Within these 45 calendar days, the Ministry will notify the proponent within 2 business days if the proposal is accepted and all of the information required has been furnished. The Ministry will proceed to review the proposal including analysis and expert review of the strategic opportunity and the proposed project or program. If, during the review process, the need for additional information is identified, the applicant will be notified. If the information is not provided within 24 hours, the 45 day count will stop and resume when the information is received.

Selection Criteria:

Proposals will be assessed on the following Proposal Evaluation Framework:

GLOBAL OPPORTUNITY	COMMITMENTS	IMPACTS
Program/ Project Strategy	Program/ Project Leadership	Talent
Global Leadership	Collaborations and Partnerships	Economic Benefits
Capturing the Market Opportunity	Infrastructure	Health and Environmental Benefits

Goal

Create and retain high value jobs in the innovation economy by working with Ontario industry to make strategic entries or expand their presence into global markets in areas where science, research and technology development are critical competitive factors.

To achieve this, the SOP will assist Ontario-based companies, research organizations, researchers and organizations in development of both platform and niche technologies in the identified “strategic opportunities”.

These goals will be accomplished by making investments that:

• Align existing and future public and private investments with specific opportunities where Ontario can achieve global competitive leadership;
• Build strong industry-led collaborations that involve companies, researchers, universities and not-for-profit organizations in Ontario on national and international levels;
• Turn leading-edge research and innovation into technologies, products and services which will achieve long-term global market success and create jobs in Ontario; and
• Become a “magnet” to attract world-class research talent and investors eager to invest in Ontario research and innovation, fast growing companies, technologies and products.

Program Eligibility Criteria

The SOP is open to industry-led, multi-stakeholder consortia and partnerships that may include research institutions, researchers, organizations and private sector enterprises with substantial R&D operations focused on building Ontario’s global strengths in the identified “strategic opportunities” in the three target areas: bio-economy and clean technologies, advanced health technologies and creative industries such as digital media and information and communications technologies (ICT).

Please note: A not-for-profit corporation is the most preferred form of governance of a consortium. For SOP, the vehicle used can be a newly incorporated not-for-profit or an existing corporation. MRI will consider alternative forms of governance provided that the industry contribution is larger than 30%.

As a condition of eligibility, organizations applying for SOP funds shall have an established Board of Directors responsible for the approval of its annual financial reports and audits.  This could include newly created organizations or existing organizations with an appropriate governance model, which must include a business-led Board of Directors or executive committee.

Eligible Proposals:

All proposals must:

• address a clear market potential, demonstrate commercial and economic potential and show a clear pathway to a minimum target of creating or retaining 100 jobs over the term of the contract.
• Demonstrate a clear understanding of the innovation value chain (i.e. from the conception of the idea to the development and release of the product into the global marketplace) for a “strategic opportunity” and identify where the projects and programs are positioned to leverage strengths and address value chain gaps.
• Be aligned with the strategic opportunities published on the MRI website or detail a new strategic opportunity (to be approved by MRI).
• If the proposal and business plan is approved, SOP will provide up to 25% of approved eligible costs incurred and paid once the proposal has been approved by the Minister (i.e. costs will be eligible for reimbursement after the date that the proposal is approved even if the business plan is not approved until a later date )
• Minimum project size of $25M of total project costs in the aggregate (could include a number of individual projects

Projects must also address one or more of the following:

• Build on Ontario’s strengths. Focus on “strategic opportunities” where Ontario is/has the potential to be a global leader.
• Support the transformation of new and existing Ontario businesses to high value-added global activities and jobs.
• Support collaborative public-private innovation partnerships that will build capacity for innovation and commercialization.
• Secure new knowledge based jobs and investment in Ontario.
• Be a catalyst for private sector led investments that will improve Ontario’s competitiveness.
• Proactively attract and foster investment in strategic areas.
• Potential for a long-term ‘return on investment’ for Ontario.
• Improve global awareness and recognition that Ontario is prepared to compete for ‘landmark’ global investment and innovation opportunities.
• Be consistent with/supportive of Ontario’s Go Green Plan with respect to key environmental priorities.
• Anchor investments to support cluster development.
• Attract global or North American research and development or commercialization mandates.
• Strengthening domestic collaboration that ensures that benefits spill over to a wide array of firms, sectors and regions of the province.

Eligible Costs – Overview

• Eligible reimbursement costs are those incurred and paid after the date that a proposal is received and deemed complete, as determined by Ontario.
• Eligible costs are actual cash outlays/ expenses that must be documented through invoices or receipts acceptable to the Ministry and are subject to verification by an independent auditor.   Evidence of payment must be maintained for audit purposes. 
• In-kind contributions, such as the donations of space, land, buildings, equipment and research assets will be allowed, where the fair market value can be readily established.
• The Ministry’s decisions as to the expenditure eligibility and valuation shall be final and determinative.

Eligible Cost Categories: 

Construction/Leasehold Improvements

Construction / leasehold improvement costs, which are directly attributable to the Project or Program. This would include work performed under contracts and subcontracts with third parties.

Equipment and Machinery

The Equipment and machinery required for the successful completion of the project or program.

Materials

Costs of direct materials necessary for, and specifically identified and measured as having being used for, the completion of the project or program, including:

• Materials used for prototypes.
• Materials used for configuring and testing production processes and systems.
• Materials used for training employees.
• Other materials directly related to the Project as approved by Ontario.

Labour

Labour costs must be directly attributable to the development and implementation of the project or program. This would include direct salaries, wages and benefits, paid by the proponent(s), for employees of the proponent(s) working on the project or program and in proportion to the amount of time spent working directly on the project or program.

