Creating successful R&D proposals to benefit small and medium enterprises
1. 1
Creating Successful R&D Proposals
to Benefit
Small and Medium Sized Enterprises.
Peter Rosenthal, ing., M.B.A
November 2, 2016
2. Objectives
Define importance of SME Innovation
Present structure and contents of R&D proposals
Describe best practices related to project definition
2
4. Introduction
4
Peter Rosenthal
• Mechanical design engineer
• Industrial Technology Advisor for NRC-IRAP
• Program Manager in Avionics Industry
• Clients: Airbus, Boeing, Eurocopter, Thales, DND, USAF, Bell Helicopter,
Lufthansa, Qatar Airlines
• Sub-contractor Management
• Operations Management and PM instructor
• Six Sigma Black Belt
• Education: B. Eng., MBA (McGill, JMSB)
8. Introduction
Why innovate?
• For business growth
• Product improvement
• New products and processes
• To remain competitive
• Competitors are innovating
• New business strategies
• To empower employees
• Innovation requires creativity from personnel
9. Innovation in Canada
Top Canadian Industries
Energy Manufacturing Aerospace
IT
Agriculture
Services
10. Importance of SMEs
• 1.2M Businesses in Canada
• 1.15M are Small and Medium Sized Enterprises
(SMEs)
• SMEs are defined as 500 or less employees
Large Firm (0.5%) SME (99.5%)
Innovation in Canada
11. • Small & Medium sized
Enterprises (SMEs)
– Comprise the vast
majority (99.5%) of
employers
– Yet, accounted for only
50% of R&D
expenditures
• Lack of R&D expenditure
directly impacts firms’
ability to innovate
• SME R&D declining
(2011-2013)
Percentage SME in Quebec (Ref. Industry Canada)
Small -98%
Med-1.5%
Large-0.5%
What are the challenges impacting innovation?
Innovation in Canada
12. Key challenges faced by SMEs that limit
Innovation:
1. Lack of financial resources
2. Resources have no or negative capacity to work
on R&D projects
3. Projects in high technology are complex and
risky
4. Lack of skilled technical workers and resources
Innovation in Canada
13. What is R&D?
13
“…activities a business conducts to improve existing products …or
lead to the development of new products” (Ref investopedia.com)
14. Technology Readiness Levels
14
TRL 1: Basic principals of concept observed
TRL 2: Practical applications defined
TRL 5: Basic technological components tested in a simulated environment
TRL 4: Validation in a lab environment
TRL 3: Analytical and experimental lab studies
TRL 6: Prototype demo in simulated environment
TRL 7: Prototype demo in actual environment
TRL 8: Actual technology completed and qualified through demonstration
TRL 9: Actual technology successfully deployed in an operational setting
Concept
Demo
Prototype
Preliminary R&D
Commercialize
16. The R&D Proposal
16
Important Notes:
1. Contact your Advisor, Local Rep to discuss your project and funding
programs before writing the proposal
2. There are many Federal, Provincial and Municipal financial support
programs. Please check with your rep for specific guidelines
17. Proposal Contents
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1. Your Firm
2. Your Business and Opportunity
3. Your Project
4. Budget
5. Financing
6. Impact
7. Declaration
18. Your Firm
18
Legal Status, CRA, Address, Inc, For Profit
Ownership and Management Structure
Head Office
History of Management Team
Contact Info
19. Your Business
19
• Overview – Describe your:
• Main products and services
• Main customers
• Main competitors
• Business plan
21. Your Project
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Summary
• Title
• Description
• Duration
Objectives
• Quantifiable
• Measurable
• Aligned
with project
activities
Technology
Environment
• Project
innovations
• Solves what
problem?
• Why select this
tech?
Challenges &
Uncertainties
• Technological
uncertainties?
• Risks
• Mitigation
plans
Activities
• Gantt
• Milestones
• Critical path
• Methodology
Ethical and Environmental Considerations:
• Human or animal experimentation requires approvals
• Specify environmental protection method if required
22. Proposal: Budget
22
• Senior management typically
not included (in overhead)
• Include contractors here
• External sub contractors
• Materials
• T&L, Machines
• Total project cost including
overhead
Direct Salaries
Sub-contractor Costs
Other Costs
Summary
24. Proposal: Impact of Contribution
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The Firm GlobalCanada
• Hire qualified resources
• Accelerate development
• New know-how
• IP
• Broaden the scope of the
project
• Increased Employment
• Increased R & D
Expenditures
• Development of New
Products
• Social Benefits
• Increased Safety and
security
• Reduced carbon emissions
• Environmental
25. Proposal Contents
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1. Your Firm
2. Your Business and Opportunity
3. Your Project
4. Budget
5. Financing
6. Impacts
7. Declaration
27. New Energy Source
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The Firm: Well established machine shop,
$20M annual sales, profitable
Finances: $500,000 cash available
Technology: Perpetual motion water pump
Business Case: Endless Source of Energy
GO/NO-GO?
28. Solar Rechargeable Batteries
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The Firm: 2 year old SME, 3 employees
$100K annual sales in technical consulting (electronics),
almost profitable
Finances: $10,000 cash available
Technology: Consumer batteries (AA, AAA, 9V that can
be recharged by sitting discharged batteries in sunlight)
Development cost: $100,000, 12 months
Business Case:3 billion batteries thrown away every year
GO/NO-GO?
29. Low Cost Composite Vehicle Chassis
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The Firm: World class manufacturer of
composite structures for aircraft, SME, 25
years incorporated
Finances: $10M annual revenue, profitable
Technology: Lower cost composite materials
based on aircraft recipe to develop lighter
and stronger vehicle chassis
Business Case: Applies to gas, hybrid and
electric vehicle designs, lower cost than
metal, lighter saves fuel, stronger and safer
GO/NO-GO?
30. 30
R&D Support Programs (samples)
COMMERCIALIZATION
INCREASING INDUSTRY INVOLVEMENT/FUNDING
PRODUCTS
31. 31
Summary
• SME Innovation key to Canada’s Economy
• R&D Proposals need well defined project,
business case and align with the firm
competencies
• Advisors can help you find the right program and
prepare proposals
• Many support programs available for R&D at
every TRL
32. 32
For Further Information
• Peter.rosenthal@nrc.ca
• (514) 396-8800 ext :7806
• IRAP: 1-877-994-4727
• NRC Concierge: 1-855-53-GUIDE
Merci!
Questions?