Information about http://www.nce.gc.ca/comp/Program%20Guide_CECR_June%202008.pdf
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Tags: application requirements, canada canadian, canada natural, canadian institutes of health research, competition results, engineering research council, government of canada, guide government, humanities research council, letter of intent, natural sciences, ottawa ontario, program 1, program objectives, proposals, recipient organizations, research council of canada, social sciences and humanities research council, social sciences and humanities research council of canada, table of contents,Pages: 19
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Created: Mon Jun 9 10:53:54 2008
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Networks of Centres
of Excellence
Réseaux de centres
d'excellence
CECR PROGRAM GUIDE
Government of Canada
Natural Sciences and Engineering Research Council of Canada
Canadian Institutes of Health Research
Social Sciences and Humanities Research Council of Canada
Networks of Centres of Excellence
350 Albert Street
Ottawa, Ontario K1A 1H5
Telephone: (613) 995-6010
Facsimile: (613) 992-7356
Web address: www.nce.gc.ca
Networks of Centres of Excellence
CECR Program Guide
June 2008
Table of Contents
Background of CECR Program..............................................................................................................1
Program Objectives ...............................................................................................................................1
Expected Results and Outcomes ..........................................................................................................1
Eligible recipient organizations ..............................................................................................................2
Application Requirements and Review Process..................................................................................2
Stage I: Letter of Intent ..........................................................................................................................2
Stage II: Full Proposals .........................................................................................................................2
Announcement of Competition Results .................................................................................................3
Selection Criteria ....................................................................................................................................3
Benefits to Canada ................................................................................................................................3
Track Record and Potential of the Applicants .......................................................................................4
Strength of the Business Plan ...............................................................................................................4
Administration ........................................................................................................................................4
Accountability Framework/Evaluation....................................................................................................5
Audit Framework ...................................................................................................................................5
Funding Agreement ...............................................................................................................................5
Management ............................................................................................................................................5
Board of Directors..................................................................................................................................5
Centre Director ......................................................................................................................................6
Communications....................................................................................................................................6
Host Organization..................................................................................................................................6
Conflict of Interest..................................................................................................................................6
Intellectual Property and Benefits to Canada ........................................................................................7
Use of NCE funds....................................................................................................................................7
Eligible expenses...................................................................................................................................7
Stacking provisions................................................................................................................................8
Support for Capital Expenditures...........................................................................................................8
Applicant-Owned Companies ................................................................................................................9
Contracts with Government Laboratories and Facilities ........................................................................9
Monitoring and Guidance.......................................................................................................................9
Major Changes ......................................................................................................................................9
The Access to Information Act and the Privacy Act...............................................................................9
Appendix A: Conflict of Interest and Policy Framework...................................................................10
1.0 Definitions ..................................................................................................................................10
2.0 Disclosure ..................................................................................................................................11
2.1 Financial Interest ........................................................................................................................11
3.0 Management of Conflict of Interest................................................................................................11
3.1 Principles....................................................................................................................................12
3.2 Non-compliance .........................................................................................................................12
4.0 Review Process.............................................................................................................................12
Appendix B: Benefits to Canada..........................................................................................................14
Working Guidelines .............................................................................................................................14
Mechanism for Reporting Due Diligence .............................................................................................14
Appendix C: The Access to Information Act and the Privacy Act (ATIP)........................................15
The Access to Information Act.............................................................................................................15
The Privacy Act ...................................................................................................................................15
Use and Disclosure of Personal Information Provided to the CECR Program ....................................15
Networks of Centres of Excellence
CECR Program Guide
June 2008
Background of CECR Program Expected Results and Outcomes
The Grants Program for Centres of Excellence The program's goal is accomplished by
for Commercialization and Research (CECR investing in research and commercialization
Program) is a federal mechanism to support the centres that yield the following benefits:
operation of research and/or commercialization
centres that bring together people, services, Research-Related Benefits
and research infrastructure to position Canada
at the forefront of breakthrough innovations in · Create sufficient scale and focus to position
priority areas. Canada at the forefront of international
research breakthroughs that will yield
The CECR Program is overseen by a tri-agency economic, social or environmental benefits
NCE Steering Committee made up of the to Canadians.
Deputy Minister of Industry (or delegate), the · Draw on existing research strength,
Presidents of the three granting agencies and infrastructure, networks and funding
the President of the Canadian Foundation for sources to enhance capacity.
