asked the Minister for Industry and Commerce if he will make a statement giving the latest figures available for each of the last three years for which figures are available for expenditure on research and development in Irish industry; and if he will make a statement on the trend indicated and the implications of same.
Ceisteanna—Questions. Oral Answers. - Research and Development Expenditure.
8.
The latest figures available regarding expenditure on research and development in Irish industry relate to the years 1983, 1984 and 1985. The expenditure for those three years is as follows: 1983 — £48.48 million; 1984 — £61.94 million; 1985 — £70.70 million.
Expenditure on research and development in the industrial sector has been increasing steadily since the mid seventies — albeit from a very low base. I would expect this pattern to continue. There is an increasing awareness among Irish companies of the importance of research and development but a much higher level of investment is required if Ireland is to match the levels of such investment in competitor countries.
However, it has to be recognised that the size and circumstances of many Irish firms, especially small firms, restrict their capacity to undertake R and D. Indeed, the undertaking of in-house R and D by such firms may not be the most appropriate way to improve their process and product development. In such cases it may be more appropriate to use instead such measures as: contracting out R and D to specialist research institutes, universities and RTCs; technology transfer arrangements and licensing agreements.
Is the Minister aware of the increasing trend on the part of multinationals to carry out their research and development projects outside this country? Is the Minister satisfied that this situation should pertain? If not, what is he doing about it?
I am aware that many multinationals carry out their research and development in the country of their origin, but the Government are actively trying through the Office of Science and Technology and the IDA's research and development grants scheme to induce these companies to involve themselves in research and development in this country.
Do the figures the Minister gave include research and development carried out by the Hyster Corporation in Blanchardstown? Will he confirm that the results of that research, having been financed by the Irish taxpayer, are now being used to create jobs in the United States of America?
That is a separate question.
Arising from the Chair's ruling, in cases such as this where the research is carried out here and the company closes down, does the Minister consider it appropriate that a safeguard should exist in the form of some sort of royalty to the IDA on the results of the research and development if it leads to job creation elsewhere but not here?
We will examine that point. It might be worth pursuing.
Notwithstanding the fact that there has been a substantial increase in spending on research and development, how does the Minister reconcile it with the fact that the Government would seem to be cutting back on all research and development done by public bodies, judging by the Book of Estimates? The Minister stated we are still sadly lacking in the amount of funds for research and development in comparison with the United States and the newly industrialised nations of East Asia. What specific plans have the Government to encourage and increase spending on research and development in both the public and private sectors?
I would agree that there is a very low degree of investment in industrial research and development in this country in comparison with other OECD countries. Irish business sector expenditure on research and development as a percentage of the domestic product of industry was 0.47 per cent, compared with 0.98 per cent in Denmark, 1.39 per cent in the Netherlands, 1.58 per cent in France and 1.93 per cent in the United Kingdom. Obviously there is a big job to be tackled.
What does the Minister intend to do?
First of all the Government in acknowledging the importance of science and technology decided——
To give the Minister the job.
I can assure the Deputy that on a recent promotion tour on which I embarked in place of the Minister for Industry and Commerce in the technologically sophisticated area of the west coast of America, there was enormous interest in Ireland as a place for investment, in starting up new companies as an avenue to Europe and in investing in research and development here. They see that this Government are committed to science and technology, research and development.
I understand the Minister's rhetoric on this issue but is he aware of the proposal submitted by the NBST to the Government for the setting up of an infrastructure for advanced manufacturing technology and bio-technology? Has he any proposals to finance that operation jointly with the private sector as a tangible commitment to research and development?
Since this Government came into office, the Office of Science and Technology decided to designate three centres of excellence in bio-technology and four centres where advanced manufacturing technology will take place. The three centres of excellence in bio-technology are the NIHE, Dublin, where there is to be a national centre for cell and tissue culture, UCC where there will be a national food bio-technology centre, and UCG which will have a national diagnostic centre. Regarding advanced manufacturing technology centres, there will be one in Trinity College, Dublin, one in UCD, one in NIHE, Limerick, and one in UCG. Enormous progress is being made.
Some of those are already there.
(Interruptions.)
Is the Minister prepared to give a clear-cut commitment to the House that he will tackle the multinationals and induce them to stop repatriating all their profits down the black hole and retain a substantial proportion in this country for research and development purposes? Will the Minister give an assurance that he will tackle them in a positive way on that subject now?
We will give the multinationals every encouragement by all possible means to ensure that they set up their research and development facilities here.