Bernard Durkan (Kildare North, Fine Gael)
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Question 230: To ask the Minister for Jobs, Enterprise and Innovation the extent to which he has evaluated the potential for job creation on an annual basis over the next five years through innovation; how this is likely to be manifested through small and medium-sized businesses; and if he will make a statement on the matter. [36327/11]

Richard Bruton (Dublin North Central, Fine Gael)
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The use of technology and innovation has a crucial role to play in supporting economic recovery and in driving sustainable employment in the current environment. Strategic investments in Research, Development and Innovation have led to the creation and application of new knowledge and technology across the enterprise spectrum and so have contributed significantly to the competitiveness of indigenous enterprise and to securing the Foreign Direct Investment base in Ireland. There is evidence that research performing companies have weathered the recession better, have suffered less job losses and have generated better levels of growth and exports than those not so involved.

The Government published its Infrastructural and Capital Investment 2012-16: Medium Term Exchequer Framework on the 10th of November last. The capital investment programme covers a broad range of critical areas including economic infrastructure, environmental infrastructure and social investment. This framework has protected and prioritised the State's support to enterprise and innovation. The framework makes provision for the following technology and innovation related investment:

· A 4% increase in the Enterprise Ireland capital budget in 2012

· A 10% increase in the number of high potential start-up Irish companies supported in 2012

· A 20% increase in the number of Innovation Partnerships

· €18million spend on Innovation Fund Ireland in 2012 to further improve the Irish venture capital industry

· New technology centres in Cloud, E-learning and Financial Services to be commenced in 2012

· Full support in 2012 for the SFI research community of over 3,000 researchers, including research teams working with over 500 industry partners

· Maintenance of the Programme for Research in Third Level Institutions

· Full protection of the IDA capital budget over the period of the programme, to enable delivery of the "Horizon 2020" strategy

· Doubling the number of Technology Innovation Development Awards to 200 in 2012

While acknowledging that over the medium-term, there will be a lower level of resources available for capital investment generally, I am delighted to say that supports to industry will be maintained at very significant levels. In total, €2.334 billion is provided for jobs, enterprise and innovation over the period from 2012 to 2016, with over €900 million also being invested by my colleagues in programmes related to tourism, agriculture, food and the marine, all of which deliver major economic and environmental benefits. This will be an increase in the annual allocation for enterprise support from €508 million in 2011 to its highest ever level of €514 million in 2012, reflecting the priority accorded to job-creation by the Government.

In 2010, IDA Ireland clients created 10,897 new jobs while Enterprise Ireland clients created 8,193. Shannon Development clients created 362 while the 35 CEBs together created 5,901 when full and part-time jobs are included. It is vital that this level of job creation is maintained and enhanced in the years ahead and the capital allocation to my Department ensures that this will be the case.

Under the new investment framework, supports through IDA Ireland will be fully protected to enable delivery of the "Horizon 2020" strategy. Enterprise Ireland will be protected over the medium-term and a number of new initiatives will be funded including a Partial Loan Guarantee Scheme, Innovation Fund Ireland and there will be increased focus on accelerating High Potential Start-Ups. As a consequence I expect these enterprise-development Agencies to deliver on their ambitious jobs targets of some 110,000 gross new jobs over the five years of the programme to 2016 – or 22,000 per annum on average. When additional indirect employment supported through multiplier effects in the local economy are included, we expect over 220,000 gross new direct and indirect jobs will be created or supported as a result of the significant investment made in enterprise alone over the period to 2016.

Continued investments in research, technological development and innovation have been and will remain a pivotal element of our enterprise development offering to 2016. These investments underpin both the quantum and quality of employment in enterprise today and into the medium term. In addition to supporting the enterprise sector through the provision of funding, I am also continuing to work with my Government colleagues on other measures which will provide further support job creation in the economy. All of these measures - and others across Government - underpin the capital investment which is being made by my Department to support job creation.