Innovation (CFI) (as an observer). · Attract top research talent (including post-
graduate and post-doctoral students) from
Day-to-day administration of the CECR around the world.
Program is provided by the Networks of · Provide high quality post-graduate and post-
Centres of Excellence Secretariat (The doctoral training in innovative and
Secretariat). internationally competitive research.
· Strengthen domestic collaboration to
The Secretariat runs periodic national address significant research challenges.
competitive processes through which the · Open up new opportunities for Canadian
Steering Committee selects successful centres researchers to access world-class research
on the advice of international peer review and a equipment, facilities and networks.
Private Sector Advisory Board. · Develop relationships with major
international centres and research
Program Objectives programs, and
· Brand Canada as the host of internationally
The goal of the CECR program is to create recognized centres of excellence.
internationally recognized centres of
commercialization and research expertise in Commercialization-Related Benefits
four priority areas in order to deliver economic,
social and environmental benefits to · Create, grow and retain companies in
Canadians. As established in the S&T Canada that are able to capture new
Strategy, the priority areas include: markets with breakthrough innovations.
· Accelerate the commercialization of leading
· Environmental science and technologies. edge technologies, goods, services in
· Natural resources and energy. priority areas where Canada can
· Health and related life sciences and significantly advance its competitive
technologies. advantage.
· Information and communications · Draw on existing commercialization
technologies. strength, infrastructure, networks and
funding sources to enhance capacity.
· Attract investment (including foreign direct
investment and venture capital).
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Networks of Centres of Excellence
CECR Program Guide
June 2008
· Attract and retain top talent (including Application Requirements and
internationally recognized business
Review Process
leaders).
· Strengthen domestic collaboration and
Stage I: Letter of Intent
ensure that benefits spill over to a wide
array of firms, sectors and regions of the
country. Applicants will submit letters of intent that
describe the centre, its operations and planned
· Open up new opportunities for Canadian
activities, required funding, members and
firms to access world-class research
supporting partners and their duties and
equipment, facilities and networks.
respective contributions, and expected research
· Develop relationships with major
and/or commercialization benefits for the
international centres and research
project period.
programs.
· Brand Canada as the host of internationally Letters of Intent must include letters of support
recognized centres of excellence in
from other key funding organizations, including
commercialization of research results.
any provincial governments where they are
expected to support the Centre during its
Centres with a strong commercialization development, construction, or operations during
orientation will be expected to become self- a 10-year planning horizon.
sufficient by the end of the funding period.
Centres with a strong research orientation that
The Private Sector Advisory Board will assess
yield significant public benefits within the
the letters of intent against the program
funding period may be eligible for subsequent
selection criteria, and recommend a short-list of
support in the event that the program is applicants to the Steering Committee for
extended. advancement to Stage II. Projects seeking
operating support for existing research centres
Eligible recipient organizations that have received federal support in the past,
in order to sustain operations beyond the years
Organizations eligible to receive funds are not- covered in their existing funding agreements,
for-profit corporations created by universities, will receive priority consideration for
colleges, not-for-profit research organizations, advancement to Stage II.
firms, and other interested non-government
parties. As a condition of eligibility , Stage II: Full Proposals
organizations applying for CECR funds shall
have an established Board of Directors
Centres advanced to Stage II will develop full
responsible for the approval of its annual
project proposals, including complete
financial reports and audits.
information on the centre and its intended
operations, funding requirements, the
Recipients that employ or retain the services of
partnerships among supporters, their duties and
individuals who are current or former (in the
respective contributions, and the expected
last twelve months) public office holders or
research and/or commercialization outcomes
public servants are asked to certify compliance
and benefits of the project. All partnership
with the Conflict of Interest and Post-
arrangements, contributions and allocations of
Employment Code for Public Office Holders and
benefits (such as intellectual property) among
disclosure of the involvement of former public
parties must be fully described for a proposal to
servants who are subject to the Value and
be considered complete.
Ethics Code for the Public Service.
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CECR Program Guide
June 2008
A full CECR proposal consists of the following: commercialization will not be eligible for
program funding.
