Leo Varadkar (Dublin West, Fine Gael)
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Question 1: To ask the Taoiseach the number of times the task force on innovation has met; the Ministers who attended in each case; and if he will make a statement on the matter. [44505/09]

Eamon Gilmore (Dún Laoghaire, Labour)
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Question 2: To ask the Taoiseach if he will make a statement on the progress made to date of the innovation task force. [45392/09]

Caoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)
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Question 3: To ask the Taoiseach if he will make a statement on the work of the innovation task force. [1237/10]

Leo Varadkar (Dublin West, Fine Gael)
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Question 161: To ask the Taoiseach the date, time and location of meetings of the innovation task force in 2009 and to date in 2010; the Ministers who attended in each case; when the task force will report; and if he will make a statement on the matter. [1476/10]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I propose to take Questions Nos. 1 to 3, inclusive, and 161 together.

I appointed the innovation task force on 29 June 2009 to advise the Government on its strategy for positioning Ireland as an international innovation development hub and to assist in making the smart economy a reality. The members of the innovation task force have a wide range of expertise and include individuals with global experience in international companies and entrepreneurs who have recently established and grown successful start-up companies. There is also representation from the higher education sector and senior representatives from a number of Departments and agencies.

The task force has met in plenary session for all day meetings in Government Buildings on four occasions thus far, on 17 July, 25 September, 30 October and 14 December. I addressed the first meeting of the task force and was accompanied by the Minister of State at the Department of Enterprise, Trade and Employment with responsibility for innovation, Deputy Conor Lenihan. The Minister of State also attended the meetings of 30 October and 14 December. In addition, a full day consultation meeting for task force members was held on 19 October. The task force is due to meet again on 29 January.

The task force has established four working groups focusing on specific aspects of its terms of reference. These working groups, which are chaired by private sector members of the task force, have been meeting regularly and a draft report is currently being finalised to reflect their deliberations.

To assist with its work, the task force issued a public request for submissions and received over 100 responses from interested groups and individuals. These submissions have been reviewed by members of the task force and will feed into its deliberations on the content of its report. A summary document highlighting key themes and proposals from the submissions has been published and is available on the innovation task force's website. The task force is due to meet again on 29 January. I look forward to receiving its report, which I understand will be finalised shortly.

Enda Kenny (Mayo, Fine Gael)
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I welcome the Taoiseach back to the House. On 18 December 2008, the Government published Ireland's framework for sustainable economic renewal. That document, although launched with great fanfare, was merely a rehash of a several programmes which were already in place with the notable addition of an innovation fund of €500 million. The document refused to make any of the difficult decisions which need to accompany infrastructural development if we are to give rise to compatibility in innovation with our European Union counterparts. Can the Taoiseach indicate the source of the aforementioned €500 million? Was it allocated through various Departments' Votes or was new money put up?

What is the function of the task force and the four subgroups in regard to encouraging and overseeing the work of universities, third level colleges and other organisations which deal with innovation in the context of the European framework? Clearly, the new Commissioner for Research, Innovation and Science will have a substantial budget. Does the Taoiseach envisage the innovation task force having a role in overseeing and encouraging organisations and firms which are interested in innovation to become compatible with the European framework and thereby receive funding for appropriate programmes?

Brian Cowen (Laois-Offaly, Fianna Fail)
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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.

Enda Kenny (Mayo, Fine Gael)
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Will the Taoiseach confirm how much has been committed or promised from private venture sources in respect of moneys for innovation? The task force on innovation was set up with a six-month remit, which is due to expire at the end of January. If we are to receive a report, it must be produced by the end of the month or else the lifetime of the committee must be extended. Which is the case?

There is no disagreement among Members regarding the possibilities and potential for job creation arising from innovation. First, there has been much discussion of what can be done in the area of energy, including wind, wave power, tidal power, pump storage, natural gas and so on. There is no reason that this State should not be a world leader in some of these niche areas of renewable energy. Will the task force examine that potential?

Second, we have all the ingredients to be a world leader in the area of biotechnology, whether arising from the clusters of medical companies in operation throughout the State or through the availability of resources and research from our universities and other third level institutions, including, for example, the Marine Institute. All these elements provide us with absolute potential in terms of world leadership in the biotechnology area.

Third, all the major multinational information technology companies already have a presence here, a sector in which developments are taking place at blinding speed. These are three areas where we can clearly see the potential for innovation, as exemplified on a smaller scale by the young scientists last week. All of that potential is there to be harnessed in the next 20 years.

Will the task force look at the bigger picture and the longer view where there is clearly potential for substantial job creation and job sustainability arising from innovation? That will clearly require a longer-term remit for the task force than its initial six-month allocation. Irrespective of political positions, this is something that will stand to us, but it will require encouragement and clarity of objective from Government. Will the Taoiseach ensure, having chaired its first meeting, that the task force on innovation and its four sub-committees will focus on these clear areas of massive potential for the State?

