Seán Sherlock (Cork East, Labour)
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I am very pleased to have the opportunity to speak to the members of the joint committee on the research and development landscape in Ireland. I thank them for inviting me to do so.

The importance of investment in science, technology and innovation to Ireland's ongoing and future economic and social development and wellbeing has been well recognised by this and previous Governments. Our focus has been very much on prioritising public investment in research while better exploiting results in order to lead to an acceleration of growth and job creation.

Over the past decade we have expanded and consolidated our research and innovation system considerably and investment in research and innovation has grown substantially. This investment has been based on an ambitious strategy of investing in people, infrastructure and associated facilities to build the science base across many areas of scientific research in both the higher education institutions and other public research organisations, notably through the Programme for Research in Third Level Institutions, PRTLI, as well as Science Foundation Ireland and other research agencies. This investment in scientific research is having many positive impacts, including powering an innovative and enterprising economy, creating high-value jobs, attracting, developing and nurturing business, scientists and talented people and ensuring Ireland is connected and respected internationally.

We can draw much encouragement from the fact that Ireland has enhanced its standing in global research by steadily building a very credible research base, particularly over the past decade or so. Our publication rates have doubled, for example, with Ireland's citation rates now surpassing EU and US averages.

Ireland is now ranked in the global top 20 in all scientific fields and, specifically, by way of example we are ranked first in molecular genetics, and genomics, second in probiotics, third in immunology, sixth in nanotechnology, eighth in materials science and tenth in computer science. Across the EU we are ranked third, according to the new indication of innovation output, which measures the extent to which ideas from innovative sectors are able to reach the market, providing better jobs and making Europe more competitive. This proves we are investing smartly in this area and that our investment is delivering jobs.

The Government is very much seeking to support, embed and realise a return on investment in science, technology and innovation for national competitive advantage. Enterprise Ireland, along with the IDA and Science Foundation Ireland, provides a spectrum of science, technology and innovation development programmes that deliver financial, technical and experiential support to help companies become more innovative, encourage and support competitiveness, and help them grow their sales and exports to create a climate in which sustainable employment will grow and expand. Employment by companies supported by Enterprise Ireland increased by a net 5,442 in 2013. This represents the highest level of job growth in a decade and is another positive indication of us moving very much in the right direction. Similarly, IDA Ireland saw a fourth consecutive year of employment, with in excess of 7,000 net new jobs in 2013 and 164 new investments won, 27 of which were specifically in research, development and innovation. Science Foundation Ireland is a key part of the enterprise ecosystem, and in 2013, it had links to 41%, or more than 2,500, of the 6,400-odd jobs, or 90 company announcements, announced by the IDA in all fields.

We remain committed to using research and innovation to build competitive advantage. We have implemented a number of initiatives to accelerate the economic and societal return on our STI investment, to strengthen further enterprise engagement with and take-up of public research, and to drive commercialisation. Implementation of research prioritisation, under way since March 2012, is seeing the majority of public research funding aligned with 14 priority areas where we are most likely to get economic and societal returns, particularly in the form of jobs, over a period stretching to 2017 and beyond. The priority areas encompass energy, food, health, ICT and innovation in business processes and services. They are reflective of Ireland’s strengths and future opportunities in various areas of industrial activity.

In line with a recommendation in the research prioritisation report, the adoption of the intellectual property protocol outlines a clear, robust and industry-friendly policy for the commercialisation of intellectual property arising from State-funded research. As a result of this, the central Technology Transfer Office, cTTO, has been established and the director, Dr. Alison Campbell, is in place since September of last year, along with support staff within Enterprise Ireland. The cTTO's primary role is to be the identifiable access route to the wealth of technology opportunities and academic talent that exists in research performing organisations. It will provide a one-stop-shop for entrepreneurs and industry, signposting them towards the relevant sources of knowledge and capability within Ireland’s research performing organisations. The aim of the cTTO is very much to encourage the commercialisation of intellectual property arising from State-funded research, with a view to achieving more job creation from our investment in the area.

The remit of Science Foundation Ireland has been extended recently to enable it to fund applied research as well as oriented basic research. In response to the specific recommendation that research centres should be more industry focused, he largest ever State-industry co-funded research investment, which is €300 million in total, comprising €200 million in Exchequer funding and €100 million co-invested by 156 industry partners, was announced by the Minister for Jobs, Enterprise and Innovation and me in February of last year. Seven world class SFI research centres will be funded over six years. They will support key growth areas and research will be undertaken into major social challenges, including health, ageing, communications and energy. The centres will directly support more than 800 jobs while also acting as a key attractor for foreign direct investment. There are also 14 existing industry-led research centres, namely, technology centres, which are undertaking research in specific areas in the joint Enterprise Ireland–IDA Ireland technology centres programme. The centres are based in a university with support from partner colleges to deliver on the research needs of enterprise. The Government is also supporting a pilot health innovation hub in Cork that is enabling the development and commercialisation of new ideas from domestic enterprise that will benefit the health care system.

