March 10, 2009
While Canadian banks might be faring well, it’s another story for biotech. The March 2009 Parliamentary Quarterly from BIOTECanada makes for grim reading, painting a picture of an industry in distress:
The question is: What to do?
The report makes the compelling case for the government to act quickly to sustain the industry. Other nations (USA, France, UK and Israel) are already investing heavily to support their biotech sectors to ensure they’ll remain competitive locations for international R&D.
Several suggestions are made to improve existing tax credits and create a capital gains-free period for investors who support small-to-medium sized biotech companies (a strategy that we strongly endorse).
History has shown that innovation is the major factor in wealth generation. Bailing out failed industries is only staving off the inevitable (at a huge cost to taxpayers). Canada needs to embrace and support its knowledge-based industries (such as biotech) in order to sustain the quality of life that we are so fortunate to enjoy. The old industries are not going to help in the longer term.
Download your copy of the report HERE.
Tags: John McCulloch