Ibec has warned that the current public investment model for research and innovation needs to be overhauled if Ireland is to become a European innovation leader.
In a new report published as part of its Business Ambition campaign, one of six policy papers to be released by the employers group in the lead-up to the government's forthcoming Action Plan on Competitiveness and Productivity, Ibec highlights that industry is responsible for the vast majority of innovation investment in Ireland and that public funding continues to lag significantly.
According to the report, the 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.
Ibec believes Ireland must increase investment in research and innovation to 1% of gross national income by 2035 to "safeguard innovation as a key driver of competitiveness, productivity, and high-value employment."
The group has also proposed the establishment of a multi-annual fund, modelled on the successful Programme for Research in Third-Level Institutions, to support the long-term development, maintenance, and talent needs of Ireland’s third-level institutions.
“Ireland is currently ranked 7th 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.
Costello pointed out the public investment in R&D is lower today than it was in 2007 while countries such as the Netherlands, Sweden and Denmark have increased their public research budgets by 20-40% over the same period.
"Without a bold and ambitious funding model underpinning Ireland’s new innovation strategy, we will fall short on our ambitions under Impact 2030. We will lack the talent, infrastructure, and ecosystem needed to lead on innovation," Costello stated.
According to Ibec, the upcoming review of the R&D tax credit presents an opportunity 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.
(Pic: Getty Images)
