Quebec’s multi-purpose funding agency putting its money in key research projects

Valorisation-Recherche Québec

Quebec’s ambitious new vehicle for the exploitation and commercialization of the province’s research strengths is starting to produce results. Two years after its formation, Valorisation-Recherche Québec (VRQ) has committed nearly all of its $220 million in funding, with a multifaceted strategy to disseminate knowledge in a wide variety of research areas and disciplines as well as accelerating licensing and spin-off activity.

The overriding concept behind VRQ is to increase the value of research conducted in the province and, where applicable, package it for potential venture capital funding. That includes working with the four new valorisation societies created by the province to stimulate the commercialization of university-based research, and investing in specific technology sectors considered to have the most job creation and wealth potential.

But the agency also invests in areas of the social sciences where no clear commercial value is evident, reflecting one of the major thrusts of Quebec’s new science and innovation policy released earlier this year (R$, February 12 & August 1/01). Projects involving child welfare and student retention in the education system have also received funding, giving VRQ a broad scope and influence rarely found in a single funding agency.

The non-profit VRQ was funded in two stages with specific obligations and time lines attached. The 1999 provincial budget creating VRQ committed $100 million to be spent by 2006, while the 2000 budget added $120 million with the proviso that the targeted funds be expended by 2004. That put pressure on VRQ to move quickly. It created three programs to deal with the large number of initiatives it committed to undertaking.

“VRQ is something like a vector. It focuses on something that the province needs and helps get researchers to focus on these areas,” says Gilbert Drouin, VRQ’s president and DG. “It’s also the first mover for Quebec’s science policy. We were the first organization created when the policy came out,”

While all areas of research in which VRQ invests are considered of critical importance to the province’s future, perhaps the most unique is the concept of valorisation societies (see box). The four organizations were established to ensure that research results emanating from the province’s universities are ideally positioned for commercialization. The 1999 Budget devoted $50 million to the societies with another $10 million added in 2000 for a total of $60 million.

The societies were conceived to work in conjunction with university industry liaison offices to identify promising research, ensure adequate patent protection, add value to research, oversee market research and negotiate royalties or other commercialization benefits. The intent to is to make the research more suitable for commercialization and private sector support and development, thereby accelerating the rate of company formation and capitalization.

The societies are financed on the strengths of their business plans, with the largest amount going to MSBI representing McGill Univ, Univ of Sherbrooke and Bishop’s Univ. Ironically, MSBI is the only society that not been formed yet, reflecting the complexity of dovetailing the interests of disparate institutions. Once formed, each institution transfers its intellectual property to their respective society.

“The university ILOs are there to protect the university and the societies are there to make money. There’s very close collaboration. VRQ will pay 50% of the costs over the first five years, dropping to 20% in the last year. After that they have to be sustainable,” says Drouin. “Their function is to try and influence the culture in the universities and invest in a specific manner to add value to the research results. There’s a lot to put in place and it’s very difficult to change the existing model and ensure that the universities are at ease with it.”

$50 MILLION FORLARGE RESEARCH PROJECTS

The government’s decision in 2000 to boost support for large-scale research projects resulted in an addition $50 million allocation through VRQ. The funding has sparked a number of major initiatives, in the areas of microelectronics, e-health, aerospace, genomics and nanotechnology. A further $30 million has been dedicated to matching funds for Canada Foundation for Innovation (CFI) projects, as well as $18 million to match CFI’s support of costs associated with the Canada Research Chairs.

The $10 million in nanotechnology funding to create Nano-Québec could be augmented by CFI funding, if an application for $14 million in support for nano-fabrication infrastructure is successful. The Institut national de la recherche scientifique (INRS) is the lead institution on the application.

“With Nano-Québec, we wanted to organize the development of nanotechnology and nanoscience in Quebec,” says Drouin. “This approach will help reduce duplication but the science is very expensive.”

Climate change has also received $6 million in VRQ funding as part of a $17-million research project involving five ministries and Hydro-Québec. Drouin says VRQ will invest its portion in areas such as quality of research, added value, sustainability and research pertinence.

In the area of microelectronics, start-up funds of $350,000 will be followed by $2.2 million, which Drouin hopes will be matched by industry. The intent is to build closer industrial linkages to the research.

HORIZONTAL APPROACH TO UNIVERSITY RESEARCH

Another $50 million stemming from the 1999 Budget is being allocated to what is loosely described as research development. VRQ is offering the funds on a competitive basis, with results from the third of three competitions to be announced December 19. Universities apply for funding and 50% of awards in the first competition were health related. Genomics, proteomics, cardiovascular research and health sector research are among the areas already funded.

“Developing existing research is conceptually more difficult to do because it is being done in a short time span which is not normally the way you support research,” explains Drouin. “With the move towards larger and more expensive projects, we needed to break the silos. All projects are multi-institutional and multi-disciplinary. We’re investing more in research transformation, the way you do research, rather than the research itself. Research usually takes a vertical approach. But we look at the problem areas rather than a specific program and focus the funding there.”

Drouin says the four competitions originally planned were reduced to three, due to the high quality of projects received by VRQ. The first competition saw $12 million invested, followed by $22 million in the second competition, leaving $16 million for the final competition now underway.

IMPACT OF SOCIAL SCIENCE RESEARCH ALSO SUPPORTED

VRQ has also expanded into projects embracing the social sciences and health and society. These include PARS PAS, a $3.6-million project to disseminate pertinent research into the education system to help reduce the drop-out rate of grades K-12, and Cyber Santé, which received $5.0 million to transfer all patient records onto a computer database.

“To me, the social science projects have more impact than technology or health. Commercialization is not the only yard stick,” says Drouin. “It’s also important to transfer knowledge to the user, and to have the user at the table when decisions are being made.”

With its funding now committed, Drouin says it would be unwise to provide VRQ with additional money. As for the future, he says the hard work of the organization still lies ahead. “The easy part is to give the money out. But the tough part is the follow-up to ensure that money we’re providing is properly spent and our goals are achieved,” says Drouin. “In the second year of each project, site visits will begin.”

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