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

Question 55: To ask the Tánaiste and Minister for Enterprise, Trade and Employment the steps she is taking to support science and innovation; and if she will make a statement on the matter. [40928/09]

Conor Lenihan (Dublin South West, Fianna Fail)
Link to this: Individually | In context

The Government has made a commitment, through the substantial investment set out in the Strategy for Science, Technology and Innovation (SSTI) 2006-2013 and the National Development Plan (NDP) 2007-2013, to making a transition to a knowledge economy to enable Ireland to compete in a highly competitive global market. The importance of the SSTI lies not only in the scale of investment but as a whole-of-government strategy, coordinated by an Inter Departmental Committee chaired by my Department and reporting to and taking direction from the Cabinet Committee on STI.

In December 2008, the Government reinforced the importance of the investment in SSTI in 'Building Ireland's Smart Economy — A Framework for Sustainable Economic Renewal', which prioritised continued investment in science and engineering infrastructure and research. Building a Smart Economy is about the development and application of human capital — the knowledge, skills and creativity of people — and our ability and effectiveness in translating ideas into valuable processes, products and services. The actions in Building Ireland's Smart Economy both reflect and build on the objectives of the SSTI.

The renewed Programme for Government recognises the importance of productive public and private investment in R&D and sets a target of achieving a national R&D investment of 3% of GDP. The significant infrastructure investment underpinning the SSTI over the period to 2013 is central to economic recovery. The commercialisation of our research investment and the generation of a strong reputation for higher education and research, as well as output of quality graduates at both undergraduate and postgraduate levels, will allow us to build a sustainable enterprise base underpinned by productive innovation activity across the economy.

Innovation activity is the foundation of future competitiveness and growth. Currently, the OECD notes that the economic crisis can magnify the competitive advantage of research-intense firms who seize the opportunity to reinforce market leadership through increased spending on innovation and R&D.

Our enterprise and investment landscape must continually transform itself to stay competitive. The model we strive for is the Smart Economy built on the dual strengths of our innovation and entrepreneurship. The establishment of a strong research base and culture in Ireland is proving to be a vital driver of major investment decisions by both overseas and indigenous companies.

With regard to the outputs of R&D we are building strong linkages to ensure diffusion and commercialisation of an increased flow of new ideas and knowledge to produce innovative products and services that will win export markets and create much needed sustainable employment.

Within my own Department the 2009 provision of €316m for Science and Technology activities enables Enterprise Ireland to operate three primary mechanisms aimed at helping companies to engage in R&D both within the company and in collaboration with third level institutions: promoting market-led innovation & R&D in manufacturing and services companies, supporting effective and flexible collaborations between companies and third-level researchers, and capitalising on the research investment made in higher education by taking commercially useful technology on to the market.

Enterprise Ireland's company R&D supports are designed to provide support for research, development and technological innovation relevant at all stages of company development, and which will enable companies to progress from undertaking an initial research project to higher level innovation and R&D activities. This transformation of R&D activity in enterprise programme is being supported through an expected investment of €61m in 2009.

Enterprise Ireland operates a range of supports to help companies engage with third level researchers to undertake collaborative research for the benefit of the company. Companies can be supported to undertake individual research projects from initial small scale collaborations, supported by means of €5,000 Innovation Vouchers or larger Innovation Partnerships. Larger collaborative research projects involving groups of companies are also supported. Industry Led Research Programmes and the new EI/IDA Competence Centre initiative allow industry groups to set a commercially valuable research agenda which academics in the higher education sector will deliver on. This programme — industry collaboration with the third-level sector — is being supported in 2009 by an expected investment of €29m.

Enterprise Ireland continually drives the commercial return on the State's research investment through direct funding to researchers to commercialise their research and supports to institutions to help build the commercialisation system. These include supports for effective Technology Transfer Offices in Universities, commercially relevant research centres in Institutes of Technology and Campus Incubation facilities to support new technology companies in their formative years. This programme to realise the commercial potential of Ireland's research community is supported in 2009 by an expected investment of €36m.

Complementary to the supports to Enterprise Ireland my Department also supports investment in SFI, to the extent of €165.4m in 2009. This investment allows SFI to support 29 world-class research centres across the Irish universities and Institutes of Technology. The 29 SFI centres comprise 10 Centres for Science, Engineering and Technology and 19 Strategic Research Clusters. These world-class centres are a major magnet of attraction which significantly enhances IDA Ireland's capacity to win research intensive investments to Ireland. Currently over 125 leading multinationals and indigenous firms are formally connected to these SFI funded centres with many more having informal interactions with them.

The SFI Principal Investigator programme is also a major instrument of world-class human capital delivery, developing and enhancing research talent in Ireland, so that Ireland retains the finest researchers working in, or attracted to, the country. Through the centres and individual competitive grants SFI funded researchers are collaborating and interacting with in excess of 300 leading multinationals and indigenous firms.

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. Key indicators of progress include:

Total Research and Development spending has almost trebled over 10 years. Total R&D investment across all sectors of the economy climbed to an estimated €2.6 billion in 2008, which is equivalent to 1.66% of GNP. The proportionate investment in R&D is one-third public investment and two-thirds business investment.

Business Expenditure on R&D (BERD) rose to €1.56 billion in 2006 — a 17% increase on the previous year — almost double the level recorded in 2000. It is estimated that BERD reached €1.68 billion in 2008.

Higher Education R&D investment 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 and commercialisation.

Science Foundation Ireland is creating a stream of highly skilled research talent and building Ireland's reputation as a location for R&D activity. Currently, the SFI funded world-class research teams work with over 300 companies which include many blue chip multinationals, such as GlaxoSmithKline, Intel, Hewlett Packard and Pfizer. 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.

Enterprise Ireland and IDA Ireland are working closely with companies to strengthen the research and technological base of the enterprise sector in order to drive productivity, competitiveness, exports and jobs. In 2008 EI approved €61.42m under the R&D Fund in support of in-company R&D projects. Growth in researcher capacity, led by Science Foundation Ireland, coupled with the enhanced R&D tax credit, continues to be a major attraction for overseas investors, and is resulting in a series of significant industrial R&D investments in Ireland by IDA supported companies. Over 40% of IDA investments in 2008 were in R, D&I with approx. €420 millions of investment.

By the end of 2008, EI's Campus Incubation Programme supports over 230 companies located in Business Incubation Centres employing over 1,000 people. This provision of valuable business facilities is supplied in conjunction with the existing work of the Enterprise Ireland Community Enterprise Centres which are home to 735 companies employing over 3,600 people.

To increase the amount and quality of technologies emerging from the Higher Education System, Enterprise Ireland also approved support for 138 research projects under the Commercialisation Fund. This funding, combined with the resources Enterprise Ireland has put into the Technology Transfer Offices in Higher Education Institutes in Ireland has led to an increase in the number of disclosures of inventions, patent applications and start-up companies emerging from the education sector.

Enterprise Ireland also helped Irish companies to secure €19.3m in EU research funding and contracts worth €7.2m from the European Space Agency.

There were 588 Innovation Vouchers issued to small and medium-sized companies to help them acquire technical solutions from third-level institutions. Each voucher is worth €5,000 and 203 were redeemed by year-end. To increase levels of innovation in regional locations, five new Applied Research Enhancement Centres were opened in Irish Institutes of Technology, bringing the total number of these centres to 17 in 11 Institutes of Technology.