Léim ar aghaidh chuig an bpríomhábhar
Gnáthamharc

Dáil Éireann díospóireacht -
Thursday, 6 Nov 1997

Vol. 482 No. 5

Written Answers - Research and Development.

John Perry

Ceist:

18 Mr. Perry asked the Tánaiste and Minister for Enterprise, Trade and Employment if her attention has been drawn to the fact that in 1995 companies in Ireland spent just over one per cent of GDP on research and development; if her attention has further been drawn to the fact that this has only increased from 0.5 per cent since 1986; and the plans, if any, she has in place to increase company expenditure on research and development. [18270/97]

Denis Naughten

Ceist:

27 Mr. Naughten asked the Tánaiste and Minister for Enterprise, Trade and Employment if her attention has been drawn to the fact that 52 per cent of manufacturing and internationally traded service companies carried out research and development between 1993 and 1995, but only half of these were involved in continuous research over the three years; and the proposals if any, her Department has to increase the figure of 26 per cent of those who were not involved in continuous research. [18272/97]

I propose to take Questions Nos. 18 and 27 together. The statistics used by the Deputies are taken, I presume, from the Forfás Survey of Product and Process Innovation in Irish Industry 1993-1995.

As Deputy Perry's question states, these statistics demonstrate that Ireland's ratio of business expenditure on R & D as a percentage of GDP has doubled since 1986. I regard this as a healthy development. In the early 1980s, Ireland's business expenditure on R & D, or BERD, showed Ireland to be in a lagging position — with a level of investment in R & D similar to other objective one countries such as Greece, Portugal and Spain. Our progress over the past ten years has brought us in line with the EU average, on a par with countries such as Denmark, Norway and the Netherlands. However, our current BERD figure of 1.02 per cent must be seen in the context of 1.85 per cent for US, 1.87 per cent for Japan and 2.31 per cent and 1.5 per cent respectively for EU front runners, Sweden and Germany.

This doubling of expenditure reflects an increased and more widespread level of R & D activity at company level. During the same period the number of R & D performing companies rose from 586 to 900 and the number of companies with their own R & D departments rose from 243 to 480. All this represents solid progress along a path, which we must continue to travel. The 1994-99 S & T Sub-Programme set a target to increase BERD to 0.82 per cent by 1999 and this has already been surpassed.
However, this is not to suggest we should rest on our laurels. Rather we should continue to stimulate continuous R & D activity in the business sector. The Mid-Term Review of the Operational Programme for Industry 1994-1999 allocated an additional 39 MECU, or about £28 million, for an in-company research, technology and innovation scheme. As part of this process, it was necessary to revamp the existing measure 1 scheme, to target and focus our funding more tightly to achieve specific results. The new scheme will aim to:
—increase the number of companies performing research, technology and innovation (RTI) for the first time;
—increase the number of companies undertaking significant RTI on an ongoing basis and establishing permanent RTI Departments;
—increase the additional RTI activity at company level;
—enable firms acting in consortia with other companies or universities (or joint ventures with firms in other countries) to undertake large scale strategic projects which would be beyond the capability of any single firm;
—encourage the development of international links by allowing firms greater access to collaborative R & D activities, such as the EUREKA programme;
—encourage a continuing commitment to innovation in firms by improving the cost competitiveness and business performance of individual companies, particularly SMEs, through innovative improvements both in production and processes.
I am finalising the details of the new research, technology and innovation scheme, which I will formally launch next Wednesday, 12 November, during our first ever national science week.
There are also a number of other schemes, operating under the Industry S & T Sub-Programme and funded through OST and these contribute to a greater appreciation of the importance of science and technology and how to better exploit knowledge. We will continue to review these and other schemes on an ongoing basis to ensure their ongoing effectiveness.
At the end of the day, it is individual companies which will decide what they will spend on R & D or any other area of their business. In this regard the overall economic environment created by the Government's sound management of the economy, will have a direct bearing on the various activities of all companies.
Barr
Roinn