DEPARTMENT OF JOBS, ENTERPRISE AND INNOVATION 2 1. Introduction National or Regional Research and Innovation Strategies for Smart Specialisation (RIS3
•They focus policy support and investments on key national/regional priorities challenges and needs for knowledge-based development
private sector investment •They get stakeholders fully involved and encourage innovation and experimentation •They are based evidence
and include sound monitoring and evaluation systems The regulations governing the European Structural and Investment funds for the period 2014
and strategic policy arrangements are in place for effective investment. In relation to research and innovation investment supported by the ESI Funds,
an ex-ante conditionality is the existence of a national or regional smart specialisation strategy in line with the National
Ireland has been left with significant challenges following the economic crisis. The economy is estimated to have shrunk in GNP terms by almost 18 per cent over the period 2007-2012 with
significant adverse impacts on employment and incomes. Government debt has increased from 25%GDP in 2007 to 125%in 2013, fourth highest ratio of government debt to GDP in the
Structural reforms and fiscal consolidation have helped to rebalance the economy underpinning a return to the sovereign bond market
OECD countries, Ireland has shown a resilient export performance despite slow demand in partner countries of the euro area
contraction business investment is at a very low level. It has started recently growing again but acceleration is held back by the high debt of nonfinancial corporations.
work of rebuilding The irish economy, achieving sustainable economic growth, strong public finances, and enduring job creation. â€oeafter exiting the EU IMF Programme,
and services for those who have completed their working years or who have caring responsibilities or a long-term disabilityâ€
a competitive economy that can pay its own way, serve society, and that can survive and thrive
in a reformed euro zone and an increasingly globalised international economy The Action Plan for Jobs 2014, published on 27 february,
entrepreneurs and smaller firms via the new Local Enterprise Offices. The Action Plan for Jobs
also has a focus on specific sectors in the economy, such as agriculture and food, tourism aviation services, the green economy, retail and construction and property
A strong commitment to oversight and implementation is key to ensuring the effectiveness of the Plan.
General of the Departments of the Taoiseach (Prime minister) and of Jobs, Enterprise and Innovation which reports to the Cabinet Committee on Economic Recovery and Jobs.
2. 2 Enterprise Context The overall objective of Enterprise Policy as set out by the Department of Jobs, Enterprise and
Innovation (DJEI) and Forfã¡s over many years 4 is to grow incomes and standards of living in
Ireland through competitive and sustainable enterprise, innovation, productivity and employment growth ï¿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
ï¿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, further developing Ireland†s proposition for FDI in the
face of intensified global competition and facilitating collaborative interactions by firms across the supply chain and throughout the country
ï¿Ireland†s enterprise policy continues to focus on an export-led growth strategy as the
most sustainable route to deliver jobs and growth that includes ensuring that policies are in place to support an efficient
and cost competitive market for locally trading activities ï¿Enterprise policy is focusing on realising the economic benefits of its investments to date
in R&d infrastructures, by strengthening our IP framework, by brokering partnerships between firms and research institutes,
Ireland†s enterprise policy aims to derive increased economic benefits by building sector-specific ecosystems, stimulating increased inter-firm linkages between our Irish
adjustment of industry to structural changes, encouraging an environment for initiative 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
•Are export oriented (or have the potential to export and internationalise including •Irish owned firms that are regionally spread
and create employment for a range of occupations, across a number of sectors involved in services and
4 Making It Happen †Growing Enterprise for Ireland, Forfã¡s/DJEI, 2010 5 technologies, tourism, construction etc.
Investment •are owned foreign, and are generally larger scale entities. Foreign owned MNCS have been key to delivering on Ireland†s enterprise policy since the
60s. The structure of the MNC base has transformed over the past decades to evolve from what was originally manufacturing plants,
Services, to Customer Technical Contact Centres, to Services sectors and activities as well as manufacturing. The attraction of FDI plays a key role in
pump-priming new sectors and activities in the economy •Are at start-up stage, driven by Ireland†s entrepreneurs
•Entrepreneurship is associated typically with innovative new firms competing with, and ultimately displacing, obsolete existing firms
Ireland†s future economic growth. Evidence demonstrates a positive correlation between entrepreneurship and economic performance in terms
of growth, firm survival, innovation, employment creation, technological change, productivity increases and exports 5 •A number of start-ups will internationalise at an early stage including what
determining the performance of Ireland†s entire economy †particularly if they are highly productive and innovative.
efficiently produced goods and services can result in increased Direct Economy Expenditure and contribute to an internationally competitive
operating environment for all businesses •There are also a number of foreign owned entities (many larger scale) that
have invested here to serve the domestic market including those in the hospitality, retail, communications sectors for example.
