Written answers

Tuesday, 6 December 2005

Department of Enterprise, Trade and Employment

Economic Competitiveness

9:00 pm

Photo of Paul Connaughton  SnrPaul Connaughton Snr (Galway East, Fine Gael)
Link to this: Individually | In context

Question 76: To ask the Minister for Enterprise, Trade and Employment his views on the fact that Ireland's expenditure on research and development, according to the European innovation scoreboard and cited by the National Competitiveness Council, stands at just over 50% of the EU 25 average; and if he will make a statement on the matter. [37868/05]

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
Link to this: Individually | In context

I believe the Deputy is quoting from a table in The Competitiveness Challenge 2005 produced by the NCC. That table comprises some 13 measures of Ireland's innovation performance relative to the EU 25. We do well on some of the suite of indicators and less well on the others. In five areas, Ireland is above the EU average, in some cases such as hi-tech manufacturing output and science and engineering graduates, we are around the 200% mark. In another three areas, namely, high tech manufacturing, early stage VC investment and hi-tech patents, we are close to the EU average.

In addition, I can advise the House that, according to the latest figures from Forfás, which are estimates for 2004, the overall total research and development expenditure — GERD, representing public and business expenditure — for Ireland has increased to 1.43% of GNP, compared with the EU average of 1.85%. On the basis of these latest statistics, Ireland stands at 77% of the EU average research and development spend.

The process of comprehensively addressing the research and development agenda was commenced under the current NDP, with science, technology and innovation becoming a major plank of this Government's policy, underpinned by significant resources. However, I acknowledge that this remains a challenging issue for Ireland. This was fully recognised and reflected in the national research and development action plan last year and is being comprehensively addressed in the context of a long-term strategy for science, technology and innovation being prepared for the Cabinet subcommittee on STI, which I chair. I hope to bring that strategy forward shortly. In the interim, a number of initiatives have already been put in place to raise both public and private investment in research, including the research and development tax credit, and steady progress is being made from our 1.32% GERD figure in 2000.

The business sector is, however, the predominant player in GERD, contributing about two thirds of the total. Significant improvement in GERD will depend critically on raising levels of research and development in industry. Achieving this is a major policy goal of my Department and of the development agencies under its remit. IDA Ireland is now concentrating its efforts to attract new research and development projects to Ireland and to raise significantly the levels of research and development performed by foreign-owned enterprise in the economy. Recent announcements have been very positive in this regard.

There remain significant challenges ahead, Ireland has been playing catch up against our international competitors in this field and we need to make the next quantum leap forward. This will require strategic investment and I propose to lead that investment, to ensure that within the next decade Ireland will become internationally renowned for quality research, using new knowledge for economic and social benefit.

Comments

No comments

Log in or join to post a public comment.