Written answers

Thursday, 9 June 2011

Department of Enterprise, Trade and Innovation

Job Creation

6:00 pm

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 107: To ask the Minister for Jobs, Enterprise and Innovation the extent to which he expects to see job creation through innovation over the next five years; and if he will make a statement on the matter. [14955/11]

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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The Government is committed to using Research, Development and Innovation (RDI) as a means of adding value to Ireland's output and thereby achieving increased demand, sales and exports and headlining Ireland's attractiveness as a locale for FDI. The overall objective is the maintenance and growth of well-paid sustainable jobs.

In order to develop the companies of the future in Ireland, both indigenous and multinational, we must not only fund high tech research in our universities but also crucially ensure that the research ideas we have developed can be put into action in industry. In this way, new businesses can be created and established companies can expand and create more jobs. The Programme for Government commits to addressing that gap through establishing technology centres in order to develop good ideas into workable businesses so as to create the jobs of the future and get the economy growing again. Recent announcements that I have made involving investments of over €65 million demonstrate that this initiative is being implemented.

The key challenge facing the Government is to strike the correct balance of investment in RDI, both as regards the level of investment and types of activities to support. Other countries are growing their investment in RDI but we are not in a position to significantly increase the level of public investment given the fiscal and banking pressures on the economy. We have, however, as part of our National Reform Programme, confirmed that we will maintain the existing levels of RDI investment until 2014 and significantly increase such investment over the period 2014 to 2020.

At the same time, we have to ensure that every Euro invested in RDI, as in every other area, is achieving the maximum possible impact. A Steering Group, chaired by Mr. Jim O'Hara, former GM of Intel Ireland, is carrying out a project to establish priority areas of focus for Irish research. This very important piece of work will take account of research areas where Ireland has built significant strength to date and particular areas that have the greatest potential to deliver sustainable economic return through enterprise development, employment creation, or indeed, quality of life. The Steering Group has been tasked with submitting its report by Autumn 2011. The Government will carefully consider its findings as we decide future areas of RDI for investment.

In the meantime, the agencies under the aegis of my Department are working to ensure that investment in RDI is directed towards job creation. Enterprise Ireland (EI) aims to create 60,000 new jobs and €17 billion in export sales by 2015. This will be achieved by enabling Irish companies to develop the important competitive advantages through innovation. EI will help 1,200 companies in 2011 with RDI activities. It will generate 85 new companies with high potential this year and move up to 100 per year by 2015. It will place greater focus on collaboration between industry and third level institutions; this will include doubling the number of technology centres from the current 8 to 16 by 2015. EI will enhance the opportunities for commercialisation to ensure that the best use is made of research with commercial and market potential.

IDA Ireland's current strategy sets the following high-level goals for the five-year period 2010 to 2014:

- Create 62,000 new direct industrial jobs and 43,000 indirect;

- 640 investments;

- 50% of FDI projects outside of Dublin and Cork;

- 20% of greenfield investments from emerging high growth markets; and,

- €1.7 billion investment in RDI per annum by client companies.

These targets demonstrate the Government's determination to make significant public investment in RDI for the collective gain of the country. We are clear that this approach will stimulate the market and result in productive partnerships with the private sector in order to regain competitiveness, increase exports and create jobs.

There is a well-founded belief among OECD and BRIC countries of the central importance of innovation and technological change to the growth process. This view, that RDI is one of the key drivers of economic growth, has been underscored very recently in a trenchant analysis by Dr. Ben Bernanke, Chairman of the Board of Governors of the Federal Reserve Supply (the central bank of the USA).

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