BUSINESS
R&D key to export growth: report
14-01-2008
by Emmet Ryan
Research and development in IT is key to driving Irish exports, according to a new report by Forfas.
The economic development authority issued its end-of-year statement on Monday, citing research and development as a crucial area for Ireland's continued economic growth.
"Innovation is key to increasing our export growth. The transformation of the Irish science and innovation system over the past 10 years has been dramatic. Forfas research and innovation expenditure data shows Ireland has reached the EU average spend on higher education R&D as a proportion of GNP [gross national product], and business R&D expenditure continues to grow," said Martin Cronin, chief executive of Forfas.
The body's research estimated that private and public investment in R&D in agency firms have reached a new record of EUR2.5 billion in 2007, equivalent to 1.57 percent of GNP, with EUR1.56 billion of that investment coming from the private sector.
The report found that mobile technology was an area which received significant attention in 2007 on the R&D front. The IDA approved support for 45 major new mobile enterprise R&D investments worth a total of EUR310 million last year.
Forfas said it expects there to be further development in R&D over the coming year. "The Government's Strategy for Science, Technology and Innovation has ambitious targets for doubling the number of firms doing R&D and thereby increasing returns to enterprises from innovation by doubling the high-end skills and researchers available from humanities, social science and science and technology disciplines to undertake research and manage innovation in firms," said Cronin.
"The fundamentals are in place and the challenge now is to ensure that firms can effectively absorb the ideas and the high skills from investment in research to serve customer needs better and compete in international markets," he said.
The Forfas chief executive said developing areas such as R&D would be of great importance to Ireland in the coming years. "We are facing a more testing international economic environment which presents further challenges to the success of enterprise and economic sustainability and growth," said Cronin. "Fifteen years of economic success, however, has provided Ireland with resources and strong enterprise foundations which mean that we are now better placed than ever before to tackle issues and successfully progress to the next phase of economic development. Substantial challenges for enterprise will persist but Ireland is well placed to address them."
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