Australia’s health innovators have united to release a statement supporting the introduction of a patent box, and welcoming the important initiative by the federal government.
The collective statement made by Research Australia, AusBiotech, Medicines Australia, and the BioMelbourne Network asserts that with the right policy settings, a patent box will ensure Australian discoveries in health are developed here, ensuring Australia captures the opportunity for new industries and jobs in health innovation.
This alliance demonstrates the alignment and strong interdependencies from bench to bedside within the biotechnology and medical products sectors and strengthens our sector positioning. Each national peak industry body submitted individual responses to Treasury’s initial patent box design discussion box, with many having advocated for the initiative for many years.
The supportive recommendations include a call for the Government to establish an expert working group with industry representation to support the design and implementation of the patent box; and to look to tested regimes in comparable ecosystems when considering the key design elements – such as the UK Patent Box.
Read the joint statement of support for an Australian Patent Box here.
AusBiotech continues to warmly welcome the Australian Patent Box policy development that will apply to the medical and biotechnology sector, however, implores that getting the policy’s design right is tantamount to its future success.
An Australian Patent Box incentive would work ‘hand in glove’ with the R&D Tax incentive (RDTI) to keep more of the value creation and its benefits in Australia, for longer.
It is estimated that 86 per cent of the approximate 1,852 organisations in the Australian life sciences sector is in the SME category, the majority of which is yet to reach commercialisation or earn revenue. While most companies will not be eligible for some years, the Patent Box is intended as an incentive for long-term decision-making and creating long-term value for Australia.
It is well accepted that as a product reaches commercialisation, the benefits of the much-valued RDTI diminish, the development of highly-portable IP may (and does) move the associated benefits offshore, where other countries benefit.
A well designed, accessible, and effective Australian Patent Box will incentivise and support companies to keep the development of their IP and the value they create from it in Australia, to the economic and social benefit of all Australians.
Read AusBiotech’s call for a workable patent box design here.