Minister Martin welcomes expected €1.5 Billion R&D spend

Minister Micheál Martin, T.D. has strongly welcomed figures which indicate R&D investment by companies is about to surpass €1.5 billion for the first time.

Latest figures confirm that Business Expenditure on Research and Development in 2005 increased by 10% to reach €1.33b with a predicted increase of a further17% to €1.56 billion when 2006 figures are completed.

The Strategy for Science, Technology and Innovation funded as part of the NDP has set a target to grow Business Expenditure on Research and Development from €1bn in 2003 to €2.5bn by 2013.

“It is critical that our manufacturing and business enterprises invest as never before in the knowledge and skill enhancing activities that will underpin their competitive position into the future”, the Minister said.

“The level of increased investment in R&D is a very important indicator that Ireland is making tangible progress towards becoming a knowledge-based economy.”

“Research activity develops and engages people with the skills and innovative ideas capable of creating higher value-added products and processes which enhance competitiveness and will help our enterprise sector thrive in an increasingly competitive global marketplace,” the Minister added.

“The Government will continue to support the manufacturing sector in its drive to up-skill and innovate. The unprecedented budget of €8.2billion allocated in the National Development Plan in support of the Government’s Strategy for Science, Technology and Innovation will lift Ireland’s capacity to generate and exploit new knowledge to a new level.” The improvements in Budget 2007 to the R&D Tax Credit will also drive critical business investment in research and development.

High quality inward investment in 2006, included R&D investments by firms such as Amgen, Cisco, GlaxoSmithKline, PepsiCo and Servier. Among indigenous companies in 2006, more than 550 companies invested €100,000 or more in R&D, with major R&D investments announced by companies ranging from Dawn Farm Foods, Qumas and Foamalite.

“I also welcome the publication of the booklet on the Gross Expenditure on R&D (GERD) nationally. The strong increases in higher education expenditure on R&D are also a positive indicator that we are moving in the right direction.

“The growing investment in research across the system is setting up opportunities for collaboration and sustained development. This will result in greater returns on all our investment,” concluded the Minister.

ENDS/ETE1719

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