Media inquiries may be directed to:
Marie Cusack, Public Affairs Officer,
Advanced Education and Technology
780-427-0038

To call toll free within Alberta dial 310-0000.

March 2, 2010

Questions and answers about the Innovation Voucher Pilot Program

What is the purpose of the Innovation Voucher Pilot Program?
The pilot program assists businesses and entrepreneurs in the pre-commercial to early start-up stages of development. During these early stages, many promising businesses have difficulty securing funding as proof of concept may not exist and investors are not yet willing to commit resources. The program creates the opportunity for young businesses to make connections with the various supporting agencies and to access professional expertise and services, which they may not be aware of otherwise. This assistance will allow small businesses to lower the risk of commercialization. Businesses must be willing and able to cover a minimum of 25 per cent of the total cost of service.

Why is the program not available for larger businesses?
Larger businesses tend to have more established networks, better access to investor funding, and other resources they can tap into when developing new products and services. Smaller businesses generally do not have access to the same level of support so the Innovation Voucher Pilot Program is responding to that need. This program arises from recommendations of the Value-Added and Technology Commercialization Task Force to government in 2007.

What type of services can a voucher be used for?
The voucher can be used for moving concepts to commercialization with assistance from an approved service provider for specialized services such as the following:

• Business and professional services required to commercialize a product or service such intellectual property advice, development of business plans, and market studies for innovative products and services.
• Services required to obtain pre-commercial seed and venture capital financing for new and innovative high-tech products and services.
• Services required to access unique human resource expertise.
• Product testing, certification and demonstration necessary to move product and/or service to market.

What is an Approved Service Provider and where do I find more information about them?
An Approved Service Provider is a publicly funded or not-for-profit organization that provides innovation support services (such as business services, prototyping and testing services, intellectual property management, etc.). Approved Service Providers include universities, colleges, research institutions, and other organizations that have an agreement with the province. More information on Approved Service Providers can be found online at www.technology.gov.ab.ca under the Innovation Vouchers link.

Will the program continue after the pilot is over?
On April 1the newly incorporated Alberta Innovates – Technology Futures will take over responsibility for the voucher program. The corporation will assess this program against government priorities and available budgets to determine if this program should continue as a pilot or become permanently established.

Who could apply for a voucher?
When the call for applications was announced in fall 2009, any small Alberta-based business could apply providing that it required the assistance of an Approved Service Provider to bring a new product or service to market. The business applicant also needed to meet the program’s eligibility criteria as follows:

• The applicant’s business was a technology or knowledge driven business developing new products or services for growing markets.
• The applicant’s business had gross revenue of $5 million or less in its immediately preceding fiscal year and had fewer than 51 employees.
• The applicant’s business was registered in Alberta or Canada and undertook more than 50 per cent of its business activity in Alberta and would continue to do so for the next 18 months.
• The applicant had not previously been awarded a voucher in the amount applied for. This included vouchers that had been received by the applicant but never used.
• Businesses must have also committed to at least 25 per cent of the overall project cost.

How many businesses applied during this round of the program?
Applications were received from 374 businesses, an increase of 25 per cent over the first round.

What was the selection process?
Applications were assessed for eligibility, fit with the voucher program and quality of the project’s business case.

What is the break-down of the voucher recipients by geographic area and industry sector?
Vouchers were awarded to 204 businesses in 33 communities across Alberta in the following sectors: energy (20), health/bio technology (44), industrial technology (16), environment/clean technology (37), information and communications technology (70) and other (17). A list of all companies across Alberta receiving vouchers is available at www.technology.gov.ab.ca.

How much has the Government of Alberta invested in this program?
To date, the Government of Alberta has invested more than $10 million in the program.

Media inquiries may be directed to:
Marie Cusack, Public Affairs Officer,
Advanced Education and Technology
780-427-0038

To call toll free within Alberta dial 310-0000.