Brian Cowen (Laois-Offaly, Fianna Fail)

The innovation fund is part of our five-year programme. It aims to raise funds from private sector venture capital investors who also bring their expertise to the country. The role of the State will be to provide structures and incentives to best leverage private sector investment. This is why the NTMA, which is an expert in this area, is leading the process. The amount required directly from the Exchequer is likely to be small relative to the overall size of the fund. Investment will only be required from the State as the fund grows over a number of years to an envisaged total of €500 million. Alternative models are currently being tested with potential venture capital investors and other stakeholders, particularly in the United States. Detailed decisions will be possible only following completion of that process.

The objective is to identify and leverage private sector venture capital funds, including funds from the United States, to complement and augment the seed capital and other funds available within Enterprise Ireland, for example, for assisting high-potential start-up companies and other companies which merit or obtain market support on the basis of the product, process development or innovation they are undertaking.

In the past ten years we have trebled the level of investment in research and development to some €2.5 billion, two thirds of which is leveraged in the private sector. We have devised a single income stream for the science, technology and innovation moneys from the Department, which are under the auspices of the Minister of State, Deputy Conor Lenihan. The function of the task force on innovation, which will come forward shortly with its recommendations, is to identify how we can assist high-potential start-ups more successfully so that they can be the future market leaders in the various sectors from which they spring. A more general objective is to promote higher productivity through innovation across all sectors of the economy, but the expertise in this area relates to those start-up proposals and enterprises to which I referred.

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