Brian Cowen (Laois-Offaly, Fianna Fail)
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We received a detailed report recently on the area of green enterprise from the group under the chairmanship of Joe Harford, who is also a member of the innovation taskforce. That is a linkage in terms of those two exercises which is beneficial. The outcome of the recommendations by the innovation taskforce will take cognisance of that and be very much aware of the potential that has been identified by the green enterprise group that recently reported detailed proposals for the creation of new jobs and businesses in the green technology area.

On the question of the level of funds, we are in the process of seeking to design the fund in a way that will attract private sector venture capital funds. That is precisely what is going on. The NTMA team is in the United States this week as part of that process of market testing how it can devise a fund that will assist and augment existing seed capital and other venture capital funds that are currently under the auspices of, for example, Enterprise Ireland, quite apart from the private sector venture capital industry in this country in any event. The record has shown US venture capital funds and other venture capital funds in Europe are helpful in commercialising ideas for start-up enterprises far more quickly where they can identify potential. Such funds have worked very well, for example, in Israel and elsewhere. That is the concept we are seeking to develop.

The taskforce will report shortly. It has broken up into a number of working groups comprising a number of very well qualified people who are involved in the business of start-up companies themselves, as well as people from Departments. The terms of reference that were given to the group less than six months ago draw on the lessons from successful international and national models in the area of the strategy for science, technology and innovation. The group was to examine options, increase levels of innovation and the rates of commercialisation of research and development on a national basis with a view to accelerating the growth and scale-up of indigenous enterprise and to attract new knowledge-intensive direct investment.

The taskforce was also to seek to bring forward proposals for enhancing the linkages between institutions, agencies and organisations in the public and private sectors to ensure a cohesive innovation and commercialisation ecosystem. It was also to identify any specific policy measures that might be necessary to support the concept of Ireland as an international innovation development hub, including in the areas of legislation, educational policy, intellectual property arrangements, venture capital and immigration policy.

A number of working groups have been set up because of the relatively limited reporting timeframe of six months and the significant expertise and experience of members. It was considered that the establishment of a number of focused working groups was the best way to progress the terms of reference and consider certain aspects of the work programme. For example, the first group deals with incentives, intellectual property and venture capital, identifying measures to increase innovation, commercialisation and entrepreneurship, including changes to incentives, venture capital arrangements and intellectual property strategies. Another group is focusing on commercialisation, technology transfer and converging technologies, including examining institutional structures for research and development funding delivery, how to maximise commercialisation of research, increase technology transfer and promote innovation in converging technologies.

A further group is considering how to achieve the innovation island concept, how to position and promote this country as the innovation island, including attracting entrepreneurs, foreign direct investment, international start-ups and private sector research and development investment. The fourth group is examining the international innovation development hub Dublin, supporting the various alliances that have taken place in the university system, for example, including identifying necessary supporting policy measures. Much good work is being done. A great deal of seriousness of intent and time is being given voluntarily by many people to assist in bringing forward ideas based on what has been outlined in the terms of reference.

Eamon Gilmore (Dún Laoghaire, Labour)
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The Government's approach to the task force seems to have all the lack of urgency that is so typical of this Government. The idea of an innovation task force was announced by the Government in December 2008 with great fanfare in Dublin Castle to introduce the Government's plans for a smart economy. It took all of six months to get the task force set up, and it was not set up until June of last year. The last time the Taoiseach answered questions in the House about this task force, he told us it would report early in the new year. This is early in the new year and I see now it will meet again at the end of January and the report will be sometime after that. Meanwhile, there are 423,595 people on the live register, 84,000 of whom are under 25, many of them the kind of young people who are emigrating and who we would expect should be working in the smart economy, if we had one.

Has this task force made any recommendation to date to Government in respect of any measure that the Government might have taken to advance the smart economy and innovation in this country? Was any specific recommendation made to Government in advance of the recent budget, for example, which might have informed the provisions of that budget, or lack of them, in respect of measures to generate employment? Is it envisaged that this task force will make any recommendation or have any report made to Government before the Finance Bill so that any measures that are contained in it in respect of start-up capital incentives and so on might be included in the Bill?

Brian Cowen (Laois-Offaly, Fianna Fail)
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I reject Deputy Gilmore's suggestion that there is a delay involved. There is much very good work ongoing, and I do not accept that six months is a long time to give the task force to do that work. Quite apart from the innovation task force that was mentioned at the launch of the smart economy framework, many other initiatives were also mentioned. That framework is a comprehensive strategy covering not just innovation and research and development but all aspects of economic renewal.

There have, in fact, been tax changes to support the smart economy, including an improved research and development tax credit, new tax arrangements for intellectual property and tax incentives for start-up companies and to encourage venture capital companies to locate in Ireland. Indeed, at the time of the publication of the smart economy document, in preparation for the Finance Bill last year, these sorts of changes were incorporated so one would not have had to wait for a report for that to happen.

I have outlined in previous replies what is the purpose of this task force's work at present. New technology initiatives to support a smart economy have also taken place, including the development of a new international content services centre, making Ireland the leading location for energy efficient data centres such as the Microsoft centre I opened during last year, which saw an investment of over €500 million. There are a number of other issues in the whole renewable energy area and, as I said, we now have the green enterprise group, which reported last month with a series of recommendations which will also be helpful.