I. A business plan addressing the CECR Once the NCE Steering Committee has
selection criteria (includes a proposed approved the projects to be funded in a given
budget). round, the NCE Secretariat, working with the
II. Curriculum Vitae information for the Granting Agencies, will prepare an integrated
leaders of the Centres. submission to the Treasury Board for approval
III. Letters of support and summary of to appropriate the funding to the Granting
contributions the applicants secured Agencies for recommended projects. Given the
from supporting organizations. multi-disciplinary nature of the projects, funding
for a given centre may come from more than
In addition to the requirements listed above, one Granting Agency, and so the NCE
applicants seeking renewal of operating support Secretariat will be the primary point of
for existing research centres are asked to interaction for all project applicants throughout
provide a progress report in which they the life of their projects. Funding disbursements
describe the centre's progress in achieving its will be managed by the NCE Secretariat and
own goals and objectives since the last review it disbursed to the recipient(s) against a funding
underwent. Progress for the centre must be agreement under the legal authority(ies) of the
detailed in terms of accomplishments that relevant granting agency(ies) (NSERC, and/or
measure against the CECR selection criteria. SSHRC and/or CIHR).
Complete proposals received by the NCE The decisions reached by the NCE Steering
Secretariat by the established due date will then Committee are final. There is no appeal
undergo a consultation and assessment process.
process. Proposals will be distributed by the
NCE Secretariat to CFI, the relevant granting Announcement of Competition Results
agency(ies) and other relevant organizations
(e.g. BDC, NRC, Regional Agencies) for A confidential evaluation report for each full
consultation and comment, including non- proposal will be made available to each group
binding comment on the potential likelihood of of applicants. A public report from the NCE
support for the relevant activities of the Steering Committee will provide an overview of
proposed Centre under their respective the competition along with a summary analysis
programming. The Secretariat will meet with of each proposal recommended for funding.
provincial officials to identify provincial priorities
and to secure their views on the project Selection Criteria
proposal(s) from their province.
To ensure that the program objectives are met,
Proposals will undergo review by Expert Panels proposals are assessed against the three
established by the Secretariat, comprised of selection criteria outlined below.
domestic and international experts, who will
evaluate the project proposals, meet with Benefits to Canada
applicants, and produce in-depth written
assessments of the proposals. The Private · The extent to which the Centre's research
Sector Advisory Board will review each Expert and/or commercialization program
Panel report, the comments from the parties addresses issues of high priority for
consulted, and then recommend to the NCE Canada.
Steering Committee priority centres for · The potential for the centre's research
approval. Centres failing to be endorsed by and/or commercialization activities to yield
Expert Panels as having the potential to
achieve excellence in research or
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CECR Program Guide
June 2008
significant economic, social, health or · The ability of the applicants to attract
environmental benefits to Canadians. investment (including, in the case of centres
· The likelihood that the centre will create with a commercialization mandate, foreign
sufficient scale and focus to brand Canada direct investment and venture capital).
as the host of an internationally recognized
centre of excellence in the area. Strength of the Business Plan
· The likelihood that the Centre will
strengthen domestic collaboration and · Excellence, focus and coherence of the
ensure that benefits spill over to a wide research and/or commercialization program.
array of firms, sectors and regions of the · The extent to which the partnerships involve
country. various levels of government and the private
· The opportunity to optimize resources, sector to complement the funding available
drawing on existing national and through the granting agencies and the
international research and/or Canada Foundation for Innovation.
commercialization strength, world-class · The effectiveness of the plan to manage,
infrastructure, networks and funding protect and exploit intellectual property
sources to enhance Canadian capacity. resulting from centre-funded research.
· The likelihood for this investment to result in
Additional elements to consider, when the creation of a sustainable, productive
Commercialization is involved: centre of excellence.
· The quality of the proposed organizational
· The opportunity to create, grow and retain structure with appropriate representation on
companies in Canada that are able to the Board of Directors and management
capture new markets with breakthrough team.
innovations.
· Evidence that the applicants have in place
· Evidence that the centre will help accelerate an accountability framework likely to result
the commercialization of leading edge in effective leadership and sound financial
technologies, goods, services in priority decision-making.
areas where Canada can significantly
advance its competitive advantage.
