CANADIAN LIFE SCIENCE
CANADIAN LIFE SCIENCE
By Gord Jans
Hot button Issues
The Jenkins Report: Positively Shaping the Future
On October 17, 2011 the report, “Innovation Canada: A Call to Action,” was released by the Independent Panel on Federal Support to Research and Development, commonly known as the Jenkins report.
Figure 1: What do you believe are the most important actions that government can take to improve Canada’s ability to compete globally in the life sciences industry? (respondents were asked to select top 3 choices)
Create incentives for risk capital
78% 75%
NA NA
63% 62% 67%
Create more favourable tax incentives
84%
Research grants to companies
Improve speed of the regulatory process
16 BIOTECHNOLOGY FOCUS MARCH 2012
49% 38% 51% 45% 37% 37% 40% 42%
2011 2009 2007 2006
However, unlike many of its predecessors, it appears the Jenkins report will result in some fundamental policy shifts at the federal level that will likely have significant consequences for the entire innovation ecosystem in Canada. As of the date of submitting this article, the 2012 federal budget has not yet been released. However, the federal government has made strong suggestions that the time for action (rather than more study) is finally over, starting with the 2012 budget. This article examines the Jenkins report and provides suggestions for implementation that could positively shape the future of Canada’s life sciences sector.
BACKGROUND The Jenkins panel was commissioned to address the following three questions: 1. What federal incentives are most effective in increasing business R&D and facilitating commercially relevant R&D partnerships? 2. Is the current mix and design of tax incentives and direct support for business R&D and business-focussed R&D appropriate? 3. What, if any, gaps are evident from the current suite of programming, and what might be done to fill the gaps? To aid its analysis, the panel invited interested parties to comment on 15 specific questions relating to R&D and innovation. PwC submitted its response to these questions on February 18, 2011 . In our executive summary, we encouraged the panel to establish priority areas for Canada and review and revise policies and programs (including procurement policies) to focus on areas of strategic priorities. In my view, life sciences is one of these priority areas. As noted in our report, Inflection Point: Canadian Life Sciences Industry Forecast 2011, “For a nation as rich in knowledge and resources, Canada holds a unique opportunity to grow the value of its bio-economy into a key driver of its economic growth. Alignment of public policy into a fully enabling ecosystem supporting the full life
