Dáil Éireann Debate, Tuesday - 10 July 2018
78. Deputy Bernard J. Durkan asked the Minister for Business, Enterprise and Innovation if she has received indications on the utilisation of innovation leading to increased job creation throughout the country; if the workforce continues to possess the adequate and necessary expertise to maximise opportunities for the economy now and in the future; and if she will make a statement on the matter. [30619/18]
View answerI thank the Deputy for his interesting question. Investment in research, development and innovation increases economic productivity and competitiveness, improves quality of life and health and has positive social and environmental outcomes. There is no question that with the advancements in technology over the next ten, 15 or 20 years every country will have to invest substantially in innovation, research and development.
In recent years, the Department has undertaken a number of evaluations and studies to assess the impact of expenditure on research. An example is that in 2016 the Department published a review of capital expenditure on research, development and innovation as part of a comprehensive review of expenditure initiated by the Department of Public Expenditure and Reform. The review found that between 2006 and 2014 the main source of employment increases were firms with research and development expenditure greater than €100,000 per annum. The average annual growth of these firms between 2006 and 2014 ranged between 2% and 3.9%. Another study undertaken by the Department on economic and enterprise impacts from public investment in research and development in Ireland, also published in 2016, found that among agency firms in manufacturing and services, research and development activity is a characteristic of those firms that contributed most to employment growth between 2000 and 2014. The companies dealt with by Science Foundation Ireland, with regard to research and development, created 31,000 direct and indirect jobs. The funding we make available through Science Foundation Ireland and the Irish Research Council has contributed to high technology jobs in innovation, research and development.
Higher and further education institutions are providing more science, mathematics and ICT graduates. Since a focus has been placed on science, technology, engineering and mathematics in the education and training system, Ireland has done exceptionally well on the European barometer of creating PhD's per percentage of population.
To answer the question very briefly, all of the evidence and statistics prove that investing in innovation, technology and research and development makes these companies more sustainable and creates more jobs.
Deputy Durkan may ask one supplementary question.
I thank the Leas-Cheann Comhairle and I thank the Minister of State for his reply. Will he indicate the extent to which the manufacturing and service sectors have been able to avail of advanced technology and research? Do we have the expertise and skills necessary to maximise the impact for the benefit of the economy at large?
It is interesting that in the Deputy's region of Kildare 15 companies supported by Enterprise Ireland and IDA Ireland are involved in research and development. These include Dawn Farm Foods, Green Isle Foods, Hewlett-Packard and Pfizer Ireland.
Through Enterprise Ireland, the Department, Science Foundation Ireland and the enterprise boards, there is a driving influence in research and innovation under Horizon 2020. Recently, we launched a disruptive technology fund, which is worth €500 million. The idea is to replace existing technology through research, development and innovation. It is important to note we can only go on European statistics. Ireland has gone from No. 9 to No. 8 in the list of top European countries for investing in research and development and for getting a good PhD. On the innovation scoreboard we have 17 dedicated research centres, which are highly regarded throughout Europe and the world for investment in those centres creating jobs. Through Science Foundation Ireland we have created approximately 31,000 jobs.
I thank the Members for their co-operation.
