Manitoba's Strategic Advantages: Research and Development


St. Boniface General Hospital Research CentreResearch and development in Manitoba is conducted by government agencies, by universities, and by private firms, often working jointly. In total, the provincial R&D infrastructure represents a collegial network of expertise linked through formal professional associations and informal groups. Manitoba’s growing base of research-related activity has given the province an increasing international profile in agriculture and health biotechnology, pharmaceuticals, medical and diagnostic devices and industrial research.

The tax environment in Manitoba encourages industry to continuously develop new and innovative products and processes. Programs like the Manitoba Research and Development Tax Credit and the federal Scientific Research and Experimental Development Tax Credit provide Manitoba companies with considerable leverage for their R&D investments. Studies by the Conference Board of Canada comparing the R&D tax incentives among the world’s industrialized countries have repeatedly found that combined federal and provincial R&D tax incentives in Canada are the “most generous and stable offerings in the industrialized world.”

Growing clusters of public research institutions and research-based private sector firms give Manitoba a growing international profile in agriculture and health biotechnology, pharmaceuticals, medical and diagnostic devices and industrial research.

The $142-million Canadian Science Centre for Human and Animal Health is Canada’s only Level 4 research facility for the study of human and animal disease organisms, and and is the home of Canada’s new International Centre for Infectious Diseases (ICID).

Just down the street are the Health Sciences Centre and the University of Manitoba’s medical campus, home to the Institute of Cell Biology. A few minutes away, the St. Boniface General Hospital Research Centre is a leading Canadian research institute in the new field of nutraceuticals as well as a leader in cardiology, gerontology and magnetic resonance imaging research. Adjacent to the Research Centre, the new I.H. Asper Clinical Research Institute provides researchers with the technology to develop basic research discoveries into new and innovative treatments for heart and vascular disease.

At the University of Manitoba’s main campus, the Agriculture and Agri-Food Canada research station, the U of M Faculty of Agriculture, and the Monsanto Crop Development Centre bring together expertise in the development of new varieties of and uses for crops such as canola, wheat, oats, barley, rye and pulses. The Faculty of Engineering is developing a similar profile in telecommunications and advanced manufacturing.

The Composites Innovation Centre, located near the University of Manitoba, is jointly funded by the private and public sector. The Centre supports research, education, training and project management in the field of advanced composite materials, with applications for aerospace, automotive, civil infrastructure, sporting goods equipment, electronics, household appliances, furniture and other industries. The Centre provides access to advanced research tools, including highly sophisticated testing equipment.

 

Researchers in Manitoba are committed to taking their ideas to market.

The St. Boniface General Hospital Research Centre has launched several companies to commercialize the research discoveries of scientists at the centre in the fields of cardiology, biotechnology, minimally invasive surgery, and medical devices.

The National Research Council’s Institute of Biodiagnostics – a world leader in developing new kinds of medical imaging equipment – is the site of a 5,500 square-metre commercialization centre that houses Biomedical Commercialization Canada Inc., a non-profit organization that supports biomedical commercialization by providing resources to help innovators, entrepreneurs and start-up companies pursue science and technology based business opportunities.

Research at the University of Manitoba has been making a big impact in the marketplace for decades. Scientists at the U of M were the first to modify low-value rapeseed to develop the multi-billion dollar  oilseed crop canola. The University has developed a 100-acre multi-tenant research and technology park – known as SmartPark – to allow Manitoba's knowledge-based industries to benefit from close university-industry interaction. Tenants of SmartPark include organizations in the fields of information and communications technology, medical devices, advanced composite materials, electrical engineering, agricultural technology, biotechnology, biopharmaceuticals, functional foods and nutraceuticals.

Cangene Corporation, adjacent to the university, produces WinRho, the substance given to Rh-negative pregnant women around the world to prevent potentially fatal Rh disease in their children. It grew out of a discovery by University of Manitoba researchers and has since saved numerous lives around the world. A world leader in specialty hyper-immune plasma and biotechnology products, Cangene has been awarded a number of contracts by the U.S. government to develop drugs to respond to potential biological attacks, with recent contracts valued at over $500 million.

The tax environment in Manitoba encourages industry to continuously develop new and innovative products and processes. Programs like the Manitoba Research and Development Tax Credit and the federal Scientific Research and Experimental Development Tax Credit provide Manitoba companies with considerable leverage for their R&D investments. Over the years, studies by various agencies have repeatedly confirmed that Canada’s income tax treatment of research is among the most generous in the world, especially whencoupled with provincial incentives.In 2011, after considering both Manitoba’s R&D tax credit and the federal credit, the after-tax cost of one dollar of qualifying R&D expenditure in Manitoba is between 45¢ and 47¢, depending on a firm’s size and corporate structure.

 

Foreign Firms Can Access R&D Tax Credits in Manitoba

R&D tax credits available in Manitoba can provide significant cost advantages to firms that locate their R&D activities here. Foreign firms can access these cost advantages by either outsourcing their R&D to a Manitoba company, or by conducting R&D activities in a Manitoba subsidiary.

Contract R&D

R&D tax credits available in Manitoba can reduce the cost of eligible R&D by over 50%. In combination with competitive labour costs, that means that Manitoba companies can undertake contract R&D at very competitive rates, providing a compelling reason for foreign firms to outsource their R&D activities to Manitoba firms.

R&D in a Manitoba-based subsidiary

Foreign firms may access R&D credits directly by establishing Manitoba-based subsidiaries and locating their R&D activities in those subsidiaries.

Advantages to foreign firms of locating R&D activities in Manitoba:

  • Reduced after-tax cost of eligible R&D, due to tax credits
  • Competitive labour rates in Manitoba

Webwww.nserc-crsng.gc.ca

 

Learn more:

Public Research Infrastructure Research and Development

University of Manitoba

Top of the page