Much will be written about the National Recovery Plan 2011-2014 document that was published by the Government today. Rather than attempt to offer any kind of comprehensive review of the document, which I’m sure other commentators will be better qualified to do than I, I will present a number of extracts from the report as they pertain to support for science and innovation in the 2011-2014 period.
For those unaware, the overall plan is to reduce the Irish Exchequer deficit to 3% of GDP by 2014. This will entail, by current estimates, a reduction in the Government budget by €15b|n (yes, billion. With a ‘b’). The published plan aims to make up that €15b|n by €10b|n in expenditure cuts and by €5b|n in new revenue (i.e. taxes of various forms). The expenditure cuts are further divided into capital and current expenditure.
So, without further ado, here are a few relevant extracts
Section 2.5.2, page 43:
Embedding Science, Technology and Innovation Ireland has built a strong science base, and has joined Finland, Germany and the US in the world’s top twenty countries for scientific output. Two thirds of Ireland’s R&D is in the private sector, creating new product and service innovations that will drive exports, growth, and jobs. In 2009, nearly half of IDA investments were in research, development and innovation – activities that are central to productivity and new business development in Ireland’s multinational sector. Indigenous enterprises continue to embrace R&D. Even during the downturn, these enterprises have proven they can grow exports and create employment. Productive, high calibre research, undertaken by highly skilled research teams working closely with industry partners will continue to be a core investment priority for Government. This new competitive advantage will be one of the key drivers of Ireland’s economic recovery. But there must be a greater focus on the commercialisation of research outputs. Only world- class research projects should be supported and researchers need not necessarily be engaged across all disciplines. In sectors where we cannot be world leaders, the focus should move to technology transfer and utilisation of research elsewhere.
Action Points
- Research investments will be concentrated in areas where Ireland will secure the greatest economic and social returns.
- The number of industry led research competence centres will be doubled to ensure that industry drives the research agendas.
- IDA and EI will foster research, development and innovation in companies to boost productivity, exports, growth and jobs.
- Ireland has built a reputation as a country where enterprise can partner effectively with third level institutions. This will be developed at all levels ranging from SFI funded fundamental research centres (CSET’s and SRCs) to EI Innovation Partnerships and Innovation Voucher programmes.
Section 2.5.3, page 45:
The ICT manufacturing sector in Ireland accounts for approximately 7% of manufacturing exports. The sector has experienced a decline in output over the last two years and some multinationals have moved their manufacturing activities to lower cost locations. At the same time, a number of these companies have increased their services operations here. The concentration of leading ICT companies remains high for a country of Ireland’s size and there are good prospects for recovery. The success of the IDA in attracting R&D projects to existing manufacturing sites will help anchor manufacturers and shift activities in Ireland further up the value chain. The tax environment remains favourable for inward investment and an improvement in cost competitiveness will also support medium term growth.
Action Points
Government will
- Provide significant funding through IDA Ireland, EI and Science Foundation Ireland, along with other R&D supports relevant to the sector.
- Deliver the Health Information Bill which will speed up ethical review of health research trials and investigations.
- Invest in R&D industry/third level sector collaboration.
Annex 8 (starting on page 115) contains a detailed, Department-by-Department breakdown. Here’s the relevant extract for SFI’s Department, Enterprise, Trade and Innovation:
The Government sees the ET&I area in particular as a driver of the innovative, smart economy that will lay the basis for sustainable growth and employment creation into the future, as detailed in Chapters 1 and 2 of this Plan. In securing balanced savings from the ET&I area, there will accordingly be a need to preserve and to promote those areas of activity that feed into the Government’s overall growth strategy. The Enterprise area will contribute €47 million of savings by 2014. Specific measures for implementation in 2011 are outlined in the table below.
Achieving the further targeted ongoing savings of €10 million by 2014 will require the adoption of further efficiencies and programme adjustments. Given the strategic priority of this area, the additional savings contribution over the period 2012-2014 will be kept to a minimum amount.
As an aside, I could not figure out what the difference between the first and second columns is, but the second column – ‘Yield Full year’ – appears to me to be the more important one.
Overall, this news on the science and innovation front appears to be reasonably positive, and the plan appears to have delivered the Government’s previously articulated commitment to maintain funding for R&D. Of course, we won’t really know until the budget is published on December 7, and indeed assuming that the budget is actually passed.
Update: I’ve posted the document on DocStoc: http://tinyurl.com/3yrlksv.
Related Posts:
