Businesses have to innovate and stay close to markets that are becoming increasingly competitive, according to the Irish Council for Science, Technology and Innovation. The Republic needs to innovate to a world-class level, the council said yesterday. Innovation involved selling new and modified products and processes into existing or new markets, and was now "a continual process, taking place throughout and between firms, as well as with other players in the economy", according to the council.
Because the "Government must play its role in a strategic partnership with enterprises", the council recommended measures for the State to implement. These include State-assistance measures to prime the technology-based innovation process and to draw together the necessary players through increased interaction and collaboration; a tax credit for incremental research and development expenditure, and grant assistance for start-up companies and for those seeking to implement a significant shift through a company development plan.
In addition, the current favourable tax treatment on royalties for patented inventions should continue and a network of local and accessible "innovation officers" should be established to assist small companies to draw on the help system.
Universities and colleges of higher education also should contribute by creating and promoting centres of science/engineering-based competence and should establish clear guidelines on the ownership of intellectual property.
Mr John Travers, chief executive of Forfas, welcomed the council's emphasis on the importance of innovation for Irish industry. "Innovation is now a necessity, not an optional extra."