December 11th 2013, Oslo Cancer Cluster, Oslo Medtech and Nansen Neuroscience Network launched a proposal for a new financing mechanism to stimulate innovation from the health- and biotech industry.
The proposal was very well received among the politicians, industry, public organisations and investors at the debate meeting in conjunction to the launch. Conservative Member of Parliament Kristin Vinje viewed the scheme as an exciting proposition that it is worthwhile to investigate further.
The three health clusters have named the scheme “Helsemyggordning”, building on a similar financial instrument from the oil and gas industry that was established to encourage exploration and development activity among young and small petroleum companies.
To stimulate increased health innovation, the scheme “Helsemyggordning” would involve cash payments of tax deduction related to the cost of development and testing of health products and health technologies innovators who are not liable to tax. When the company gets profits and are liable to tax, they must repay the tax paid for the development and testing costs. The system thus acts as an interest-free capital loans from state to the health innovations.
Acting CEO in Oslo Cancer Cluster, Jónas Einarsson, says the scheme may trigger the huge potential within Norwegian health R&D. “We are at a critical stage now, as the biotech projects coming out are more mature and in a need for early funding,” says Einarsson.
Menon Business Economics have analysed “Helsemyggordningen”. They conclude that it is easy to administrate, predictable, and targeted.
Please find more in debth information here:
Presentation of Helsemyggordningen, by Erik Jacobsen, Menon Business Economics.