They play a key role in stimulating competition leading to increased innovation, enhanced management capabilities and technology adoption;
and •Social enterprises also provide employment opportunities and contribute to the social fabric of local communities,
and today many operate in a more commercial sphere 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, as set out in Making It Happen, which was informed through consultation with key stakeholders and companies (nationally and internationally based.
The categorisation 5 Action Plan †The European Agenda for Entrepreneurship, European commission, COM (2004 6
acknowledges the importance of both services and manufacturing activities to Ireland†s future economic growth, and the fact that the former distinction between these activities has
become increasingly blurred. Convergence and the concept of adjacent possibilities transcend the current definition of sectors,
and new opportunities will arise at the blurring of the edges of existing sectors. The sectoral cohorts are set out as follows
A building on Ireland†s strengths B: Emerging opportunities and untapped potential C a renewed focus on mature sectors
D: Locally Traded Services Figure 1: Sectoral Categories in Ireland Source: Forfã¡s 2. 4 Business Expenditure on R&d (BERD
Business Expenditure on R&d (BERD) has increased from â 1. 2 billion in 2003 to over â 1. 96
this speaks to the success in embedding the practice of R&d investment in companies in Ireland
Indicators also show that Enterprise R&d intensity continued to increase. The number of firms active in R&d increased by a third from 1, 200 in 2005 to just over 1, 600 in 2011.
Survey of 1, 600 enterprises engaged in R&d in 2011 showed that 27 per cent had spending of
maximise Ireland†s return on investment in research is emphasised explicitly in the Higher Education system Performance Framework 2014-16 under System Level Objective 4:
The importance of investment in science, technology and innovation to Ireland†s ongoing and future economic and social development is reflected in the appreciable allocations for
investment in science, technology and innovation by Government in the current and previous National Development Plans,
capacity 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 Prior to a Government policy decision to make a significant investment in science, technology
and innovation, research funding in Ireland was at very low levels. However, from 2000, an
enterprise sector to help individual companies to build their capacity for research and development This approach to the investment followed the recommendations of the Technology Foresight
exercise 7 conducted by The irish Council for Science, Technology and Innovation (ICSTI) in 1998 The ICSTI report identified the need to build world class research capability of sufficient scale
•To enhance the environment for the creation of new technology-based firms Science Foundation Ireland was established to administer this fund and build research
These investments have been made to strengthen national research capabilities via investment in human and physical infrastructure.
Cycles 1 to 4 have been completed, Cycle 4 in 2012 and the Cycle 5 investment was initiated in December
2010. The aim of the programme is position Ireland as an internationally recognised location with the infrastructure and skills required for world class research and development
positive trajectory for the STI investment and associated policy The SSTI sought to build on progress in the research base from 2000
the enterprise sector to accelerate Ireland†s economic path of sustainable growth. The Government made a major commitment, through substantial public investment, in the SSTI
with the result that we have made significant steps in establishing a strong research environment, based on building scientific excellence in a number of key strategic areas
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 In summary the achievements secured from the investment since 2000 place Ireland in a
strong position to realise the vision associated with the SSTI of a country renowned for the
excellence of its science and an ability to convert knowledge into innovation 4. Regional Context
4. 1 Regional Dimension of Research and Innovation System Given Ireland†s size, a critical mass of expertise cannot be expected in any one institution or
and enterprise partners in locations in more than one region for example INSIGHT and AMBER 9 Ireland also seeks to leverage the
national investment to catalyse all island and international cooperation in priority areas and maximise draw down of non-exchequer funding
priority areas are more important to the economy in certain regions than in others, e g
However, the enterprise base in a priority area typically spans more than one region and research and development needs in companies are
investment will be most relevant and with greatest opportunity for skill supply and uptake and spill overs etc
investment. With increasing pressures on exchequer resources, a country of Ireland†s size is not in a position to develop critical mass in each and every field of science and the need to
RPSG), tasked with identifying a number of areas around which future public investment in STI
1. In response to market and societal demand trends, develop a national consensus on a
number of priority areas or approaches to challenges/opportunities which need to be underpinned by future investment in publicly-funded STI
2. Identify and articulate, as far as possible, a non-exclusive list of supporting fields of science and technology (including research in the humanities
the transformation of the economy to a more sustainable basis for economic growth for the future, for example as set out in Making It Happen.
deliver economic return through enterprise development, employment growth and job retention in Ireland •The process was expected to identify 10-20 priority areas/challenges †the final number
relevance and to ensure that new opportunities are identified 6. Process and Methodology 6. 1 Governance-Ensuring Participation and Ownership
range of entrepreneurial actors including representatives from academia, enterprise, finance public sector organisations and advisory bodies and the Chief Scientific Adviser to The irish
6. 2. 1 National Research and Enterprise Strengths and National and Global Opportunities A significant input to the work of the Steering Group was background studies commissioned by
Global Market Opportunities, Growth Markets and the Positioning of The irish Enterprise Base 10 Drivers, Trends and Societal Issues from a National Perspective in a Global
Context 11 and a review of Strengths and Areas of Emerging Critical Mass in Irish Research
enterprise dimension, the societal dimension, and Ireland†s existing research base, provided context and a basis for assessing the potential for innovation
10 Review of global market trends, growth markets and the positioning of The irish enterprise base, 2011.
sector, the institutes of technology sector and the enterprise sector. Technical experts were appointed to the groups to facilitate their work.
