Written answers

Tuesday, 16 May 2017

Department of Jobs, Enterprise and Innovation

Job Creation

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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596. To ask the Minister for Jobs, Enterprise and Innovation the extent to which innovation and technology is likely to feature in the creation of indigenous jobs throughout the country in the next five years; and if she will make a statement on the matter. [23286/17]

Photo of Mary Mitchell O'ConnorMary Mitchell O'Connor (Dún Laoghaire, Fine Gael)
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Innovation is globally recognised as the key economic differentiator. Innovation and technology enable companies to make products and services that are better, cheaper or more novel than those in global markets. Thus, in order to export and scale, companies must innovate and embrace technology.

Product lifetimes in global markets are incredibly short (1-3 years) thus necessitating a continuous stream of new and improved products.

The 2016 report “Economic and Enterprise Impacts from Public Investment in R&D in Ireland”, published by the Department, has shown that investment in R&D results in improved job creation and enterprise performance, for example:

- Firms that invested in R&D grew employment by 14% between 2000 and 2014 while those that did not invest in R&D saw employment decline by 40%

- R&D performing companies grew exports by 181% between 2003 and 2014 compared to a loss of 42% in exports for non- R&D performing companies over the same period

- R&D activity was identified as being one characteristic of Enterprise Ireland and IDA Ireland client firms that resulted in a growth in sales and exports since 2003. During the recession, these firms exhibited greater resilience than non-R&D active firms and increased their contributions to sales, exports and employment

- For Enterprise Ireland client firms funded through the agency’s R&D scheme, there was an 8% growth in net employment (22,003 jobs to 23,739 jobs) between 2002 and 2012. In comparison, there was a 6.2% decline in employment in the total Enterprise Ireland client base over the same period (131,144 jobs to 119,935 jobs).

The figures above clearly show the importance of research, development and innovation as a driver of firm growth and job creation.

Going forward, and in order to support companies increase job creation and exports, Enterprise Ireland will continue funding its critical existing innovation supports along with the development of new supports which include:

- A new programme for Business Innovation targeted at driving innovation beyond selling products based on technical innovations providing more customer focussed process and service solutions;

- A Small Business Innovation Research (SBIR) Initiative which is a cross-government process allowing public bodies to use public procurement to source R&D and innovative solutions to solve identified ‘challenges’. This initiative is already providing significant business opportunities for innovation focused companies;

- New initiatives to equip graduates and researchers in the higher education system with the key skills required by the enterprise base.

Enterprise Ireland’s Strategy 2017 – 2020 is cognisant of the future needs of Irish enterprise and the challenges they face such as Brexit. Driving innovation and competitiveness are key pillars of this strategy aimed at supporting companies drive their global ambition and reach. Supporting companies to innovative will be critical for Enterprise Ireland to create 60,000 new jobs by 2020 and to sustain the existing record level of jobs.

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