Damien English (Meath West, Fine Gael) | Oireachtas source

I welcome this opportunity to address Seanad Éireann on Ireland's results so far in Horizon 2020, the biggest ever European research and innovation programme.

With approximately €78 billion of funding available over seven years, Horizon 2020 is the EU funding programme for research and development for the period 2014 to 2020. Its objectives are to enable a world-class research system for Europe, to support European leadership in industrial development and to address the grand societal challenges of our day.

The Government has set an ambitious target for Irish researchers and companies to win funding of €1.25 billion over the lifetime of Horizon 2020. The structure and objectives of Horizon 2020 are very much in line with our national objectives: raising the level of excellence in our science base; making Ireland a more attractive location to invest in research and innovation; translating research into opportunities to grow our enterprise base; and addressing major societal challenges by bringing together resources and knowledge across different fields, technologies and disciplines, including social sciences and the humanities, and across borders as well.

International co-operation will continue to play an important role in our new strategy for science, technology and innovation in the development and sustainability of a world-class research system. Ireland's research community, including industry, is actively encouraged to engage with international partners at the level of individual investigators, research teams, research centres and higher education institutions.

It has long been recognised and reported that international engagement enables tackling of global scientific and societal challenges, builds critical mass and shares risk, stimulates excellence through international competition, allows sharing of expensive and specialist research infrastructure, enables international mobility of researchers, provides reputational and other strategic benefits and allows access to new technology pathways and standards. International co-operation also enables the leverage of international financial resources, contributes to the development of Ireland as a research and enterprise partner and facilitates engagement with the Irish diaspora. Excellence is the key to enabling participation, collaboration and international co-operation.

For Ireland to maintain and improve our position in the global economy, we must continue to engage with the international research community, at both EU level and beyond, through our participation in and co-ordination of international initiatives. A key way for our researchers and companies to engage is through Horizon 2020. Ireland's research system is intrinsically linked to the European Union. Financial support from EU Structural Funds has assisted us to rapidly develop our national RDI system. Access to and success in the previous EU framework programmes has, on the one hand, supplemented national investment in RDI and, on the other, allowed researchers and enterprises in Ireland to collaborate with the best in Europe and to further enhance the excellence of our national research eco-system. However, let me be clear, EU funding cannot replace national investment. A significant level of national funding is necessary to ensure we continue to build a science base in academia and industry which can then be better positioned to engage in collaboration with our European partners.

Investment in research and innovation is now increasingly advocated by European policy makers, and governments are being urged to increase investment at national level. As Europe exits the crisis, it is increasingly clear that supporting growth-enhancing policies, such as investment in research and innovation, has paid off. The evidence shows that much of the recent productivity gains come from innovation and that, on average, countries that invested more in research and innovation before and during the crisis have been the most resilient during the economic downturn.

The Government fully supports this approach and that is why we have followed in the footsteps of previous Administrations in maintaining strong State investment in research and innovation since taking office in 2011. We are committed to continuing the process of economic reform and recovery, to achieving sustainable growth and strong public finances, and to enduring job creation. Research and innovation is about future-proofing this economy.

As a means to drive economic growth and create jobs, Horizon 2020 has the political backing of Europe's leaders and the Members of the European Parliament. As Senators know, Ireland played a very significant role in the development of the programme by securing political agreement on Horizon 2020 during its presidency of the Council of the European Union in 2013. Some of the officials behind me were involved in a lot of late nights during those negotiations. I compliment them on the work that was done to get those negotiations over the line.

By coupling research and innovation, Horizon 2020 is helping to achieve this with its emphasis on excellent science, industrial leadership and tackling societal challenges. The goal is to ensure Europe produces world-class science, removes barriers to innovation and makes it easier for the public and private sectors to work together in delivering innovation. Horizon 2020 is open to everyone, with a simple structure that reduces red tape and appraisal times so participants can focus on what is really important. This approach makes sure that new projects get off the ground quickly and achieve results faster.

The European research framework programmes have always been an important element in providing international linkages and enhancing the excellence of the Irish research and development system.They have enabled academic and industry research groups to work with peers across Europe and beyond and to derive the benefits associated with collaborative research, including access to knowledge networks, sharing of costs and risks and, in particular for industry, the possibility of opening up commercial opportunities.

Ireland's participation in the seventh framework programme, which ended in 2013, was very successful, with over €620 million secured by Irish researchers. While we have a very solid track record on which to build further success, we cannot afford to be complacent. Horizon 2020 is a new departure. It is not business as usual and we must adapt our approach to it. The competition from across the EU and beyond is intense with major oversubscription in many areas. The global economic situation has resulted in reduced national funding resources and researchers are increasingly looking to Europe to fill that funding gap. However, Ireland is participating in the current framework programme from a far stronger position than ever before. A critical mass of research activity has developed in both the public and private sectors and we are well positioned to perform very strongly under Horizon 2020. We see Horizon 2020 as an opportunity to further deepen our engagement in collaborative European and international research.