As the Deputy will be aware, there is a need to support a culture of innovation to help start-up companies and to make sure we have the right processes and policies in place, whether they be fiscal or in regard to intellectual property. A number of changes have already taken place in that area.

Eamon Gilmore (Dún Laoghaire, Labour)
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Can the Taoiseach be more specific than he has been up to now with regard to when this task force will actually report? I understand from him that there is a meeting towards the end of January, probably on 29 January. Is that to be the final meeting of the task force? Is it the meeting at which it will conclude its report? When does the Taoiseach expect that the report will be presented? To whom will the task force report?

In September, I attended a good event in Farmleigh at which leading business people from various parts of the world, many from North America, with connections to Ireland were assembled. The weekend was bubbling with good ideas for economic development in Ireland. What happened with this? It was my understanding that a report was to be produced and circulated to participants, but I got no such report. I do not know whether one has been prepared. Will the Taoiseach inform the House of the follow-up to the September Farmleigh event?

Brian Cowen (Laois-Offaly, Fianna Fail)
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The Minister for Foreign Affairs produced a report on to that and it was put on the website. However, as Deputy Gilmore says, there are ideas that have to be taken forward and concepts that have to be developed. A great deal of work is being done in respect of some of those mentioned at the conference and it will continue.

On the innovation task force, I make the point that the next meeting will be, if not the last, then the penultimate meeting and I expect a report in the next couple of months, based on how advanced things are at the moment.

Caoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)
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The Taoiseach cited several smart economy initiatives that have been taken in the innovation area. Regarding a specific initiative mentioned, Innovation Fund Ireland's €500 million was to increase the availability of capital to small research and development companies. How much of that fund, if any, has been accessed? What is the current take-up and the processing procedure regarding same?

In earlier replies, the Taoiseach cited a number of areas, each of which we welcome. However, I am sure the House would like to know how much of the matter is still paperwork and how much has occurred in terms of delivery. How many companies have been able to access and are currently benefiting from announced innovation?

Something caught the imagination during the course of last year, namely, the ESB's announcement of the creation of some 3,700 new jobs covering the areas of new meters, smart networks, electric vehicles and wind energy to name but a few. This announcement was lauded and applauded by the Taoiseach's Department at the time and rightly so if the former delivers. How many of the promised 3,700 additional jobs within the ESB have been created? Has the Taoiseach concern regarding initiatives being announced and the timeframe between their announcement and the actual production of real jobs?

Brian Cowen (Laois-Offaly, Fianna Fail)
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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.

Caoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)
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It would be unfair of me to expect that the Taoiseach could give us an update on the uptake on the programme at this point, but can he clarify that he indicated in his reply that the National Treasury Management Agency is currently exploring the potential of attracting into this economy new inward investors in research and development with a proven record in the United States? Is that the exclusive focus of the €500 million Innovation Fund Ireland? Will it not also focus on existing small companies based in this economy in terms of aiding and abetting further research and development?

I understand this would not have been part of what the Taoiseach prepared for this reply, but will he undertake to give me an informed reply on the ESB announcement last year of 3,700 jobs, which caught the imagination of the people and was very welcomed at the time, but we have never-----

Séamus Kirk (Louth, Ceann Comhairle)
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A separate parliamentary question might elicit that information.

Caoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)
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The Taoiseach will either oblige me or he will not. I am not being awkward. I only asked if he can facilitate the provision of the information, having acknowledged that he may not have it to hand this afternoon. There is a great deal of interest in learning the current position in that respect.

Brian Cowen (Laois-Offaly, Fianna Fail)
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As the Deputy will know, that announcement was in respect of a very direct change in policy by the ESB to promote sustainable energy initiatives to help build more sustainable energy projects in Ireland over a period of years. It was not suggested that 3,900 jobs would be created over night, but the company indicated it was committed. It made the commitment in terms of investment and over a period of years it believes it will create that number of jobs. That is its policy and it is implementing it. A more detailed reply from the Minister for Communications, Energy and Natural Resources will elicit what progress has been made on it.

With regard to the other point made by the Deputy, the NTMA - because of its position in terms of dealing with funds and with this area generally - is assisting the relevant Departments in designing and market-testing a fund to attract the interest of venture capitalists. This work must be done although success in the outcome is not guaranteed. One must go out and do it and see what can be achieved. Other countries - including Israel, which set up what is known as the Yozma fund - have been successful in this regard. This does not guarantee success for us, but we are in the process of providing such a fund because we believe that in addition to traditional areas of finance for companies in the start-up phase, venture capital can provide the pump-priming necessary to commercialise an idea or concept and ensure it has a sustainable future. It is not the case in every enterprise but there are some for which that is the case.

The fund will supplement State provision. The State is already investing directly in seed capital funding and providing equity to start-up companies through the Enterprise Ireland programmes. The question is how we can develop a private-sector venture capital fund which is independent of the taxpayer but supports national objectives.