European research framework programmes have always been an important element in providing international links and enhancing the excellence of the Irish research and development system. With a budget of almost €80 billion covering the next seven years, Horizon 2020 is the biggest ever European research and innovation programme and the largest in existence worldwide. Agreement on the programme was a central plank of the Irish Presidency’s theme of jobs and growth, given the crucial role research and innovation play as key drivers of growth and job creation. I saw this at first hand because the team who accompanied me to this meeting was central to the negotiations and getting the programme over the line, as it were. Horizon 2020 offers major opportunities to researchers, research organisations and industry in Ireland to engage in cutting edge research. This has the potential to power both Ireland and, in a broader sense, Europe towards economic recovery. The programme maps out the EU’s strategic vision for European research and innovation over the next seven years. The challenge for us in Ireland is to build on our successful experience, to find new research and funding opportunities we can exploit, to reach out to new participants and to increase our level of participation.

The national launch of Horizon 2020 took place last December in the National Convention Centre in Dublin in the company of Commissioner Máire Geoghegan-Quinn. We have put in place a very effective national support framework to maximise the benefits in preparation for our participation in the programme. The challenge we have set ourselves for Horizon 2020 is to build on our successes in the seventh EU framework programme. To this end, the Government has set an ambitious target for Irish researchers to win funding of up to €1.25 billion over the lifetime of Horizon 2020. We have proved that we have an excellent science base on which to compete successfully with the best. We have every confidence we can achieve the target and boost our research capacity and competitiveness over the lifetime of the programme. Just as is the case with our own national perspective, good ideas being turned into good jobs is the stated essence of the European Union’s recovery and growth strategy, and it is one we will vigorously pursue.

With regard to higher education reform, my colleague the Minister for Education and Skills, Deputy Quinn, announced on 30 May a forward-looking re-organisation of the higher education system and a new framework for system governance. It is clear that if the system is to meet increasing demands for knowledge, innovation and human capital, higher education institutions need to have a strong strategic focus and mission direction, underpinned by a new relationship of accountability with the State. Funding of the higher education system will be closely related to the delivery of performance outcomes that are aligned to national priorities and key objectives of the system as a whole. These, as well as key performance indicators for 2014 to 2016, have been outlined clearly in the higher education performance framework.

The Higher Education Authority will report each year to the Minister for Education and Skills on the performance of the system as a whole. A process of strategic dialogue is under way, as part of the new framework, to agree individual institutional performance compacts with higher education institutions that will reflect each institution’s contribution. This will form part of a new higher education system designed to respond to the future needs of the economy and wider society. Much earlier in the education system, the discover programme, known formerly as the discover science and engineering programme, is now part of Science Foundation Ireland. It aims to increase the number of students studying science and mathematics to ensure there is a pipeline of young people who are prepared to pursue third and fourth level qualifications in STEM disciplines for the purpose of securing employment down the line.

In terms of key research, development and innovation initiatives for 2014, Science Foundation Ireland will establish two or three new large-scale research centres, supporting between 200 and 300 jobs, in sectors of national strategic importance such as medical devices, software, diagnostics, telecommunications, smart grids, sustainable food production and processing, among others. It will fund 3,000 researchers and more than 20 world class research centres. They are a key magnet for foreign direct investment and will help to ensure Ireland becomes one of Europe’s most attractive locations for foreign direct investment.

Enterprise Ireland will support 95 innovative high potential start-up companies this year with an associated 2,100 jobs across a range of sectors. These companies are potential star performers and each one will create at least €1 million in export sales.

Enterprise Ireland and Science Foundation Ireland, SFI, will continue to drive commercialisation form State-funded research, facilitating the emergence of new products and services that underpin export growth and employment. In 2013, in excess of 30 spin-offs were generated and more than 120 licences, options and assignments were agreed. Enterprise Ireland will fund in the region of 80 research and development projects for client companies that are valued in excess of €100,000, while investment in the multi-annual programme for research in third level institutions will continue to improve Ireland's competitive offering in terms of research capability through the delivery of key physical infrastructural projects, that is, buildings and equipment, and research personnel.

I hope that I have touched on the more salient points. The Government recognises that research, development and innovation form a major plank and we are smartly investing in and prioritising key areas. We are leveraging industry involvement, bringing in-kind benefits and cash to the table, in partnership with our research infrastructure in a way that will deliver an economic impact. This is the kernel of our approach.