Billy Kelleher (Cork North Central, Fianna Fail)
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253. To ask the Minister for Jobs, Enterprise and Innovation further to Parliamentary Question No. 133 of 3 April 2019, the reason the value of innovation vouchers redeemed is considerably below the amount issued for each year in question; and if a review has been commissioned of the scheme. [17314/19]

John Halligan (Waterford, Independent)
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The Enterprise Ireland Innovation Voucher Initiative was introduced in 2007 in order to drive an on-going innovation culture shift within small enterprise by promoting and encouraging knowledge transfer between Ireland’s public knowledge providers and the small/medium business community and creating greater synergies between the two.  Under the initiative, vouchers worth €5,000 are allocated to small businesses whose proposals, to work with public knowledge providers on specific innovation issues, meet certain criteria.

I understand from Enterprise Ireland that the trend regarding approval and redemption rates is entirely normal for this type of programme.  It is easy for companies to apply for an Innovation Voucher and in some cases there are applications that don’t translate into full redemption. All Vouchers (Standard and Fast Track) are valid for 12 months. However, voucher time lines can be extended once Enterprise Ireland is satisfied that the R&D project is underway with a registered knowledge provider before the expiry date of the voucher. Only one extension is generally permitted with a maximum extension limit of 6 months. The pace of industrial change is fast and a company may change direction, or the market demands a change in the company direction, with regards to its R&D.  Delays in voucher redemption can result if a company is not able to identify a Knowledge Provider that can carry out the project i.e. it is not always possible to have a perfect balance between the skills and expertise of the knowledge provider and the company’s requirements.

I have been informed that the Innovation Vouchers Programme has recently been independently evaluated by an external consultant and the results are extremely positive.  The economic impact alone has increased since the last evaluation carried out in 2014.  To end 2018, the Innovation Voucher Programme has an Economic Value Add impact of €4.72 per €1.00 of Enterprise Ireland investment. 

I understand that almost all respondents to the evaluation (82%) would be willing to participate in an Innovation Voucher project in the future or recommend the Programme to other businesses (97%).  This is a very positive reflection on company experiences of the Programme.  Some aspects that companies liked about the programme was that it is flexible, simple and easy to apply for and it motivates them to engage in R&D, de-risking their investment and providing validation and testing of ideas.