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PROGRAM GUIDE: THE REGIONAL INNOVATION NETWORKS (RINs) PROGRAM PROGRAM OVERVIEW Background

The Regional Innovation Networks (RINs) program is designed to accelerate technology and knowledge-based small and medium-sized enterprises (SMEs) by increasing connectivity and coordination in Alberta’s innovation ecosystem, contributing to entrepreneur and company development through programs and services, and strengthening the entrepreneurial culture. A well connected and coordinated innovation ecosystem in Alberta will contribute to the economic, environmental and social outcomes of the province.

There are eight regions around the province with established Regional Innovation Networks. Each RIN is responsible for creating a community-based network of programs and services to achieve common RIN program goals. Together, they are the Alberta Innovation Network (AIN).

Over the last two years Alberta Innovates has worked with existing Regional Innovation Network partners, the Ministry of Economic Development, Trade and Tourism, and Alberta innovation ecosystem stakeholders to co-develop the key principles of a successful Alberta Innovation Network. These principles will build on successes to date as well as encourage growth in new areas to ensure relevance and a client-centric program.

This program is funded by the Government of Alberta, Ministry of Economic Development, Trade and Tourism and is administered by Alberta Innovates.

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Program Details

Funding under this Program is available for up to two years. The following are the co-developed Regional Innovation Networks Program principles:

• Technology and knowledge based entrepreneur-centric • Pan-Albertan • Community based • Interconnected-sharing and learning • Adaptable • Collaborative governance.

The goal of a RIN is to create a community-based network of programs and services to accelerate growth of technology and knowledge-based businesses.

All funded networks must also demonstrate action on accessibility and inclusiveness.

HOW THE PROGRAM WORKS

The purpose of the program is to create a network of passionate, like-minded organizations that work collaboratively to improve their innovation ecosystem and support technology and knowledge-based SME’s.

This is a network program open to consortia comprised of a wide variety of organizations including post-secondary institutions, government supported corporations, and not-for profits. There should be multiple stakeholders/partners contributing to the application, with one organization designated as the Applicant. There should be demonstrated participation and/or input from technology and knowledge-based SME’s that the network serves.

Applicants will work in partnership with other organizations in their regions to deliver RIN activities. The Applicant will be responsible for the completion and submission of the application with the approval of the others in the consortia, signing the agreement, administration of the funding and submitting the required reporting. Other organizations forming the RIN will be members of the RIN as defined by the collaborative governance structure.

Regional Innovation Networks are in the following areas:

o Northern Alberta (Municipality of Wood Buffalo and surrounding area) o Northwest Alberta (Grande Prairie and surrounding area) o East Central Alberta (Lloydminster, Vermillion and surrounding area) o Central Alberta (Red Deer and surrounding area) o Southern Alberta (Lethbridge and surrounding area) o South Eastern Alberta (Medicine Hat and surrounding area) o Edmonton region o Calgary region

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Each RIN distributes program funding under a collaborative governance structure model to allow for community focused, entrepreneur-centric activities.

Eligibility

(a) Applicant Eligibility Criteria - To qualify as an Applicant, you are required to satisfy the following criteria:

• be a legal not-for-profit entity:

incorporated in Alberta; or

incorporated federally or in another jurisdiction AND extra-provincially registered in Alberta; or

a General Partnership, Limited Partnership or Limited Liability Partnership AND registered in Alberta;

a Campus Alberta organization (A current list of Campus Alberta institutions can be found online at http://advancededucation.alberta.ca/post-secondary/campusalberta/)

• have the powers of a corporate body pursuant to its enabling legislation;

• demonstrate the relationship between Alberta Innovates and the Applicant does not create a conflict of interest; and

• have no outstanding balance or otherwise owe money to Alberta Innovates or its subsidiaries.

(b) Network Eligibility Criteria

To qualify for funding all submissions must:

• provide a detailed first year Project plan and budget with a higher level, 2 year operating plan and a governance plan;

• be comprised of members that have a significant presence in Alberta (including staff, operations, and investments); and

• include a representation of members from the region, including post-secondary institutions in the region.

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Program Objectives and Performance Measurement The objectives of each RIN are to:

• Identify gaps and trends in the innovation ecosystem related to technology and knowledge-based SME development and foster the development and service delivery of projects or programs to fill those gaps in the region.

• Provide an inclusive collaborative governance framework for the region to deliver a collaborative and coordinated network approach allowing for fair representation and funding support for stakeholders and clients in the region.

• Create opportunities for shared learning with the Alberta Innovation Network to reduce inefficiencies, fragmentation and gaps.

