Despite all the talk and plans, Ireland remains close to the bottom of the European league when it comes to spending on research, writes Jamie Smyth, Technology Reporter.
There has been a lot of talk about innovation and enterprise during the Republic's presidency of the European Union.
Ireland's top brass - the Taoiseach, Tánaiste, Minister for Finance, and even the president of the European Parliament, Mr Pat Cox - have spoken out on the issue, urging Europe's leaders to embrace the "Lisbon agenda".
This agenda, laid out at the European Council's Summit in 2000, emphasises that competitiveness, innovation and the promotion of an entrepreneurial culture are defining conditions for growth essential to the economy.
It also calls for urgent action to increase research and development (R&D) activity within the EU to make up the €140 billion annual gap with its rival, the US.
But for all the chatter by the politicos, the latest figures on research spending show that Ireland is still rooted close to the bottom of the European league table. The amount of money spent on research by the Government and private firms amounts to just 1.17 per cent of gross domestic product (GDP), well short of the EU target of achieving 3 per cent by 2010.
Bearing in mind the Republic's small scale and low number of scientists, can we feasibly become a R&D hub?
"Yes, I think we can," says the Tánaiste, Ms Harney. "Finland is probably one of the most competitive countries in the world. It isn't huge but it has made great innovations and investments."
In the past, Ireland did not prioritise research because it had so many other demands in the economy's development stage. Basic manufacturing and big job numbers were the goal in the late 1980s and 1990s, says Ms Harney.
"We can't compete in some of that space now and, even where we can, it will soon go to places where others can do it more cheaply... to a large extent, the policy we are pursuing is a 'must do' rather than an optional extra."
Two big research programmes with combined budgets of more than €1 billion, Science Foundation Ireland (SFI) and the Programme for Research Third-Level Institutions (PRTLI), reflect this changed policy focus.
Both organisations are targeting niche areas of industry, where they think the State can be a world leader in research.
SFI has committed €338 million and PRTLI €420 million over the past five years to support research projects and build a network of 33 new R&D centres at Irish universities and colleges.
The number of postgraduate students is also growing with 2,687 enrolments in 2001-2002, a year when just 503 students graduated. Scores of scientists and researchers have also been attracted to the Republic.
The statistics are impressive and Ireland has made a good start but measuring the success of the projects will take a few years, says Dr William Harris, SFI director.
"One of the most important successes has been the commitment of a rapid injection of funds, which has given Irish science a visibility on the world stage that it never had before," he says.
Dr Harris highlights Intel's collaboration with Trinity College on nanotechnology research as an encouraging sign of industry and third-level co-operation. The SFI-funded Centre for Research on Adaptive Nanostructures and Nanodevices will develop tools and techniques to build new structures and devices, atom by atom, creating commercial opportunities in the biotech and technology sectors.
Clearly, the State's university sector is making strides in the field of basic research. But questions remain on the State's long- term commitment to research.
SFI, which was set up as a statutory body in 2003, has set a goal of doubling its annual budget to about €200 million in five years. But recent cutbacks by Government suggest this is optimistic.
"Sustainability of funding is a big issue," says Dr Eucharia Meehan, head of research programmes at the Higher Education Authority (HEA), which administers the PRTLI grants. She describes the Government's decision to pause funding for projects under the PRTLI capital scheme in 2002 as "very unfortunate".
"The repercussions of that decision will roll on for years. It was damaging because word got out on the international stage and hurt our ability to attract world- class researchers to Ireland."
Her comments are repeated by researchers in the field, many of whom are concerned that the money will run out in a few years. The HEA wants the Government to ringfence its research budget for a five-year period to prevent similar gaps emerging in the future. Its proposed Knowledge Ireland Fund would protect funding from the everyday pressures of finance and avoid gaps in funding, says Dr Meehan.
Ms Harney acknowledges that the Government's decision to halt capital funding in 2002 was "disappointing" but insists that lessons have been learned. "I think at Government level there is now a greater awareness of the importance of the area, which is why the Government recently supported a new R&D tax credit."
The Tánaiste has set a goal of doubling the value of research undertaken in the Republic by 2010, enabling it to achieve the EU target of 3 per cent of GDP.
But she says private companies need to step up the amount of research they conduct in Ireland.
IDA statistics show that 71 overseas firms began research in 2002 and 2003 worth €227 million. Some 437 indigenous firms also conducted research worth some €56 million in the same period.
This sounds impressive but is still way below the level required to meet the EU goal for private investment in research, which should contribute two-thirds of a State's overall research spend.
Significant projects have also been lost, including an R&D hub for search engine Google. The firm chose to establish its headquarters in Dublin but has moved its R&D function to Switzerland.
Critics suggest there are policy gaps that need to be addressed. Labour and Fine Gael say they support the Government's investment in research but identify several areas of specific weakness.
Mr Phil Hogan, Fine Gael's spokesman on industry, says a major disconnect exists between college research and the sectors that firms operate in. A plethora of research agencies are not really acting in concert either.
Mr Brendan Howlin, Labour's industry spokesman, identifies the Government's failure to build infrastructure as a key problem.
The Tánaiste says the Government has begun looking at these "overarching issues". She plans to appoint a chief scientist before the end of the current Government and would like to establish an all-party Oireachtas committee on science in the Dáil.
Meanwhile, the Government is also moving to address a growing skills deficit, a problem that the Tánaiste says is "very worrying".
Recent surveys suggest the number of engineering graduates qualifying at third level will fall from 1,720 in 2002 to 1,441 in 2010 and 1,208 in 2016, causing severe shortages for industry. They also predict a shortfall of 600 skilled staff and 180 researchers in the emerging biotechnology sector.
A new science museum for children, an RTÉ series on science and greater interaction between teachers and scientists are all part of Government efforts to generate interest in science.
Success in attracting private investment and sustained public funding for research will also play a role. Therefore, the success or failure of the current Government policy will be pivotal in attracting new talent to R&D areas.
