Speech by Minister of State Dr. Jimmy Devins at the TAFTIE – The European Network of Innovation Agencies Annual Conference

Wednesday 3^rd December

I am very pleased to be invited to open the TAFTIE Annual International Conference and to welcome you all here today, especially the many overseas colleagues from across Europe and a special welcome to delegates from Canada, China and Korea who are attending the TAFTIE Annual Conference for the first time.

TAFTIE, the European network of leading publicly funded innovation agencies, has played an important role in providing support to enterprises to build a strong research and development base and to develop an innovation led culture.

With twenty one participating members from across Europe, TAFTIE can make a significant contribution to strengthening Europe’s economic performance by supporting product, process and services innovation and through implementing national and international Research, Development and Innovation Programmes. I commend you in this work.

It is especially appropriate that Enterprise Ireland would hold the Chair of TAFTIE this year and that Ireland should host the 2008 Annual Conference. Relative to our leading European partners, Ireland has been slow in undertaking significant investment in research and development.

However, over the past 5 years and in particular since the publication of a national Strategy for Science, Technology and Innovation in mid 2006, significant strides have been made.

An EU report published in June of last year noted that while EU R&D intensity has been stagnating at around 1.84% of GDP since 2001, a small number of Member States, identified as Austria, Denmark, Ireland, Germany and Finland, have over recent years experienced rates of growth which, if they are maintained, would advance these countries significantly towards reaching target levels of investment.

While it must be acknowledged that Ireland is growing from a low base, Ireland is amongst a group that is catching up and this catch-up is happening very rapidly.

The Irish government is strongly committed to the development of an innovation driven economy. Ireland’s national strategic initiatives aim to build a strong science base with corresponding growth in our enterprise sector’s ability to create knowledge, to innovate, and to exploit new knowledge across global markets.

Now more than ever, the benefits of such a strategy will be needed if enterprise is to weather more difficult future circumstances and so that when the upturn comes our companies will be ready with new innovative products and services.

In common with economies worldwide, we in Ireland are confronted by difficult economic circumstances. For a country which has enjoyed two decades of economic expansion, a dramatic adjustment of the pace and scale that has currently occurred, is a severe shock.

Economic growth of 6% last year is being followed by expected contraction this year and next, and tax revenues for 2008 are expected to be down. Notwithstanding these difficult economic circumstances, in the recent budget the Government has decided to maintain the tempo of support to Science and Technology in 2009.

Next year, the expenditure provision for Science, Technology and Innovation in my Department’s budget will increase by 3% on the 2008 allocation, and this is now over nine times the level of investment made in 2000.

Ireland’s investment in innovation is already beginning to pay off. Overall increases in publicly funded R&D spending are being marched by strong spending growth in the business and higher education R&D performing sectors. Business Expenditure on R&D accounts for over €1.6 billion.

In addition to in-company R&D, Ireland’s economic competitiveness and growth depends on companies and the research community collaborating to produce technologies that are innovative and that can be brought to market in the shortest time frame possible.

This involves strong collaboration and integration between the State, business and research communities. Three State agencies Science Foundation Ireland and IDA Ireland, Enterprise Ireland are proactive in driving the commercialisation of publicly funded research. The results of these actions are producing results - from the beginning of 2005 until the middle of 2008 the third level sector has disclosed 448 inventions, created 29 start-up companies, filed 250 patents and licensed 118 technologies out to companies.

Now more than ever it is important to get new companies up and running, opening up opportunities for expansion and job creation. The work undertaken by research institutions must be focussed and driven by output centres objectives. One of the barriers to achieving a greater degree of successful commercialisation of research activity has been identified lack of business know-how in the academic system.

To address this problem, Enterprise Ireland has recently undertaken an initiative to attract entrepreneurs looking for their next business opportunity in the “Business Partners Programme”.

This initiative will seek to match potential investors with a large number of new market viable technologies available in Irish third level institutions, to the benefit of both parties.

I note that one of the items for today’s conference is the economic challenges which Europe is facing and you will also discuss experience of collaboration. During these difficult times, we must maintain our focus on the ongoing investment in Science & Technology and we must work together for the common good of all.

TAFTIE as a network not only shares best practice amongst its members in terms of knowledge sharing, but actively seeks opportunities for trans-national co-operation on development programmes and projects that provide added-value to their respective client base.

Increasingly, trans-national co-operation such as that undertaken by TAFTIE members is proving to be an important component that, when translated into strategies and actions, help to support the building of sustainable high value enterprises with an international outlook.

Internationalisation of business enterprises is crucial and no more so than right now. In this regard the theme and focus of to-days conference is very apt.

May I conclude by wishing you all a fruitful and productive conference and an enjoyable stay in Ireland.

ENDS/IP81