The Belgian Pharmaceutical Industry
Belgian pharmaceutical industry at the world's forefront?
The Belgian pharmaceutical industry earns top marks on the international stage. But competing countries are working hard to catch up. The Health, Science & Technology (HST) Group remains cautious and presented 20 policy recommendations to the federal government. After all, a leading economic position may not be simply taken for granted.
More than 29 of the 30 global leaders in the pharmaceutical industry have a foothold in Belgium. Included among these are Johnson & Johnson (the Janssen mother ship), GlaxoSmithKline, Pfizer and UCB, four stakeholders who together make up the Health, Science & Technology (HST) Group. Since 2006, these partners regularly come together with the government to discuss the preservation and the further development of an attractive investment climate.
Stability for growth
“Nowadays, businesses that focus on innovation count on a range of governmental measures. Measures that have successfully made the world's largest pharmaceutical companies change tack”, says Tom Heyman, CEO of Janssen and a driving force behind the initiative. “To maintain our competitive position, the HST Group makes a reliable and stable investment climate one of its priorities: we want to preserve what we already have.”
Belgium is the third-largest exporter of medicines in Europe – after Switzerland and Ireland – with a turnover of 34 billion euros in 2013. In addition to that, the pharmaceutical sector provides more than 32,000 direct jobs and is good for 40 percent of all private investment in Research and Development in Belgium.
The largest pharmaceutical companies that invest in research and development here have foreign shareholders.
High pressure
“Of course, we also feel a good deal of pressure from other countries – both inside and outside of Europe”, continues Tom. “They also see the enormous added value of the pharmaceutical industry for our national economy.”
In its policy recommendations, the HST argues for the preservation of the 80 percent tax exemption for researchers and the notional interest deduction, among other incentives. The refining and expanding of the current incentives and measures for the reduction of the labour costs is on the list as is the reimbursement budget.
“The largest pharmaceutical companies that invest in research and development here in Belgium have foreign shareholders. They can perform their activities wherever they want. Therefore, we may never take our Belgian branches for granted”, asserts Tom.
Constructive dialogue
Yet the financial aspect is only part of the puzzle: The HST Group also wants to maintain and increase Belgium's lead by stimulating collaborations between the sector, the world of academia and the government.
“The Belgian knowledge economy is kept afloat by its pioneering scientific insights and technical innovations. We want to preserve our constructive dialogue with future governments. Because there is a lot at stake. For the government and for the economy, for the public health and for the people who work, either directly or indirectly, for the Belgian pharmaceutical sector.”
