Ontario’s provincial government announced investment of $150 Million in the biopharmaceutical industry to attract research and development, which ultimately boost the economy of the province.
The Provincial Government of Ontario, the most populated province of Canada, announced on January 9, 2008 that it would spend $150 Million to attract biopharmaceutical research companies in the province, as reported by Reuters.
The biotech industry is growing at a rapid pace in the province. Therefore, investment by the government in the health research is essential for overall development of the biopharmaceutical industry. Investment is also essential to boost the growth in other sectors and economy of the province and cumulative growth of the pharmaceutical industry of Canada.
In contrast, the New Democrats are strongly criticizing this plan of the government. They are calling it unfair to provide such a big amount to an industry which is already running in profits. Taxpayers’ money should not be diverted to profitable drug manufacturing companies, particularly those that spend a big proportion of money on marketing of drugs rather on research and development (R&D).
The industry experts have welcomed the government’s decision and believe that it will make Ontario a big player in the rapidly growing biopharmaceutical industry. Moreover, it will also attract and retain investment in the industry.
Other positive impacts of the investment are that it will create more jobs in the field of research by facilitating companies to look for grants, financial assistance, pardonable interest loans and investment for developing infrastructure, training and research. Correspondingly, the lucrative jobs in the pharmaceutical industry will support new discoveries for treatment of diseases affecting the health of the country’s people. It will also help in improving the quality of life in the province and boost the economy.
Around 31 big pharmaceutical companies out of top 100 of Canada’s corporate R&D companies are in Ontario. In 2006, Ontario invested around $550 Million in various segments of healthcare, like antibiotics, development of new vaccines and cancer treatments.
According to a Senior Research Analyst at RNCOS, “The health sector of Ontario is one of the best in the country and is among the best world-class research sectors. Initiatives like the recently announced investment program by the Ontario government will strengthen the tie-up between researchers and the industry. It will also create new job opportunities and improve the condition of health services in the province.”
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