The BIA welcomes the creation of a £75 million fund to supporting technology-based SMEs to develop, demonstrate and commercialise new products and services and looks forward to understanding exactly how our members can benefit. The BIA is also encouraged that government has created a Seed Enterprise Investment Scheme, however if this scheme is really to have an impact in this sector, then it must be targeted at generating long term investment from private sources, rather than short term investments as currently structured.
The BIA has asked government to introduce a Citizen's Innovation Fund to encourage investment into high growth sectors, such as bioscience. This scheme would be a tax free retail investment product allowing £15,000 per person per annum to be invested in funds which are exclusively targeted at innovative SMEs. A similar scheme in France has funded many bioscience companies has raised €5.5 billion.
Glyn Edwards, interim BIA Chief Executive, said:
"The measures announced by the Chancellor today represent a very small step towards helping bioscience companies in need of finance. As always we look forward to seeing the detail, but it certainly appears that there is much more the chancellor could do to encourage investment in bioscience companies in the current economic climate.
"The BIA has made representations to government to introduce a Citizen's Innovation Fund and the BIA will continue to lobby government on this issue. We look forward to seeing what more the government has to announce before the end of the year."
For further information, please contact Robert Winder, Communications Manager, 020 7630 2191; mobile 07825 942 934.
Citizens Innovation Fund
The Citizens Innovation Fund is based on the French Fonds Comunes de Placements dans l'Innovation (FCPI) scheme. FCPI is an incentive to encourage investment in innovation by mid-net worth individuals under which funds can be set up by intermediaries to collect capital financing start-ups and innovative business ventures.
Citizens Innovation Funds would provide finance for innovative companies by:
- offering a simple vehicle for mid-net worth individuals to invest modest amounts in high growth, innovative sectors, tapping into philanthropic investments, currently only open to the very wealthy;
- support small, privately owned companies;
- help the UK start more new innovative SMEs to exploit the discoveries coming from the world class research base;
- provide the public with a greater understanding of the needs and risks of research intensive industries, while at the same time educate them as to the potential high rewards of success;
BioIndustry Association
Founded over 20 years ago at the infancy of biotechnology, the BioIndustry Association (BIA) is the trade association for innovative enterprises involved in UK bioscience. Members include emerging and more established bioscience companies; pharmaceutical companies; academic, research and philanthropic organisations; and service providers to the bioscience sector. The BIA represents the interests of its members to a broad section of stakeholders, from government and regulators to patient groups and the media. Our goal is to secure the UK's position as a global hub and as the best location for innovative research and commercialisation, enabling our world-leading research base to deliver healthcare solutions that can truly make a difference to people's lives. For further information, please go to www.bioindustry.org
