Spring 2023 NSERC Idea-to-Innovation (I2I) Grants

Eligibility

Applicant Eligibility

1. You must hold or have a firm offer of an academic appointment at an eligible post-secondary institution. For university faculty the appointment can be:
   • a tenured, tenure-track or professor emeritus position, or
   • a term or contract position of no less than three continuous years
2. Your position at the eligible post-secondary institution must:
   • require you to engage in natural sciences and engineering research (relevant exceptions are noted in certain funding opportunity descriptions) that is not under the direction of another individual, and
   • permit you to supervise or co-supervise the research* of postdoctoral fellows or students registered in an undergraduate or graduate degree program
3. Your faculty appointment must not be conditional on obtaining NSERC grants or other non-NSERC sources of support, including salary support.
4. Your salary must not be paid by NSERC, SSHRC, or CIHR grant funds. Exceptions include: scientific directors of Networks of Centres of Excellence (NCE) and those under the agencies’ salary support programs.

Partner Eligibility

NSERC will evaluate the eligibility of sponsors before accepting proposals for review. The following organizations may be considered as eligible partners:

1. Early stage investment group: This term refers to either venture capital, a seed capital funding entity, angel investors, university technology transfer corporations, incubators, or other similar funding or technology transfer organizations. Organizations that have received public funds as seed funding, but are functioning in a competitive environment and are required to achieve self-sufficiency within a pre-determined time period, may be considered as equivalent to industry.
2. Companies: Normally, participating companies must be Canadian. Companies outside Canada may also be considered as partners provided they can demonstrate that there will be clear and direct benefits to the Canadian economy as a result of their participation. As partners, companies must demonstrate that they have, or have the potential to acquire, the capability to commercialize the technology under development.
3. Researcher-owned companies: A researcher's own consulting company or sole proprietorship is not eligible to collaborate on a project in which the researcher is the applicant or co-investigator. Situations in which the researcher is a part owner are reviewed on a case-by-case basis, and the company’s stage of development will be taken into consideration in determining eligibility. The commercial activity must conform to the institution’s established policies relating to the disclosure of commercial interest and conflict of interest.

Summary

The objective of Idea to Innovation (I2I) grants is to accelerate the pre-competitive development of promising technology originating from the university and college sector, and to promote its transfer to a new or established Canadian company. I2I grants provide funding to college and university faculty members to support research and development projects with recognized technology transfer potential. This is achieved through defined phases by providing crucial assistance in the early stages of technology validation and market connection.

There are four distinct funding options, characterized by the maturity of the technology or the involvement of an early stage investment entity or industrial partner (see Partner eligibility for definitions). In the market assessment, NSERC will share costs of an independent and professional market study with the institutions (including the industry liaison office [ILO] or its equivalent). In phase I, the direct costs of research will be entirely supported by NSERC; in phase II, they will be shared with a private-sector partner (company). The technology development may begin with a phase I project (reduction-to-practice stage), followed by a phase II project (technology enhancement); or, if the development is at a later stage, it can start directly with a phase II project. In any case, the combination of phase I and phase II will be limited to a maximum of three years of funding for any given project, and to one grant per phase for the same technology or intellectual property (IP).

Market Assessment

Market assessment projects are designed to enable institutions to conduct a market study for a product, process or technology they plan to develop. Understanding market potential is crucial when developing a new technology. The market assessment funding option is a tool to help gain impartial market opportunity information and validate important business elements before embarking on the development process for a technology. It can be used to better position a proposed technology in an I2I application (providing the reviewers with a better understanding of the market for a given technology) or to identify the appropriate NSERC program.

The market assessment should precede a phase I proposal, if the applicant and ILO or its equivalent have not yet developed an understanding of the potential market. In certain instances, such as the development of a platform technology, requests for a market assessment can be submitted as a stand-alone proposal at the same time as a phase I application.

The market assessment should objectively establish the size of addressable market segments and present a clear portrait of the competitive landscape. The market assessment should focus on  primary research used to enter into a discussion with potential customers and/or partners (identified with the researcher and ILO) to flesh out their thoughts about the new technology. Funding is available for up to 12 months, with a maximum contribution from NSERC of $15,000.

Phase I: Reduction-to-Practice Stage

Phase I reduction-to-practice projects are designed to advance promising technologies in order to attract early stage investment and/or to build valuable intellectual property (e.g., strengthening the commercial value of the technology, broadening patent claims or strengthening licensing opportunities) in anticipation of transferring the technology to a new or established company.

