Financial and Tax Incentive Programs
In order to grow their region to the next level, the Medicon Valley authors stated that some type of "prefinancing" monies must be available for inventions. Instead of scientists bringing an idea alone to the tech transfer center, the MVA believes that investigators need to have ready access to funds that take their innovation past the proof-of-concept stage.
This funding helps attract quality venture capital to the idea, and does not dilute ownership by the stakeholders. Much like SBIR loans in the U.S., this money would be available to researchers in the early stages of technology transfer and would be repaid only when the idea attains commercial success.
In addition to prefinancing, innovation needs seed investment to help it grow. In the case of Sweden and Denmark, both countries have seed monies available through government resources, but nothing that follows a business across the border.
The MVA would change this, allowing Swedish seed investments to follow companies into Denmark and Danish funds into Sweden. There is a cross-pollination of people and businesses between these two countries already, much of it because of the new bridge joining the region across the Oresund bay. The MVA suggested that this cross-fertilization occurs with seed monies as well.
Lastly, the MVA report has recommended to both Sweden and Denmark that significant tax incentives be developed for young R&D companies without income. These young firms would see a tax reduction of up to as much as 50% of their total salary costs, allowing them to grow as many as 1,000 new jobs in the Medicon Valley.
When asked about the chances of pushing legislation through two countries for tax reduction, one Medicon Valley Academy member stated, "A thousand new workers paying taxes in the region is music to the ears of politicians facing job losses from traditional industries. My guess is that they will want these incentives as much as our young companies want them."