Closing Address by Mr Noel Treacy, T.D. Minister for Science, Technology and Commerce, at the Ireland -Israel Business Association Seminar in the Berkely Court Hotel on Wednesday 27th October 1999

At the outset let me extend a very warm welcome to our visitors from Israel and I sincerely hope that you find your short stay in Ireland both productive and effective as well as entertaining. I particularly want to extend a special welcome to Minister Ran Cohen, Minister for Industry and Trade, who I had the pleasure of meeting earlier today. We had a very frank, open and constructive dialogue on our respective approaches to Science, Technology and Innovation as well as our overall policies in relation to the development of indigenous industry.

I would like to compliment the Ireland-Israel Business Association for organising this seminar. I know that you have had a number of contributions from an impressive range of speakers. Seminars such as this are a very practical aspect of furthering economic links between both of our countries. I should say that I am particularly interested in the title of your seminar “Ireland - Israel: Competition or Co-operation”. This is particularly so given the widespread acceptance that international collaboration is an intrinsic part of increasing the pace of innovation and improving competitiveness. I often quote the phrase "Science has no boundaries" and this is particularly apt when considered in the context of your discussions here today. So rather than consider each other as competitors, both Ireland and Israel have much to benefit from increased co-operation in Science and Technology issues given that both of our economies will, in the future, depend on the maximum utilisation of our knowledge, skills and creativity.

A modern knowledge driven economy will be spearheaded by the development of high value added goods and services which will only emerge if businesses are innovative, creative, improve performance continuously and build new alliances. Governments can act as a catalyst to promote greater co-operation not only through the National System of Innovation but also internationally. Such collaboration between both countries can only result in better mechanisms to turn new ideas into successful products and processes.

Your presence here today is indicative of the level of interest in developing Ireland/Israel business ties It is natural that we should seek to co-operate because our two countries have much in common in terms of our geographical and population size; our dependence on exports; our evolution to modern economies with a technology led industrial base;

In addition:

• Both countries are endowed with a well educated and dynamic workforce that is comprised of many young people with skills in a range of technical and specialised areas;
• Both countries have enjoyed strong economic growth driven by exports of hi-tech products and tourism and the EU is also a major market for each of our countries.

Both of these factors are essential ingredients in developing strong companies which can compete on both the domestic and international markets as the rate of progress towards a globalised knowledge-based economy increases.

Ireland has deepened its relations with Israel and this has allowed economic relations between our two countries to grow. The work of the previous Israeli Ambassador to Ireland, His Excellency Mr Zvi Gabay, in significantly facilitating further development of this relationship cannot be underestimated. I look forward to continuing our on-going contacts with your new Ambassador, His Excellency Ambassador Mark Sofer. I also want to take this opportunity to acknowledge the on-going work of Ireland's Ambassador to Israel Mr Brendan Scannell in fostering our relationship and developing further economic links with Israel. Our objective in opening a resident embassy in Israel was to enhance the prospects for developing trade, investment and tourism between both countries and significant progress has been made in this regard.

Today sees a new departure in strengthening this relationship with the signature by our Tanaiste and Minister Cohen of a specific Memorandum of Understanding which provides for a framework of co-operation in the field of Industrial Scientific Research and Technological Development.

It is internationally well known that Israeli Government policy has been designed to take the fullest advantage of technological capabilities and to encourage investment in science-based industries. The approach has been to share the risks involved in the pursuit of state of the art research and development with industry, and through this your Government has created a means for such industries to flourish.

Israel continues to focus on its traditional areas of strength and excellence such as telecommunications, software and electronics through continued extensive research in these technologies. It is expanding its horizons to create world-class industries such as biotechnology and other life sciences.

All of this has been achieved by the combination of a strong academic infrastructure, along with prudent Government support for Research and Development.

As far as Ireland is concerned it is also worth noting that we have made significant progress in recent years. Both public and private investment in Research and Development has increased substantially and our Government has identified further expenditure in this area as a key objective in the context of developing our priority policy areas under our forthcoming National Development Plan for the period 2000 - 2006.

Ireland faces a number of challenges such as:-

• Sustaining existing employment by raising skills levels
• Developing a base of genuinely world class Irish owned companies;
• Embedding foreign companies in the Irish economy; and
• Ensuring that Irish businesses move up the value chain as our cost structure moves up closer to the European average.

All of these challenges can be met by prudent and wise investment in Research and Development and the task now facing us is to devise the appropriate mechanisms to achieve our necessary objectives.

Our immediate priorities, therefore, will be characterised by increased investment in Research and Development in industry in order to facilitate their efforts to adapt to continuous technological change. It will also be necessary to provide the necessary research and technological infrastructure, to support this process.

A further priority will be the development of greater collaboration and a dynamic series of networks, within the National System of Innovation. This will include strategic collaborative partnerships, involving Industry, Third Level Colleges and State Institutions, and International collaboration to encourage Irish access to Research and Technology, developed outside of Ireland.

We have recently completed our first ever Technology Foresight exercise, which aims to identify the key strategic technologies which will underpin our future competitiveness. Investment in world class research infrastructure, in Information and Communication Technologies (ICT) and Biotechnology have been identified as specific areas, where Ireland can be leaders. We are currently working on proposals on the best mechanisms to achieve this objective and these will be shortly considered by our Government.

In international terms Israel continues to develop closer ties with the European Union and is an active participant in the Fifth EU Framework Programme of Research and Technological Development. This allows researchers in both the EU and Israel to participate in research projects and have access to the results of same.

Ireland is already actively and successfully participating in many of these and the Memorandum signed today provides an ideal platform to have a more systematic approach to co-operation between Ireland and Israel under this very important European programme.

There is much, I believe, that our two countries can gain from pooling our limited resources in a bilateral collaborative framework. I would encourage all of you and the wider Irish audience of industry and academia to explore and exploit these upcoming opportunities.

Once again, I would like to thank you all for the opportunity to address you today. I want to wish your Association continued success in the promotion of Ireland/Israel trade and co-operation as we face the exciting Millennium ahead, together.