Federal funding for B.C.’s technology sector will be slightly less than in the past, but it will be more predictable.
The 2013 federal budget includes:
•more than $1 billion for the aerospace industry;
•$160 million for high-tech business accelerators and their graduates;
•$165 million for Genome Canada; and
•$325 million for Sustainable Development Technology Canada (SDTC).
The SDTC funding is particularly important for Canadian high-tech companies, especially in B.C., which has historically received a disproportionately higher share of SDTC funding for technology innovation.
There were some fears in B.C.’s tech sector that the federal government, facing a ballooning deficit, might cut SDTC funding altogether.
Although the recent allocation of $325 million over eight years is lower than the original commitment of $591 million to SDTC in 2001, it is spread over a longer period.
“I think the government has shown it will remain consistent in its policies around innovation research,” said Bill Tam, CEO of the BC Technology Industry Association (BCTIA).
“While the amounts are more modest, it’s understandable, given the fiscal condition that we’re in.
But more importantly, it signals more long-term commitments.”
SDTC funding has been a cornerstone for helping high-tech companies leverage additional investments, including venture capital.
Accessing venture capital is arguably the No. 1 challenge for B.C. companies in the clean-tech and biotech sectors.
Last year, the federal government announced $400 million for a new venture capital fund.
LifeSciencesBC president Don Enns was disappointed not to see any details in the 2013 budget on how and when that money will enter the market.
“If they have decided, they haven’t made it known how it’s going to move into the market,” he said. “You make an announcement – you have $400 million that you say you’re putting on the market – and here we are 12 months later and we’re still talking about how that’s going to happen.”
But Enns was happy to see $165 million earmarked for Genome Canada.
He expects some of that money to trickle down to Genome BC, which has working with Genome Canada to fund important research in personalized medicine.
There has been a “sawtooth” funding pattern for Genome Canada in the past, Enns said, with no funding at all in some years – 2011, for example.
“The fact there’s $160 million going in right now is a very clear indication that we’ve built some expertise, and they’re continuing to go ahead with it. So this year the annual allotment of $160 million is definitely going to help fund some of the projects on the books.”
Tam said B.C.’s aerospace industry will benefit from $1 billion allocated for the Strategic Aerospace Defence Initiative to support research and development and collaboration in the defence and aerospace sectors, as well as $110 million over four years for the Aerospace Technology Demonstration Program.
Tam also welcomed $160 million announced for business accelerators like the BCTIA’s own Centre4Growth and their graduates.
The budget earmarks $60 million for business accelerators and $100 million for Business Development Bank to invest in the firms graduating from those business accelerators.
