1 Ireland's Smart Specialisation Strategy for Research and Innovation Summary July 2014 DEPARTMENT OF JOBS, ENTERPRISE AND INNOVATION 2 1. Introduction National or Regional Research
and the local delivery of assistance to entrepreneurs and smaller firms via the new Local Enterprise Offices.
chaired by the Secretaries General of the Departments of the Taoiseach (Prime minister) and of Jobs, Enterprise and Innovation
and published. 3 Medium Term Economic Strategy 4 2. 2 Enterprise Context The overall objective of Enterprise Policy as set out by the Department of Jobs,
Enterprise and Innovation (DJEI) and Forfás over many years4 is to grow incomes and standards of living in Ireland through competitive and sustainable enterprise, innovation, productivity and employment growth.
Ireland's enterprise policy is focused on the core planks of productivity and innovation, delivering on an agenda of enterprise transformation to create a competitive and sustainable platform for growth and job creation.
Ireland's enterprise policy embraces start-ups, Irish owned firms (both nationally and internationally trading) and foreign direct investment, including greenfield and expansions.
There is a strong focus on intensifying promotion of entrepreneurship and the scaling of Irish owned firms
Ireland's enterprise policy continues to focus on an export-led growth strategy as the most sustainable route to deliver jobs
Enterprise policy is focusing on realising the economic benefits of its investments to date in R&d infrastructures,
Ireland's enterprise policy aims to derive increased economic benefits by building sector-specific ecosystems,
and cooperation between enterprises (particularly SMES) and fostering better exploitation of innovation. 2. 3 Ireland's Enterprise Structure Ireland's enterprise structure is made up primarily of firms that:
clean 4 Making It Happen Growing Enterprise for Ireland, Forfás/DJEI, 2010 5 technologies, tourism, construction etc.
Foreign owned MNCS have been key to delivering on Ireland's enterprise policy since the 60s.
and Social enterprises also provide employment opportunities and contribute to the social fabric of local communities,
The categorisation of Ireland's enterprise sectors set out in Figure 1 is based on a detailed analysis of sectors in Ireland and future areas of opportunity for Ireland over the period to 2020,
CSO databank, Forfás BERD surveys Indicators also show that Enterprise R&d intensity continued to increase.
The BERD Survey of 1, 600 enterprises engaged in R&d in 2011 showed that 27 per cent had spending of 500,
and a reputation for research excellence and has an increasing base of enterprises engaging in RD&I activity with RD&I active enterprises demonstrating better resilience in the current difficult economic climate.
and direct support to the enterprise sector to help individual companies to build their capacity for research and development.
and increase innovation in the enterprise sector to accelerate Ireland's economic path of sustainable growth.
In the last decade we have trebled the level of investment in research and development, providing enterprise support for R&d, investing in human capital, physical infrastructure and the commercialisation of research.
This investment has contributed significantly to an increase in Foreign Direct Investment (FDI), the competitiveness of indigenous enterprise and to the creation and application of new knowledge and technologies.
and enterprise partners in locations in more than one region for example INSIGHT and AMBER9. Ireland also seeks to leverage the national investment to catalyse all island
However, the enterprise base in a priority area typically spans more than one region and research and development needs in companies are multi-disciplinary requiring collaborations across a number of research areas drawing on research strengths nationally.
and capacity and particularly areas that have the greatest potential to deliver economic return through enterprise development, employment growth and job retention in Ireland;
and Ownership The high level Government appointed Research Prioritisation Steering Group comprised a range of entrepreneurial actors including representatives from academia, enterprise, finance, public sector organisations and advisory bodies and the Chief
I. 6. 2 Analysis of context and potential for innovation 6. 2. 1 National Research and Enterprise Strengths and National and Global Opportunities A significant input to the work of the Steering
Global Market Opportunities, Growth Markets and the Positioning of The irish Enterprise Base10; Drivers, Trends and Societal Issues from a National Perspective in a Global Context11;
the enterprise dimension, the societal dimension, and Ireland's existing research base, provided context and a basis for assessing the potential for innovation 6. 2. 2 International Review The group also examined consultative prioritisation exercises in other countries (UK, Sweden, Denmark, The netherlands, and Japan).
and Israel were facilitated also by Steering Group members during the process. 10 Review of global market trends, growth markets and the positioning of The irish enterprise base, 2011.