As every country participating in Horizon 2020 will be targeting increased participation only quality projects that are excellent will win funding. This requires that our national research and innovation system performs at the highest competitive level. As I mentioned, ongoing national funding of research and innovation will be required. As Horizon 2020 is a competitive funding process, it will not be possible to use Horizon 2020 funding to reduce national funding, and rightly so. However, all available opportunities will be used to leverage national investment to maximise funding from Horizon 2020. National funders are focusing on funding nationally in areas likely to win further funding from Horizon 2020 and other sources. A national strategy for Horizon 2020 is in place to direct our engagement in Horizon 2020. A Horizon 2020 high level group, chaired by my Department and comprising those Departments and agencies whose remit includes research and innovation, is tasked with overseeing the implementation of the strategy and securing the maximum benefits for Ireland.

As I mentioned, the Government has set an ambitious target for Irish researchers and companies to win funding of €1.25 billion over the lifetime of Horizon 2020. A national support network, co-ordinated by a national director, Dr. Imelda Lambkin, and based in Enterprise Ireland has been put in place. This national support network, comprising national contact points who are experts in the various research domains of Horizon 2020, will provide advice and assistance to researchers who want to participate in the programme. The network also includes a team of national delegates for Horizon 2020 who represent Ireland's interests in Europe on the various programme committees that design the Horizon 2020 work programmes and priorities. This national support network works in tandem with the high level group in co-ordinating the national effort to maximise our participation. The achievement of our target will require special efforts designed to identify and create additional value over and above the strong results we traditionally achieve. A more strategic approach, aimed at participation in larger scale projects, as well as playing a larger role in projects generally, is required.

A strategic research proposals group has been established, chaired by the chief scientific advisor, Professor Mark Ferguson, to focus exclusively on large-scale strategic projects. The purpose of this special advisory group is to catalyse, develop and advise on the submission of Horizon 2020 proposals of a major scale. This will include proposals where Ireland can take a leading or major role, taking into account timing, likelihood of success and extent of the fit with national priority areas and strengths. By harnessing the expertise across all relevant Departments and Agencies we hope to identify and catalyse such winning bids.

We have also established a Horizon 2020 industry group, which seeks to devise actions that will encourage and assist more industry engagement with the programme. The industrial leadership pillar of the programme aims to speed up development of the technologies and innovations that will underpin tomorrow's businesses and help innovative European companies, including SMEs to grow into world-leading companies that can have an impact on a global stage. Over €17 billion in funding is divided across three main areas, including key enabling technologies, innovation to SMEs and access to risk finance.

Horizon 2020 has a much closer to market focus than previous framework programmes. There is, therefore, much greater scope than before for industry to get involved. Success in Horizon 2020 yields significant returns to enterprises. The financial reward is of course very important. Another key reason to get involved is the opportunity to connect, collaborate and innovate with the best and brightest in Europe.

I congratulate Ireland's researchers and companies on achieving over €127 million in successful applications in the first year of Horizon 2020. In particular, with the very competitive environment for EU research and innovation funding, surpassing our Action Plan for Jobs 2014 national target by 27% is a great achievement. If we include the first few call results of 2015, approximately €12 million a month is being won in Ireland. This is approximately €2.8 million a week, in comparison with our performance in the same period in FP7, the predecessor programme, which was approximately €1 million a week. We are on target to achieve our results. In fact, we are very much ahead target but we must remain focused. Overall, 1,905 applications were submitted from Ireland in 2014, 293 of which were successful - a success rate of 15%.In terms of the total Horizon 2020 budget for member states, 1.8% was allocated to Ireland. When the results are population-adjusted, Ireland has performed quite favourably with Finland and Denmark, which are countries with small advanced economies against which we benchmark ourselves.

We have had a great first year, with 85% of funding coming from ICT, research grants from the European Research Council, ERC, training grants for researchers and also in the areas of health, advanced materials, advanced manufacturing and processing, biotechnology and agri-food. Higher education institutes account for approximately 65% of the total funding. NUIG in particular had a very successful year. In terms of industry participation, Ireland's companies have achieved over €35 million of the total won in 2014, of which almost three quarters went to SMEs. I want to encourage more companies in particular to build on the success to date and engage further and to learn from those companies that have been successful.

Horizon 2020, with its focus on competitiveness and smart, sustainable and inclusive growth and jobs, offers more opportunity for industry participation than ever before. For example, it includes a specific SME initiative called the SME Instrument that offers funding for all stages of the innovation process. It also includes a fast track to innovation pilot which is targeted at all types of companies. Stiff competition has always existed for funding under EU framework programmes. In Horizon 2020, it is particularly intense. Our success to date is, therefore, a real testament to the quality of the proposals coming from Ireland.

