British Columbia’s Life Sciences Sector: Leading the Great White North?

The perception of Canada on the international stage is often tied to its proximity to the US, its rich natural resources, and less than desirable climate.  Although this may be true – at least in part – the global recession has forced many countries to re-examine their competitive positions and in this regard, Canada has chosen to pursue a path which will strengthen its knowledge-based economy and enhances its capacity in the areas of therapeutic development, energy, agriculture and the environment.The objective of this blog entry and my three subsequent entries is to provide some insight into the knowledge-based economy of this country with a particular focus on life sciences.

Private sector biotechnology within Canada is comprised of about 670 companies generating a direct economic impact of about $1.1 billion CAD annually.  The segments encompassed within the sector include (in order of size):  industry/environment, therapeutics, agriculture, and genomics.  The historical epicentre of life sciences within Canada has been in Quebec albeit one-third of all Canadian biotechnology companies now reside in British Columbia (BC).

A recent economic impact study undertaken by LifeSciences BC suggests the provincial sector accounts for $500 million in direct expenditures and employs approximately 7,500 people.  It should be stressed that these national and provincial figures represent a fraction of the total market which would take in to consideration direct, indirect, and induced impacts. 

What makes BC so attractive to life sciences companies?
The BC Progress Board recently released its Tenth Annual Benchmark Report, noting several of these factors which include but by no means are limited to:

• Health outcomes in BC are better than anywhere else in Canada, pointing to the expertise resident within its medical system.  The Province has one of the most diverse ethnic populations, the highest life expectancy, and the lowest cancer mortality rates.
• Access to healthcare and a centralized database in areas such as oncology and pharmaceutical prescriptions make Canada’s most westerly Province an ideal ‘living laboratory’ in which to conduct research, particularly for specialized populations or even post-marketing and surveillance studies.  
• Environmental quality in BC is second to none.  Protected areas, government policies, and a strong social sensitivity lends itself to a comprehensive approach to ecosystem management, which amongst other initiatives, is strongly supportive of alternative energy sources such as biofuels. 
• A vast expanse rich in resources means biofuel and bioproduct organizations can be in close proximity to relatively secure sources of feedstock originating from forestry, agriculture and even municipal waste. 
• Insofar as human capital, the percentage of BC’s population possessing a university degree is only second to that of Ontario.       

Having provided some context insofar as Canadian and BC life sciences, the next three blog entries in this series will delve further in to a number of critical success factors for the sector; namely capital, collaboration and convergence.  It is my hope that such information will serve as a catalyst for you to attend BioPartnering North America 2011 and explore the numerous opportunities that exist for you and your organization.

We need your input

As you are hopefully aware, LSBC undertakes a number of different initiatives from time to time which we feel are of interest to our members, and some cases, to all knowledge-based industries.  I would like to use this blog periodically to solicit your responses and ensure that we can adequately and accurately represent you.  This entry is one such instance. 

The Federal Government has launched a comprehensive review of all federal programs that provide support to business innovation.  A six member panel has been constituted which will ultimately be making recommendations on how to maximize the Government’s contribution to research, development and innovation.  In this regard, the panel will focus on three specific federal initiatives:

• Tax incentive programs such as SR&ED
• Programs that support business R&D such as IRAP or sector specific undertakings
• Granting councils and their role in supporting business focused R&D

The impetus for this review revolves around the fact that Canada continues to offer relatively high value tax incentives and direct support for business R&D as a percentage of GDP; however, Canada ranks 16^th amongst OECD countries for business expenditures on R&D as a percentage of GDP.  Suffice to say, there are some shortcomings within Canada and this review provides us with an ideal opportunity to provide our input and suggestions.

LSBC, in conjunction with a number of other provincial groups, will be making a submission to the expert panel early in 2011.  In preparing the submission, we would like to incorporate your thoughts and considerations on this topic as many of you have first-hand experience with the programs noted above.  I would encourage you to post your thoughts on this blog forum, or alternatively, if you are concerned about confidentiality, please feel free to send me an email directly or even call.  I am confident we will be able to influence the outcome with your support! denns[a]lifesciencesbc.ca

No Reserves, No Retreats, No Regrets

William Borden was born into a life of luxury.  As heir to the family’s dairy fortune, he was already a millionaire in 1904 by the time he reached the age of 24.  His graduation gift was a trip around the world in which he intended to pursue the Bohemian life style that many ponder but can never afford.  It was not to be!  Having seen the conditions in which many global citizens have to live, he had a change of heart and committed his resources to the less privileged.  Unfortunately, he was struck with a case of meningitis and died in Egypt, a significant distance from his home state of Illinois.  In going through his personal possessions, someone came across a diary in which Borden had written in his dying days, ‘No reserves, no retreats, no regrets.’

