Government of Canada investing in $20-million project proposal to launch integrated market
This article provided by Innovation, Science and Economic Development Canada – July 29, 2019.
The Honourable Mary Ng, Minister of Small Business and Export Promotion, today announced that the Government of Canada will support a $20-million project proposal to scale up companies in health and biosciences. This will be done through an initial $7-million investment to support the establishment of the CAN Health Network with its first network partners.
The CAN Health Network is an integrated market that will allow promising companies to work directly with health care organizations to understand their needs and commercialize health technologies to meet those needs and scale up their companies. Through this integrated market, small and medium-sized enterprises (SME) and leading start-ups will be able to work with early adopter institutions to collaboratively research, develop and refine Canadian medical technologies to make them market-ready.
With procurement often identified as both a barrier and an opportunity, the CAN Health Network builds directly on the recommendations of the Health and Biosciences Economic Strategy Table to accelerate innovation adoption through new innovation procurement models.
Health care spending in Canada reached $253 billion in 2018—11% of the country’s GDP—and the international market for medical technologies alone is estimated at $500 billion annually. With market opportunities of this magnitude, the global health technology sector is growing rapidly in Canada and around the world, and the CAN Health Network will position Canadian companies for success.
Today’s investment will build the first points of the national network in western Canada and Ontario, with further expansion planned for Quebec, Atlantic Canada and northern Canada. The successes of these initial investments will guide future funding decisions.
- Alberta Health Services;
- Children’s Hospital Research Institute of Manitoba;
- O’Brien Institute for Public Health, University of Calgary; and
- Vancouver Coastal Health.
By harnessing this economic opportunity with leading-edge SMEs and scale-ups, the Government of Canada will build Canadian leadership in health care technologies, creating global companies that anchor thousands of middle-class jobs here in Canada.
- The Government of Canada will be investing up to $20 million to scale up companies.
- This will be done through an initial $7-million investment to support the establishment of the CAN Health Network with its first partner organizations.
- We are building on the work of the Health and Biosciences Economic Strategy Table, which has the goal of doubling the size of the industry by 2025 and making Canada one of the top three hubs in the world in this sector.
- We need to unlock the full potential of Canadian innovation in both the public and private sectors, scaling up companies to become global leaders.
- With over a quarter trillion dollars being spent in Canada on health care every year, there is huge potential to scale up leading Canadian firms.
- This investment will help enable health technology companies to work directly with an integrated market of health care organizations to build global Canadian leadership.
- This national integrated market will help give made-in-Canada innovations easy access to a large, consolidated domestic marketplace.
- After the first sale is made within the integrated market, those technologies can then be easily sold to others in the CAN Health Network, enabling the company to scale up by leveraging the purchasing power of Canadian health care procurement.