Aengus Ó Snodaigh (Dublin South Central, Sinn Fein)
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Question 76: To ask the Minister for Enterprise, Trade and Innovation the business expenditure on research and development in each of the past five years; the percentage of this expenditure that was through indigenous enterprises; the percentage that was through multinational companies; the way the Departmental budget for research has been affected by Budget cuts, in comparison with other years; and if he will make a statement on the matter. [24295/10]

Conor Lenihan (Dublin South West, Fianna Fail)
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The table below provides details of Business Expenditure on Research and Development (BERD) for 2003, 2005, 2007 and an estimate for 2008. As the BERD survey is only undertaken every two years, it is not possible to provide actual expenditure figures for the intervening years.

BERD Expenditure

The 2010 Budget provided for science, technology and innovation spend under the Department of Enterprise, Trade and Innovation's vote was €293.8 million. While this represents almost 93 % of the provision under this subhead in 2009, the funding must be seen in the context of a financial situation that necessitated a 12 per cent overall reduction in the Government's capital allocation in 2010. Looking back over 5 years, the 2010 provision is 32% above the 2005 provision, and in this period there was a year on year increase in provision of between 4% and 14% in each of the years before 2010.

In a broader context, in excess of €593m has been provided in 2010, in total, across six Government Departments to support science, technology and innovation development.

Supporting innovation as a driver of export growth is critical to sustaining enterprises, maintaining current jobs and driving job creation. Recognising that innovation is the key to success, the Government's commitment to continued investment in science, technology and innovation was reflected in the 2010 Budget for this spending area. The aim is to ensure that incentives for business to undertake research and development are strong and that Ireland continues to invest in developing a knowledge economy. To balance the restricted availability of funding, greater focus has been placed on stronger commercial outputs and on the efficiency of investment. The State is seeking more from less and the policy approach is to derive maximum commercial benefit from the investment made over past years.

In addition, the decision to create a single funding stream for science, technology and innovation expenditure will greatly enhance the efficiency of the spend and the State's ability to re-prioritise as economic circumstances change when the economy recovers.

"Building Ireland's Smart Economy", the "Renewed Programme for Government" and the Report of the Innovation Task Force recognise the importance of the productive public and private investment in research, development and innovation. The State investment through the 2010 Budget confirm a solid commitment to research, development and innovation expenditure, to supporting enterprise programs and driving employment growth.