John Minihan (Progressive Democrats)

A recent European study on innovation showed that 78% of sales in the information technology sector were based on products that were less than two years old. Companies such as Siemens state that over 50% of their sales are based on products that are less than five years old. This rate of change is a result of five main external pressures, including technology, economic development, legislation, the environmental concerns of citizens and social change.

The ability of a company to respond to change and compete in the international marketplace is today seen as the life blood of modern economies. In its studies, the OECD has shown that over 50% of economic growth can be attributed to developments in technology. It also shows that the sectors which contribute most to this economic growth and job creation are those in which high technology is developed and applied in products and services and where there is a presence of a strong scientific base.

In this modern era, most technologies are associated with various fields of science. Electronics are related to the physical sciences, pharmaceutical technologies to the biological sciences and software to mathematics, etc. Future advances in technology and our economic development and job creation will rely on a detailed understanding of these sciences and of the techniques used in the advancement of science. This is where Science Foundation Ireland comes into play.

There are five areas where scientific development will play a critical role in the future of this country. First, it will help companies compete in the international marketplace. In future, increasing globalisation of trade and European Union restrictions on fiscal and monetary policy will intensify competition from other countries seeking to outperform Ireland as a competitive location for doing business. The companies who will compete on the international market will be those with the best knowledge, best technologies and the best business networks. We must be realistic and recognise that despite our present economic success, a small economy such as Ireland's cannot invest without limit in all areas of research, technology and innovation. Spending must, therefore, be focused on those areas that can contribute most to the country's long-term economic development.

Industry and related international investment are becoming increasingly knowledge based as new research and technologies translate into global, marketable products and services. The key to Ireland's continued success will be to ensure that our development agencies, including IDA Ireland and Enterprise Ireland, successfully promote the location and development of firms whose competitive advantage is based on knowledge, innovation, technology and related skills.