The Government also announced the launch of a “...review to consider whether, and in what form, further intervention could increase the supply of long-term growth capital to small and medium sized businesses. This will include options for a Public-Private Partnership similar to the predecessor of 3i, the Industrial and Commercial Finance Corporation, leveraging private sector capital to address gaps in growth finance and risk capital.” The BIA will be participating fully in this review.
Also announced today are Treasury plans to explore the tax treatment of Intellectual Property to enhance the competitiveness of the UK, and will “...consider evidence for changes to the way the tax system encourages innovative activity and the relative attractiveness of the UK to global firms as they make decisions on where to locate their R&D and other innovation activities”. Further consultation with industry is planned ahead of the Government’s presentation of its assessment and proposed approach before the Pre-Budget Report. Such an initiative, if implemented, would help to retain and encourage bioscience activity in the UK.
The BIA has been actively engaging with Government on proposals for an Innovation Fund and IP Patent Box through its work with the Office for Life Sciences. These ideas were originally proposed in the Bioscience Innovation and Growth Team’s Review and Refresh of Bioscience 2015 published in January 2009.
Dr Clive Dix, BIA Chairman, said:
“The Government has long proclaimed the importance of the UK’s bioscience sector and the BIA is encouraged to see indications of support for companies in these challenging times.
“The BIA has been working alongside the Office for Life Sciences to develop a number of initiatives including an innovation fund, and changes to the taxation of intellectual property. The small and medium sized companies that make up the bioscience sector in the UK have been hit hard by the current financial crisis.
“We have highlighted the need for a high-tech investment fund. The BIA will be reviewing the fund detail, including the mechanism and the amount accessible to bioscience, to ensure companies in our sector are swiftly able to benefit. It is essential that the fund is now implemented rapidly.”
HM Treasury Budget website
http://www.hm-treasury.gov.uk/bud_bud09_index.htm
Office for Life Sciences
http://www.dius.gov.uk/ols
BioScience Innovation Growth Team Review and Refresh of Bioscience 2015
http://www.bioindustry.org/biodocuments/BIGTR2/BIGT_Review_and_Refresh.pdf
BioIndustry Association
Established in 1989, the BIA (BioIndustry Association) exists to encourage and promote a financially sound and thriving bioscience sector within the UK economy and concentrates its efforts on emerging enterprise and the related interests of companies with whom such enterprise trades.
With over 300 members, the BIA supports a wide range of sectors, majoring on the human health benefits of the technology and represents the interests of these innovative companies to a broad section of stakeholders from patient groups to politicians, advancing its members interests both within the UK and internationally to create a healthy UK bioscience sector which benefits society. For further information, please go to: www.bioindustry.org
BioFinance and BioInnovate Europe 2009
Now in its third year, this one day event will focus on accessing finance, commercialising innovation and growing a business in today’s tough climate.
Bioscience companies will hear directly from the investors on their investing wish list for 2009-2010, hear up to date information about alternative funding sources, hear directly from the biotech funding success stories and find out exactly what assets the pharma companies are looking to in-license and/or invest in. www.biofinanceeurope.org
