BIO Applauds Senators Menendez and Toomey for Introducing the Start-up Jobs and Innovation Act
[UPDATE: On January 28, 2014, Senator Pat Roberts (R-KS) signed on as a co-sponsor]
Washington, D.C. (November 6, 2013) – Today, the Biotechnology Industry Organization (BIO) applauds Senators Robert Menendez (D-NJ) and Pat Toomey (R-PA) for introducing the Start-up Jobs and Innovation Act. This bill is designed to spur capital formation for R&D-focused companies in the early stages of development.
It can take over a decade and cost more than $1 billion to bring a single groundbreaking biotechnology treatment from laboratory bench to hospital bedside, and virtually the entire process is funded by private investment. The Start-up Jobs and Innovation Act would encourage the private sector to invest in breakthrough research being conducted at young biotechs and other innovative small businesses across the country.
“BIO commends Senators Menendez and Toomey for introducing the Start-up Jobs and Innovation Act,” said BIO President and CEO Jim Greenwood. “Emerging biotech companies face a constant struggle to raise innovation capital, and this bill will support their research by incentivizing early-stage private investment.”
This Act will promote greater private investment in small business research, encouraging investors to think beyond immediate gains and support the long-term growth of breakthrough innovators. The legislation would allow small companies to partner with their investors via R&D Partnership Structures – an important change that will incentivize early-stage investment and support small business innovation.
An independent study by Ernst & Young (E&Y) estimates that this proposal will create 156,000 jobs while stimulating $10.3 billion in increased investment. The Start-up Jobs and Innovation Act also includes important reforms to the capital gains treatment of small business stock, business expensing for growing companies, and rules governing small firm accounting methods.
“Senators Menendez and Toomey have taken an important step to help drive the next generation of scientific advancement,” said Greenwood. “BIO supports this Act because it will encourage important investments, support vital research, and stimulate the U.S. economy.”
BIO is a member of the Coalition of Small Business Innovators (CSBI), a national group of 18 organizations representing research-intensive small businesses that support this legislation. The Coalition is focused on stimulating sustained, private investment in small companies focusing on the development of transformative, life-changing new technologies.
Coalition members include:
Advanced Medical Technology Association (AdvaMed)
Algae Biomass Organization (ABO)
American Small Manufacturers Coalition (ASMC)
Association of Clinical Research Organizations (ACRO)
Biotechnology Industry Organization (BIO)
Center for Innovative Technology (CIT)
Commercial Spaceflight Federation (CSF)
Electricity Storage Association (ESA)
Fuel Cell & Hydrogen Energy Association (FCHEA)
Medical Device Manufacturers Association (MDMA)
NanoBusiness Commercialization Association (NanoBCA)
National Association of State Energy Officials (NASEO)
National Council for Advanced Manufacturing (NACFAM)
Neurotechnology Industry Organization (NIO)
Water Innovations Alliance (WIA)
More information about the coalition can be found at: www.smallbusinessinnovators.org