The rest of the membership comprised representatives from each of the relevant funding organisations active in the thematic area and representatives from the university sector, the institutes of technology sector and the enterprise sector.
Creative and Cultural Enterprise ICT including next generation internet and computing, information security, software, gaming, social networking, digital media, digital content, e-learning;
Creative and cultural enterprise. Innovative Processes for Enterprise (Advanced Manufacturing and Business Services) Advanced manufacturing (including applications in ICT, pharmaceuticals, biopharmaceuticals, bio processing, medical technologies, food and drink etc.;
Business and services innovation (e g. financial services, educational services, etc. Potential priority areas were established based on a top down process drawing on priorities identified at EU level
which Irish-based enterprises already compete or can realistically compete What are the potential applications or products and
In parallel, the Steering Group invited the main enterprise and higher education representative bodies to provide formal written inputs to the stakeholder engagement documents compiled by each TWG.
and recommended to Government as areas that would become the focus of future research 17 investment that is oriented towards The irish enterprise base (see Table 3). Detailed descriptions of the priority areas
(i e. total Government investment in research less the research component of the block grant to HEIS and the funding administered by the enterprise development agencies for in-company performed R&d).
Alignment and coordination of funding programmes and calls across enterprise agencies. A requirement for all funding agencies to adopt a stage-gate approach based on excellence
Greater emphasis on fostering interdisciplinary research, both within the natural sciences and also with social sciences and business disciplines in the context of innovation In services. 20 Deeper engagement between enterprise agencies
and the national health system to maximise synergies between the biomedical enterprise base and research in the public health sector.
Active communication and cooperation between the enterprise development agencies and clinicians and medical regulatory bodies to ensure mutual understanding of regulatory challenges facing next generation medical products.
Each action plan seeks to ensure an alignment between publicly funded research within the priority areas and the research needs of enterprise.
The PAG carried out a series of 6 thematic workshops aligned with the Priority Areas to facilitate the sharing of information between research funding agencies and departments on enterprise research needs within specific sectors.
The objective was to synthesise this knowledge into a comprehensive national picture across all sectors of internationally trading enterprise.
The collective understanding that emerged from these workshops has been opened up for scrutiny and validation via subsequent direct engagement with enterprise.
relevant to the competitiveness of Irish based enterprise. SFI programmes support academic researchers and research teams;
excellence and importance to enterprise recruitment initiatives to attract iconic research leaders to Ireland, including support for the development
Enterprise Ireland Provides direct supports for R&d activity within Irish firms, and supports for companies to build R&d capability and acquire new technology through licensing.
This is a joint initiative between Enterprise Ireland and IDA Ireland allowing Irish companies and multinationals to work together in these centres.
and that is why the enterprise agencies decided to examine new ways of targeting support at manufacturing.
and the Enterprise Ireland/IDA programmes will support their adoption and utilisation. 8. Monitoring and Evaluation Through the Prioritisation Action Group,
1. To stretch the public enterprise support system in order to maximise the impact of public investment in R&d under Research Prioritisation. 2. To assess the success over time of the implementation of Research Prioritisation.
