16th October 2013
Introductory Remarks
Ceann Comhairle,
This Government remains committed to the vision of using research and innovation to generate jobs and economic growth.
Within the constraints of our economic circumstances, we are maximising the funding available for research, development and innovation and critically, maximising the impact of this investment on jobs and the economy.
I am confident that the 2014 Exchequer capital allocation, together with both capital carryover, which is to be decided in November, and reinvestment of income generated by agencies, will maintain research and innovation allocations in line with 2013 expenditure.
In addition, in 2014, SFI and Enterprise Ireland will continue to leverage EU and private sector funding for research programmes, building on successes to date. In 2012, Irish researchers across the country – both in industry and in the public research system - leveraged over €100m in funding from the EU's R&D Funding programme, the 7th Framework Programme, up from €93m in 2011. To date in 2013, over €86.5m has been leveraged from this funding source.
In the coming years, with the rollout of the European Union's next R&D funding programme Horizon 2020, with a total budget of over €70bn to 2020, our national research and development community is well placed to win significant funding from Horizon 2020, in the order of €1bn over the period to 2020, along with funding from other non-exchequer sources.
R&D Tax Credit
Significant improvements were made to the R&D tax credit in Budget 2014, along with a statement of intent that the R&D tax credit base year will be phased out entirely over time as resources allow, in order to improve the overall international competitiveness of the regime. These improvements – which include an increase in the amount of expenditure allowed on a full volume basis (i.e. without reference to the base year) from €200,000 to €300,000 and an increase in the outsourcing limit from 10% to 15% - will increase Ireland’s attractiveness as a location for Research and Development activity and will result in additional jobs during 2014.
Impact of RDI Investment
The evidence shows that the Government’s strategy of accelerating the economic and societal return on our STI investment is paying off. Ireland has just been ranked third in the EU, according to the new "Indicator of Innovation Output”, which measures the extent to which ideas from innovative sectors are able to reach the market, providing better jobs and making Europe more competitive. This proves that we are investing smartly in this area and that our investment is delivering jobs.
Implementation of research prioritisation, as well as a range of other initiatives to deliver on our strategy, is seeing more targeted investment in STI, which will further enhance the effectiveness and impact of our research investment to deliver high quality, sustainable employment.
2014 Highlights
Let me outline some of the key RDI initiatives that will be supported through my Department during 2014:
· Science Foundation Ireland will establish 2- 3 new large-scale Research Centres, supporting 200-300 jobs, in sectors of national strategic importance such as Medical Devices, Software, Diagnostics, Telecommunications, Smart Grids, Sustainable Food Production and Processing etc. There will be significant industry engagement and co-funding (minimum 30%) of these centres. Exchequer funding for these new centres will amount to €10m-€15m in 2014.
· In addition, 4-5 Research ‘Spokes’ will be established by SFI to enable the addition of new industry and academic partners and projects to existing SFI Research Centres, to allow them to expand and develop in line with new priorities and opportunities.
· SFI will fund 3,000 researchers and over 20 world-class research centres in 2014. These world class researchers and research centres are a key magnet for Foreign Direct Investment and help to ensure Ireland becomes one of Europe’s most attractive locations for FDI. They also underpin existing jobs with world-class research.
· We have clear evidence of the link between research funding and FDI job creation. In 2014 to date, more than 45% of IDA jobs announcements so far have been in companies with links to SFI research teams. That’s over 3,700 jobs in companies linked to SFI funded researchers.
FDI companies play a vital role in our economy. 1 in 7 Jobs in the Irish economy are now accounted for by FDI. In addition, FDI companies:
· contribute €19 billion to the Irish economy
· Generate over 70% of corporation tax (€2.8 billion in 2011).
· Account for over 70% of national exports - €115 billion in 2011.
HPSUs
Enterprise Ireland will support 95 Innovative High Potential Start Up companies in 2014, with an associated 2,100 jobs, across a range of sectors, including Lifesciences, ICT, Food and Energy. These companies are the source of potential star performers of the future and each one will create at least €1m in export sales.
Industry-Academic Collaboration
· Enterprise Ireland and Science Foundation Ireland will continue to promote and drive effective industry-academic collaboration, which is essential for the successful translation of the best new ideas from the lab into innovative new products and services – and ultimately, the delivery of good quality, sustainable jobs for our people.
In 2014, Innovation Vouchers will support small companies in Ireland to complete over 400 projects, with a further 50 collaborative projects being supported by Enterprise Ireland through the Innovation Partnership Programme.
Commercialisation of Research
· In 2014, Enterprise Ireland and SFI will continue to drive commercialisation from State funded research, facilitating the emergence of new products and services, which underpin export growth and employment.
· Enterprise Ireland will deliver, through the new central Technology Transfer Office, a ‘one stop shop’ for companies to access the wealth of technology, skills and “know how” available in Ireland’s higher education system and to bring their ideas to market. Dr. Alison Campbell, the Director of the new office, and her team will work closely with existing Technology Transfer Offices to make it easier for companies to access and use ideas developed through publicly-funded research.
· Science Foundation Ireland will enhance commercialisation of previous research investments, primarily through their Technology Innovation Development Awards programme, which harvests the prior investments the State has made in research.
· The enactment of the new Industrial Development (Science Foundation Ireland) Act 2013 will see SFI funded activities move into the applied research arena, as well as continuing to provide key supports for oriented basic research. The extended remit will also enable SFI to fund on a wider geographical basis, meaning that for the first-time SFI will be able to fund on an all-Island basis.
Developing innovative and enterprise capacity
· Enterprise Ireland will fund in the region of 80 R&D projects for client companies that are valued in excess of €100,000. Developing the innovative and enterprise capacity of Irish firms, through supports such as R&D grants, will enable them to compete and succeed on international markets and generate long-term successful enterprises, which will in turn generate long-term sustainable jobs.
Programme for Research in Third Level Institutions
· Capital investment in the multi-annual Programme for Research in Third Level Institutions will continue to improve Ireland’s competitive offering in terms of research capability, through delivery of over 20 key physical infrastructural projects (buildings and equipment) across Ireland’s Higher Education Institutes, in areas such as biomedicine, materials science, nanotechnology, health, marine and energy.
· Over the lifetime of Cycle 5 of the Programme, these projects are also supporting 2,000 jobs in Ireland’s construction sector.
· Also in 2014, current expenditure under this Programme will fund 15 Structured PhD and Emergent Technology programmes, involving 450 research personnel.
· This will deliver for industry by making PhDs “workplace ready”, outside of academia and will enhance Ireland’s labour force capacity in a number of key strategic areas, including Pharma/biopharmaceuticals, Medical Technologies, ICT, Food and Drink, Energy and Environment, Translational research sciences etc.
European Space Agency
· Through targeted investment of public funds, Ireland's participation in the European Space Agency, co-ordinated by Enterprise Ireland, will continue to support Irish companies in the growing European and global space markets.
· Exports in ESA participating companies are projected to double from €27 million in 2011 to over €56 million by 2015. Employment in this sector is projected to rise by over 25% over the coming year or so - from 1,570 in 2011 to over 2,000 quality jobs in 2014 and 2015.
Conclusion
In summary, research and innovation are of major importance nationally. Evidence, both from the EU and internationally, shows that we are investing smartly in this area and that our investment is delivering jobs.
We must continue to invest in research and innovation programmes to achieve a return to economic growth through growing innovation in Ireland, promoting the export potential of enterprise and creating sustainable jobs.
Thank you.
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