Administration
Track Record and Potential of the CECR grants are administered through the
Applicants NCE Secretariat. The Centre will follow the
rules of the CECR Program Guide and the rules
· The achievements of the applicants and of the Tri-Agency Financial Administration
their ability to contribute to the Centre's Guide. In the case of inconsistency or conflict
research and/or commercialization program. between the requirements of the Tri-Agency
· The proven ability of the applicants to train Financial Administration Guide and those of the
and retain innovative and internationally CECR Program Guide, the requirements of the
competitive researchers in areas and latter shall prevail to the extent of the
technologies critical to Canadian inconsistency or conflict. The Centre will
productivity, economic growth, public policy contact the NCE Secretariat to obtain a ruling
and quality of life. on specific cases where clarification is required.
· The likelihood that the centre will attract top
talent from around the world (post-graduate Centres must establish a process for
and post-doctoral students and environmental assessment which is comparable
internationally recognized business leaders, to the process established by NSERC in
in the case of centres with a fulfillment of its obligations pursuant to the
commercialization mandate). Canadian Environmental Assessment Act;
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CECR Program Guide
June 2008
Audit Framework
Centres must obtain appropriate certification for
each project involving animals, human subjects, The need for internal audit and periodic
biohazards, or radioactive materials. Centres monitoring of the control framework at recipient
must adhere to the Tri-Council Policy Statement organizations is established as a function of
Ethical Conduct for Research Involving Humans risk. The CECR Program is delivered by the
located at NCE Secretariat which is managed by NSERC.
http://www.pre.ethics.gc.ca/english/policystatem The formal internal audit function at NSERC
ent/policystatement.cfm. also covers the NCE Secretariat and the
programs it delivers.
Grants are made for specific purposes. The
NCE Steering Committee expects grant holders As a condition of eligibility organizations
to use their grant for that purpose and in applying for CECR funds shall have an
accordance with the Program's and their established Board of Directors responsible for
institution's policies and guidelines. The the approval of its annual financial reports and
Steering Committee reserves the right to audits.
terminate or suspend a grant should the grant
not be used for its intended purpose or should Funding Agreement
the recipient cease to meet the eligibility
criteria. Amounts paid after the expiry of Following the announcement of the funding
eligibility or on the basis of fraudulent or decision and prior to the release of the award,
inaccurate application, or in error, are subject to a Funding Agreement (FA) is signed by
recovery action. The Secretariat may withhold representatives of the granting agencies and
an appropriate amount of the total grant the designated representative of the host
payable to the recipient until it is satisfied that organization and the Centre Director. The FA
the recipient meets the eligibility criteria of the outlines the terms and conditions for funding
program. under the CECR program.
Fraudulent use of CECR funds is referred to the Management
appropriate legal authorities.
Each centre must have an administrative
Accountability Framework/Evaluation structure capable of managing a complex
research and/or commercialization program.
In order to measure and report on the results of The particular structure varies according to the
the program, The Steering Committee will needs and size of the individual centre and
ensure that appropriate performance approved by the NCE Steering Committee.
measurement systems are integrated into the
operational cycle of the Secretariat's activities. Board of Directors
The CECR Program will adopt a Results-based
Management and Accountability Framework Each centre must appoint a Board of Directors
designed after that of the NCE Program to that has the overall responsibility for its
provide for appropriate measuring and reporting management, direction and financial
of results. The framework shall include: key accountability, including the approval of its
results to be achieved; the performance annual financial report and audit. The Board of
measurement strategy; the expected schedule Directors of a centre is accountable to the NCE
for major evaluation work; and the reporting Steering Committee for the CECR funds it
provisions for both funding recipients and the manages. The names and affiliations of the
Steering Committee. members of the Boards of Directors are
considered public information.
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CECR Program Guide
June 2008
including potential participants from all sectors,
Prior to the release of funds, the centre must public policy makers, the media and the general
submit an initial board membership which will public. Consistency in the message is essential,
be reviewed to confirm that it meets the and therefore one appropriately qualified
requirements of the CECR program. individual in each centre should be responsible
for coordinating all centre communications
The membership of the Board must reflect the efforts. Each centre must develop a
interests and concerns of the various communications plan with a set of
stakeholders involved in the centre. The centre comprehensive objectives and activities
must advise the NCE Secretariat of any designed to enhance interest in the centre and
changes in membership of the Board during the its activities and to promote the centre and the
course of funding. The NCE Steering CECR program to the broad spectrum of
Committee retains the right to name one voting sectors that may benefit. Centres are
member (not a staff member of a granting encouraged to produce their public
agency) to the Board. An NCE staff member communiqués and publications in both official
has observer status on the Board of Directors of languages when possible.