The PAG compiled a list of 78 metrics for the enterprise support environment at varying levels of granularity categorised into inputs
and to ensure that the enterprise development system is aligned accordingly, a set of targets were developed for the agencies
funding for business sector R&d, administered via State agencies including IDA Ireland, Enterprise Ireland and others;
June 2013) Assessment of enterprise research needs to build a comprehensive national understanding of research needs across all sectors of internationally-trading enterprise completed has been carried out;
both public and private (extremely low by enterprises) Low innovative deal flow and private funding The challenge of ICTS National context Mutual learning and collaboration with other regions Balearic islands pose many similarities Coordination with the central Government must be reinforced European
and research mentoring Development in Africa requires innovative and affordable technologies, an opportunity for exporting enterprises Solid relation with other territories,
experimental) and high added value services to knowledge-based enterprises Promote interaction among firms and with universities and research centers Linked to universities
relatively substantial resources are invested in the early stages to pick up ideas that have the potential to become new enterprises,
Potential actors relevant to the RIS3 process span from public authorities to universities and other knowledge-based institutions, investors and enterprises, civil society actors,
The most important types of organisation that need to be involved in the RIS3 process are public authorities, universities and other knowledge-based institutions, investors and enterprises, civil society actors,
managerial leadership (the people who manage the'enterprise function'in the public, private and third sectors;
2003) 36 and Technopolis (2011) 37 36 Asheim B.,Isaksen A.,Nauwelaers C. and Tötdling F. 2003), Regional innovation policy for small-medium enterprises
increased quality of production Increase of research activity in a region Research subsidies to enterprises or universities/research centres Increase in research expenditure in firms, increase in patents or publications Improved innovation performance,
Number of new enterprises created in the region, number of enterprises having adopted a new technology, number of staff reporting new working behaviours, etc.
Increase rate of productivity in regional SMES Increased share of turnover based on innovation, increased export share, new products on the market
Clusters, Innovation friendly business environments for SMES, Research infrastructures, centres of competence and science parks, Universities-enterprise cooperation, Digital agenda, Key enabling technologies, Cultural
and existing enterprises to innovate and develop. The support should aim to increase the innovation capacity of SMES
It is relevant for the regional authorities to adapt their offer of support services to the demand of the different types of enterprises:
and especially micro-enterprises, are heavily dependent on their regional environment where proximity plays a key role for innovation,
covering all phases of enterprise creation and development, and a link to European activities that support SMES in setting up or joining crossborder knowledge networks and collaborations and in realising European research and innovation projects.
supporting entrepreneurship spirit and enterprise creation and development; enhancing innovation support for existing SMES; building capacities in innovation agencies and SMES by spreading information on new tools to support innovation in SMES
46 http://ec. europa. eu/small-business/funding-partners-public/finance/index en. htm 47 See for example the Lead Market Initiative of DG Enterprise and Industry at:
http://ec. europa. eu/enterprise/policies/innovation/policy/lead-market-initiative/48 http://www. europe-innova. eu/web/guest/home 49 http
interconnecting SMES through the Enterprise Europe Network and in particular via brokerage events, platforms, survey mechanisms, Internal Market information, etc.
Useful links and further information Enterprise Europe Network52; 51 http://ec. europa. eu/research/fp6/index en. cfm?
p=9 eranet 52 http://www. enterprise-europe-network. ec. europa. eu/index en. htm 73 Support services based on direct customised assistance:
59 For the 2014-2020 programming period, the European commission has proposed establishing a Programme for the Competitiveness of Enterprises and Small and Mediumsized Enterprises (COSME.
and sustainability of the Union's enterprises, including the tourism sector, o encourage an entrepreneurial culture
o improve the framework conditions for the competitiveness and sustainability of Union enterprises, o promote entrepreneurship including specific target groups,
/enterprise/sectors/ict/key technologies/index en. htm 56 http://ec. europa. eu/research/sme-techweb/index en. cfm 57 http://ec. europa
Science parks provide the advanced infrastructure on which research-intensive enterprises rely, besides the location factor, often in close proximity to a university.
