Executive Summary: PTC 13th Report – June 2010

In this report the PTC has focussed on issues of venture capital, on applying clean energy technology and on the delivery of the government’s innovation programming. While developing the report and recommendations the PTC extensively consulted with industry (including a roundtable of leaders from BC’s venture capital community), academia and a number of government departments. Prior to this report and as a result of the VC roundtable, the PTC also sent a formal letter to Prime Minister Stephen Harper identifying Section 116 of the Income Tax Act as the largest single factor preventing US venture capitalists from coming to Canada to raise funds, and drives Canadian companies to leave the country to seek better funding opportunities. Later in 2010 Section 116 was amended to reduce the administrative and compliance burden.

Recommendations

Venture Capital

  • Work with the federal government to expand SR&ED tax credits beyond CCPC’s.
  • Seek greater participation of the federal government in VCC programs in BC
  • Continue the venture capital programs to ensure long-term capital flow
  • Maintain the BC Renaissance Capital Fund
  • Encourage the formation of venture capital in BC and syndication with international partners by including in the eligible activities of the BC International Financial Centre, those of venture capital management and partners and their income earned from management fees and carried interest incentive

Clean Energy

  • Reinforces prior recommendation for BC to become a net clean energy exporter by 2020
  • Make investment in energy infrastructure a priority and implement policy changes to allow increased capital expenditures and associated financing costs in exchange for reduction of future operating budgets.

BCIC Review

  • Support the new Mission Statement, assist BCIC to rationalize legacy programs, and meet deferred revenue commitment, and update governance and organization identity.

Commercialization of Research

  • Identified five general themes from an online consultation (215 contributions from 54 participants): Culture Shift, Need for Partnerships, IP Policy issues, Success Measures (not revenue to institutions as the key metric), Role of Government to assist. These themes and issues could have follow up investigation and recommendations in a future report.