Brian Cowen (Laois-Offaly, Fianna Fail)

I mentioned in earlier replies to Deputy Kenny the nature of the fund and its progress. It is about augmenting and supplementing existing funds, including venture capital, start-up and seed capital funds in the private sector and those provided by Enterprise Ireland, for example. The Department of Enterprise, Trade and Employment is providing almost €300 million this year for science, technology and innovation. This is a significant contribution, as the Deputy will agree. Enterprise Ireland is allocated €129 million of that. This is used to put Irish companies at the cutting edge of development and ahead of their competitors. It provides equity funding to high-potential start-up companies. It continues its research and development grant programmes for small and medium-sized enterprises. It supports innovation partnerships between enterprises and universities. It funds three competence centres and announced and confirmed funding to further centres during the year. It continues the innovation voucher programme and provides support for near-to-the-market commercialisation. It supports researchers and companies competing for the EU Framework 7 programme to leverage a target amount of €600 million up to 2013. This is what the State moneys in place at the moment do.

The point I was making is that the level of investment in research and development now stands at €2.5 billion, which is three times what it was a decade ago. Science Foundation Ireland did not exist before this Fianna-Fáil-led Administration came back into office in 1997. There was no arrangement in place then for promoting research and development as a central plank of economic policy for sustainable development into the future. It did not exist. All that has happened and has provided a great deal of investment for companies that are now providing jobs. Science Foundation Ireland has been allocated €162 million. In protecting this budget, the Government recognises the pivotal role it plays in the framework for sustainable, economic renewal. That allocation consolidates its investments to date; it leverages them for maximum outputs; it continues to support 29 major research centres; and partners with 150 small and medium-sized enterprises and blue chip multinationals in Ireland. It has been a vital driver of major investment decisions by both overseas and indigenous companies.

If one notes more than 40% of IDA investment wins are in the area of research, development and innovation worth more than €400 million annually, that gives an indication as to what is the bang for the buck. Clearly, in more difficult times one has to ensure that the funding goes to the best possible projects and that commercialisation is brought forward and not simply pure research but applied research. Science Foundation Ireland's allocation allows us to continue to fund high-quality scientific research and researchers in recognition that they are the drivers needed to develop Ireland into a high-value, knowledge-based economy.

On the question the Deputy asked about the innovation fund, as I explained earlier, we are market-testing that fund with the United States. We want to bring in more money from the private sector, particularly successful venture capital companies in the United States which have shown a track record in being able to identify and invest in start-up companies that then take the next step forward and internationalise their business, etc. The NTMA is charged with that process on our behalf and is currently operating in the United States as part of the process. The Deputy will accept that last year was not a very propitious year for obtaining venture capital investments, given the overall economic downturn, but this is part of a five year programme. It is one of our initiatives and it is ongoing; there is no question of it lying in abeyance or anything like that.

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