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Governments must ensure RD leads to new business, products and jobs

March 28, 2012
Governments must ensure RD leads to new business, products and jobs

New report highlights need for European governments to do more to ensure that R&D leads to new businesses, new products and additional jobs

Brussels, 27 March 2012- National governments in Europe need to do more to ensure that R&D innovation in the biotech industry is translated into new businesses, new products and additional jobs according to a new report launched by Ernst & Young and EuropaBio, "What Europe has to offer biotechnology companies: unraveling the tax, financial and regulatory framework".  

The report found significant variation in the regulatory and policy environment for biotechnology companies across Europe, which has a significant impact on success and policies across the region. 

The differences range from basic policies and regulations which encourage financing for start-ups, to the ability to encourage entrepreneurs and attract competent managers. 

The report was launched today by EU Commissioner for Research, Innovation and Science, Máire Geoghegan-Quinn, at the European Parliament during the EuropaBio Benefits of Biotechnology event hosted by Member of the European Parliament Francoise Grossetete. 

Attended by more than 120 people, and opened by Commissioner for Health and Consumer Policy John Dalli, the event focused on the contribution of biotechnology to society's challenges such as feeding and healing an ageing population, environmental sustainability, economic growth and maintaining Europe as a center of scientific excellence. 

Stephan Kuhn, Ernst & Young EMEIA Tax Leader, said: "A consistent tax and regulatory environment for biotech SMEs across Europe is essential if the industry is to have sustainable growth and remain competitive compared with other regions." 

"This report shows some governments have recognized the importance of policies and programs that foster a strong community of SMEs in biotechnology, such as R&D tax credits or low corporation tax for example, whereas others have not," he added.. 

National governments, together with the EU, need to make sure that the policies are in place to make funding more accessible to SMEs involved in biotechnology. 

The report surveyed 16 countries across Europe on the tax, financial and regulatory incentives their governments provide to investors, entrepreneurs and researchers in the bioeconomy, and the challenges facing SMEs. 

The report compares the tax concessions on offer in each country, financing opportunities for SMEs, and the benefits that can flow from a decision to establish a start-up in a particular location. 

A similar call for a coordinated, regional approach to create an agressive market for clean technology products and services was raised recently at GLOBE 2012 in Vancouver. A report commissioned by the Pacific Coast Collaborative, a policy oriented partnership involving the U.S. States of Washington, Oregon and California and the province of British Columbia - "The West Coast Clean Economy Report" - points out that "accelerating the transition to a cleaner economy requires vision, leadership, and coherent, economy-wide, strategic approaches."

The report stresses that regional collaboration will allow the leveraging of each jurisdiction's strengths to create a strong, globally competitive market for clean technology.

Thomas Saylor, EuropaBio Chair of the SME Platform, stated: "This report represents an important contribution to the policy debate over measures that can significantly benefit biotech SMEs in Europe and ensure that Europeans benefit from the biological sciences." 

"There is growing recognition by the European Commission and policy makers throughout Europe of the importance of biotech SMEs to Europe's future prosperity. As such, the report can play a major role in establishing an agenda for policymakers seeking to ensure an attractive environment for investors and biotech entrepreneurs," he added. 

Please visit here to view the report

 
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