Advisory services for the improvement of the economic and environmental performance as well as the climate-friendliness and resilience of the farms, forest enterprises and rural SMES,
the European Social Fund and the Cohesion Fund and repealing Regulation (EC) No. 1083/2006.98 http://ec. europa. eu/enterprise/sectors/ict/key technologies/kets high level group en. htm 88
These positive impacts are highlighted in different EU policy documents and studies. 102 99 http://ec. europa. eu/enterprise/sectors/ict/files/communication key enabling technologies sec1257 en. pdf 100
In this respect, the Europe Enterprise Network could provide assistance in organising matching events or assist in coordinative actions106;
105 European Cluster Observatory, www. clusterobservatory. eu 106 Enterprise Europe Network, www. enterprise-europe-network. ec. europa. eu 91 Promote transnational
The world is flat and all elements of an enterprise value chain can be located anywhere in the world through FDI or outsourcing;
Today, even high added-value elements of the enterprise value chain (i e. R&d&i, support services, access to finance, design) can be produced outside OECD countries.
For the 2014-2020 programming period, the European commission has proposed establishing a Programme for the Competitiveness of Enterprises and Small and Mediumsized enterprises (COSME.
and globally. 112 111 http://ec. europa. eu/enterprise/policies/sme/market-access/files/com 2011 0702 f en. pdf 112 http://ec. europa. eu/cip/files/cosme
In the area of structural funds, financial instruments have been set up to support enterprises, urban development, energy efficiency and renewable energies through revolving funds.
RSFF 113 http://ec. europa. eu/enterprise/policies/finance/cip-financial-instruments/index en. htm 114 http://www. margueritefund. eu/97
and entities of all sizes and forms, including corporations, midcaps, small and medium-sized enterprises, special-purpose companies, public-private partnerships and joint ventures, research institutes, universities
and enterprises commercialising their results and services). A new RSFF facility to provide loans and leases to SMES and smaller mid-sized firms,
/RSI/index. htm 116 http://ec. europa. eu/enterprise/policies/finance/cip-financial-instruments/index en. htm 117 http://www. eib
which can be invested either in the form of equity, loans, guarantees or other forms of repayable investments in enterprises, mainly SMES, public private partnerships, urban development projects;
Joint European Resources for Micro to Medium Enterprises is an initiative of the European commission's Directorate General for Regional Policy (DG REGIO) developed together with the European Investment Fund
and food processing enterprises, rural nonagricultural micro-and tourism businesses, or in legal or natural persons carrying out specific investment activities in rural areas, in accordance with the relevant rural development programmes.
developing Trans-European Networks (TENS), supporting small and medium-sized enterprises (SMES), protecting and improving the environment
credit lines to banks and financial institutions to help them to provide finance to small and medium-sized enterprises with eligible investment programmes
For the 2014-2020 programming period, the European commission has proposed the establishment of a Programme for the Competitiveness of Enterprises and Small and Mediumsized enterprises (COSME.
europa. eu/enterprise/policies/innovation/policy/lead-market-initiative/public-proc en. htm 128 http://ec. europa. eu/internal market/publicprocurement/docs/indicators2009 en. pdf
as the partnership contracts and strategic reference frameworks include different strands of 129 http://ec. europa. eu/enterprise/policies/sme/business-environment/public-procurement/102
id=7633 137 http://www. enprotex. eu 138 http://ec. europa. eu/enterprise/policies/innovation/policy/public-procurement/index en. htm
Enterprise Europe Network141) and other bodies that can assist in developing demanding specifications; To invite and guide procurers to join forces with others,
The Enterprise Europe Network also developed 3 networks of members dedicated to facilitating the meeting between innovative SMES and public buyers of innovation148;
/inno-grips-ii/article/fostering-innovation-through-public-procurement 141 http://www. enterprise-europe-network. ec. europa. eu/index en. htm 142 https
/lang=en 155 http://www. london. gov. uk/rp/156 http://ec. europa. eu/enterprise/policies/innovation/policy/lead-market-initiative/pp
-conf2 en. htm 157 http://ec. europa. eu/enterprise/policies/innovation/policy/public-procurement/index en. htm 105 Green growth Why should green growth
and support innovative social enterprises. Social innovations are innovations that are social in both their ends and their means.
