Dáil Éireann Debate, Tuesday - 2 February 2010
101 Deputy Deirdre Clune asked the Tánaiste and Minister for Enterprise, Trade and Employment if the recommendations of the recent National Competitiveness Council report aimed at promoting innovation will be implemented; and if she will make a statement on the matter. [5350/10]
Amharc ar fhreagraThe renewed programme for Government, adopted in October 2009, recognises the importance of productive public investment in research and development and sets a target of achieving a national research and development investment target of 3% of GDP. We believe the significant infrastructure investment underpinning the strategy for science, technology and innovation over the period to 2013 is central to economic recovery. The commercialisation of our research investment and the generation of a strong reputation for higher education and research, as well as output of quality graduates at undergraduate and postgraduate levels, will allow us to build a sustainable enterprise base underpinned by productive innovation activity across the economy. The recommendations in the recent report of the National Competitiveness Council that are aimed at promoting investment in research, development and innovation are welcome as they coincide with our policy goals and a number of specific initiatives taken by Government as we seek to develop the knowledge economy.
The council's report focuses on measures to enhance the productivity of Irish exporters. To that end the council makes recommendations on prioritising Government research and development spending with strong industry relevance; co-ordinating public investment in research and development through development of a single stream of funding for science research, which is undertaken by my Minister of State; reviewing the research and development tax credit; and developing intellectual property competencies.
With regard to prioritising Government spending, the decision in budget 2010 to allocate almost €600 million to science, technology and innovation priorities of Departments reinforces the Government's commitment to science, technology and innovation as a productive investment for the future and an engine of economic growth. Our goal in 2010 and the immediate future is to leverage the investments made to date in research and development in order to return investment in terms of jobs and exports while consolidating what has been built and to secure it in the long term. In the budget, and looking forward to future years, we reoriented the focus of the spend on science, technology and innovation. The tripling of the public investment in science, technology and innovation over the past ten years concentrated on building infrastructure and productive human capital development. The reorientation of investment is now focused on deriving maximum commercial benefit from the sunk investment to date.
The NCC also made a recommendation for enhanced metrics to assess the efficiency of the public investment across the science, technology and innovation space. In 2009 a number of high-level indicators were agreed to monitor progress in implementation of science, technology and innovation and these are being updated on a rolling basis. I have also asked Forfás to review these to establish if it is possible to develop reliable metrics relating to exports, sales, employment and import substitution as these outcomes are an important outcome of science, technology and innovation investments.
Additional information not given on the floor of the House
The NCC report welcomes the introduction of a single stream with effect from 2010 for public science, technology and innovation investment. The intention to create a single funding line for the science, technology and innovation aims to enhance the efficiency of science, technology and innovation expenditure and enhance the State's ability to re-prioritise the public investment consistent with resources, with identified areas of science and with potential applications to support and develop the Irish economy. Consistent with the financial statement of the Minister for Finance last December the single funding stream will be referenced in the 2010 Revised Estimates and will feature as a distinct item in the Estimates of future years.
Research and development grants, the research and development tax credit and the patent royalty exemption together form a suite of measures aimed at encouraging, supporting and promoting research, development and innovation within Ireland as essential features of the knowledge economy. Rebuilding our competitive advantage will depend on a strong performance in these areas from both indigenous and foreign business. It is a priority for us that Ireland remains a competitive location for investment that leverages RDI for product development. The Government is committed to ensuring that we will maintain our international reputation and attractiveness as an excellent location in which to build or locate RDI activity. This suite of measures will be kept under ongoing review to ensure that we maintain this position, and we look forward to consideration of any proposals in this area from the innovation task force which is due to report shortly.
The forthcoming report of the innovation task force has a focus on the development and coherence of our IP system such that there is a clear and consistent national policy on IP and rules for the ownership of and access to State-supported IP. To that end my Department, with Forfás, has conducted a review of the suitability of ownership and licensing arrangements so that this can inform the ITF recommendations, and implementation of these. In framing these recommendations regard will be had to the work and experience of the technology transfer offices run by Enterprise Ireland in each of our HEIs, and to international best practice.
The funding for Science Foundation Ireland, €179 million in 2009, was reduced to €165 million in budget 2010. Enterprise Ireland's capital funding spending was reduced by €126 million and the science budget of the Department of Education and Science was reduced from €256 million to €150 million. There has been a severe reduction in the spending on science, technology and innovation. This requires that spending should be more focused, which is part of the recommendations from the NCC. Spending should be focused on bringing products that are near to market for commercialisation. I did not hear the Tánaiste refer to how she is directing State agencies working in this area to target this type of funding to ensure it leads to job creation and development of new products and those that are near to market.
Under the chairmanship of the Minister of State, Deputy Lenihan, a process was undertaken to examine the overall spending on science, technology and innovation in all Departments. On that basis, we saw a 7% overall reduction targeted at the commercialisation aspects and the potential of that spend. One of the issues raised 18 months ago was how we can provide a metric to see that. Under the chairmanship of Mr. Lionel Alexander we set down a number of parameters in which this could be achieved. That work is now being done. With ten years of investment in science, technology and innovation we are behind some other countries. On that basis we frontloaded much of the spend. We will also continue to invest in working with EU programmes in the delivery and drawdown of further expenditure.
The task at hand is to embed the technology and use the expertise we have to commercialise. That is the focus of State enterprises. In the spend for foreign direct investment purposes through IDA Ireland and Enterprise Ireland we have seen a seismic change in where people are investing. It is moving towards research and development. That is where the jobs are. Creating opportunities for that commercialisation is strategic in what Enterprise Ireland is doing in supporting new ideas and concepts and bringing those to market.
Can the Minister publish those results and metrics so that we can see how things have changed and how the shift towards commercialisation has come about? That is important. Can the Minister comment on the NCC and its comments on credits for research and development? Rather than having an emphasis on foreign companies and the benefitgoing to headquarters that may be abroad, there should be a re-focus on indigenousindustries and Irish owned companies to ensure that benefits from tax credits remain within the country.
I agree that we want to achieve a situation where we can take a thought process and commercialise it. We can do this through indigenous companies, which have done very well. Last year there were 70 HPSUs and the target is for another 70 next year through Enterprise Ireland and its supports. The innovation task force will come to the Taoiseach fairly soon and that will examine new ways in which we can develop innovative ways to support research and development. The tax credit is of great importance. The development of intellectual property in this country is new and different. In the context of tax policy we are working on refocusing our offerings for foreign direct investment or for indigenous companies. The clear message is that if we work towards economic growth and potential thereof, the collaborative work between third level institutes, those involved in business and the Government is of great importance. Science Foundation Ireland is looking at new innovative ways in which this can be expanded. We need a matrix, to see where the spend is and whether it will provide jobs. It is fine to spend the money but if we are not in a position to analyse its worth, we would be failing in our duty. The matrices are being set down on that basis. Any information available will be given to the Deputy.
