BIO Deutschland Welcomes Suggestions on Mobilising Venture Capital for Innovations
As the sector association of the biotechnology industry, BIO Deutschland welcomes the new report by the Commission of Experts for Research and Innovation. Commenting on the report in Berlin, the association noted that it reinforces the Federal Government’s recent decision to mobilise venture capital for innovative young companies and provides concrete suggestions on how to do so.
“These suggestions can help innovative small and medium-sized companies in general, but particularly those in the capital-intensive biotechnology sector, to make better use of the potential found in research and development on new products and services,” Peter Heinrich, Chairman of the Board of BIO Deutschland, underlined.
Heinrich added that the report also highlights the weaknesses of German tax policy. As a result of these weaknesses, BIO Deutschland is calling for new tax regulations on loss carry-forward. Current legislation does not only selectively hinder the founders of innovative companies. BIO Deutschland also regards the minimum taxation under loss carry-forward regulations as unconstitutional.
Around a fifth of German biotech companies, particularly those involved in diagnostics and therapy of serious diseases, rely on the availability of venture capital. Products by German biotech companies already help many patients today. Innovations from the sector are regarded as generators of economic growth and hence as a guarantee for jobs in the future.
You will find a copy of the text by the Commission of Experts on Research and Innovation in German at www.e-fi.de/fileadmin/Gutachten/EFI_Gutachten_2012_deutsch.pdf. (An English translation should be available in due course.)