the centre and also attends meetings of the
centre's committees. The centre's communications activities and
messages must be consistent with and
The Board of Directors should consist of no complementary to the CECR program
fewer than twelve (12) members. It is required objectives. They must acknowledge the
to have some members on the Board who are contribution of the federal government, and the
not directly affiliated with the centre. A majority fact that the three granting agencies are
of the members of the Board shall be from the partners in the CECR program.
industrial sector and/or the Centre's user
community; and 1/3 of the Board shall be Centres are expected to collaborate closely with
composed of independent members. the NCE Secretariat Communications Officer
for their communications activities directed to
Centre Director an external audience.
Each centre has a Centre Director who reports Host Organization
to the Board of Directors. The Centre Director is
responsible for strategic direction of the centre. The Centre, in collaboration with the Centre
Other duties may include: providing progress Host where appropriate, shall ensure that the
and financial reports as approved by the Board Administrative Centre has suitable
of Directors to the NCE Secretariat; recruiting accommodation, as well as access to
the centre personnel; acting on behalf of the appropriate computer, communications and
centre with the NCE Secretariat; and promoting financial administration systems needed to
the centre's objectives and activities to all serve as the administrative secretariat of the
relevant stakeholders including the general Centre. Particulars of same shall be set out in
public. a separate agreement between the Centre Host
and the Centre. The centre Host also
Communications participates in the Centre governance through
ex-officio voting membership on the Board.
The competent management of
communications is critical to the success of Conflict of Interest
individual centre and the program as a whole.
Centre activities, results and accomplishments The Centre shall adopt a code of conduct in its
should also be conveyed to external audiences, bylaws for directors, officers, employees and
committee members designed to prevent real or
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Networks of Centres of Excellence
CECR Program Guide
June 2008
perceived conflicts of interest. The code shall which should be an important goal of any
be no less stringent than the NCE Conflict of commercialization activity.
Interest Policy Framework attached as
Appendix A. The owners of intellectual property resulting
from centre-funded activities, or the agent
Intellectual Property and Benefits to acting on their behalf, will consult with relevant
Canada stakeholders on issues of commercialization.
When selecting a receptor company for the
The ownership and disposition of intellectual exclusive license of the commercial rights of
property arising from centre-funded activities intellectual property resulting from centre-
must be governed by the arrangements funded activities, the agent or owners of
described in the Funding Agreement. intellectual property will use reasonable and
thorough efforts to maximize benefits to
Intellectual property resulting from centre- Canada in a national and international context,
funded activities must be promptly and including the possible development of new
concurrently disclosed by the Administrative Canadian receptor companies. Due diligence in
Centre. efforts to maximize benefits to Canada depends
in part on the nature of the commercialization
Sharing of Benefits and Costs activities and on the window of opportunity. If
there is evidence of negligence on the part of
Agreements made regarding the ownership of the centre in performing the due diligence, the
the intellectual property resulting from centre- NCE Steering Committee reserves the right to
funded activities must take into account the impose sanctions as it deems appropriate. (See
Program objective of creating partnerships. This Appendix B for Working Guidelines.)
implies a sharing of eventual benefits between
the partners commensurate with their Use of NCE funds
respective contributions, as well as the sharing
of costs to protect the intellectual property.
Eligible expenses
Commercialization
The program will provide support for the
following eligible expenditures:
The industrial partners' contributions to the
centre must be recognized by allowing them
Operating Costs: maintenance and operation of
access to the commercial exploitation of the
the facility; materials and supplies; liability
intellectual property under terms commensurate
insurance for members of the Board of
with the nature and level of their contributions.
Directors and centre administrators; legal fees
The arrangements with each corporate partner
and other related incorporation costs.
must be addressed in a Centre Affiliate
Agreement.
Salary Costs: salaries for technical and
professional staff employed to provide support
A key CECR program objective is to advance
to users or to maintain and operate the facility;
Canadian economic and social development.
this would include staff providing
Accordingly, every effort must be made to have
commercialization support, such as a
the results of centre-funded activities exploited
knowledge broker.
in Canada, for the benefit of Canadians. Benefit
to Canada is defined as incremental Canadian
Knowledge Dissemination/Sharing Costs:
economic activity and improved quality of life in
hosting professional and scientific conferences
Canada. Maximum benefits would be derived
and lectures (excluding travel and
from the creation of high-quality jobs in Canada,
accommodation); dissemination and exchange
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June 2008
of research results with others including The current principles and practices related to
academia, governments, the not-for-profit stacking of assistance are as follows:
sector and private sector; activities aimed at
promoting science awareness such as I. Access to CECR funds should be fair for
workshops and lectures open to the public; all applicants, regardless of their other
attending professional and scientific sources of funding.
conferences and lectures. II. Applications are evaluated according to
the program's selection criteria.
