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It is also worth noting that over the last few years, many of the leading Canadian companies have been acquired by foreign entities, further diluting Canada's presence in this area. Among the clients interviewed as part of the evaluation, the level of client satisfaction was generally found to be very high. Of the 22 clients who were interviewed (including those interviewed as part of the case studies), 17 (77%) were very positive about their interactions with HHT , three were somewhat positive and two were somewhat negative. Footnote 44 With respect to project costs, most clients felt that these were reasonable. When asked to rate their level of satisfaction on a scale of 1 to 5 for a number of different elements, clients provided average scores of at least 4 out of 5 for almost all of these elements. While clients provided an overall average satisfaction level of 3.9 out of 5 for this element, it is worth noting the exception since a couple of clients rated it very low.
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Administrative and performance data for 2012‑13 and 2013‑14 were reviewed to provide information on program outputs and client reach, as well as to contribute to the analysis of resource utilization (e.g., staff utilization rates, productivity ratios). Administrative and performance data were provided by HHT staff, as well as by NRC corporate branches including Business Management Support ( BMS ), Finance, and Planning and Reporting Services. Training delivered to strengthen the business development skills and customer-service behaviour of portfolio staff. NRC corporately tracks a number of key performance indicators, some of which monitor portfolio overhead efficiency and business efficiency. The overhead efficiency indicator calculates indirect costs (that is, any costs that are not directly charged against a project) as a percentage of total expenditures.
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3 Portfolio Resources
The case studies also sought to include many of HHT 's key clients and to capture an appropriate representation of the diverse impacts that the Portfolio has had on the biopharmaceutical industry. Almost all external interviewees and expert reviewers agreed that federal involvement, and specifically NRC 's role, is appropriate in supporting biopharmaceutical SME s, which they say will in turn strengthen the sector and the economy overall. Many interviewees noted that federal government support is essential if Canada is to remain competitive with other countries whose governments are investing heavily to support their domestic sectors. Footnote 27 In addition, a few interviewees and experts noted that the external R&D model, where Canadian SME s leverage existing NRC infrastructure and expertise, is a particularly appropriate role for NRC . In these cases, the fact that SME s do not need to maintain their own wet lab operations is very beneficial to SME s and is particularly attractive to VC funders.
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This information plays an important role in contextualizing performance data and other statistics. The evaluation of HHT was led by an independent evaluation team from the NRC Office of Audit and Evaluation. The work of the evaluation team was supported by Methodological and Subject-Matter Experts who provided advice related to the evaluation framework, approach, interpretation of findings and recommendations. These experts did not act in a decision-making fashion, but rather played an advisory role in ensuring a high-quality and useful evaluation product. Some areas of inefficiencies were raised by interviewees, particularly with respect to interactions with NRC common services (information technology, human resources, and property management services, for instance).
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The term biosimilars (or subsequent entry biologics) is used to describe officially approved subsequent versions of innovator biopharmaceutical products made by a different sponsor following patent and exclusivity expiry on the innovator product. Each interview lasted between 1 and 2 hours and was conducted using an interview guide. Interview guides provided the common questions to be asked of each interviewee thus ensuring that the same issues were addressed by all relevant interviewees. In some cases, interviewees elected to provide their comments in writing to the evaluation team, either following the interview or in one case, instead of participating in an interview.
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HHT management has indicated that this success reflects a strong model of industry interactions and that there are opportunities to replicate this with other companies. A number of internal interviewees stressed the importance of better showcasing HHT 's success stories in order to demonstrate the potential impact NRC can have on SME s and other clients. In building awareness, interviewees noted the importance of not only targeting potential clients, but also the VC community in order to give investors the confidence to invest in companies that adopt this model. NRC 's specific role in support of the biopharmaceutical industry stems from subsection 5 (1) (c) of the NRC Act which states that the Council may "undertake, assist or promote scientific and industrial research". HHT 's focus on biologics was strongly supported by most of the stakeholders interviewed and in the documentation reviewed.
In addition, one interviewee noted that the work of HHT scientists in the area of vaccines would be of greater benefit to industry if it was more applied. Two expert reviewers provided a "moderate" rating with respect to TBBB Program competencies. However, both commented that it was difficult for them to provide an assessment based on the level of technical detail contained in the program documentation. The very positive endorsement of TBBB Program collaborators with regards to the NRC carrier technology and expertise of HHT staff was found to balance these lower ratings.
However, one group interview (with HHT Key Account Managers) was conducted for reasons of efficiency and to provide a richer discussion. External stakeholders generally felt that there is a strong need to find effective ways of getting therapeutics across the blood brain barrier in order to better treat CNS diseases and supported HHT 's efforts in this area. In response to these challenges, MNE s are increasingly relying on outsourcing of R&D and licensing, particularly through partnerships with SME s, to help them fill their pipelines while also externalizing risk. This new model offers opportunities for the Canadian industry, as MNE s take on the role of investors and SME s play an increasingly significant role in driving industry innovation. HHT has had a significant impact on the companies it has worked with, particularly with respect to the advancement and acceleration of product development and, as a result, increased company valuation and growth. In addition to this, HHT has also contributed to the strengthening of biomanufacturing capabilities in Canada.
This is particularly important when considering the success experienced by some SME s, such as Alethia Biotherapeutics, following the licensing of IP from NRC (see Section 4.2). Many experts and interviewees (both internal and external) raised concerns about the fact that a large segment of the Canadian biopharmaceutical industry is not familiar with HHT 's services. This is especially the case with changes that have taken place since the NRC transformation.
In response to recent productivity and profitability challenges, MNE s are increasingly relying on outsourcing of R&D and licensing, particularly through partnerships with SME s, to help them fill their pipelines while also externalizing risk. SME s are also dependant on partnerships with MNE s for financial capital and commercialization expertise. HHT responds well to industry needs, as it works with firms to accelerate the drug discovery process and de-risk the products, making the firms more attractive to funders.
Each department comprises a number of teams that are deployed in a matrix manner to the Portfolio's three programs and the projects within those programs. At NRC , portfolios are the business units responsible for managing people and facilities. These resources are then deployed to various programs that have been approved by NRC 's Senior Executive Committee.
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