Vol. 470 No. 4
33 Mr. B. O'Keeffe asked the Minister for Enterprise and Employment his views on whether research and development here is grant-led rather than having an integrated strategic research and development plan for the country. [14358/96]
I am taking the Deputy's question to mean all research and development in this country, including that carried out by the business sector, the higher education sector and the State sector.
According to the latest Forfás estimates, total R and D spending in 1995 amounted to £584 million. Of that sum, £142 million, or 24 per cent was funded through the Exchequer, mostly on research carried out by the HE sector or by Government institutions.
The business sector, which is the largest performer of R and D, accounted for £400 million of the total in 1995. Of that figure, only £19 million was accounted for by R and D grant-aid.
It is not accurate therefore to say that R and D in Ireland is grant led. However, that is not to say that Government programmes, whether in the form of grants or otherwise, are not necessary to promote and stimulate the level of business R and D in Ireland, about which I remain concerned.
Despite encouraging growth in business R and D over the past five years, at an annual rate of 17 per cent, there are still underlying weaknesses in this regard in Irish industry. Foreign-owned companies account for two-thirds of spending, although only one-quarter of multinationals here undertake large scale systematic R and D. More worryingly, however, the majority of domestic companies in most sectors undertake no research and development. A key objective of STI policy, therefore, is to increase the number of firms, both indigenous and foreign, performing R and D in Ireland, as well as to increase overall business spending on R and D.
These are among the issues which will be addressed in the soon to be published White Paper on science, technology and innovation — the first ever White Paper on the subject in this country. A central theme of the White Paper will be to address all of the factors contributing to the capacity for technological innovation in this country in a coherent fashion, thus adopting an integrated strategic approach to research and development.
