European Governments Need to Ensure R&D Innovation is Transformed into New Jobs
Governments in Europe must to do a lot more to ensure R&D innovation in the biotechnology industry is converted into new companies, new products and extra jobs, according to a new report released earlier today.
The report, titled “What Europe has to offer biotechnology companies: unravelling the tax, financial and regulatory framework”, was launched by Ernst & Young and the European Association for Bioindustries (EuropaBio).
The report observes that there is “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 variations range from elementary policies and regulations which encourage financing for start-ups, to the ability to inspire entrepreneurs and attract skilled managers.
The report surveyed 16 different countries across Europe and compares the tax discounts available in each country, financing opportunities for small and medium-size enterprises (SMEs), “and the benefits that can flow from a decision to establish a start-up in a particular location.” The report adds that Europe “has the potential to be a world leader in the field of biotechnology” but “it is not enough to have a good tax or finance system in place. The right policies and incentives for R&D development are also essential to growth in this industry.”
Ernst & Young’s EMEIA tax leader, Stephan Kuhn, commented that “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.”
He noted that the report demonstrates that some European governments have acknowledged the significance of incentives that nurture a strong community of SMEs in biotechnology, such as providing research and development tax credits or providing low corporation tax, “whereas others have not.”
“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,” Kuhn added.