Commercialization Costs: Specialized III. Applicants must provide a statement of
equipment and directly related operating costs other sources of funding with their
(where the applicant is ineligible for support application and on a yearly basis. There
under the Canada Foundation for Innovation); must be no duplication of funding for the
Pre-commercialization support services (e.g. same items. However, when centres are
intellectual property protection, market studies, supported by multiple sources, the
business plan development, counselling and additional benefits of CECR support
mentoring, technology evaluation). must be well explained and justified. The
maximum level (stacking limit) of total
The CECR program may provide up to 50 per government assistance for this program
cent of total eligible commercialization costs, will not exceed 75% of the costs being
and up to 75 per cent of the other total eligible covered. In the event total government
costs (as described above). The balance in assistance to a recipient exceeds the
funding must come from non-federal sources. stacking limit, it will be necessary for
relevant federal agencies to adjust the
Stacking provisions level of assistance so that the stacking
limit is not exceeded.
CECR funding is administered in the following
environment: The onus is on the applicant to provide
sufficient information to enable review
· For each approved grant, the CECR committees to evaluate the relationship with
Program only funds a portion of the amount other sources of support (held or applied for)
requested due to financial and budgetary and to recommend the appropriate CECR
constraints. Because of this, the Centres funding level. The consequence of not providing
are constantly seeking other sources of adequate information to enable a review
funds to finance their work. In fact, the committee to assess the relationship to other
CECR Program encourages them to do so. funding support is that the committee can
· When a grantee is successful in attracting recommend reduced or no funding.
other funding, the additional funds do not
displace the grant provided by the CECR Support for Capital Expenditures
Program. The centre will use the additional
funds to complement CECR funded Where a project involves capital equipment
activities, by conducting additional work, expenditures that are vital to the success of a
hiring more personnel, or by widening the commercialization project, the cost of that
scope of its activities. equipment will be considered an eligible
· The centre must have a control framework expense, provided: 1) the eligible recipient is
to ensure that expenditures charged to its not eligible for other federal programming that
accounts are for the purpose intended by supports capital expenditures such as the
the grant. Canada Foundation for Innovation, and 2) the
equipment cost for which coverage is requested
does not exceed $1 million and at most 20% of
the total eligible expenses for commercialization
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costs that can be provided under the CECR Contracts with Government Laboratories
program. Expenses related to the construction, and Facilities
purchase, or lease of a building are not eligible
expenditures. Centres may use contracts in order to access
specialized facilities and services provided by
Applicant-Owned Companies government laboratories. Memoranda of
Understanding that set up the terms for
Contributions made to the Centre by an Specified Purpose Accounts may be used to
applicant's own consulting company or sole support joint projects. Money deposited into
proprietorship do not qualify as eligible these Specified Purpose Accounts by centres
matching funds to the CECR Grant. Situations can come only from non-federal funds raised by
where the applicant is a part owner are the centres and not from the federal funds for
reviewed on a case-by-case basis. The the CECR program.
applicant must contact the NCE Secretariat to
obtain a ruling on specific cases where Monitoring and Guidance
clarification is required.
A centre's activities are subject to general
The company's contribution is usually overview and monitoring by the NCE Steering
considered eligible if the following conditions Committee through the NCE Secretariat. NCE
are met: staff may participate in the resolution of
technical, financial or administrative difficulties
· There is significant investment by and may also provide advice and guidance
sophisticated investors, indicating there has related to the interpretation of the CECR
been an objective assessment of the program's objectives, rules and guidelines.
commercial potential of the Centre's Assistance may also be provided in the co-
activities and the company's viability. ordination of the centre's activities with those of
· The company has its own facilities, other centres or of other government-sponsored
physically separated from those of the initiatives including the diffusion of centre
applicant (e.g., located off campus or in a achievements.
university incubator facility).