• Contribute to strengthening the innovation ecosystem by enhancing the entrepreneurial culture in Alberta.

A results-focused organization, Alberta Innovates uses a performance management framework to monitor and evaluate the outcomes and impacts of its investments. The Applicant, with input from RIN members, is responsible for bi-annual reporting on all required indicators to Alberta Innovates.

Over the life of a Project, Alberta Innovates employs an active project management philosophy, regularly monitoring performance and supporting the RINs to reach their outcomes. Funding is tied to outcomes and achievement of results and submission of progress and performance reports. For this reason, Alberta Innovates funds on a reporting basis. This means the Applicant is expected to submit a report that is aligned with the proposal submitted before Alberta Innovates advances the next tranche of funds. Failure to complete annual performance reporting will also impact fund release. Alberta Innovates will provide templates for these required reports. The Applicant is responsible for bi-annually reporting on all required indicators to Alberta Innovates and maintaining up to date client records as reported in the current Client Information System (CIS) or equivalent. There will be a requirement to support client survey activities, in collaboration with Alberta Innovates. The annual performance reports are used to inform program planning and performance management. The Program level performance results will be communicated back to Applicants, key stakeholders and the public.

Short, mid and long-term program outcomes and a sample of outcomes are highlighted in the following diagram. See Appendix A for more detailed Pathway to Impact.

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Pathway to Outcomes

SME BENEFITS

Awareness of business and technical supports available in Alberta

Access to globally relevant events and services that meet their needs

A culture in Alberta that supports the entrepreneurial journey of technology and

knowledge based SME’s

SHORT TERM PROGRAM OUTCOMES

An inclusive regional network that adapts and responds to client needs with program and

services for technology and knowledge based SME’s

Active alignment and intentional networks in the innovation ecosystem

ALBERTA Strategic Outcomes

Improve technology and knowledge based SME support systems in local

communities

Increase awareness of technology and knowledge based SME supports

MID/LONG TERM PROGRAM OUTCOMES

Increase the velocity of Alberta

technology and knowledge based SMEs through their

entrepreneurial journey

An easy to navigate innovation ecosystem that efficiently and

effectively connects entrepreneurs to resources and capital

SHORT TERM

LO

NG

TERM

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How Funding Works (a) Funding

Regional Innovation Networks are funded for up to 2 years. Alberta Innovates will fund based on the size of the region, demonstrated effective use of previous funding and proposed use of funding. Leveraged funding is encouraged.

Alberta Innovates encourages the network to include multiple contributing partners to demonstrate an inclusive network in the region and obtain SME input or involvement to ensure services are client centric.

(b) Eligible Use of Funds

Alberta Innovates only funds reasonable costs incurred subsequent to a signed funding agreement between Alberta Innovates and the Applicant. Any costs incurred prior to the signing of the funding agreement without obtaining Alberta Innovates’ prior written permission, or costs greater than reasonable market prices are deemed ineligible.

The chart on the next page provides a high-level summary of eligible and ineligible expenses.

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Summary of RIN Related Eligible and Ineligible Use of Funds

Category Eligible Use of Funds Ineligible Use of Funds

Labour Salary, and benefits (total burden) for individuals whose time can be attributed to RIN activity.

Reasonable professional training & development for RIN activities

Overhead costs

Professional membership fees

Materials Reasonable material costs

Capital Assets & Software

Capital equipment on a pre-approved basis

Software required for operation of the RIN and information sharing between RINs.

Note: Eligible costs will be pro-rated to the Project time frame based on the asset’s expected economic life

Acquisitions of land or buildings

The undepreciated value of eligible capital costs which extends beyond the project timeframe

Travel Mileage, most efficient economy class airfare or transportation, and accommodation and meals if directly related to approved RIN activities.

Passport or immigration fees

Reimbursement for airfare purchased with personal frequent flyer programs

Commuting costs between place of residence and place of employment

Sub-contractors

Services or products from another entity

Licensed programs or curriculum

Costs associated with applying for government grants and programs on behalf of clients

Provisions for contingencies

Routine testing and maintenance

Other Costs which Alberta Innovates pre-approves in writing as an eligible use of funds

Reasonable marketing of RIN supported activities

Reasonable event costs (including sponsorship of local events)

Rent for Technology Development Advisor space (excluding Calgary and Edmonton)

Entertainment, hospitality and gifts

Collection charges, allowance for interest on debt, fines and penalties

Federal and provincial income taxes, goods and services taxes

Expenses for projects or activities outside the approved Project

Creation and execution of direct funding programs to SME

Direct funding to network clients

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HOW TO APPLY

The Regional Innovation Networks Program is delivered in three phases.

