Peadar Tóibín (Meath West, Sinn Fein)
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102. To ask the Minister for Jobs, Enterprise and Innovation what is the euro per jobs ratio with regard to the Government’s research and development and innovation budgets for each of the past five years; the way this compares with other EU countries for the same years; and if he will detail the level of research and development and innovation spend per county for the past five years. [17716/14]

Peadar Tóibín (Meath West, Sinn Fein)
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It is generally understood that research, development and innovation are necessary for all companies. Large companies are great at ensuring all elements of the whole product life cycle are not left to chance. The effect of research and development on small and medium enterprises, and its use by them, is another question. Like everything else, we need to analyse the output obtained per euro invested. This question seeks to understand how our output compares with other European countries.

Richard Bruton (Dublin North Central, Fine Gael)
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As part of the Forfás annual employment survey, the overall cost per job sustained is calculated each year by reference to the cost of jobs created in companies supported by the enterprise development agencies during, and sustained to the end of, a seven year period. This is calculated by taking into account all direct agency expenditure on all agency client companies in a seven year period, and it is not possible to disaggregate the research and development element. The latest figures available show that the cost per job sustained by IDA Ireland and Enterprise Ireland was €13,475 and €12,597 respectively.

It is not possible to disaggregate the levels of research, development and innovation spend per county. For example, the Science Foundation Ireland large-scale research centres and the EI-IDA technology centres involve collaboration between several higher education institutions, linking scientists and engineers in partnership with academia and industry across county boundaries to address crucial research questions.

In comparing our research, development and innovation spend against that of our EU partners, the most useful measurement is the research intensity target which is calculated as our gross expenditure on research and development as a percentage of our gross national product and gross domestic product. This has been confirmed for 2012 at 2.13% of GNP or 1.72% of GDP. The EU average, according to the recently published innovation union competitiveness report, is 2.02% of GDP.

The annual European Commission’s innovation union scoreboard provides a comparative assessment of the research and innovation performance of the EU member states. It was most encouraging to see that the 2014 scoreboard, published in March, showed Ireland increasing its position from tenth to ninth in the overall ranking of 28 EU member states. It is particularly encouraging to see that Ireland is the overall leader in the indicator of the economic effects of innovation. This captures the economic success of innovation in employment in knowledge intensive activities and other areas. The evidence shows we are investing smartly in innovation and that our investment is delivering jobs.

Peadar Tóibín (Meath West, Sinn Fein)
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I am supportive of research, development and innovation, which are important elements of the economy. There is an understanding that investment in research and development allows foreign direct investment to be tied closer to the local economy. In addition, it allows for the development of products and services in future which are most likely to be created locally. I understand that research and development is used to a lesser extent by SMEs, which puts them at a competitive disadvantage to the FDI sector.

I am opposed to the Government's nebulous understanding of research and development. One cannot manage if one cannot measure. I have asked about the jobs ratio per euro invested in research, development and innovation, but the Minister said he does not know. That is quite shocking given the hundreds of millions of euro the Government is giving in grants and tax breaks for research and development. Surely the output of every euro spent should be known.

Richard Bruton (Dublin North Central, Fine Gael)
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This is a challenge that bedevils virtually every country in trying to measure the impact of research and development. I can give the Deputy a few measures, although I will not give them all together. We compare countries that do research and development with those that do not. Those that do research and development fare much better on exports and employment growth. Where SFI invests in research and development, we measure, as an indication of its relevance, the extent to which it can attract private funding to match research and development investment.

We also look at the participation of SMEs in technology centres and the number of IDA projects connected to our research and development spend. Approximately 50% of IDA projects in recent years have been won on foot of the research and development cluster or base which we have created. It is not a simple matter of running a slide rule and saying every €1 invested creates a specific number of jobs. We must consider a range of measures across, for example, licences, patents and spin-outs. There is a suite of measures and we can provide the Deputy with details of them. It is not a simple matter of a single number measure. We would all like that but it eludes every country.

Peadar Tóibín (Meath West, Sinn Fein)
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The application form for a research and development grant or tax break should require companies to identify, in a logical manner, supported by information, the number of jobs and output they expect to deliver. When the investment is subsequently made, companies should have a responsibility to communicate to the Department the number of jobs created and the turnover increases which have resulted. Those types of slide rule are used in many grant funding application forms.

I have regularly been in the House to discuss the regions. A two-tier economy is developing in the State. Of all new IDA investment last year, 70% was in County Dublin, which has 25% of the population. Everyone agrees that research and development and innovation investment kick-start an economy. If we cannot measure the amount of research and development investment in the regions and the resulting outputs in job creation and turnover increases, it puts us at a significant disadvantage in the context of proper strategic spatial development nationally.

Richard Bruton (Dublin North Central, Fine Gael)
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The IDA and Enterprise Ireland look at the impact of job creation proposals, which is where the €12,000 per job statistic comes from. It refers to jobs sustained. One cannot pull out the research and development element from the Lean management development programme and other elements of the package that is put together. One cannot relate research and development spend to job impact on its own. Usually, a suite of measures is put in place to assist a company to develop.

The 70% statistic refers to Dublin and Cork, to correct the Deputy. I can send the Deputy material but note that it is not a simple matter of being able to say that a particular innovation voucher or plan created a particular number of jobs. Generally, such measures are part of a broader company development programme approved by Enterprise Ireland. I note, however, that according to international rankings, our research and development spend is having a greater economic impact than that of our European counterparts.