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Foreign Direct Investment

Dáil Éireann Debate, Wednesday - 18 April 2018

Wednesday, 18 April 2018

Ceisteanna (37)

Bernard Durkan

Ceist:

37. Deputy Bernard J. Durkan asked the Minister for Business, Enterprise and Innovation the extent to which innovation continues to remain a feature and basis for both foreign direct and indigenous investment here; the degree to which such investment is likely to be spread evenly throughout the country in the future in line with Project Ireland 2040; and if she will make a statement on the matter. [16787/18]

Amharc ar fhreagra

Freagraí scríofa

My Department recognises the key role that innovation has played in Ireland’s economic recovery to date. It contributes significantly to job creation, exports and investment, and the competitiveness of the indigenous enterprise base, and also to embedding the foreign direct investment base in Ireland.

It is clear that a strong interdependence exists therefore between science, technology and innovation policy and enterprise policy. My Department has developed its Innovation 2020 strategy and its Enterprise 2025 policy side by side. A critical objective for my Department and its agencies, including Enterprise Ireland and IDA Ireland, is delivering on the actions and commitments set out in Innovation 2020.

Enterprise Ireland plays a particularly important role in supporting indigenous enterprises in Ireland. Between 2014 and 2016 employment in Enterprise Ireland backed companies reached 200,000. In its new strategy 2017 - 2020, Building Scale, Expanding Reach, Enterprise Ireland is aiming to increase this further with a new target to create an additional 60,000 new jobs by 2020. The Strategy also aims to drive innovation in Irish enterprise to unprecedented levels through new supports to reach the target of €1.25bn in R&D expenditure by its client companies per annum by 2020 (from €0.92bn in 2016).

My Department also recognises that innovation is a critical element of regional economic sustainability. In order to show growth regional firms must be enabled to achieve sales outside their region.  Enterprise Ireland’s innovation support programmes achieve a very strong regional balance. For example, 76% of Enterprise Ireland Innovation Partnership projects and 83% of Enterprise Ireland Technology Gateway Projects are delivered outside Dublin. 

Furthermore, the Enterprise Ireland Regional Enterprise Development Fund (REDF), launched in May 2017, is a €60 million competitive fund (over two Calls) aimed at supporting significant regional initiatives that will build on sectoral strengths and improve enterprise capability across the regions.

While the main objective of IDA Ireland is to encourage investment into Ireland by foreign-owned companies, the area of research, development and innovation (RDI) is of key importance to the agency. IDA Ireland’s strategy Winning FDI 2015-2019 outlines a plan to support clients in creating 80,000 new jobs and increase employment in the client portfolio to 209,000 by 2019. Support for RDI will be key to achieving these targets.

Research, development and innovation investments not only embed existing FDI operations and employment but pave the way for future investment, job creation and export growth.

Project Ireland 2040 launched in February aims to provide balanced regional development through two strands – the National Planning Framework and the National Development Plan.

The National Development Plan published in February contains a number of Strategic Investment Priorities linked to innovation aimed at supporting and growing competitive and innovative regional enterprises. These include: 

- Strengthened SFI Research Centres and EI Technology Centres in higher education in all regions

- A €500 million Disruptive Technologies Innovation Fund

- New regional “Technology and Innovation Poles”, led through the Institutes of Technologies

- Expansion of Advanced Manufacturing Supports, linking centres and capacity across all regions; and

- Expanding IDA Regional Property Programme, to attract investment to regions

These investment priorities will be progressed over the lifetime of the Plan, subject to detailed appraisal, value for money tests, consultation with relevant stakeholders and agreement on timeframes.  As these aspects are developed further, details will be set out in the strategies of my Department and the enterprise agencies over the lifetime of the NDP.

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