Bernard Durkan (Kildare North, Fine Gael)
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74. To ask the Minister for Jobs, Enterprise and Innovation the extent to which smaller indigenous companies may avail of assistance by way of support for research and innovation with consequent improved job retention and creation prospects; the extent to which he sees such smaller companies being in a position to avail of such assistance in the current and following years; and if he will make a statement on the matter. [48700/14]

Damien English (Meath West, Fine Gael)
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Investment in Research, Development and Innovation (RD&I) is a key economic differentiator which can support Irish companies of all scales to adapt to, and excel in a global market which in turn leads to increased exports and jobs. As a result the Government considers that it is critical that Irish companies are supported to engage in RD&I. National statistics show that companies engaged in RD&I are gaining an increasing share of sales, export sales and are accounting for increasing shares of employment. RDI performing firms have also demonstrated better employment retention during recent years. Exports from R&D performing companies increased significantly during the 10 years to end 2013 while over the same period exports for non R&D performing companies decreased significantly.

Enterprise Ireland and Science Foundation Ireland, provide a spectrum of science, technology and RD&I development programmes that deliver financial, technical and experiential support to help companies become more innovative, encourage and support competitiveness, and help them grow their sales and exports in order to create a climate in which sustainable employment will grow and expand.

Enterprise Ireland will support over 1,000 companies to engage in R&D in 2015. These supports will include in-company R&D projects via the R&D Fund, small to medium sized collaborative projects with researchers in higher level institutions under the Innovation Voucher and Innovation Partnership programmes and large consortium-based research via sector specific Technology Centres.

Evidence from the evaluation of the range of Enterprise Ireland RDI programmes shows the direct return on this investment by way of impact on turnover. For example, companies supported by Enterprise Ireland to engage in collaborative R&D via the Innovation Partnership scheme created €6.69 in company turnover for every €1 Enterprise Ireland invested in the scheme which illustrates the considerable growth potential of engaging in this economically advantageous activity.

Aligned with this suite of supports, which are suitable for and available to companies based in Ireland of all sizes and stages of development, is a strong promotional strategy which seeks to inform companies of these incentives while also encouraging them to apply and reap the economic benefits from this economically advantageous activity.

Enterprise Ireland’s promotional approach seeks to have as broad a reach as possible. It ranges from “one to one” promotion between Enterprise Ireland client companies and their Development Advisors, to larger “one to many” promotional activities that include web based notifications, social media activity, national media and specific Enterprise Ireland events.

One such event, coordinated by Enterprise Ireland on behalf of my Department, was the National Innovation for Industry Showcase held on 2 December 2014 in the National Conference Centre which was the first convention, in one location, of all the Irish State-supported large scale research centres, technology centres and national research institutes and facilities. The event introduced industry of all sizes to the excellent scientific research and disruptive technologies being developed in these centres and institutes and which are delivering solutions for industry in key areas including energy, food, health and medical technologies, ICT, manufacturing and services. It also provided an excellent opportunity for these centres to engage with companies as potential collaborators and to raise the awareness of the range of complementary RD&I supports available to companies in Ireland.

Continued and intensified promotion such as this will continue during 2015 to ensure that as many SMEs as possible avail of the RD&I supports available to gain competitive advantage. Within the constraints of our economic circumstances, the Government for its part is continuing to prioritise the funding available for research, development and innovation and critically, maximising the impact of this investment on jobs and the economy.

Finally, the Government also has in place the R&D Tax Credit. This relief provides a 25% tax credit for qualifying Research and Development expenditure for companies engaged in in-house qualifying research and development. This Tax Credit is also available to Irish SMEs. Arising from Budget 2015, the R&D tax credit is being placed on a full volume basis with the removal of the 2003 base year expenditure criterion from 1^stJanuary 2015.