Deirdre Clune (Cork South Central, Fine Gael)
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Question 37: To ask the Tánaiste and Minister for Enterprise, Trade and Employment if she will introduce changes to the way funding is allocated under the science technology and innovation programme to ensure that resources are prioritised on the basis of expected commercial returns; and if she will make a statement on the matter. [44914/09]

Conor Lenihan (Dublin South West, Fianna Fail)
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The objective of the Strategy for Science, Technology and Innovation 2006-13, SSTI, and the National Development Plan 2007-13 is to make a transition to a knowledge economy to enable Ireland to compete in a highly competitive global market. In December 2008, the Government reinforced the importance of this investment in a document, entitled Building Ireland's Smart Economy – A Framework for Sustainable Economic Renewal, which prioritised continued investment in science and engineering infrastructure and research.

The infrastructure investment underpinning the SSTI is central to economic recovery. The commercialisation of our research investment and the creation of a successful track record in the area of higher education research, as well as output of quality graduates at both undergraduate and postgraduate levels, will be an important aspect of building a sustainable enterprise base underpinned by productive innovation activity across the economy.

I am confident that there have already been achievements arising from the strategy. The recently published report, Science, Technology and Innovation – Delivering the Smart Economy, confirms that, overall, substantial progress has been made in the achievement of SSTI objectives. We are building strong linkages to ensure diffusion and commercialisation of an increased flow of new ideas and knowledge to produce innovative products and services that will win export markets and create much needed sustainable employment.

Innovation, through better products, processes and business models, supported by near-to-market research and collaboration with knowledge providers, is the primary way for Ireland to gain a competitive advantage and secure export growth. With regard to the commercialisation of research, Enterprise Ireland, EI, offers a suite of supports to academics and institutions to commercialise their research and build the commercialisation system. These include funding provided through the €25 million commercialisation fund as well as funding and support for effective technology transfer offices in university campuses, commercially relevant research centres in institutes of technology and campus incubation facilities to support new technology companies in their formative years. This programme to realise the commercial potential of Ireland's research community is supported in 2009 by a projected level of investment of €36 million. As at November 2009, the EI-supported technology transfer offices facilitated the creation of 20 start-up companies, 339 invention disclosures, 97 priority patents filed and 47 technology licence transfers between companies.

Deirdre Clune (Cork South Central, Fine Gael)
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My question was on the way in which resources are allocated. I take from many of the Minister of State's comments that he is happy with the situation. The McCarthy report, the outputs of which I am looking forward to in the upcoming budget, noted that the emphasis in funding science, technology and innovation seemed to be on the publication of articles as opposed to more concrete economic measures. The report recommended a shift in emphasis to ensure commercial returns for resources over a certain period and a move away from emphasising the number of papers published, patents registered and so on. Does the Minister of State wish to comment?

Conor Lenihan (Dublin South West, Fianna Fail)
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There have been a number of positive outcomes and we should not be dismissive of people in universities publishing more papers. Indeed, this was the basis of many people's criticism-----

Deirdre Clune (Cork South Central, Fine Gael)
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I am not being dismissive, but there could be a more commercial focus for the money being spent.

Conor Lenihan (Dublin South West, Fianna Fail)
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It is important that the Deputy not be dismissive of people publishing or apply a crass commercial paradigm. We need both components. We need more publications from academics and more commercially relevant research from the third level sector. It is not a question of one or the other, but this discussion is a simplification of what is being done in terms of research and development. We need cutting edge research from universities as well as more commercialisation.

The results of the trebling of spending on research and development in recent years have been good. Since 2005, there has been a trebling of the number of new patents and invention disclosures and a doubling of the number of spin-out companies from the third level sector. I am not saying this to be complacent. We have a good track record, but we need to up the ante. Deputy Clune's remarks reflect the word coming to us from the enterprise sector via our enterprise feedback group and our innovation task force. We need to squeeze more from less in the years ahead.

Brendan Howlin (Wexford, Labour)
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I want to allow Deputy Clune back in for a brief supplementary question. I want to keep the debate flowing.

Deirdre Clune (Cork South Central, Fine Gael)
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Is the emphasis in the smart economy not on developing and creating jobs? If so, there must be a commercial return. I would not dismiss this outlook as being crass. Consider the amount of funding invested in science and technology. The McCarthy report outlined that, of the more than 90 schemes, some 60 involve funding towards PhDs. Has the Minister of State any plans to streamline this type of funding?

In recent months, people were shocked that the FÁS Discover Science and Engineering programme needed to be axed, but funding was spent on similar schemes across other boards. Is there a commitment to ensure that funding on science and technology is not spread across various agencies and, instead, is more focused? There is evidence that the current approach displaces private sector investment.

Conor Lenihan (Dublin South West, Fianna Fail)
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I agree with some aspects of the McCarthy report, but not others. Mr. Colm McCarthy suggested a further 14% cut in spending, but this might be too much. However, he made some valuable recommendations. In the context of our Estimates discussions with the Department of Finance in advance of the budget, we would support the idea of a single funding line as opposed to scattering the funding over a number of Departments. We would favour his recommendations on, as the Deputy rightly mentioned, the degree of fragmentation across agencies, not just Departments, of the delivery of the science spend, including EI, Science Foundation Ireland, IDA, the prestigious Marine Institute, Teagasc and many others. There must be consolidation and I will fight for this aspect of the McCarthy recommendations, particularly given the fact that we are facing a squeeze on the level of funding available. We must consolidate the spend to get a commercialised output and ratchet it up even further. I thank the Deputy for her comments and support.