Written answers

Tuesday, 3 November 2009

Department of Enterprise, Trade and Employment

Departmental Expenditure

8:00 pm

Photo of Ruairi QuinnRuairi Quinn (Dublin South East, Labour)
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Question 225: To ask the Tánaiste and Minister for Enterprise, Trade and Employment the State expenditure on research and development for each year in the past ten years; and if she will make a statement on the matter. [38813/09]

Photo of Conor LenihanConor Lenihan (Dublin South West, Fianna Fail)
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Government Budget Appropriations or Outlays on R&D (GBAORD) is an internationally recognised indicator which measures spending by the government sector on R&D. It comprises Exchequer funding for R&D, EU public funding and funding for humanities and social science research performed by government departments or agencies.

It includes

· Funding for R&D programmes in the higher education sector, administered by the Dept of Education and Science, the HEA, SFI, EI and others

· Funding for business sector R&D, administered via State agencies such as IDA, EI and others

· Funding for government sector performed R&D, e.g. Teagasc, the Marine Institute and others.

The following table shows GBAORD figures for each of the last ten years:

YearGBAORD (Million €)
1999231.6
2000290
2001359.6
2002504.3
2003518.1
2004635
2005755.9
2006789.8
2007934.2
2008945.8

A concerted increase in state investment in R&D through the Government's Strategy for Science, Technology and Innovation (SSTI) commenced on a full year basis in 2007. The SSTI represents an integrated whole-of-government approach to the realisation of an agreed vision – the transformation of Ireland into a competitive knowledge economy by building a world-class research system, driving economic growth and increased employment through research and innovation in enterprise and capturing, protecting and commercialising ideas and know-how. The recently published report 'Science, Technology and Innovation – Delivering the Smart Economy' available online at www.entemp.ie/publications/science/2009/delivering_the_Smart_Economy.pdf confirms that substantial progress has been made in the achievement of SSTI objectives.

Some key indicators of progress include: · Business Expenditure on Research and Development rose to an estimated €1.56 billion in 2006 – a 17% increase on the previous year – almost double the level recorded in 2000. This trend continued in 2007 with BERD climbing to €1.60 billion. · Higher Education R&D spending has almost quadrupled in current terms over 10 years and is now at the EU and OECD average levels. This increased investment in the higher education sector is having a significant impact in terms of human capital development, feeding through to attraction of Foreign Direct Investment (FDI) and commercialisation. · Science Foundation Ireland funded world-class research teams now work with over 300 companies which include many blue chip multi-nationals. It is through this close industry engagement, primarily through their Centres for Science, Engineering and Technology and Strategic Research Cluster Programmes, that SFI is supporting the employment of over 56,000 people in Ireland. · By the end of 2008, EI's Campus Incubation Programme had supported 240 companies located in Business Incubation Centres employing over 1,000 people. · Enterprise Ireland and the IDA are also working closely with companies to strengthen the research and technological base of the enterprise sector in order to drive productivity, competitiveness, exports and jobs. Ø In 2008 EI assisted 698 companies to perform R&D. Ø Over 40% of IDA investments in 2008 were in R&D with approx. €420 millions of investment.

Photo of Ruairi QuinnRuairi Quinn (Dublin South East, Labour)
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Question 226: To ask the Tánaiste and Minister for Enterprise, Trade and Employment the amount of State expenditure on enterprise support for indigenous firms, broken down by agency, for each of the past five years; and if she will make a statement on the matter. [38814/09]

Photo of Ruairi QuinnRuairi Quinn (Dublin South East, Labour)
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Question 227: To ask the Tánaiste and Minister for Enterprise, Trade and Employment the amount of State expenditure on enterprise support for indigenous firms, broken down by type of support, for each of the past five years; and if she will make a statement on the matter. [38815/09]

Photo of Mary CoughlanMary Coughlan (Donegal South West, Fianna Fail)
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I propose to take Questions Nos. 226 and 227 together.

Enterprise Ireland is the lead government agency responsible for the development of indigenous enterprise. The Agency assesses applications for financial assistance according to a number of criteria, including cost benefit modelling, commercial evaluation and technical assessment in order to ensure value for money to the exchequer. At any given time, Enterprise Ireland has approximately 3,300 client companies which it actively supports.

The following tabular statement illustrates the direct financial support to companies over the period 2004-2008, under the relevant category. This direct support to businesses does not include payments made by Enterprise Ireland under supports such as Venture Capital Funding; Infrastructural Payments, for example, Community Enterprise Centres, Incubation Centres, Webworks; Funding to Third Level Institutions and other third parties such as City & County Enterprise Boards, and Crafts Council of Ireland. The value of such direct support to companies increased year on year to almost €140m in 2008, driven by increases in support for R&D, management development, and latterly the Government's investment in the Dairy Investment Initiative.

Shannon Development has provided enterprise support for indigenous industries of €1,044,618 in 2004, € 474,555 in 2005 and €2,684,080 in 2006. From 1 January 2007, responsibility for providing support to indigenous industry in the mid-west region transferred to Enterprise Ireland and these grants are now paid directly by Enterprise Ireland.

The County and City Enterprise Boards (CEBs) provide support for micro-enterprises in the start-up and expansion phases, promote and develop indigenous micro-enterprise potential and stimulate economic activity and entrepreneurship at local level. The CEBs deliver a series of programmes to underpin this role. The costs associated with the operations of the CEBs are incurred in the delivery of a wide range of both financial and non-financial supports to the micro-enterprise sector across the Country. The CEBs expenditure details requested by the Deputy are provided in the following tabular statement.

Enterprise Ireland Financial Support to Industry 2004 – 2008
20042005200620072008
Type of EI Supports€'000€'000€'000€'000€'000
Employment4,2653,3154,1694,8177,271
Dairy Investment Fund2,98525,084
Fixed Asset Support5,2597,9114,5676,0177,182
Technology Infrastructure---22356
Marketing& Knowledge Transfer Support8,16811,10612,72513,61014,206
R&D (including Feasibility)6,4175,4226,6678,0609,034
Management Development and Training4,5864,3475,0635,30812,193
Consultancy Grants1536031,0291,6711,722
eBIT Initiative1----
Transforming R&D activity in Enterprise23,16325,22827,30424,45432,186
Investment in Shares25,68421,50925,03323,67930,702
Total77,69679,44186,55790,824139,636
County & City Enterprise BoardsExpenditure on Financial Supports (Grants)Expenditure on "Soft Supports" (Training and Mentoring)Total Enterprise Support
Year€000€000€000
200410,5506,48417,034
200510,8097,41118,220
200610,6229,21219,834
200712,37211,27223,644
200811,6489,89521,543

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