There is a risk of it being hampered by insufficient knowledge, limited support of grass roots, social enterprise and social entrepreneurship activities
For example, social enterprises may not have as easy an access to finance from banks as other enterprises.
It can also play an important role in the modernisation and transformation of the public sector and public services, through cooperation with social enterprises, NGOS and civil society,
incubation facilities can be provided for social enterprises and citizens'initiatives as well as measures to stimulate the development
and scaling-up of social enterprises aiming at the creation of social value. Public sector is central in the delivery of many services of social and economic value.
111 Micro-finance has proven to be a good tool to support social innovation enterprises.
and to finance easier for social enterprises. Co-initiators of the SBI are DG Enterprise and DG Employment, Social affairs and Inclusion.
Early December, the Commission proposed the Regulation on European Social Entrepreneurship Funds. 169 DG Enterprise has mobilised CIP funds for social innovation.
CIP funds will create a social innovation prize, exploit the development of incubators for social enterprises,
and organise a conference on workplace innovation in cooperation with the Flemish government. They are also coordinating the Social Innovation Europe Initiative,
The mission of the main organizations in the region for the implementation of the vision (by specific interventions in the period t1-t0) The innovative enterprises, business networks and regional clusters generate innovation
development of curricula partnerships between educators and enterprises in the fields with regional smart specialization potential, in the view to actualize the education offer (specialties
and students in enterprises and coupling them with training coursed (for example how its made...or new technologies presentations;
and masterands that take part to practical stages/internships i innovative enterprises from priority sectors (through bourses or other facilities).
where enterprises in the field are complaining of being difficult to find employable persons among other reasons this is also caused by the deficitar image of the sector.
Support for the inovtive enterprises in Northeast Region Measure 2. 1: Assisatnce servicesfor transfroming inovative ideas in business ideas To this purpose the following project ideas are considered of priority:
9 o Implementation of programs for simulated enterprises to facilitate translation into practice of inovative ideas of puils and students;
External knowledge should be used to improve level of R&i by supporting the participation of high level international researchers as project directors in host institutions in Romania (enterprises
Integrating the new technologies within the business model of a small and medium enterprise is a difficult job
by a vibrant enterprise sector and marked export orientation. Since the late 1990s the region has experienced rapid economic growth,
and the Region has one of the highest concentrations of enterprises and exporters in Romania.
to promote small and medium enterprises (SME) financing and marketing; and to support basic and applied research.
Enhancing the competitiveness of small and medium-sized enterprises TO11. Enhancing institutional capacity and an efficient public administration PA2:
3. enhancing the competitiveness of small and medium-sized enterprises, the agricultural sector (for the EAFRD) and the fisheries and aquaculture sector (for the EMFF;
ii) developing links and synergies between enterprises, R&d centers and higher education, in particular product and service development, technology transfer, social innovation and public service applications, and demand stimulation;
The West Region is one of the most enterprise-and trade-dense regions in Romania.
surviving firms are defined as those enterprises that are sampled in both years, while exiting firms are sampled those only in 2005.
Finally, the new start-up enterprises (NSU) are those whose date of incorporation is more recent than 2005
The Enterprise Ireland provides a successful model of organization for this purpose (see Box 2). Box 2-Enterprise Ireland Enterprise Ireland is the government organization responsible for the development and growth of Irish enterprises.
It works in partnership with Irish enterprises to help them start, grow, innovate and conquer market share on global markets.
Enterprise Ireland is a body corporate established by the Industrial Development (Enterprise Ireland) Act 1998.
The members of the Board of Enterprise Ireland constitute the members of the agency. The agency operates in accordance with the provisions of the Industrial Development Acts 1986-2009 and under the aegis of the Minister for Jobs,
Enterprise and Innovation who is empowered to provide funds to the agency to enable it to discharge its obligations;
The Enterprise Ireland Board and its relevant committees have the authority to purchase shares (ordinary and preference) in client companies.
