Brian Hayes (Dublin South West, Fine Gael)
Link to this: Individually | In context

Question 139: To ask the Tánaiste and Minister for Enterprise, Trade and Employment the way the multinational community will be incentivised to intensify (details supplied); and if she will make a statement on the matter. [17601/09]

Mary Coughlan (Donegal South West, Fianna Fail)
Link to this: Individually | In context

IDA Ireland provides a range of financial incentives to support capital, employment, training, environmental and RD&I activity as well as advice, facilitation and property services to prospective and existing clients in order to maintain and grow FDI output and employment in Ireland. IDA is particularly focused on both encouraging and assisting its client companies to move up the value chain in terms of both carrying out higher skilled operations and expanding their presence in Ireland. The aim of this is to retain its existing clients, improve the quality of employment opportunities in Ireland and increase the positive economic impact. IDA has now established a dedicated team focusing on winning FDI projects in the Services Innovation sector.

Ireland is now seen by the global business environment as a prime location for Research Development and Innovation (RD&I) functions. IDA has played a key role in establishing this competitive advantage for Ireland and is heavily involved with all stakeholders in RD&I. In 2008 there was a strong flow of substantial new IDA supported R&D investments by multinational companies. These commitments by major knowledge based companies such as Fidelity, Nortel, Coca Cola, Citi and DePuy demonstrates Ireland's reputation in R&D and services innovation activities. Multinational's expenditure on RD&I in Ireland amounted to €1.12bn in 2006 (latest available data). In 2008, IDA supported clients announced 56 RD&I projects with a projected investment of circa €420m.

The multinational community will continue to be incentivised to intensify innovative, high-value activity and technological convergence that will provide quality jobs; IDA will continue use research funding in conjunction with SFI, Enterprise Ireland and IDA to instil a commercialisation culture in third-level institutions alongside the now embedded teaching and research culture. Recent government initiatives in the Finance Bill such as the increase in the 'R&D Tax Credit from 20-25% and the proposed enhancements on Ireland's IP offering announced in the April Budget will enhance Ireland's product offering.

IDA is targeting convergence technology as a key growth area. A dedicated team are working to target investment in this area with a key focus on the intersection of life sciences and ICT; both areas where IDA has a significant track record. An example of success so far in this 'new' sector is the Intel TRIL project with an investment commitment of $30 million. The TRIL Centre brings together world-class industry and academic experts who are inventing and testing new technologies with older people, and their families, to support them in continuing to live independently.

In addition, Science Foundation Ireland (SFI) is playing a central role in Ireland's sustainable economic renewal as outlined in the Government's "Building Ireland's Smart Economy – A Framework for Sustainable Economic Renewal". SFI has a number of programmes, which are specifically designed to promote strong industry/academic collaborations such as the Centres for Science, Engineering and Technology (CSET) programme and the Strategic Research Cluster (SRC) programme.

To date, SFI has made awards to 9 CSETs and 17 SRCs in total. These industry-embedded research groups are linked to 123 multinational and small to medium high-tech enterprises that employ over 53,000 people in high value jobs in Ireland, including many of the world's leading firms such as Intel, Hewlett Packard, GSK, IBM and Medtronic. In recent years, SFI has gradually shifted the focus of investments from individually-led investigator groups to groups within enterprise clusters with over double the number of SFI funded world-class Principal Investigators now being located within the CSETs and SRCs when compared to the 2004 position. These groups have been integral to IDA Ireland's strategy of attracting more R&D-based foreign direct investment to Ireland. For example, in 2008 alone just over 40% of the IDA's client portfolio of awards made had a significant R&D component, which is a direct consequence of the Government's significant investment in the science arena in recent years, primarily through SFI and the Higher Education Authority. These SFI funded activities are consistent with promoting research and development as a key part of the enterprise agenda, assisting as they do the retention and attraction of quality employment in Ireland, and thereby increasing output and jobs in Irish industry.

Brian Hayes (Dublin South West, Fine Gael)
Link to this: Individually | In context

Question 140: To ask the Tánaiste and Minister for Enterprise, Trade and Employment the steps taken since the publication of Building Ireland's Smart Economy - A Framework for Sustainable Economic Renewal 2009 to 2014 in areas (details supplied); and if she will make a statement on the matter. [17604/09]

Mary Coughlan (Donegal South West, Fianna Fail)
Link to this: Individually | In context

The development of a "smart" or knowledge based economy is a critical opportunity to enable Ireland to negotiate the present economic difficulties and to sustain a national recovery. Since the Government strategy document was published in December 2008, there has been a constant focus on achievement of the targets set out by the strategy and progress, in the specific areas identified, has been as follows - R&D Tax Arrangements

The Finance (No. 2) Act 2008 introduced a number of changes to the R&D Tax Credit Scheme to further encourage companies to invest in research and development. The rate of the tax credit was increased from 20% to 25%, the year 2003 was set permanently as the base year for the purposes calculating eligible incremental R&D expenditure, a new provision was introduced to allow a cash refund option over three years in respect of unused credits (a provision of particular assistance to pre-revenue firms), and the qualification criteria was eased in respect of the tax credit on R&D building costs. Competence Centres

Competence Centres are collaborative centres of excellence established and led by industry that are resourced by highly-qualified researchers associated with research institutions who are empowered to undertake market focussed strategic R&D for the benefit of industry. The Competence Centre initiative has been designed jointly between EI and IDA. To date 65 companies have become involved in establishing 7 Competence Centres nationally. In addition, a major collaborative centre, Functional Foods Research Centre, is currently being funded through Enterprise Ireland.

Initiatives in seven separate areas were selected for the Initial Research Phase of the programme, of which the following collaborative groups has been issued a contract to proceed with the initial research phase work viz:- Applied Nanotechnology, Advanced Manufacturing Productivity, Energy Efficiency in Manufacturing, Composites Materials, and CMOS Circuits. In addition, a BioEnergy Competence Centre has been approved for research phase funding and the contract will be issued subject to budgetary considerations and an IT Innovation Competence Centre is still in the approval process with a decision from the evaluation panel expected in May.

Following this first research phase, the five initiatives – viz. Applied Nanotechnology, Advanced Manufacturing Productivity, Energy Efficiency in Manufacturing, Composites Materials, and CMOS Circuits, will be going forward to the next phase of their establishment which will involve the selection of a Host Institution in summer 2009 and approvals of Technology Leaders in Autumn 2009 to manage the centres. Work to develop business plans for 2010 will continue in respect of the Energy Efficiency and Manufacturing Productivity initiatives and it is expected that these business plans will go forward for funding, subject to that approval. The Competence Centre Programme is providing an important link which leverages the expertise built up in the research community for the benefit of a wide range of enterprises, and will contribute to competitiveness in these companies.