Sustainable Environment Agriculture, fisheries and food, marine research, energy, climate change, environment, including built environment, smart living spaces
smart cities, transport and related policy research Technology, Social media 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 and internationally including horizon scanning exercises, and on a bottom up basis from national funding agencies and other stakeholders.
An indicative †long list†of potential priority areas based on a wide ranging exercise conducted by Forfã¡
s, which drew on international priorities, priorities from European programmes, national areas of focus and
background studies described earlier. Each of the funding organisations was asked to augment these lists with potential priority areas within the thematic domain based on their knowledge
of existing and emerging research strengths and the potential fit with the other criteria. The
TWG examined the areas proposed for overlap, duplication and the opportunity to group and consolidate them and agreed an initial list of areas for which detailed assessments would be
enterprises already compete or can realistically compete ï¿What are the potential applications or products and
environment to support commercialisation?(People, finance, regulatory considerations, companies, partnering capacity, market etc 2. Publicly performed R&d in Ireland is required to exploit the priority area and will
Are there other areas where public investment can be leveraged? Infrastructure human capital 3. Ireland has built
or is building (objectively measured) strengths in research disciplines relevant to the priority area ï¿
fundamental to commercially relevant and how does it the area benchmark internationally ï¿Do we have critical mass in this area
market opportunity ï¿If this research is relevant to a global challenge, what is Ireland†s commitment in this
basis for targeted consultation with stakeholders. In some cases, areas were amalgamated at this point based on the deliberations within the TWG
Stakeholder engagement events were organised by each of the TWGS at which the TWG perspectives were shared with stakeholders
in order to elicit feedback. 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 TWGS, having considered the stakeholder feedback,
made prioritisation and elimination decisions in working group meetings using a scoring methodology based on the criteria
Based on this assessment the groups made their recommendations to the Steering Group on proposed priorities
Discussions with stakeholders were ongoing throughout the process through formal briefings and bilateral meetings with stakeholder groups
6. 3. 2 Final Deliberations A further large-scale stakeholder engagement event was organised in early September 2011 to
gather feedback from stakeholders on emerging priorities. Based on these inputs and further deliberations the Steering Group agreed the priority areas to be recommended to
Government There were a number of areas that received significant exchequer funding prior the NRPE that
investment. Significant examples of such areas included bioenergy and the discovery and development of therapeutics.
investment that is oriented towards The irish enterprise base (see Table 3). Detailed descriptions of the priority areas and opportunities identified are provided in the Steering
Group†s Report Table 3: Priority Areas for Publicly-performed Research 2013-17 A Future Networks & Communications H Food for Health
B Data Analytics, Management, Security & Privacy I Sustainable Food Production & Processing C Digital Platforms, Content & Applications J Marine Renewable Energy
Government investment in research less the research component of the â€oeblock grant†to HEIS and the funding administered by the enterprise development agencies for in-company
performed R&d Figure 3: Priority Areas and the Wider STI System Source: Forfã¡s 18
Ireland capture the local and global benefits of investment in health related research •Data repositories serviced by experts to capture
•Ongoing investment in the ICT/â€oee-infrastructure†that underpins all research endeavours in the country
a share of future investment will remain untargeted in order to support excellent basic research in new and unanticipated
The NRPE was undertaken to select areas to focus RD&I investment where Ireland had a realistic chance to excel and therefore maximise impact of RD&I investment on the economy
It was based on a strong evidence base and rigorous analysis combined with stakeholder broad based) judgement
Extensive stakeholder involvement was achieved throughout the process from consideration of the need for a prioritisation exercise, through the background analysis and planning phases
designing the methodology, the prioritisation process itself and deliberations therein and its ongoing implementation. This involved a number of mechanisms including the Steering
working groups, expert consultancy, broader stakeholder engagement through round table workshops, a conference style event with plenary
process, and throughout the process bilateral engagements with key stakeholders A wide range of actors were involved including representatives from academia, industry
entrepreneurs, venture capital, industry representative bodies, public sector bodies, advisory bodies, representatives of civil society and research users and beneficiaries, regulators, etc
specific economic outcomes from investment in research. In the context of the Government Decision in February 2012 to implement the recommendations contained in the Report of the
accelerating the economic and societal return on our STI investment. There will be an opportunity to consolidate that overarching goal further in the context of a new Strategy for
Science, Technology and Innovation (SSTI) statement, work on which has commenced, as it is clear that research prioritisation itself will form the main pillar of any new strategy statement
Government departments, agencies and stakeholders to ensure a coordinated approach to developing the action plans and drive greater coherence across the system at the level of
