Frances Fitzgerald (Dublin Mid West, Fine Gael) | Oireachtas source

I thank Deputy Lawless for his remarks on Ireland's decision to become a member of the European Southern Observatory.

In December 2015, the Department published Innovation 2020, Ireland's five-year strategy on research and development, science and technology, which sets out the roadmap for continuing progress towards the goal of making Ireland a global innovation leader. Funding has been provided to Science Foundation Ireland for additional research centres, including the research centre announced in the budget.

The Deputy is correct that there is a need to drive up the innovation capability of Irish companies in order that they can compete internationally. I would go so far as to say that if they do not innovate and diversity, Irish companies will find it difficult to compete in the current trading environment. Advance manufacturing centres have an important role in allowing manufacturing companies to adapt to new technologies, which are dramatically changing the face of manufacturing.

While the benefits of innovation to firms in terms of increasing new products and services are well understood, innovation can involve upfront expenditure. As the Deputy pointed out, this can impact on cashflow for firms. The research and development tax credit specifically recognises this issue and has been improved to help address this cashflow issue for companies.

Enterprise Ireland operates a range of supports to help companies mitigate the issues associated with undertaking innovation by providing funding and support to undertake these activities in-house, where appropriate, or helping them to engage with third level researchers.

Enterprise Ireland's innovation supports help companies of all scales and capability levels. Even the smallest firm can avail of an innovation voucher, with 418 such projects completed to date under this scheme. They can also engage with academic research groups which are aligning more closely with industry and business. Enabling small companies to make links with the various research centres is a positive development. We are seeing very positive engagement in the manufacturing centres.

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