Enhanced public funding urged for research and technological advancements by Ibec.
Facing a Gap: Ireland's Research and Innovation Investment
Ireland's current model for public investment in research and innovation falls short of the nation's ambitions to lead Europe in innovation. In a recent report by Ibec, a business group, it's suggested that Ireland should boost public investment in R&D and innovation to 1% of Gross National Income by 2035.
Comparatively, the Dutch, Swedes, and Danes, among other European countries, pour more resources into research and innovation, contributing significantly to their economic growth. Yet, Ireland lags behind, with public funding accounting for just about 13% of the €8 billion spent on research and innovation [4]. Ibec calls for an increase to align Ireland's investment levels with EU averages [2].
To address this imbalance, Ibec proposes establishing a new multiannual fund, inspired by the Programme for Research in Third-Level Institutions. This fund would support the long-term development, upkeep, and talent requirements of Ireland's universities [2]. Moreover, fostering cross-sector collaboration between businesses, academia, and government agencies could help drive innovation in Ireland [1].
Meadhbh Costello, Senior Policy Executive at Ibec, emphasizes the importance of this initiative. "Business R&D spending has surged, yet public investment is lower today than it was in 2007. In contrast, countries like the Netherlands, Sweden, and Denmark have increased public research budgets by 20% to 40% in the same period" [1].
The upcoming review of the R&D tax credit offers an opportunity to redesign the system specifically to speed up the adoption of new technologies, strengthen collaborations with universities and research institutions, and position Ireland as a collaborative innovation hub within global corporate networks [2]. By addressing these structural weaknesses and investing in research and innovation, Ireland can bolster its standing as a 'Strong Innovator', aiming to ascend the ranks of European Innovation Leaders.
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Comparing Public Investment in Research and Innovation:
Ireland's public investment in research and innovation falls short compared to European countries such as the Netherlands, Sweden, and Denmark. Here's a brief comparison:
- Ireland: Ireland lags behind in public investment, contributing around 13% of the €8 billion national spend on research and innovation [4]. Ibec pushes for increasing public investment to 1% of GDP to level with EU averages [2].
- Netherlands: The Netherlands excels in research and innovation, with an emphasis on science and technology. Its public investment often outweighs EU averages, bolstering its economic growth.
- Sweden: Sweden is known for its high investment in research and development, with both public and private sectors contributing significantly. Its R&D expenditure ranks among the highest in the EU, underpinning its innovation-driven economy.
- Denmark: Denmark also heavily invests in R&D, with a strong emphasis on public-private partnerships. Its high level of investment supports its position as a tech and innovation leader.
Proposed Changes to Address the Imbalance:
To tackle this imbalance, Ireland plans to take the following measures:
- Increase Public Investment: Ibec's proposal to increase public investment to 1% of GDP intends to align Ireland's investment levels to EU averages [2]. This could help bridge the gap between Ireland and other European countries.
- Enhance Government Support: Efforts like Enterprise Ireland's investments and collaborations with academia and industry titans are vital. These initiatives nurture innovation and support growth in sectors like fintech [5].
- Foster Cross-Sector Collaboration: Encouraging partnerships among various sectors can maximize resources and push innovation forward [1].
By implementing these changes, Ireland aims to fortify its research and innovation ecosystem, aligning with the investment levels of other leading European countries.
The business group Ibec suggests that Ireland should increase public investment in research and development and innovation not only to catch up with the EU averages but also to bolster its economy, as demonstrated by countries like the Netherlands, Sweden, and Denmark. A more substantial investment in technology would create a platform for collaboration between academia, businesses, and government agencies, thus fostering innovation within Ireland.
