3 minute read
finding an innovative way foRwaRd
to say the last couple of years have been challenging is not only an understatement but is also inherently obvious. However, it is also my opinion that it is how we respond to these types of trials that best defines who we are as individuals, organizations, and indeed, even a nation. Although tremendously unsettling, the socio-economic conditions we now face are forcing us as to have a dialogue that we may not have otherwise had, and I hope will also force us to be more innovative than we may have otherwise been. The key issue, at least in my mind, will be how that conversation translates into definitive, concrete and innovative action that will move not only the life sciences industry forward, but strengthen Canada’s overall economic position. 1 The nature of the discussion occurring around the country cannot focus solely on the ‘knowledge’ based economy. The reality is that our resources are a fundamental driver of our economy and in strong demand for the foreseeable future. In BC, resources account for about three quarters of the economy! The conversation should be about how we can develop new sectors while at the same time instilling knowledge and innovation into every aspect of the economy.
2Innovation by its very nature enhances productivity which ultimately leads to a sustainable economy. Whether it is capital expenditure per capita, productivity improvements or business expenditures on R&D (BERD), Canada lags the rest of the world. The Federal R&D Review Panel is currently reviewing Canada’s competitiveness in this regard, and it is my hope that they will revise the existing SR&ED program; shift the ratio of indirect to direct support and at least comment on the need for an integrated and comprehensive innovation strategy that will address tax, immigration, trade, intellectual property, etc.
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Without fundamental restructuring, our health system as we know it today is not sustainable in the long term. There is no question that reform of some nature is required, provided it does not involve moving towards the regime employed by our neighbours to the south. I’m of the opinion that although there is enormous innovation that occurs within the health system, we do not always seem to foster the adoption of new technologies or fully recognize their economic and health benefits. The genomics expertise resident within our country resulting from a concerted effort by the Federal Government a decade ago is but one example. Provided we can further embed this expertise within the health system, we have great health and economic benefits to gain. Post-marketing and surveillance of drugs are yet another example that could improve patient outcomes while also generating sources of revenues.
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Albeit good policy, the Federal Government’s recent move to limit household debt (via mortgage restrictions) seems somewhat ironic given their own fiscal position!
In setting the stage, let us consider that Canada’s federal debt equates to about 80 per cent of GDP according to the IMF. China eclipsed Canada in 2010 and now accounts for a greater share of total US imports. In BC, health expenditures are equivalent to around 45 per cent of the provincial budget.
Over the next few months, Canada’s Economic Action Plan (aka: stimulus spending) as well as that of many other nations (including the US) will result in reduced expenditures. It is critically important that these reductions are implemented in a thoughtful and comprehensive manner. They cannot be predicated solely upon short-term cost savings but rather, the return they will provide in future years.
The challenges we have and will continue to face don’t discriminate between industry, non-profit and the public sector. In fact, I am sure there will be some rather interesting partnerships that result from this discussion. Therein lies the essence of this opinion piece, let’s ensure the dialogue we are having translates in to definitive and timely action by us all.
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