Biopharmaceutical sector first to access Ontario's Next Generation Jobs Fund

Ontario's biopharmaceutical sector is the first recipient of funding from the province's new Next Generation Jobs (NGJ) Fund with $150 million over five years to stimulate new research and manufacturing. Program design is still being completed but is expected to include grants, loans, forgivable interest loans and funds for infrastructure, research and training.

Modelled on the Ontario Automotive Strategy, the NGJ Fund was created last year with $650 million – an amount that was increased to $1.15 billion in the province's fall economic statement on December 13. The fund was created primarily to combat the sharp rise in the Canadian dollar and a spike in the loss of manufacturing jobs which totaled 33,000 in December/07 alone.

"It's about attracting and leveraging new investments in globally significant research," says MRI minister John Wilkinson. "This is also a strategic alliance with companies to secure global mandates for manufacturing."

The NGJ Fund is designed to bolster industry sectors where Ontario already has a strong competitive advantage. The biopharmaceutical sector currently employs more than 9,000 in the province at firms that spend more than $550 million annually on R&D. Of the Top 100 Corporate R&D investors in Canada, 31 hail from the biopharmaceutical sector. The Fund will target large established multinational firms as well as smaller home-grown biotechnology and pharmaceutical firms seeking to add value and attract additional venture capital.

NGJ funding will likely go to a small number of successful applicants, adding public money to their proposals. No details are available on what the criteria or the leverage ratio will be.

"Biopharma is a world class component of Ontario economy," says Wilkinson. "My focus at MRI is on advising the government on the evolution of the economy."

In addition to the biopharmaceutical sector, the NGJ Fund will also be used to support other sectors including clean automotive and other green technology, creative industries such as digital media and information and communications technologies.

Other Ontario research news

The Ontario government is rolling out the results for the second round of the Ontario Research Fund (ORF), with two Queen's Univ projects securing $23.5 million of the $114.7 awarded.

Astroparticle physics research at the new SNOLAB of the Sudbury Neutrino Observatory is receiving $18.0 million for a $53.9-million project. The research will take place in the SNOLAB, which is situated two kilometres underground at the Vale-Inco Ltd's Creighton mine in Sudbury. Considered the lowest radioactivity research location in the world, the international SNOLAB will allow for research into dark matter particles.

The second Queen's project to receive ORF funding is for Greenhouse Gas Emission Free and Energy Efficient Power technology for Information Systems. The $16.6-million project will receive $5.5 million on ORF funding to develop commercially viable power systems for computers including solar and win. The objective is to reduce power consumption by 15-20% within five years.

Private sector partners include Cistel Technology Inc, Ottawa, Eion Wireless, Ottawa, IE Power Inc, Mississauga and Nortel Networks Corp, Brampton.

The other 17 award winners in the ORF's second round will be announced in the coming weeks. The projects involve 107 industry and other partners.

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