Editorial - 14-4

As Ottawa's recent investment in two high-flying technology companies confirms, the business community's love-hate relationship with government is still alive and well. The financial backing by Technology Partnership Canada (TPC) of BioChem Pharma and Research in Motion (RIM) drew criticism from all the usual sources as an improper use of public funds (see page 3). But those same critics should consider the reverse scenario, which is to back losers, or at least those who represent a much higher element of risk.

BioChem and RIM fall into the category of enabling technologies, which are far less mature than aerospace, widely considered to be the primary beneficiary of TPC funds. They represent sectors on the verge of massive growth, and the fact that both firms are relatively large and profitable is arguably an added incentive for public support. Dig deeper into the rationale for these investments, and it's evident that they represent the front-end of an industrial strategy to derive significant economic benefit from relatively modest amounts of money.

This doesn't mean TPC should ignore smaller, riskier investments. Some argue that TPC should get out of the business of supporting mature industries altogether, and focus on the next wave of technologies. BioChem and RIM are part of that wave, and whether their projects succeed or not doesn't lessen the validity of the investments. The intention is to accelerate growth, and the private sector has never been a champion of early-stage R&D.

Mark Henderson, Managing Editor