Written answers
Thursday, 8 July 2010
Department of Enterprise, Trade and Innovation
Industrial Development
10:00 pm
Richard Bruton (Dublin North Central, Fine Gael)
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Question 59: To ask the Minister for Enterprise, Trade and Innovation his views on the strategic impact indicators set by his Department, namely, competitiveness benchmarks, trade performance of the indigenous sector, average salary in IDA projects, research and development intensity ratio as a percentage of GNP, business expenditure on research and development, number of days lost through strikes, reduction in the administrative burdens on business; the statistics he uses to measure progress in respect of each; the change in the value of each of these statistics in the past five years; and the target he has set for each in respect of the next three years. [31271/10]
Batt O'Keeffe (Cork North West, Fianna Fail)
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My Department's Annual Output Statement for 2010 sets out High Level Goals for each of my Department's Key Programme Areas, along with the Strategic Impact Indicators against which the Goals will be measured. These indicators serve as a measure of the outcomes of investment in the Programme Areas in question and of progress in achieving key Government objectives, such as increasing international competitiveness, driving export-led growth, attracting high value-added and well-paid jobs to Ireland through the IDA, increasing investment in research and development, maintaining a stable industrial relations environment, and making it easier to do business in Ireland.
By their nature, the Strategic Impact Indicators referred to by the Deputy are intended to measure outcomes over the medium-to-long term. In this context, and to address the final parts of the Deputy's question, the following table shows the basis of measurement for each of the Strategic Impact Indicators in question, together with the 2005 outturn, the 2009 outturn and the 2012 target, where appropriate. Shorter-term, annual indicators are set out separately in my Department's Annual Output Statement.
| Impact Indicator | Basis of measurement | 2005Outturn | 2009Outturn | 2012Target |
| Competitiveness benchmarks1 | Institute for Management Development (IMD) World Competitiveness Yearbook | 12th of 60 | 19th of 57 | To maintain or improve Ireland's position, where possible |
| World Economic Forum (WEF) Global Competitiveness Report | 26th of 104 | 25th of 132 | To maintain or improve Ireland's position | |
| European Innovation Scoreboard | 8th of 31 | 10th of 33 | To maintain or improve Ireland's position | |
| Trade performance of the indigenous sector | New Export Sales by Enterprise Ireland client companies in a given year, compared to the exports in the previous year.This information is collected from clients as part of the Annual Business Review Survey. | €1.275 billion in new export sales were achieved by client companies in 2005. | €0.693 billion in new export sales were achieved by client companies in 2009 | There is no figure set for 2012 yet. Enterprise Ireland is currently developing its new strategy for 2011-2013 and the 2012 target will be set over the coming months. |
| Average salary in IDA projects | The average salary is a measure IDA Ireland uses for individual investments and as an overall assessment of approvals in a year. It is an indicator that IDA monitors at the end of each year rather than a target. | €37,000 per annum | €43,000 per annum | N/A |
| Research and development intensity ratio as a % of GNP | % of GNP | 1.47% of GNP | 1.99% of GNP (Estimated) | Forecast dependent of how businesses have reacted to slowdown of economy in 2010 and how business is planning future R&D spend |
| Business expenditure on research and development | % of GNP | 0.96% of GNP | 1.22% of GNP(Estimated) | Forecast dependent on how businesses have reacted to slowdown of economy in 2010 and how business is planning future R&D spend |
| Number of days lost through strikes | Number of days. | 26,665 | 329,706 | Targets are not set - this indicator is influenced by many external factors. |
| Reduction in the administrative burdens on business | Standard Cost Model | Not Applicable in 2005 | NotApplicable in 2009 | 25% reduction in administrative burdens for business |
1 In addition, the National Competitiveness Council's Annual Report Volume I, "Benchmarking Ireland's Performance", provides a comprehensive assessment of Ireland's competitiveness on an annual basis.
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