John Halligan (Waterford, Independent) | Oireachtas source

Thank you, Chairman. I congratulate you as well. As someone from my constituency I am delighted that you are chairing this committee. I welcome everyone from the various parties.

As Minister of State with responsibility for skills and apprenticeship my remit takes in enterprise, innovation, school buses, SOLAS and anything else one can think of, including the European Space Agency. If any members of the committee want me to come to their constituencies at any time or speak to any group in a constituency on any issue, I would be pleased to do so provided I get some days notice. I would be glad to drive down from Dublin or up from Waterford.

As the Minister, Deputy Mitchell O'Connor, has said, I have responsibility for research and development and innovation issues. I am pleased to outline to members some of the activities being delivered under what is termed programme B expenditure. Programme B expenditure accounts for approximately 60% of the total Department of Jobs, Enterprise and Innovation capital budget. Capital supports made by Science Foundation Ireland, the research community and Enterprise Ireland to client companies make up the bulk of this budget. The primary rationale for Government investment in science, technology and innovation, STI, is to develop a competitive knowledge-based economy and society to drive innovation and enterprise, build human capital and maximise the return on research and development investment for economic and social progress. The evidence shows that investment in research and development increases economic productivity and competitiveness and is crucial for creating and maintaining high-value jobs.

Innovation 2020 sets out the policies for Ireland to become a global innovation leader and provides a whole-of-government roadmap for the next five years to realise this goal. During the past decade and a half Ireland has built a strong science base which has yielded results in terms of economic and social impact. Ireland has steadily improved its ranking in the innovation union scoreboard, having moved from tenth place in 2013 to eighth place in 2015 and is currently in the group of strong innovators. Since 2009 Ireland has been listed among the top 20 countries in global rankings for the quality of its science research. However, there is no doubt we need to build on this - I will return to this point.

I will briefly outline some highlights from 2015 investments as well as targets we have set for 2016. There is no doubt that 2015 was a productive year for Science Foundation Ireland. I have met representatives of the foundation in recent days. Through the Science Foundation Ireland investigative programme a total of €30 million was awarded in research funding for 23 major projects, representing an important investment in future technology and development. A €28 million investment was made in research equipment and facilities in sectors including pharmaceutical, manufacturing, Internet of things, big data and additive manufacturing. Through the SFI programme an investment of €23 million further supported SFI's 12 research centres in cutting-edge research with industrial relevance.

There are 200 industry partners working intensively with SFI research centres and over 1,200 companies in total collaborating with SFI funded researchers. In 2016 and in line with the innovation 2020 programme Science Foundation Ireland will focus on supporting individual investigators at different career stages, attracting top research talent to Ireland and launching a new research centre.

Furthermore, Science Foundation Ireland will continue to support Irish researchers to compete and win non-Exchequer funding, particularly through the European Research Council. Through our investment in Enterprise Ireland, we have supported 896 collaborative research products between industry and academia, a record number. These projects ultimately provide companies with new commercial opportunities, cost savings or increasing capability. Enterprise Ireland will support another 900 collaborative projects in 2016. Some 14 industry-led technology centres are funded. These centres are collaborative entities established and led by the industry.

A joint initiative between Enterprise Ireland and IDA Ireland allows Irish companies and multinationals, currently 400, to work together. In 2015, we had the launch of the technology centre for dairy processing, research and innovation, and 2016 will see the establishment of a similar centre of excellence for the meat sector. Some 105 new high potential start-ups, known as HPSUs, supported in 2015 will create 1,500 jobs in the next three years. In 2016, the target is to create an additional 100 high potential start-ups, with 33 already created this year to date. In 2016, Enterprise Ireland will extend its technology gateway network to provide more regional technological cover to support local industries.

Through Ireland's membership of the European Space Agency, Irish companies secured more than €13 million in contracts in 2015 to develop and deliver technologies and products. I met the director of the European Space Agency this morning. Something that may go over the heads of many is that 50 businesses in Ireland contribute to the European Space Agency, providing 2,000 jobs. Last year we exported €75 million worth of products. One of the huge successes of the European Space Agency last year was the comet landing. Some of the technology used for landing on that comet was produced and made in Ireland.

Since 2000, Ireland has been listed among the top countries in global ranking: first, in nanoscience, second, in computer science, third, in animal and dairy science and fifth in material science. That is a phenomenal record for the 50 companies in Ireland that contribute to the European space programme. It is envisaged, based on what agency representatives told us this morning, that there will be more work as the agency has great confidence in the Irish companies. I say this because the director general of the European Space Agency, Johann-Dietrich - Jan - Wörner, was here this morning. The number of companies that invest and work in the European space programme was news to me on becoming Minister of State.

I am also happy to report on good progress on Horizon 2020, the EU framework programme for research and innovation. This is an important source of funding for research and innovation in Ireland. We have set an ambitious target to win €1.25 billion in competitive funding from Horizon 2020 between 2014 and 2020. Between 2014 and November 2015, Ireland won €251 million in competitive funding from Horizon 2020, €52 million of which went to SMEs. This performance has us on track to achieve the 2020 target. All this investment is helping to deliver impact. In 2015, we saw a record number of licences and commercially valuable technologies being transferred from higher education research to industry. We also saw the creation of 31 new spin-off companies from their roots in higher education research. In 2016, we will continue to drive the commercialisation of Irish research and will deliver more than 30 new spin-out companies as well as approximately 200 new commercial technologies.

As Minister of State with responsibility for skills and training, I fully understand the need for proper investment in the country's talent. Last year the secretary general of the OECD said that skills have become a global currency in the 21st century.

I welcome the ambitious targets set out in Innovation 2020, particularly around human capital aimed at ensuring a pipeline of talent. Our success will always depend on our people. The Government has protected investment in science technology and innovation because it understands the contribution it makes to economic productivity and competitiveness. We are in a strong position to build on previous investment and secure even greater impact from it. Innovation 2020 sets out the roadmap to deliver this with its focus on excellent talent and improving research and development.