Under the terms of the Industrial Development (Enterprise Ireland) Act 1998, all functions and powers are reserved to the Board,
Enterprise Ireland fully complies with Government policy on the pay of Chief executives and State Body employees and with Government guidelines on the payment of fees to Board members.
Board members are appointed by the Minister for Jobs, Enterprise and Innovation, with the consent of the Minister for Public.
The Investment Portfolio Review Committee has responsibility for overseeing the management of Enterprise Ireland's investment portfolio
and for maintaining an oversight of the investment activity of funds supported by Enterprise Ireland under the various seed and venture capital programmes.
and controls the administration of Enterprise Ireland's budget, monitors progress against organizational targets, and considers matters of corporate policy,
Enterprise Ireland's approach to R&d and innovation is guided by the Government's Strategy for Science, Technology and Innovation, 2006-2013,
which is coordinated by the Department of Jobs, Enterprise and Innovation. The R&d Fund was launched in early 2008
to develop linkages and synergies between enterprises, and to improve R&d infrastructure in the region. 142.
Enhancing the competitiveness of small and medium-sized enterprises 145. The role of SMES is crucial to ensure economic development of the region,
Small and medium sized enterprises in the West Region need support to become competitive. Potential measures targeted at SMES could aim to improve labor productivity and energy efficiency.
including small and medium size enterprises. 152. Vocational training also needs to be expanded significantly and upgraded in order to supply a sufficient number of qualified technicians (specialized labor).
Enhancing the competitiveness of small and medium-sized enterprises TO11. Enhancing institutional capacity and an efficient public administration PA2:
facilitating knowledge-transfer and the adoption of existing technologies by enterprises; overcoming potential gaps in sectoral value chains and helping firms meet quality standards;
providing value added services to enterprises and acting as incubators for start-offs training Overall, these functions respond to the technological needs,
and encourage connections between enterprises will be prioritized, particularly collaborative projects between two or more SMES. 74 163.
and to develop links and synergies between enterprises, research and innovation centers, and higher education for the development of products and services, technology transfer, and networking.
and (ii) Improve access of enterprises to support services and foster enterprise development. 164. The technology parks already active in the region would benefit from investments in upgrading.
The partnerships between universities, research institutes and private enterprises, especially the large ones, which have substantial growth potential based on the smart specialization of the region,
Box 5-Support for regional SMES in Georgia The Small Enterprise Assistance Fund (SEAF) launched in 2006 the Georgia Regional Development Fund, a financing mechanisms
Thematic Objective 1 Strengthening research, technological development and innovation and Thematic Objective 2 Enhancing the competitiveness of small and medium-sized enterprises (as defined by EC.
and (ii) the research, development and innovation, within the large enterprises. At regional level, the investment priorities could concentrate on regional competitiveness enhancement
and synergies between enterprises, R&i centers and higher education in particular products and service development, technology transfer and networking Contribute to EU 2020 strategy by increasing the investments in research and development Promote the transfer of knowledge
and mediumsized enterprises 1. 3. Supporting the capacity of SMES to engage in growth and innovation process Contribute to EU 2020 strategy by increasing the investments in research and development Contribute to EU 2020 strategy by increasing the level of employment Supporting access to international markets Promoting the diversification of activities with modern technologies National,
2. Promoting business investment in innovation and research and developing links and synergies between enterprises, R&i centers and higher education in particular products and service development,
and competitiveness center for the auto industry List of preselected projects identified in the Regional Development Plan Number of enterprises that introduced new or significantly improved products,
First tranche of contracts concluded by June 2015 1. 2. Promoting business investment in innovation and research and developing links and synergies between enterprises, R&i centers and higher education in particular products and service development
3) Enhancing the competitiveness of small and medium-sized enterprises;(6) Protecting the environment and promoting resources efficiency (10) Investing in education, skills and lifetime learning;
and service enterprises in the five northernmost counties of Sweden; Norrbotten, Västerbotten, Västernorrland, Jämtland and Gävleborg.
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