The industry research and development initiative was introduced in 1993 on a pilot basis as part of the 1989-93 operational programme for industry. An amount of £13.4 million was initially made available for 1993. As a result of the high number of quality proposals and, in particular, because it was possible to free-up some Structural Funds, an additional £10 million was made available, bringing the total 1993 allocation to £23.4 million. This amount was fully taken up by way of 66 company project approvals. The Government recognises the importance of research and development for industrial development as evidenced in the first instance by the introduction of the scheme in 1993.
The low level of research and development expenditure in Ireland relative to other countries was a major factor in introducing the scheme and it can be expected to lead to positive growth in the overall level of business expenditure on research and development.
The Government's continued commitment is further evidenced by the £16 million which has been made available for 1994. While this is lower than the 1993 allocation it should be recognised that, as with any new scheme, an initial peak of applications can be expected while ongoing numbers of quality applications can be expected to level off somewhat.
The operational programme for industry 1994-99, which includes this scheme, has not yet received final approval from the EU Commission. Discussions are ongoing and final agreement is expected in the next few weeks.