PHASE 1 Application

Applications are submitted to the Regional Innovation Networks program. Alberta Innovates will not accept partial or incomplete submissions. Required content must be provided in the application to consider the submission complete. Applications received after the deadline will not be considered.

PHASE 2 Application Evaluation The application will undergo a merit review and be forwarded to a recommendation team. Final budgets and Project plans will be completed by Applicant with feedback from the merit review.

PHASE 3 Agreement Execution and Project Management For approved applications, the Applicant will execute an Investment Agreement with Alberta Innovates. Agreement expectations will include:

• participation in performance management activities;

• reporting on progress and budget on a bi-annual basis during the term of the Agreement; and

• maintaining client information system provided by Alberta Innovates.

Project payment is tied to progress and performance reporting.

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EVALUATION PROCESS

During the different phases of the program, Alberta Innovates leverages internal staff, and external expert reviewers to evaluate applications submitted. Alberta Innovates retains the sole right to determine the evaluation process, and does not disclose the names of its external reviewers to ensure their objectivity and impartiality. All external parties are subject to both confidentiality and conflict of interest policies set by Alberta Innovates.

The applications will be evaluated on their ability to:

o Demonstrate meaningful inclusiveness of innovation partners and entrepreneurs/industry in the region in the formation of the network. Applicant is an equal member in the network.

o Allocate resources to connecting clients and resources in the region into the Alberta Innovation Network (pan-Alberta approach).

o Demonstrate a commitment to sharing and learning from other RINs in the province. o Demonstrate an ability to identify gaps and trends in the ecosystem and adapt. o Show regionally appropriate alignment of the resources along the client journey to be made

available through the RIN and their fit for the region. o Demonstrate a governance system that will lead to an inclusive and collaborative innovation

network in the region that will allocate funding dollars in a manner that supports regional need. o Identify needs of technology and knowledge based SME’s and how the activities of the network

will help address these client needs (entrepreneur-centric). o Incorporate Technology Development Advisors into the RIN. o Demonstrate intentional action on accessibility and inclusiveness.

The Edmonton and Calgary RINS will also be evaluated on their ability to demonstrate growing collaboration and sharing between the two regions to build a fluid integrated system.

TERMS AND CONDITIONS

This Program Guide is intended as a high-level overview of the RIN program. It provides interested Applicants with a roadmap of what to expect over the lifecycle of a RIN. Should you have any questions about this guide or what is expected, please contact Alberta Innovates. Please be aware Alberta Innovates may modify this guide from time to time in keeping with any changes to the RIN program.

Alberta Innovates will only correspond in writing and provide copies of the Application to the person named in the application form as the one authorized to speak for the Applicant.

Once we have evaluated and approved an application for funding, Alberta Innovates will require the Applicant to sign our standard form Investment Agreement. The Investment Agreement sets out in detail the roles, responsibilities and obligations of the various parties to ensure a successful project. Alberta Innovates will not provide any funding until the Investment Agreement has been signed by all parties.

Alberta Innovates will only fund Applicants who have satisfied all eligibility criteria. Meeting the eligibility criteria does not guarantee access to funding, and all funding decisions will be made by Alberta Innovates at its sole discretion.

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CONTACT INFORMATION Carla Otto Director – Regional Innovation Entrepreneurial Investments TEL: 780-450-5348 carla.otto@albertainnovates.ca Version 2.0 – Oct 2019

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APPENDIX A: PATHWAY TO IMPACT DIAGRAM

Innovation System Impact

3 Year Outcomes

Increased velocity of technology and knowledge-based SME’s through the client journey

An easy to navigate innovation ecosystem that efficiently and effectively connects technology and knowledge-based SME’s to resources and capital.

• Increased number of technology and knowledge-based companies

• Increased proportion of those companies founded by underrepresented

Increased awareness and satisfaction of innovation ecosystem supports (Connectivity)

A recognized culture in Alberta that is attractive to entrepreneurs

The Regional Innovation Network

•Adapts and responds to client need and global trends

•Represents and supports the innovation players in the region equitably

The Client

•Reports progress through client journey attributed to network assistance

•Experiences improved entrepreneurial and business skills utilizing services offered through RIN activities

The Alberta Innovation Network

•Adopts common language and reporting measures to demonstrate value and promote efficiency

•Shares learnings among RINS

6-9 Year Outcomes

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APPENDIX B: CLIENT JOURNEY DIAGRAM