IRISH INNOVATION POLICY

Benschop, Nick, Erasmus University Rotterdam, The Netherlands,296428nb@student.eur.nlSturrus, Edwin, Erasmus University Rotterdam, The Netherlands,294763es@student.eur.nl

Abstract

The purpose of this research is to provide a detailed analysis of the innovation policy executed bythe Irish government. This starts with a general overview of different plans and government programs that are currently in place within the innovation policy. Followed by a review of thereal life impact of the innovation policy on Irish companies and universities. The results fromthese topics combined will help determine the actual success of the policy. Finally some adviceand ideas will be provided to help improve stimulation of innovation in Ireland.

INTRODUCTION

1.1

Research background

This research paper is the result of the research done for the course “Studieproject Economie &Informatica (2007-2008)”. Within the course each subgroup (two or three students) was assigneda specific topic related to Ireland and/or innovation to research.In this case the specific topic given is the Irish innovation policy. The research done on this topicincludes analysis of the workings of this policy and the positions of different instances asuniversities or companies within the policy. The research also involved determining the actualreal life success of this government policy. This included identifying the strong and weak pointsof the system and providing suggestions for possible improvements.The main research question to be answered in this document is:

“To what extend does the Irish innovation policy succeed in creating and stimulating a favourable climate for innovation?”

This question has been divided into several sub questions which have been assigned their ownsection within this paper. These sub questions are:

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“What plans and government programs are there with regards to the innovation policy?”(section 2)

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“What is the real life impact and success of these plans for Irish companies and universitieswith specific focus on the collaboration between them?” (section 3)

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“How successful is the current Irish innovation policy?” (section 4)

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“What possible improvements can Ireland make to their innovation policy?” (section 5)

1.2

Research relevance

The results of this research project on the Irish innovation policy will provide an overview of theglobal policy executed by the Irish government. Information will be provided on how the policyworks and also how well it works.The information and conclusions from the research project can be relevant for innovativecompanies considering Ireland as a location by providing them with information on the possibilities as well as the limitations for innovation in Ireland. Alternatively it can give policymakers insight in the workings of a working innovation policy. This may allow for the policymakers to incorporate certain successful aspects into their own policy, or move them to take adifferent approach at those aspects that are less of a success.

1.3

Information gathering

In preparation for the study trip to Ireland time was spend on gathering information on thedifferent companies and institutions to be visited. This was mainly for the purpose of getting ageneral idea of the activities that they performed so that it was possible to assess their relevanceto the research project. Because of this it was possible to determine which companies or institutions are most relevant to a specific subsection of the research. As a result, it became clear what information to collect at each specific company or institution.

The primary source of information on the Irish innovation policy was the Department of Enterprise, Trade and Employment. The spokespersons provided information of the generalworkings of the policy including strong and weak points and possible changes in the near future.The various other companies and institutions visited such as Ammeon, Port of Dublin, CITO and NovaUCD together provided for a general impression of the innovation within these instances aswell as the collaboration possibilities universities and companies.

OVERVIEW OF THE INNOVATION POLICY

2.1

General overview and departmental focus points

The Irish government has the vital task of creating, changing and maintaining the innovation policy. More specifically, the responsibility lies with the Department of Enterprise, Trade andEmployment. While this department also has tasks and responsibilities in several other areas suchas labour affairs, trade and commerce, a lot of attention is being spend on the subject of innovation. This was reflected in the departmental focus points, a large percentage of whichrelated to innovation. For three out of the seven points this was the case.The first innovation related focus point is the implementation of the Lisbon reforms into the Irisheconomy. The Lisbon agenda was presented in the year 2000 and set targets to make the EU "themost competitive and dynamic knowledge-driven economy by 2010". The second focus point isinnovation in itself. The department acknowledges the importance of innovation in the Irisheconomy for the years to come. In order for Ireland to achieve this innovation intensive economy,there has to be more focus on the subject of innovation and they need to be “stepping up a gear”according Tommy Murray, the spokesperson for the Department of Enterprise, Trade andEmployment visited during the trip to Ireland. The final focus point involves an enables of innovation. Ireland currently faces a problem with continued learning and the acquisition of newskills by its labour force. There is a lack of interest and/or stimulation to continue learning andstaying up to date with the newest technological developments. Without this knowledge it becomes difficult to innovate. In order to achieve an innovative economy this has to change.

2.2

Key innovation challenges

Perhaps due to the increased focus on innovation, the department has researched and found somekey challenges they face with regards to this subject. One of the main problems is the lack of participation in life-long learning, as stated earlier. Another problem that Ireland faces, is the low penetration in broadband internet. A relatively small group of the Irish populace has access to a broadband connection. This presents two problems. Firstly it makes the diffusion of innovationmore difficult. Spreading new knowledge over the internet reaches less people, simply becauseless people have fast access to internet. Secondly internet can provide excellent means for different parties to find and communicate with each other for innovation purposes. The lack of broadband use negates a big part of this advantage which works against innovation.In many cases a lot of time and effort has to be spend on research for innovation to occur.In this another obstacle can be found. Currently the amount invested by businesses in researchand development (R&D) is less than the Irish government would like it to be. Since most businesses are driven by economic motives, it seems likely that businesses perceive R&Dinvestments as not worthwhile in an economical sense. It might be the case that the advantagegained by the research is to small compared to the cost of the research and the risk incurred by the business. It could also be the case that businesses are interested in doing research but lack themeans to do so. Possibly, the low broadband penetration mentioned earlier prevents them from