B.C. Life Sciences Sector Contributes $14.4B to Provincial GDP with Potential for Exponential Growth as Industry Matures

Vancouver, BC – October 21, 2015 - Life sciences have the ability to transform health systems, create skilled jobs, and grow a knowledge-based economy for British Columbia, according to The Life Science Sector in BC: Economic Impact Now and in the Future, a new report prepared by PwC for LifeSciences BC. Employing nearly 180,000 people, the industry continues to grow, especially in B.C., which is outpacing other provinces across Canada.

“The power of our industry begins with supporting innovation,” says Paul Drohan, LifeSciences BC President and CEO. “Fostering, developing and scaling innovation increases the likelihood of rapid commercialization, and delivery of research that can be used to improve the lives of patients.” 

Between 2010 and 2014, B.C.’s life sciences sector experienced growth in a number of areas including; companies in the sector (3.4%), direct employment (3.4%), average annual wage (5.0%) and estimated payroll impact (8.5%). Over that same period, the industry’s B.C. tax contributions increased by 9.8%, from $417 million to $606 million. These figures, combined with the sector’s annual GDP contribution ($14.4B) demonstrate the impact the sector has on the province.

With proper infrastructure and support, the sector has potential for significant growth. Some of the key challenges facing the industry include:

1. Access to Capital – B.C. has less access to capital than Ontario, and Canada overall faces challenges in procuring the investments needed to compete globally. In B.C. 84% of companies have less than 10 employees and many never become big companies, opting instead to license and sell but never grow locally.
   
   
2. Access to Talent – Cities like Vancouver are highly livable, but expensive; talent development needs to start in academic centres and universities need to attract innovators and entrepreneurs. B.C. is experiencing a talent drain with local universities attracting students who come to study but don’t stay in the province or even in Canada after graduation.  
   
   
3. Synchronization of various government organizations and regulatory processes – Coordination between all levels of government impacts regulatory policy and funding. There are small pockets of assistance but no one is coordinating or overseeing this effort.
   
   
4. Access to licensing and strategic partners – B.C. companies need help to access strategic partners to develop products and marketing strategies in order to sustain long term growth.

“Synchronization between policy makers is just one of the processes needed to ensure continued growth in BC’s life science sector,” said Joyce Drohan, B.C. Healthcare Leader, PwC Canada. “A coordinated effort is required so that B.C. can foster the innovation, entrepreneurship, and collaboration needed to attract investors and further establish B.C.as a global leader in the sector.”

B.C. has only 17% of the number of life sciences companies across Canada, falling between Ontario (41%) and Quebec (16%). While B.C. has more life science companies, Quebec’s sector contributes to 24% of overall Canadian life science GDP compared to B.C.’s 12%. These numbers suggest that B.C. has more relatively small companies generating less GDP.

The PwC report shows that B.C.’s life sciences sector is in the early stages of development and growing organically. If the industry receives the support it needs in order keep it on a path of growth the sector’s contribution to the local economy could increase exponentially based on the current trajectory of growth.

 A full copy of the report can be found at www.pwc.com/ca/en/healthcare-public-sector/assets/2015-10-LifeSciencesBCSectorReport.pdf

Notes

1.  LifeSciences B.C. is a not-for-profit, non-government, industry association that supports and represents the life sciences community of British Columbia through leadership, facilitation of investment and partnering, advocacy, and promotion of B.C.’s world-class science and industry both locally and internationally.
   
   
2. The methodology used to determine the definition of life sciences for the sector report included the following steps
   
   
   1. Determine the core definition of life sciences in B.C.
   2. Include additional industries in the expanded definition
   3. Gather raw data from Statistics Canada
   4. Determine weighting to each industry group
   5.  Calculate relevant life science metrics
      
      
3. The core definition of the life science industry is comprised of drugs & pharmaceuticals, medical devices & equipment, research, and research testing & medical labs. The expanded definition, which was used to determine the metrics, includes the aforementioned industries in addition to ambulatory health care services, R&D biotech research, R&D laboratories, R&D life science, hospitals, health and personal care stores, and other scientific and consulting services.

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