•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
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 •Funding agencies undertaking a cross-agency review of branding
and marketing of the research offering in thematic areas •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
to ensure the potential opportunity in each priority area is realised. Each Action Plan includes a vision, key objectives and specific actions along with timelines and those responsible for
priority areas and the research needs of enterprise. The PAG carried out a series of 6 thematic
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 This picture, when combined with the output from the exercise to map publicly-funded
regulatory environment, and to adopt a more strategic approach to developing Ireland†s capacity to influence international standards and regulations governing
capital in strategic areas, relevant to the competitiveness of Irish based enterprise. SFI programmes support academic researchers and research teams;
importance to enterprise •recruitment initiatives to attract iconic research leaders to Ireland, including support for the development and attraction of European Research Council (ERC
•investment in research infrastructure •focused international collaboration 22 PRTLI (5 th Cycle 2011-2016
to increase the numbers of students studying science, technology, engineering and maths â€oestemâ€) to ensure that there is a â€oepipeline†of young people who are prepared to pursue
employment in the knowledge economy 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 activity is an important element in supporting companies to bring new
This is a joint initiative between Enterprise Ireland and IDA Ireland allowing Irish companies and multinationals to work together in these
academic environment and industry and are driven by the companies that are involved, rather than from the academic perspective.
IDA Ireland programmes provide the basis for winning new FDI investment projects. The IDA€ s
Key Enabling Technologies, Manufacturing and Services Manufacturing is a crucial sector for Ireland. This sector has substantial capacity for jobs
growth, and that is why the enterprise agencies decided to examine new ways of targeting support at manufacturing.
international trading environment. Companies are operating in an intensely competitive global arena and although Ireland†s cost competitiveness has improved over recent years,
and meets the needs of customers; and •Ability to adopt and utilise key enabling technologies
Processes†underpin both the manufacturing and services sectors Key manufacturing sectors include ICT, Life sciences, Food and Drink, Engineering, and
scarcity of energy and other resources. Success will be defined by increasing the competitiveness of manufacturing as a sector in Ireland,
Ireland has made a significant investment in the KETS in the last decade and is currently
technologies and the Enterprise Ireland/IDA programmes will support their adoption and utilisation 8. Monitoring and Evaluation
investment in Science, Technology and Innovation (STI) has been developed, in response to the recommendation in the RPSG report as set out in the previous section of this paper.
opportunities are identified and the PAG is considering a mechanism to achieve this The framework sets out National Targets, Department and Agency Targets and Priority Area
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 framework also captures many key outputs associated with the other objectives of
policy, research for knowledge creation, the human capital and education objectives associated with national R&d investment and the internationalisation of Irish research
The Framework is illustrated in Figure 3 25 Figure 3: Framework of Metrics and Targets Source:
particular, the outputs and outcomes associated with total Government investment in research and development (GBAORD 13 The adoption of National Targets also reflects the fact
that investment in research contributes directly to performance at the aggregate national level The National Targets serve as the basis for establishing some of the targets for the
The PAG compiled a list of 78 metrics for the enterprise support environment at varying levels
and to ensure that the enterprise development system is aligned accordingly, a set of targets were developed for the agencies
exploiting the opportunity that was identified in each Priority Area (PA) as part of the NRPE. To
relative to the overall economy, and secondly, it will enable comparisons of performance between the 14 PAS
Prioritisation, A framework for Monitoring Public Investment in STI€ 14 9. Budgetary Resources Framework for Research and
Enterprise Ireland and others; and •Funding for Government sector-performed R&d e g. Teagasc, the Marine Institute, and
â€oestate Investment in R&d 2011-2012†Forfã¡s, August 2013 As can be seen from Figure 4,
Ireland has adopted a target of raising combined public and private investment to 2. 5%of GNP
tight control over investment in the period to 2015. Post 2015, in the context of a return to
sustainable growth domestically and a recovered global economy, we anticipate a renewal of the pattern of annually increasing public investment in R&d coupled with a quickening of the
average rate of growth of private R&d investment from the relatively modest rate of 3 %forecast to 2014.
This growth will be driven through a continuation of a supportive fiscal environment for R&d investment as well as supports for higher education R&d, industry
linkages with higher education researchers, commercialisation of research results, in-company R&d and start-up companies. Accordingly, the circumstances expected post 2015 will enable a
Technology and Innovation (STI) investment in broad terms and in relation to implementation of research prioritisation;(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; this enables gaps (current or potential future) in the capacity of the public research system to be identified
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