Bridging The Innovation Gap: Why Canada Must Reform Its Life Sciences Ecosystem

Canada has long been known for its leadership in healthcare research and innovation. We are home to groundbreaking discoveries, advanced clinical research, and a robust network of research institutions. Yet, there is a glaring paradox: while Canada develops some of the most innovative treatments in the world, Canadians often wait far longer to access them, or in some cases, may never access them at all.

Despite the remarkable scientific breakthroughs emerging from Canadian research institutions and companies, systemic barriers hinder the translation of these innovations into accessible healthcare solutions. If we want to improve our life sciences, we must take steps to reform our healthcare ecosystem. Now is the time to ensure Canadian innovations benefit Canadian patients.

One of the key challenges is the lack of integration between research and development (R&D), clinical trials, and the healthcare delivery system. Despite the fact that many clinical breakthroughs and developments occur within Canada’s healthcare system, the siloed nature of health budgets often results in significant delays in bringing these new treatments to market. For patients with rare disorders, for example, only 60% of new treatments make it to Canada, and even then, approvals take up to six years longer than in the U.S. and Europe.

Additionally, Canadians wait an average of two years for access to approved new medicines and vaccines, which is one year longer than patients in most other peer countries.

Our inability to align innovation with delivery systems leads to longer wait times and missed opportunities for patients who need cutting-edge therapies. Ironically, many of the groundbreaking treatments developed in Canada are first made available in other countries. For example, the life-saving treatment for liver cancer using yttrium-90, a radioactive isotope, was developed at Chalk River, yet it is rarely performed in Canada. Meanwhile, it is the standard of care in the U.S.

This isn’t just about missed medical opportunities—it’s also about losing our competitive edge in the global life sciences arena. As the example above demonstrates, Canadian delivery systems are often not even providing the current recommended standard of care, limiting our ability to attract top-tier clinical trials, investment, and talent. Our challenging ecosystem is not only compromising patient care but also our standing in global innovation rankings, leading to broader economic consequences.

Canada needs to take action to better support its life sciences sector. At the core of these efforts should be a concerted effort to pull innovation into the healthcare delivery system. True progress in life sciences comes when we rethink how we develop, approve, and deploy new treatments, ensuring that every breakthrough reaches the people who need it most.

Simplifying and accelerating the approval of new therapies is a crucial first step. Further, more efficient and flexible reimbursement and listing policies are essential. In addition, ensuring that healthcare delivery procurement supports and encourages innovation, will help provide greater consistency in patient access to new treatments. Finally, increasing funding and support for R&D initiatives will help attract top talent and improve Canada’s competitive edge.

The urgency in implementing these reforms cannot be overstated. If we fail to act, Canada risks falling even further behind in the global race for innovation. But this isn’t just about competitiveness. It’s about the health and well-being of Canadians who are waiting for access to the latest medical breakthroughs that other G7 and OECD countries have already adopted.

If Canada is to remain competitive in the life sciences, innovation must be woven into the very fabric of our policies, healthcare systems, and regulatory frameworks. Only then can we maintain our competitive edge and, more importantly, improve patient outcomes across the country.

We cannot afford to wait any longer. The time for reform is now.