Jimmy Devins (Sligo-North Leitrim, Fianna Fail)
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The Government's Strategy for Science Technology and Innovation 2006-2013 set out ambitious targets to bring about transformational change in business attitudes to Research and Development and creating an innovation culture in our indigenous industry. Funding from my Department's Vote is channelled through Enterprise Ireland and Industrial Development Authority initiatives to focus on increasing in-company Research and Development investment, on driving industry-led research and on maximising the commercial potential of publicly-funded research.

The 2007/08 Survey on Business Sector Expenditure on Research and Development (BERD) was recently published jointly by Forfas and the Central Statistics Office and it provides the most recent information on the levels of Research and Development activity in Ireland. This survey indicates that in 2007 the number of firms active in Research and Development was 1,211 and that total business expenditure on research and development was €1,598 million. Of this number 164 companies were investing in excess of €2 million annually.

While it is difficult to estimate, with certainty, the levels of activity for the year ahead, there are already good indications that companies will continue to invest in Research and Development in 2009. For instance, currently applications for Enterprise Ireland supports for R&D are running at higher levels in 2009 than in the same period in 2008. In the case of the IDA the R&D pipeline remains strong and is an active area of growth. It is worth noting that Services Innovation is a growing component of the Research and Development investments by IDA client companies, an example of which is the recent announcements by eBay and Hewlett Packard. Although it would be unsafe to draw strong inferences from this short-term data in the current environment, it is reassuring, and I am hopeful that the number of companies actively engaging in Research and Development will remain at least at its current levels.

It is vital that Ireland would continue to support investments in R&D and innovation. Given the substantially difficult circumstances facing companies in the current economic climate, focus must remain on encouraging, supporting and maintaining Research and Development activity in the year ahead.