· The company employs its own professional Major Changes
staff that is able to receive and incorporate
the results of the Centre's research and/or Upon endorsement by the Board of Directors of
commercialization activities into company a centre, any major change that would affect
operations. the general mission of the centre must be
· The company is under the effective day-to- submitted to the NCE Steering Committee for
day management control of someone other approval prior to implementation.
than the applicant.
· The company has a board of directors with The Access to Information Act and the
external members (i.e., some of whose Privacy Act
members, including the Chair of the Board,
are at arm's length). The CECR program is subject to the federal
· the commercial activity conforms to the Access to Information Act and the Privacy Act.
Centre's established policies relating to the (See Appendix C for more details.)
disclosure of commercial interest and
conflict of interest.
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CECR Program Guide
June 2008
Appendix A: Conflict of Interest that such situations are appropriately resolved.
The policy builds upon and is complementary
and Policy Framework to those of the organizations that make up the
Centre Boards of Directors, the centre
investigators and of the administrators.
Interactions between university researchers
and the private sector are an essential feature
of the CECR program. For the objectives of the 1.0 Definitions
CECR program to be achieved, many kinds of
interactions among individuals participating in "Administrative Centre" means the central
the centre must occur. These interactions may administrative offices of the Centre.
lead to gains and benefits to the individuals
participating in the centre and are desirable "Avoidance" means refraining from, or
and natural outcomes of being involved in the withdrawing from, participation in activities or
centre. Such interactions, however, may place situations that place an individual participating
individuals participating in the centre in a in the Centre in a potential, apparent or actual
position of potential, apparent or actual conflict conflict of interest relative to his or her centre
of interest. duties and responsibilities.
The NCE Steering Committee is the body "Board" means the Centre Board of Directors
ultimately responsible to the government, and that is responsible for the overall management
therefore to taxpayers, for the integrity of all the of the centre and is accountable to the NCE
centres and their operations. The responsibility Steering Committee.
for implementing and managing the Conflict of
Interest Policy Framework, to ensure that "Conflict of interest" means a situation
centre operations and decisions are not biased where, to the detriment or potential detriment of
by conflict of interest, is delegated to each the Centre, an individual is, or may be, in a
Centre Board of Directors, which represents position to use research knowledge, authority
the highest authority in the management or influence for personal or family gain
structure of the centre. The Centre Boards of (financial or other) or to benefit others.
Directors are accountable to the NCE Steering
Committee for the effective implementation and "CECR" means the federal Centres of
management of the Conflict of Interest Policy Excellence for Commercialization and
Framework. Individuals participating in the Research program.
centre such as members of the Boards of
Directors and advisory committees who do not "Centre" means a corporation funded under
receive CECR funds are recognized as playing the federal Centres of Excellence for
a unique role in the centres. They bring an Commercialization and Research program.
important perspective as a result of their
particular knowledge, often as representatives "Disclosure" means the act of notifying in
of organizations in the field of interest of the writing the Board of Directors, through the
centre. Nevertheless, they are still required to Administrative Centre, of any direct or indirect
disclose any financial interest or position of financial interests and positions of influence
influence, as described in Section 2.0, in any held by an individual participating in the Centre
business in the same area of interest as the which could lead to a potential, apparent or
centre, other than that of their main employer. actual conflict of interest.
The Conflict of Interest Policy is intended to "Divestment" means the sale at arm's length,
enable Centre Boards of Directors and or the placement in trust, of assets, where
individuals to recognize and disclose situations continued ownership by an individual
that may be open to question and to ensure participating in the Centre would constitute a
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potential, apparent or actual conflict of interest Board members and members of other
with the participant's centre duties and committees of the Centre should identify their
responsibilities. interests in all organizations working in the
same sector as the Centre.
"Financial interest" means an interest in a
business in the same area as the Centre as 2.1 Financial Interest
described in Section 2.1 of this document.
