Multinational companies account for the bulk of spending by Irish business on research and development (RD), according to figures published yesterday by the Central Statistics Office.

Companies in Ireland spent €1.9 billion on in-house RD in 2011, fractionally below the 2010 level. Provisional EU figures indicate Irish business expenditure on RD – at 1.17 per cent of gross domestic product – was below the EU average, which stood at 1.26 per cent.

Ireland’s comparative performance is much poorer than that of other northern European countries with large high-technology sectors. Nine countries had higher business RD spending in 2011. Foreign-owned enterprises accounted for €1.3 billion of the total RD spend, with indigenous firms spending just €600 million. Without the contribution of multinationals, Ireland would have one of the lowest levels of RD spending in the EU.

In 2011 more than 19,000 people (or 14,000 on a full-time equivalent basis) were engaged in RD activities. Almost 10 per cent of RD staff held a PhD qualification. More than 60 per cent of total RD expenditure was generated in the services sector. This reflects the shift in multinational activity towards service provision.

Almost three-quarters of the total expenditure on in-house RD in 2011 was by medium-sized and large enterprises (employing 50 people or more).