One of the main reasons why phase I proposals are rejected is that the technology is at too early a stage to be eligible for the I2I grants. Phase I proposals must be based on strong scientific evidence and present the following elements:

• The technology must be sufficiently mature. The basic parameters of the concept must have already been explored, and sufficient testing should have been done to assess the potential of the innovation to work in a “product” environment or for its intended purpose. This represents at least technology readiness level (TRL) 4. 
• There must be a clearly identified and well-described potential market. Meaningful letters of support from potential receptors, end-users/clients and industrial value-chain players may be very useful.
• The content of the technology transfer section should address the essential questions asked through the market assessment portion.
• Involvement of experienced business mentors is recommended when the team is planning to spin off a new company.

Funding is available for up to 12 months, to a maximum of $125,000, and is non-renewable. NSERC will assume 100% of the direct costs of research for phase I projects. NSERC offers an I2I phase Ib supplement. This funding of up to $60,000 for six months can be made available for successfully completed phase I projects with high promise to secure an investor or a licensing company. ILOs or their equivalent should contact NSERC staff for more information.

Phase II: Technology Enhancement

Phase II projects are designed to provide scientific or engineering evidence that establishes the technical feasibility and market definition of the technology, process or product. Phase II projects require an early stage investment entity (phase IIa) or a company (phase IIb) to share the costs of the project. The supporting organization is expected to participate actively in planning the project. The proposals fall into two categories according to the partner involved, as described below.

Phase IIa: early stage investment partner

Proposals with an early stage investment entity must be designed with a “go/no-go” decision point after 6 to 18 months, which represents the achievement of a predefined scientific or engineering milestone that justifies moving forward by further developing the technology either through a new (i.e., start-up) or established company. NSERC can support up to two-thirds of the costs of the project, with the early stage investment entity providing the balance in cash. Funding requested from NSERC should not exceed an average of $125,000 per year.

Projects that achieve critical milestones may be pursued for another 6- to 24-month period with either the newly created company or an established Canadian company, provided the cost-sharing arrangements for phase IIb projects are met.

Phase IIb: partnership with a Canadian company

Most of the requirements for phase IIa listed above also apply to phase IIb applications. As well, if the development of the technology was supported by a previous I2I phase, proof that the objectives of the earlier project were achieved must be provided, specifically

• the “prototype” must already be in existence
• a strong business plan is required
• involvement of experienced business mentors is required when the team is planning to spin off a new company
• the receptor capacity to manufacture, distribute, license, etc. must be substantiated
• adequate budgets are required to show that the product will be at the marketing/manufacturing stage at the end of the phase IIb grant
• the “in-kind” contributions should be fully justified, as they will be carefully scrutinized

Phase IIb proposals with a Canadian company are expected to be completed within two years, and funding requested should not exceed $350,000 for the duration of the project. NSERC may fund up to half the cost of the project, with the company providing the other half through a combination of cash and in-kind contributions. Each case will be evaluated on its merits; however, the cash component should equal at least 40% of the amount requested from NSERC.

Application deadlines

RSO detailed review deadline

RSO final internal review deadline

Program application deadline

NOTE: Consult your Faculty Associate Dean (Research) (ADR) regarding Faculty-specific deadlines and submission processes.

Principal Investigators: Complete a Research Management System (RMS) record, including a copy of your complete application, and submit this for approvals in RMS.

Approvals: The University of Calgary requires that all funding applications be approved prior to submission. Approval requires signatures via either RMS or the RFAA Trainee form, in the following order:

• Principal Investigator
• Department Head
• Faculty ADR/Dean
• Research Services (on behalf of the Vice-President Research)

Read the Meaning of Grant Signatures policy to understand what your approval means. Please see the agency guidelines for details about which signatures are required on your application, as it may differ from internal requirements.

Late submissions: Late submissions will only be accepted in cases of medical or family emergencies, or other exceptional circumstances. If you submit your RMS record to Research Services after the internal deadline has passed, you must secure additional approvals. Please read: Late Applications Process.

Application Forms:

Form 100 – Personal data form
Form 101 – Application for a grant
Form 183A – Information required from organizations
participating in research partnerships programs (phase II only)

To create or access online applications, log in to the  online system. To view instructions, see the PDF forms and instructions web page.

How to apply

See the application instructions for I2I grants for more information about application forms and guidelines.

Applications are submitted by a college or university researcher (or research group) and, for phase II projects, in association with an eligible partner. In the latter case, the institution and early stage investment partner or company should have in place, before applying, a licensing (or similar) agreement on the right to exploit the invention or discovery. All new proposals are expected to be developed in close collaboration with the institution's ILO or its equivalent. The ILO or its equivalent involved in the application must be identified at the beginning of the technology transfer section of the proposal.

NSERC staff is willing to review draft proposals submitted sufficiently in advance of the application deadline.