The federal government recently presented its 2010 federal budget, a $19 billion plan with a number of fiscal commitments that will promote research and innovation in the life sciences and related fields.
The budget puts into play Year 2 of the government’s Economic Action Plan, committing $1.9 billion in direct funding to strengthen the growing knowledge economy. This investment will be used to attract talented scientists, strengthen research infrastructure, improve Canada’s commercialization mechanisms, accelerate private sector investment and enhance the ability of Canadian companies to participate in global markets.
Specifically, the government will provide $45 million over five years to establish a post-doctoral fellowship program to help attract researchers to Canada. An investment of $222 million will go to TRIUMF, Canada’s world-renowned laboratory for nuclear and particle physics research. The annual budgets of Canada’s various research granting councils will be increased by $32 million per year, and an additional $8 million per year will go to the Indirect Costs of Research Program. Genome Canada will benefit from $75 million, and the budget of the College and Community Innovation Program will be doubled with an additional $15 million per year. The plan will provide $135 million over two years to the National Research Council Canada’s regional innovation clusters program and $48 million over two years for research, development and application of medical isotopes. A new Small and Medium-sized Enterprise Innovation Commercialization Program will receive $40 million over two years. Innovation funding is rounded out by renewing and making an ongoing $49 million in annual funding for the regional development agencies to support innovation across Canada.
Lastly, the budget will remove barriers under the Canada-US Tax Treaty for investors such as non-resident venture capital funds, easing the way for investment in Canadian biotechnology firms.
“We hope to see an enormous boom in investment thanks to this change, and could see a return to historic levels of venture financing of half a billion plus per year,” says Peter Brenders, President and CEO of BIOTECanada.
www.budget.gc.ca/2010
