Minister Conor Lenihan Launches Science, Technology and Innovation Report ‘Delivering the Smart Economy’

“Strategic investment in R&D is key to economic recovery” - Lenihan

Mr. Conor Lenihan T.D., Minister for Science, Technology and Innovation today (Thursday 22nd October 2009) launched the Science, Technology and Innovation (STI) Report ‘Delivering the Smart Economy’. “This report sets out our achievements to date under our Science Strategy and how investment has resulted in significant jobs growth at locations around the country” The Minister said.

This Report follows the first report on the implementation of the Strategy for Science, Technology and Innovation (SSTI). The strategy is an integrated whole-of-government approach aimed at transforming Ireland into a competitive knowledge economy. Eight Government Departments, advisory bodies, state agencies and higher education institutions have worked together to successfully implement the strategy. Total Research and Development (R&D) spending has almost trebled over 10 years. Total R&D spending across all sectors of the economy, public and private, – is estimated to have climbed to €2.6 billion in 2008, which is equivalent to 1.66% of the Gross National Product (GNP).

Launching the STI Report, Minister Lenihan said “This report together with the findings of the Business Expenditure on Research and Development (BERD) survey for 2007 and 2008, confirms that substantial progress has been made in achieving the objective of making the transition to a knowledge economy.

“Ireland has a unique environment that encourages linkage and convergence between all the participants in a collaborative research landscape. Government Departments, funding agencies, regulatory authorities, academia and industry are all interconnected creating a dynamic research environment,” the Minister added.

The Renewed Programme for Government recognises the importance of productive public investment in R&D and sets a target of achieving a national R&D investment target of 3% of GDP. The significant infrastructure investment underpinning the SSTI over the period to 2013 is central to economic recovery. The commercialisation of research investment and the generation of a strong reputation for higher education and research, as well as output of quality graduates at both undergraduate and postgraduate levels, will allow for a sustainable enterprise base underpinned by productive innovation activity across the economy.

The Minister continued, “Strong progress is being made in implementing the key actions in the SSTI. We are building strong linkages to ensure commercialisation of an increased flow of new ideas and knowledge to produce innovative products and services that will win export markets and create much needed sustainable employment.”

Also in attendance was Mr. Carl Jackson, Chief Executive Officer at sensL. This company is supported by Enterprise Ireland, with an investment of just over €500,000 to assist the them to perform vital R&D and win international contracts and EU funding. In addition sensL has received venture capital support from Delta Partners. Mr. Jackson said, “Government support of companies like sensL is vital to the creation of the next generation start-ups that are developing hi-tech products sought after by international renowned groups like Stanford University and the European Space Agency. Through Enterprise Ireland, we have been able to adapt our low light technology for use beyond the medial technology sphere. sensL is currently developing solutions in the radiation detection arena for Homeland Security as-well as the European Space Agency that will enable the automated landing of spacecraft for future Mars missions”.

Minister Lenihan concluded, “These are real positive indicators that will be built upon to sustain progress in the current difficult financial situation. The development of the “smart” or innovation-based economy is the key challenge facing Ireland, all the more so as we lay the ground for economic recovery. The low corporation tax base / highly educated workforce combination are no longer sufficient in themselves to sustain our future. Our enterprise and investment landscape must continually transform itself to stay competitive. And today the model we strive for is the Smart Economy built on the dual strengths of our innovation and entrepreneurship.”

Science, Technology and Innovation (STI) Report ‘Delivering the Smart Economy’ (PDF, 2.9MB)

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For more information contact:

Department of Enterprise, Trade and Employment Press Office: Tel. 01-631 2200

For more information about sensL contact:

AnnMarie Barrett Tel: 021 4350442, Website: www.sensL.com, Email: ambarrett@sensL.com

Notes for Editors

• BERD (Business Expenditure on Research and Development) rose to an estimated €1.56 billion in 2006 – a 17% increase on the previous year – almost double the level recorded in 2000. This trend continued in 2007 with BERD climbing to €1.60 billion. It is estimated that BERD will reach €1.68 billion in 2008. The ratio of BERD to economic activity as measured by GNP increased from 0.96% in 2005 to 1% in 2007. It is likely that this ratio will rise further in 2008 to an estimated 1.08% of GNP.
• Early estimates of R&D activity levels point to sharp increases in the number of firms performing significant R&D ( > €2 million), with 164 significant R&D performers in 2007 compared to 118 in 2005.There also appears to be evidence of firms who were smaller performers of R&D in 2005 stepping up activity to become larger performers in 2007.
• Higher Education R&D spending has almost quadrupled in current terms over 10 years and is now at the EU and OECD average levels. This increased investment in the higher education sector is having a significant impact in terms of human capital development, feeding through to attraction of Foreign Direct Investment (FDI) and commercialisation.
• SFI-funded world-class research teams work with over 300 companies which include many blue chip multi-nationals, such as GlaxoSmithKline, Intel, Hewlett Packard and Pfizer amongst others. It is through this close industry engagement, primarily through their Centres for Science, Engineering and Technology and Strategic Research Cluster Programmes, that SFI is supporting the employment of over 56,000 people in Ireland.
• Enterprise Ireland and the IDA are also working closely with companies to strengthen the research and technological base of the enterprise sector in order to drive productivity, competitiveness, exports and jobs.
  • In 2008 EI assisted 698 companies to perform R&D. Growth in researcher capacity, led by Science Foundation Ireland, coupled with the enhanced R&D tax credit, continues to be a major attraction for overseas investors, and is resulting in a series of significant industrial R&D investments in Ireland by IDA supported companies.
  • Over 40% of IDA investments in 2008 were in R&D with approx. €420 millions of investment. Currently there are about 170 IDA supported companies with a significant R&D mandate with a spend of approx. €1.7 billion. Significant new R&D announcements in 2008 included investments by many world-class companies including Boston Scientific, Oriflame, Business Objects, Synopsis, EMC, IBM (three separate announcements) ON Semiconductor, AON Corp. and CITI.
• Βy the end of 2008, EI’s Campus Incubation Programme had supported 240 companies located in Business Incubation Centres employing over 1,000 people. This provision of valuable business facilities is supplied in conjunction with the existing work of the Enterprise Ireland Community Enterprise Centres which are home to 735 companies employing over 3,600 people.

SensL – Company supported by Enterprise Ireland

Headquartered in Cork, sensL is a start-up company that has developed and marketed technology originally developed from academic research at the Tyndall National Institute with support from Enterprise Ireland. The company has developed novel technology that detects weak light signals – down to the single photon – and its low light diagnostic tools are used by medical imaging, homeland security and analytical instrument manufacturers. One of sensl’s products improves the detection of cancer, Alzheimer’s and cardiac disease in PET/MRI scanners and is already in use at the Samsung Medical Centre in South Korea. Stanford University, California will incorporate sensL’s detectors into the next generation PET/MRI scanners making more sensitive, compact and cost-effective systems in order to produce

enhanced brain images.

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