R&D spend up but lags behind EU

IRELAND substantially increased its real spend on research and development during the boom years, but it is still less than the European average.

As the Government tries to find €2 billion in savings, the EU’s message was not to cut spending on R&D.

This year, €718 million has been earmarked to create the jobs of the future, along with €600m from the EU over the next four years.

Ireland spends an average of 1.35% of its gross domestic product on R&D, lower than the EU average of 1.84%, and is rated 16th in the world.

The average annual increase of over 62% between 2000 and 2007 was the seventh biggest in the EU. Estonia recorded the highest increase at over 200%.

The country’s strengths are in producing well-qualified people together with broadband access and the availability of private credit.

Small and medium sized firms have been letting the country down with fewer collaborating with others and introducing product or process innovations, according to the report.

R&D here is largely driven by foreign companies, mostly US, who account for more than 40% of the total spend — the highest of any EU country. Government accounts for 30% & while 60% comes from business.

EU investment was stagnant overall for the last few years although the top two countries in world are Sweden and Finland.

Innovation Commissioner, Gunter Verhoygen said the EU is on the right track but he warned that countries should not cut back.

“In a time of crisis, it is not the moment to take a break in research investments and in innovation.

“They are vital if Europe wants to emerge stronger from the economic crisis and if it wants to address the challenges of climate change and globalisation.”