To me, this has become one of life’s maxims.  How many of us can truly say that we have exhausted ourselves in pursuit of a specific cause and have no regrets in the process?  Indeed, there have been possible exceptions such as Nelson Mandela, Winston Churchill, or even Mother Theresa; however, how many of us apply that standard to ourselves personally?

I trust that you will grant me some latitude, or at least literal liberty.  Being candid, I am not in favour of individual fighting endorsed under the banner of UFC. Whereas we as a society collectively discourage bullying and fighting, UFC seems to represent exactly the opposite.  Having said that, BC politics demonstrated once again that UFC is only in its infancy when it comes to a sport that knows no limits.  Both political parties are experiencing a leadership malaise; there is indecision about what to do next; and there is no focus whatsoever on how an innovation agenda can improve the well being of those who reside within the Province.

The situation that we now find ourselves in requires engagement!  I believe the leaders of the political powers have regrets in terms of the way they have managed certain predicaments and that solutions reside in groups such as LSBC.  It is incumbent upon us – individually and collectively – to voice our concerns at this very time; exhaust every avenue; examine all options; and ensure that a decade from now we are not saying that we should have, could have or would have.  In short, we must collectively commit to ‘no reserves, no regrets, no retreats’, both personally and corporately!

Transformational Change

I recently heard radio commentator Michael Campbell make reference to the fact that overall global debt has increased by as much as $8,000,000,000,000 over the last two years alone, and that was before the US Federal Bank’s move last week to inject another $600,000,000,000 in to their economy.  These figures are staggering and lingering questions abound regarding the ability of some sovereign nations, and more recently, individual US states to repay such debt.  What good can possibly come from this most recent economic melee?  Let me propose a few…

It is my opinion that one of the most significant benefits of the current economic climate is that it has not only forced a dialogue around certain policy parameters but has brought a sense of urgency to those discussions.  If this had not happened, I fear that we may simply have been satisfied with the ongoing rhetoric that has historically plagued such issues as health care, energy, education and the environment.

The magnitude of the economic crisis suggests that we must continue to be prudent in our overall approach; however, we must not reject solutions that result in transformational change versus incremental gain.  With almost half of our provincial budget going to health care, we need more than 1% in advances.   Clearly, innovation thought and practice are at the heart of this discussion (no pun intended!). 

Healthy dialogue and a willingness to pursue transformational change can result in productive yet non-traditional partnerships.  One only has to look at the recent announcement between the English and French governments related to military collaboration to realize the ‘competitive’ landscape is changing.  In my experience, I have concluded that many of our personal predispositions inhibit us adequately exploring solutions to problems which we now know are incredibly complex and difficult.  Irrespective of whether we are private or public sector, left or right, academic or entrepreneur, it is our collective desired outcomes that must be paramount to the dialogue.

There is no doubt in my mind that we are and will be going through an extraordinarily difficult period in our history.  By the same token, I also believe this is an opportunity to redefine who we are as a community (in the largest sense of the word) and challenge the status quo which got us here in the first place.

Proud to be a British Columbian

Being candid, I am immensely proud of being Canadian, and in particular, a British Columbian!  With a population of about 4.5 million, I have concluded that we ‘punch well above our weight’ in terms of accomplishments.  Although relatively young in comparison to many other cultures, we enjoy a quality of life that is the envy of the world; provide stewardship over a natural environment that is second to none; and possess a potential, which if realized, will ensure sustainability for centuries to come.  If we were to get more microscopic in terms of this examination, we would notice that one of earth’s leading genomics centers is in our backyard; we possess some of the world’s leading academic institutions; BC is at the apex in terms of understanding nuclear physics; and we have an exemplary entrepreneurial ability.  With respect to the latter, my experience has been we generally possess more risk taking ability then that demonstrated in the US, UK or parts of Asia albeit that is rarely acknowledged! 

Yet, regardless of our accomplishments, it seems like we are prepared to accept mediocrity, or dare I say, relinquish positions of leadership which we should rightfully own.  Admittedly, I embellish to make a point; however, I am of the opinion we can do better – much better!  In order to compete globally, we as British Columbians must ensure that we work collaboratively and break down every barrier that impedes that process.  Specifically, academia, the public sector and private industry must work in harmony if we are to have any chance of realizing our true potential.  It is not about building one entity or market segment; it is about building a province which competes on the global stage. 

The purpose of this blog is not only about communicating what is happening within the life sciences space but also about connecting parties.  In essence, the blog is an attempt to tell our story!  In that regard, I welcome your comments, ideas and guest editorials.  Let’s create some dialogue that not only enhances awareness of the contribution life sciences is making to our well being but does so in a manner that makes every one proud!