John Halligan (Waterford, Independent) | Oireachtas source

I thank the Deputy for his interesting question. Investment in research, development and innovation increases economic productivity and competitiveness, improves quality of life and health and has positive social and environmental outcomes. There is no question that with the advancements in technology over the next ten, 15 or 20 years every country will have to invest substantially in innovation, research and development.

In recent years, the Department has undertaken a number of evaluations and studies to assess the impact of expenditure on research. An example is that in 2016 the Department published a review of capital expenditure on research, development and innovation as part of a comprehensive review of expenditure initiated by the Department of Public Expenditure and Reform. The review found that between 2006 and 2014 the main source of employment increases were firms with research and development expenditure greater than €100,000 per annum. The average annual growth of these firms between 2006 and 2014 ranged between 2% and 3.9%. Another study undertaken by the Department on economic and enterprise impacts from public investment in research and development in Ireland, also published in 2016, found that among agency firms in manufacturing and services, research and development activity is a characteristic of those firms that contributed most to employment growth between 2000 and 2014. The companies dealt with by Science Foundation Ireland, with regard to research and development, created 31,000 direct and indirect jobs. The funding we make available through Science Foundation Ireland and the Irish Research Council has contributed to high technology jobs in innovation, research and development.

Higher and further education institutions are providing more science, mathematics and ICT graduates. Since a focus has been placed on science, technology, engineering and mathematics in the education and training system, Ireland has done exceptionally well on the European barometer of creating PhD's per percentage of population.

To answer the question very briefly, all of the evidence and statistics prove that investing in innovation, technology and research and development makes these companies more sustainable and creates more jobs.

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