Benefits mean employees’ regular entitlements for payroll-related benefits (CPP, EI, and employer health tax), medical and dental-related benefits and an appropriate percentage to reflect the cost of sick leave, vacation, and statutory holidays.  The Ministry must approve any other benefits in writing.

The Applicant is required to maintain timesheets or appropriate records for all employees working directly on the project or program to verify time spent on project or program and verify expenditures for audit purposes.

Industry-led Frontier Science, Applied Research and Commercialization

Costs incurred by the consortia or partnership for industry-led frontier science, applied research and commercialization of new technologies, which are directly attributable to the project or program. 

Business Development

Costs incurred by the consortia or partnership for business development related expense, which are directly attributable to the project or program including, but not limited to, business plan development, human resource plans and marketing plans.

Industry Internships and Talent Development

Costs incurred by the consortia or partnership for internship and training directly attributable to the project or program.

Networking

Costs incurred by the consortia or partnership for network development and ongoing support and networking events directly attributable to the project or program.

Overhead

• Reasonable overhead costs attributable to the project or program, at a rate not to exceed the usual overhead rate for the project facility (or, if the project facility is a new facility, not to exceed the rate at the Applicant’s similar facilities).
• May not include ineligible costs.
• Include administrative costs that are directly attributable to the proposal.
• Do not include labour costs (see Labour (one-time) costs).

Other Eligible Costs

Other eligible costs that are directly attributable to the Project or Program, may be approved by the Ministry.

Ineligible Cost Categories:

The following costs are ineligible:

• The purchase of land.
• Costs related to third party government relations consulting services.
• Costs associated with the purchase/lease or operation of vehicles or off-site equipment.
• Costs not incurred in Ontario.
• Mergers and Acquisitions.
• Working Capital.

Expected Results:

Job Growth and Retention

Talent Attraction and Development

• Develop high quality graduate and post-doctoral training in innovative applied research and technology development; and to increase the business skills and know-how of young researchers and business students.
• Attract and retain world leading researchers and research teams.
• Attract and retain more highly skilled entrepreneurial and business managers capable to moving ideas to the marketplace.

Commercialization

• Create, grow and retain companies in Ontario that are able to capture new markets with new innovations.
• Accelerate commercialization of leading edge technologies, goods and services in priority areas where Ontario can significantly advance its competitive advantage including:
• Design, prototyping and engineering: The production or significant improvement of the design, development and engineering of prototypes, materials, devices or systems.
• Technology Innovation: Unique implementation of technologies that result in improved products or processes for industrial, commercial and consumer applications.
• Process development and/or process innovation: Introduction of new processes that will enhance competitiveness through improved efficiency, productivity or quality
• Create clear paths to market or business application for the applied research and other technology development activities.
• Facilitate commercialization that positions Ontario firms in high value segments of the global production chains.
• Attract foreign direct investment to Ontario.

Frontier Science and Industry-Led Research

• Increase private sector R&D capacity and receptivity to the results of R&D;
• Increase private sector investment in R&D and advanced technologies;
• Strengthen public-private sector collaboration, including links between researchers and firms, to address significant research challenges that meet business needs.

Environmental

Consistency with and supportive of Ontario’s Go Green plan through:

• Greener and lower lifecycle carbon products –e.g. mainstream production of higher efficiency vehicles;
• Adoption of innovative low carbon, industrial processes – e.g. more energy efficient manufacturing, recycling and broader conservation;
• Sustainable facilities – that integrate urban and natural systems using low-carbon construction materials and methods;
• Green logistics – improve materials and product handling performance, e.g. using more efficient modes of transportation to address issues related to the need for just-in-time inventories;
• Green business support infrastructure – adoption and use.

Social and Health Benefits:

• Reduce the burden of disease and lead to improved health outcomes and health status of Ontarians;
• Improve the delivery of health care, including reduced wait times and optimization of use of health resources;
• Create new knowledge and applications that lead to earlier diagnosis, improved prevention of disease, an informed pubic, and improved population health outcomes;
• Enable seniors and people with special needs to maintain their independence and quality of life;
• Improve public health surveillance and the health system’s ability to respond and protect the public from infectious diseases and epidemics;
• Improve patient-centred health care across Ontario’s diverse populations and regions.

Confidentiality

The Ministry of Research and Innovation is subject to the Freedom of Information and Protection of Privacy Act. The Act provides every person with a right of access to information in the custody or under the control of the Ministry, subject to a limited set of exemptions. Section 17 of the Act provides a limited exemption for third party information that reveals a trade secret or scientific, commercial, technical, financial or labour relations information supplied in confidence where disclosure of the information could reasonably be expected to result in certain harms. Any trade secret or any scientific, technical, commercial, financial or labour relations information submitted to the Ministry in confidence should be clearly marked. The Ministry will notify you before granting access to a record that might contain information referred to in Section 17 so that you may make representations to the Ministry concerning disclosure.

CONTACT

Strategic Opportunities Program
11th Floor, 56 Wellesley St. W.
Toronto, ON  M7A 2E7
Phone: 416-314-2525
E-mail: strategicopportunities@ontario.ca

NGJF Inquires:

If you are uncertain as to the most appropriate NGOJF funding stream, please contact:

North America:	Phone: 1-800-819-8701 E-Mail: info@2ontario.com
U.K. and Europe:	00-800-46-68-27-46
Japan (ITJ):	00-800-46-68-27-46
Japan (KDD):	0061-800-46-68-27-46

Next Generation of Jobs Fund (NGOJF) Secretariat
Ministry of Economic Development and Trade
6th Floor, Hearst Block
900 Bay Street
Toronto, ON  M7A 2E1

Email: NGOJF@ontario.ca