Industrial Research and Development Spending
Industrial R&D spending rose from £48.48 million in 1983 to £70.70 million in 1985, though it remains low. The Government is using the Office of Science and Technology and IDA grants to encourage multinationals to conduct more research in Ireland.
asked the Minister for Industry and Commerce if he will make a statement giving the latest figures available for each of the last three years for which figures are available for expenditure on research and development in Irish industry; and if he will make a statement on the trend indicated and the implications of same.
Comment on this
The latest figures available regarding expenditure on research and development in Irish industry relate to the years 1983, 1984 and 1985. The expenditure for those three years is as follows: 1983 — £48.48 million; 1984 — £61.94 million; 1985 — £70.70 million.
Expenditure on research and development in the industrial sector has been increasing steadily since the mid seventies — albeit from a very low base. I would expect this pattern to continue. There is an increasing awareness among Irish companies of the importance of research and development but a much higher level of investment is required if Ireland is to match the levels of such investment in competitor countries.
However, it has to be recognised that the size and circumstances of many Irish firms, especially small firms, restrict their capacity to undertake R and D. Indeed, the undertaking of in-house R and D by such firms may not be the most appropriate way to improve their process and product development. In such cases it may be more appropriate to use instead such measures as: contracting out R and D to specialist research institutes, universities and RTCs; technology transfer arrangements and licensing agreements.
Comment on this
Is the Minister aware of the increasing trend on the part of multinationals to carry out their research and development projects outside this country? Is the Minister satisfied that this situation should pertain? If not, what is he doing about it?
Comment on this
I am aware that many multinationals carry out their research and development in the country of their origin, but the Government are actively trying through the Office of Science and Technology and the IDA's research and development grants scheme to induce these companies to involve themselves in research and development in this country.