Ontario announces increase in budget for research and innovation, OBIO applauds

Urgently needed capital should become more accessible to Ontario’s bioscience companies and help create jobs in the biotechnology sector, thanks to Ontario’s 2010 budget. An announced increase in the budget of the Ministry of Research and Innovation coupled with anticipated adjustments to existing funding programs designed to encourage research and innovation are applauded by Ontario Bioscience Industry Organization (OBIO).

In 2009, chief executive officers of Ontario-based bioscience companies identified the industry’s most pressing challenges and presented their recommendations for promoting growth in the sector to the Ontario Government. These recommendations of OBIO sought modifications to make existing funding programs more accessible and to accelerate commercialization, but did not ask for new money.

Dr. David Young, chair of the board of directors of OBIO, and managing partner, Actium Equity Partners, said: “The Ontario Government is listening to our industry and recognizing the economic potential of a vibrant and growing bioscience industry that can produce many of the medical therapies and technologies we now import and can create jobs. We encourage the Ontario Government in its commitment to innovation and the life-science sector by addressing the critical issue of access to capital.”

Program modifications sought by OBIO included adjustments to the Biopharmaceutical Innovation Program (BIP), owing to difficulties for Ontario life-science companies in accessing funds. The province has since announced the winding down of BIP as a prelude to adjustments in other programs that will reflect industry input.

Gail Garland, president and chief executive officer, OBIO, said: “Innovation is the lifeblood of our life-science industry, which makes us the ideal partner for government in its drive to decrease the growth rate of Ontario’s health budget while making our healthcare system more efficient and effective. Working together, innovative life-science companies and the healthcare sector can achieve economic prosperity while enhancing health outcomes.”

OBIO also has struck expert committees to work with industry CEOs on finding new ways to leverage global risk capital into Ontario and on developing a strategy to maximize the scientific and economic potential of biotechnology. Launched by chief executive officers of Ontario-based bioscience companies, OBIO provides executive-level input into provincial policies and economic strategy in order to advance the life-science sector.