It consists of:
"NCE Secretariat" means the secretariat
through which the federal Networks of Centres · Any material stock option (e.g., 1%) or
of Excellence program, and the CECR program similar ownership interest in such a
are delivered. business, but excluding any interest arising
solely by reason of investment in such
"NCE Steering Committee" means the business by a mutual, pension, or other
committee comprised of the three granting institutional investment fund over which the
agencies' Presidents and the Deputy Minister, person does not exercise control, or
Industry Canada, which has overall · Receipt of, or the right and potential to
responsibility for the CECR program (With the receive, any income from such a business,
President of the Canadian Foundation for whether in the form of a fee (e.g.,
Innovation serving as observer). consulting), salary, allowance, interest in
real or personal property, dividend, royalty
"Centre Director" means the awardee of the derived from licensing of technology, rent,
CECR grant who is also a voting member of capital gain, real or personal property, or
the Centre's Board of Directors. any other form of compensation or
contractual relationship, or any combination
"Position of influence" includes any position thereof.
that entails responsibility for a material
segment of the operation and/or management 3.0 Management of Conflict of Interest
of a business.
The Board or its conflict of interest sub-
2.0 Disclosure committee is charged with the responsibility of
managing conflict of interest, and determining
Upon joining the Centre, each individual is and implementing the appropriate course of
obliged to disclose in writing to the Board, action. This management system is based on
through the Administrative Centre, any direct or disclosure, as described in Section 2. All
indirect financial interests and positions of disclosures constitute confidential information
influence that could lead to a potential, that will be available to the Board, or a sub-
apparent or actual conflict of interest (examples committee thereof, for the evaluation and
provided below). In addition, these submissions resolution of any conflict of interest or
must be updated whenever the individual's allegations of conflict of interest brought before
circumstances change in a way that would the Board or its conflict of interest sub-
necessitate a further disclosure. The individual committee.
also has the obligation to disclose any
potential, apparent or actual conflict of interest While it is recognized that it may be difficult to
when it arises during Centre committee or completely avoid situations of potential,
Board meetings so that the committee or Board apparent or actual conflict of interest, complete
is aware of the situation and can take avoidance or divestment may be required in
appropriate action. certain cases. Such divestment should not
consist of a sale or transfer of assets to family
members or other persons for the purpose of
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circumventing the conflict of interest · Take appropriate action as determined by
compliance measures as directed by the the Board.
Board.
4.0 Review Process
3.1 Principles
An individual may request in writing, within 30
An individual participating in the Centre who is days, a review of a Board`s decision on conflict
involved with, or has an interest in, or deals in of interest. In certain circumstances, the Board
any manner with a third party which might may arrange for an independent third party
cause a conflict of interest, will not be present appointed by mutual agreement of the Centre
and participate in any centre decisions, and the Board, and failing such mutual
including committee decisions, if the declared agreement, appointed by the NCE Steering
potential conflict of interest could influence the Committee, to act as an intermediary to
decision or actions of the Centre. It is the scrutinize reports and budgetary information on
obligation of the individual to declare such project(s) in which the individual participating in
potential, apparent or actual conflict of interest the Centre is involved. The intermediary would
before discussions take place so that the provide an opinion on the overall merit of the
committee or Board is aware of the situation in review, without divulging specifics of a
order to ensure that the individual is out of the proprietary nature to other members of the
room when the discussion and decision Centre. The ultimate decision on the resolution
process on the item in question are taking of the review rests with the Board.
place. This course of action should be recorded In cases where there is a concern with respect
in the minutes of the meeting. to decisions or actions of the Board itself, this
concern should be submitted in writing to the
Any question raised by an individual or NCE Steering Committee. The NCE Steering
company regarding the potential conflict of Committee may request the Chair of the Board
interest of an individual will be raised at the to respond in writing to the Steering
Board level and must be documented in Committee. Following submission of the
writing. The Board will determine the extent to Chair's response, the NCE Steering Committee
which the question should be pursued and in will decide on follow-up action.
such cases will consult the individual in
question. If necessary, the individual will be
Examples of Conflict of Interest
asked to respond in writing.
The following examples, although not
3.2 Non-compliance
comprehensive, illustrate situations that may
lead to an indirect or direct conflict of interest:
If an individual is discovered to be in conflict of
interest where disclosure and prior approval · Employment in any capacity by another
have not been sought or granted, the Board will employer outside the participant's,
require the individual to: administrator's or director's organization,
corporation or company signing the Centre
Agreement, including self-employment.
· Account to the Centre for any gain or
benefit made directly or indirectly, arising · Holding an office that puts the individual in
from an involvement with, or an interest in, a position to affect decisions, such as
or from dealing in any manner with a third manager with executive powers, within a
party that gives rise to a conflict of interest, company, or member of a board of
and directors.
· Withdraw from the involvement; or · Par