Ibec calls for increased public investment in research and innovation
Business group Ibec has warned that Ireland’s current public investment model for research and innovation does not match the country’s ambition to become a European Innovation Leader.
In a new report published as part of its Business Ambition campaign, Ibec said Ireland must increase public investment in research and innovation to 1% of Gross National Income by 2035.
The group is also proposing the establishment of a new multiannual fund, modelled on the Programme for Research in Third-Level Institutions, to support the long-term development, maintenance, and talent needs of Ireland’s third-level institutions.
The report highlights that industry is responsible for the vast majority of innovation investment in Ireland, while public funding continues to lag significantly.
According to the research, this imbalance is contributing to stagnation in Ireland’s innovation performance and risks undermining its comparative advantage, particularly as other countries are significantly enhancing their innovation ecosystems, often at a lower cost base.
“Ireland is currently ranked seventh on the European Innovation Scoreboard and is classified as a ‘Strong Innovator’, with world-class performance in areas such as tertiary education and employment in knowledge-intensive sectors,” said Meadhbh Costello, Senior Policy Executive at Ibec.
“But if we are serious about becoming a European Innovation Leader, we must urgently address the structural weaknesses in our innovation ecosystem – especially the decline in public investment and stagnation in key performance indicators.”
“Business R&D spending has surged, yet public investment is lower today than it was in 2007.
“In contrast, countries like the Netherlands, Sweden, and Denmark have increased public research budgets by 20% to 40% in the same period,” Ms Costello said.
According to Ibec, the upcoming review of the R&D tax credit presents an opportunity use the review to design a system that accelerates the adoption of new technologies, strengthens collaboration with universities and research institutions, and positions Ireland as a collaborative innovation hub within global corporate networks.
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