Around €4 billion in State funding is to be spent on a major new seven-year science and research programme.
Taoiseach Bertie Ahern launched the Strategy for Science Technology and Innovation 2006 - 2013 today describing it as essential to Ireland's future prosperity.
He said the strategy, which includes around €2.8 billion in by the end of 2008, would "accelerate the drive towards making Ireland a country which harnesses cutting-edge knowledge".
"We have to move from exploiting the innovation of others to also becoming a dynamic location for the generation of ideas," Mr Ahern said.
The programme was developed with international experts and continues the policy of increasing Ireland's focus on Research and Development begun in 1997 through a variety of initiatives and agencies.
"Recent announcements of major R&D investments by leading multinationals in the biopharmaceuticals, ICT and services sectors confirm that the investment is already paying dividends," Mr Ahern said.
An extra €192 million in funding is being allocated by the Department of Finance to speed up the implementation of the strategy which will be an element of the new National Development Plan due to be finalised at the end of the year.
Minister for Enterprise Micheál Martin holds the main responsibility for implementing the strategy. Speaking at today's launch, which was also attended by Tánaiste Mary Harney, Mr Martin said the strategy was "a genuinely cross-government initiative".
He noted that the spending committment was in addition to €900 million announced last year in the Budget for the development of 4 thlevel education.
He outlined a series of focus areas for the strategy:
- Curriculum reform and awareness-raising in first- and second-level education
- Exploiting and protecting the commercial value of research carried out at Higher Education Institutes
- A range of measures to incentives higher levels of R&D in the private sector
- Increased research in sectors such as health, environment, marine and energy
- Facilitating access for Irish researchers to EU Framework Programme Funding
Mr Martin said: "We are no longer competing for low-cost manufacturing investments. We want global companies to locate crucial parts of their business in Ireland, their European Headquarters, their Research and Development facilities."
"These companies want to locate their business in a society where innovation and creativity flourish, this strategy will ensure that Ireland will meet this need."
The announcement was welcomed by business and employers group Ibec which said it help establish Ireland as "a top location for world class R&D".
Siobhán Masterson, Ibec assistant director for R&D policy, said: "The challenge is now to fully involve industry in implementation and to include structured evaluations of R&D expenditure."
"Industry investment in R&D totaled €1,150 million in 2004, up from €988 million in 2002. This trend should be copper-fastened by the investment committed to under the strategy."