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New Legislation Would Stimulate Investment in Innovation

June 16, 2014
Today, the Coalition of Small Business Innovators (CSBI) applauds Reps. Jim Gerlach (R-PA), Richard Neal (D-MA), Mike Kelly (R-PA), and Ron Kind (D-WI) for introducing H.R. 4855, the Partnerships to Advance Revolutionary Technology and Novel Entrepreneurial Research (PARTNER) Act.  This bill would support early-stage research by incentivizing investment in R&D-focused small businesses.

The PARTNER Act would allow companies to partner with their investors on a specific research project or pipeline.  Only start-up and small companies dedicated to R&D would be eligible to use these R&D Partnership Structures, so investors would be incentivized to invest at an earlier stage – when the capital is most needed.  Conducting groundbreaking research is a decades-long, billion-dollar endeavor, and emerging companies need early-stage investors with a long-term investment strategy.  This bill would bring in innovation capital to kickstart a company’s growth and support its development.
An independent study conducted by Ernst & Young found that the PARTNER Act would increase investment by an estimated $10.3 billion per year, resulting in 156,000 additional jobs.

CSBI is a group of 24 organizations representing emerging R&D companies.  Many of these growing innovators do not yet generate product revenue, so their research is funded entirely by outside investment.  The PARTNER Act would stimulate investment in these small businesses, supporting the search for breakthrough technologies and life-changing scientific advancement.

For more information about CSBI or the PARTNER Act, visit smallbusinessinnovators.org.

Note: BIO is a member of CSBI and we are proud to support the PARTNER Act.