Successful participation in Horizon 2020 is valuable at any level but where the leading role is taken on, greater rewards are achieved on all dimensions. There is, of course, an overhead in doing this but the investment in time can yield significant rewards for those who succeed. Our message is, whenever possible, "take the lead". The experts available in the national support network can provide valuable information to people who want to engage in the programme.

Welcome as the first year results are, Horizon 2020 is very different to what has gone before and our level of ambition is far greater. Given the scale of Horizon 2020, the fact that our national research priorities are aligned so closely to it, and the calibre of our national research system, I believe we can meet our ambitious target under Horizon 2020. We have a particular focus now on creating the right environment to allow for projects of a large scale which will require a greater strategic approach. The Government is determined to make this happen. I have been engaging with the research community on this topic over the past 18 months and it is very much up for this challenge. Everybody wants to make this happen. It is a realistic target that we can achieve. The Government and its agencies are determined to make this happen. It is right for Ireland. Any funding we win will help to develop the talent in our system.

Last year, a €245 million investment by my Department was announced for five new large-scale world-class research centres, aimed at achieving a step-change in the performance of Ireland's research system. These, together with the Enterprise Ireland and IDA Ireland Technology Centres, leave Ireland well placed to take the lead in developing cutting-edge research and new technologies. These centres will also strongly position Irish-based scientists to win funding from Horizon 2020.

Horizon 2020 also represents a significant opportunity for North-South co-operation, which is an issue that has been raised in the Seanad during many discussions on this issue down through the years. Increasing the value of successful applications and funding awards from Horizon 2020 is an important objective not just of the Irish Government but also of the Northern Ireland Executive. The international collaborative nature of Horizon 2020 makes it ideally suited for Ireland and Northern Ireland to work together to mutual benefit. The importance of North-South collaboration is recognised by both Administrations and the alignment of our Horizon 2020 support structures, North and South, means that there is now a strong basis on which to build co-operation. Ireland's national support network for Horizon 2020 operates on an all-Island basis. The number of North-South collaborations has been rising steadily. These collaborations are generating economic value. For 2014, plus the first few calls in 2015, a total of 16 collaborative North-South projects have been successful with 44 participants and funding worth €19.4 million. InterTradelreland will build on this success to further increase the level of co-operation for the Horizon 2020 programme.InterTradelreland has also developed a suite of supports dedicated to facilitating and supporting North-South co-operation and will continue its integration role with the national support network in Ireland and the Northern Ireland support structure.

Our new strategy for science, technology and innovation is being formulated as we move into a new phase of economic growth and societal development. It is now time for us to advance fresh strategic ideas that will distinguish Ireland globally through its ability to make research work to maximum effect for the country.

In Ireland, we are proud of our achievements to date. In the past decade and a half, we have made significant progress in our national innovation system which started from a very low base by international comparisons. We have successfully built up research capacity and have a significant reputation for research excellence along with an increasing base of research and development active enterprises. None the less, we need to build on this progress made in developing Ireland's research and innovation system. We recognise that this is not the time to stand still. Scientific and technological progress advance at rapid rates and we are competing in an ever-growing competitive global environment. Supporting effective research that produces outputs of maximum impact for Ireland's economy and society is our goal and the Government has committed to reaching our Europe 2020 research and development intensity target of 2.5% of GNP.

This year, we plan to bring a successor strategy for science, technology and innovation to fruition and I can report that work in well under way to this end. The new strategy will seek to articulate a vision for Ireland's research and innovation system and identify its defining characteristics. It will also set out strategic goals and targets, based on a robust evidence base, our own vision and an examination of international trends and good practice and will give us a business case to increase investment both from taxpayers' money and from the private sector into the field of research, innovation and development. Therefore, it is a very important strategy. I thank all those who have got involved in it so far. We have had quite a lot of consultation with all the stakeholders in the past eight or nine months and we are trying to bring it to a close in the weeks ahead.

I reiterate my congratulations to all of those who have been successful in the programme so far and thank the national support network and the various Horizon group members for all their work. We have had a great first year. I assure the House that the Government is conscious of the significant opportunities under Horizon 2020 and of the challenges ahead to maximise our participation in the programme. We have put in place a national strategy supported by a whole of Government approach and it is my priority to see that we deliver results.

Excellence is the standard by which applications for EU funding are judged. We have shown we can meet this standard of excellence through winning awards of more than €620 million under the previous EU research programme, FP7, and with our results for 2014. A sustained effort will be required over the lifetime of the programme. We have the track record that demonstrates our ability to compete successfully and I am confident that we will continue our success under Horizon 2020. This will have a very significant impact on sustaining and growing jobs and our economy for many years to come. I thank the Members for their time.