Pat Breen (Clare, Fine Gael)
Link to this: Individually | In context

Question 45: To ask the Tánaiste and Minister for Enterprise, Trade and Employment the action she intends to take to ensure that Ireland increases its expenditure on research and development (details supplied) to the EU target of 3% by 2010; and if she will make a statement on the matter. [13772/04]

Mary Harney (Dublin Mid West, Progressive Democrats)
Link to this: Individually | In context

At the European Council in Barcelona in 2002, the Heads of State agreed that overall spending on research and development in the EU should be increased from the current EU average of 1.9% to approximately 3% of GDP by 2010, and with two thirds of this new investment coming from the private sector. The target of 3% is for Europe as a whole, rather than each individual member state, reflecting that some countries such as Sweden and Finland are already above the 3% figure.

In April 2003, I established a high level cross-departmental group to assess and agree policy priorities, which Ireland should pursue as its contribution towards the creation of a European research area and the 3% target, taking account of Ireland's industrial structure, current research and development performance and potential. The group established a number of working groups involving representatives from industry, venture capitalists, universities and institutes of technology, Departments and semi-State agencies. Its work is now well advanced and I expect it to report by mid-2004.

The Government is committed to transforming Ireland into a leading research and innovation intensive knowledge-based economy and society. However, I do not believe that we should be overly focused on targets for their own sake, but rather on putting in place policies which support firms and public institutions to enhance the quality and scale of their research efforts.

The National Development Plan 2000 — 2006 aims for a significant increase in support for research and development. In my Department, expenditure on research and development rose from 8.9% of gross public expenditure in 1999 to over 21% in 2003. In particular, Science Foundation Ireland's investments have made a significant impact in marking Ireland out as an attractive location for excellent researchers from around the world. Similarly, within the education area, the programme for research in third level institutions has impacted strongly on bringing the research infrastructure in our universities up to the standard expected for carrying out world-class research and development.

In addition, the Finance Act 2004 for the first time provides for the introduction of an research and development tax credit. The credit provides an effective incentive to industry to increase research and development and help enhance out competitiveness as a location for new internationally mobile research-related investment.

I am confident that the range of existing initiatives, together with the recommendations which should emerge from the cross-departmental group, will allow Ireland to contribute further towards the EU 3% target.