Town of Markham REPORT TO ECONOMIC DEVELOPMENT COMMITTEE
TO:	Mayor and Members of Council
FROM:	Stephen Chait, Director of Economic Development
PREPARED BY:	Stephen Chait, Director of Economic Development
DATE OF MEETING:	2004-October-25
SUBJECT:	Toronto Region Research Alliance

RECOMMENDATIONS:

That the report entitled “Toronto Region Research Alliance” be received,

And that Mr. David Pecaut of the TRRA be thanked for his presentation to the October 25, 2004 Economic Development Committee.

And that Markham Council endorse the establishment of the TRRA in principle,

And further that staff bring forward a capital funding request to be considered as part of the 2005 Capital Budget in support of the Town of Markham taking part in the proposed TRRA.

DISCUSSION:

The Toronto Region Research Alliance is a new regional initiative to establish the GTA as a leading international center for research and research-intensive industry

The Toronto Region Research Alliance (TRRA) was launched in 2003 as a joint initiative of the Toronto City Summit Alliance plus public and private institutions located throughout the Greater Toronto Area, Hamilton, Waterloo, Guelph and London. The TRRA’s mission is to make the Golden Horseshoe region a world-leading centre for research and research-driven industry by helping to build research capacity, enhancing the commercialization of research, attracting research-driven companies, and working to retain and expand those companies that are already active in the region. 
 
A letter dated August 27, 2004 from the two Co-Chairs of the TRRA, summarizing the role and mandate of the organization, is attached. The TRRA intends to focus on three priority areas, all of which are of interest and importance to Markham’s own economic development program:
 
· Biotech/life science
· Information and communication technology (ICT)
· Materials science and advanced manufacturing
 
TRRA initiatives to attract research driven companies will initially be focused on the Information Communications Technology and bio-pharma sectors. Efforts will rely heavily on partnerships and leveraged resources, and build on existing knowledge, expertise and initiatives. The TRRA plans to deliver new programs through existing organizations whenever possible (e.g., the Innovation Synergy Centre in Markham and economic development organizations). By partnering with the TRRA Markham can directly benefit from the TRRA’s key deliverables:
 
Building public and private research capacity, e.g.
· Establishing 1 to 3 new National Research Council research facilities in the region
· Establishing the proposed Cancer Research Institute of Ontario
· Increased regional share of public research investment
 
Enhancing commercialization performance, e.g.
· Improved early stage financing for new research based start-up companies
· Creation of Toronto region “Connect Program” to increase R&D investment and commercialization by linking of ideas, investors, industry receptors, and services
· Enhanced technology transfer resources, scale and expertise across the region
 
Attracting more R&D investment and research intensive industry to the region, e.g.
· Development and promotion of a Toronto region R&D brand
· Attraction of 2 to 4 new Information Communication Technology and/or bio-pharma R&D facilities to the region or significant expansion of 2 to 4 already here
· A comprehensive Toronto region R&D fact base
 
 
How does the TRRA differ from the Greater Toronto Marketing Alliance (GTMA)

The TRRA is specifically focused on the research function and forms of business-related and scientific research activity that are core to new investments in the High-Technology and Knowledge based industries. In contrast, the mandate of the GTMA is to serve as a more generic (i.e., not sector specific) investment attraction and international marketing group serving the GTA (note: the TRRA serves the Golden Horseshoe). In addition, the TRRA has aligned itself with personnel who possess specialized scientific backgrounds that will enhance its credibility in the field of R&D and commercialization. The GTMA does not specifically focus their efforts in one area of subject expertise however possess specialized marketing experience and capacity necessary for attracting international investment.

The TRRA is requesting financial support for its 3-year business plan

The TRRA has prepared a 3-year business plan, a copy of which is attached to this report. The TRRA envisions a tri-partite funding arrangement to secure sufficient core resources for a strong, sustainable platform on which to build the organization. The TRRA is committed to raising one-third of its core budget from the business community, local and regional governments, and from leading universities, hospitals, and other research institutions. The TRRA proposes to seek matching funds from the federal and provincial governments, each of which would fund one-third of the core budget for the first 3 years of operation. Based on preliminary estimates, first year budget requirements, including start-up costs, total $2.98 million. Requirements for years 2 and 3 are estimated at $3.84 million and $3.95 million each.

FINANCIAL CONSIDERATIONS

The TRRA is a new initiative that is very relevant to the Town’s economic development program. Other municipalities in the GTA are actively considering making financial contributions to sustain the TRRA (details to be provided by D. Pecaut). Municipalities in the GTA are actively considering making financial contributions to sustain the TRRA (details to be provided by D. Pecaut). A financial commitment by the Town of Markham to the funding of the TRRA should be considered as part of the 2005 budget process. It is therefore recommended that Economic Development staff prepare a 2005 capital budget funding request commensurate with the Town participating in the launch and operation of the TRRA.

____________________________________ _________________________________

Stephen Chait Jim Baird

Director of Economic Development Commissioner, Development Services

Attachments

1. Letter dated August 27, 2004 from Co-Chairs of TRRA to Mayor

2. Toronto Region Research Alliance: The Way Forward