Forfás, the State agency responsibly for policy and advice on Tuesday published the Science Budget, which is a mandatory survey that is compiled from returns from 41 Government agencies and Departments that fund or undertake science and technology activities. The current edition provides a comprehensive account of latest State science and technology and research and development performance in 2006 and 2007.
The Irish Strategy for Science, Technology and Innovation (SSTI), was launched in 2006 by the Department of Enterprise, Trade and Employment to facilitate the continuing transition to a "strong knowledge intensive economy." It is a targeted seven year plan to promote and increase S&T activities in Ireland which will help lay a strong foundation from which future economic growth can develop. It commits to spending over €8.2 billion of exchequer funds to 2013 on S&T activities with a particular focus on R&D. The vision set out in the strategy is that “Ireland by 2013 will be internationally renowned for the excellence of its research, and will be to the forefront in generating and using new knowledge for economic and social progress, within an innovation driven culture.”
The goal is a bold one but spending public money alone gives no certainty of success and so far there is focus on measurable outcomes. Given the experience with broadband and the fact that after 15 years of the Celtic Tiger, we have produced only a few international class companies, we have quite a challenge. We have strengths in food production and the growing demand in Asia (see data on recent Australian report here) for the products we produce, should signal that we are likely to have more success in this sector than in high-tech and biotechnology.
Forfás says that the total Science Budget allocation for 2007 will rise to an estimated €2.51 billion in 2007. This represented a significant increase from the confirmed €2.22 billion outturn for State S&T spending in 2006.
Growth in S&T spending in current prices, will therefore accelerate to 13% in 2007 from the 8% S&T spending gains recorded in 2006. Over the last decade average annual growth in S&T spending was 10.5%.
In real terms, expenditure on S&T activities increased by 7.1% in 2007. This represented a quickening in the pace of real growth from the 3.9% rise recorded in the previous year. Of the total €2.51 billion allocated for S&T activities in 2007, the largest amount will be spent on S&T education and training. This category will account for €1.15 billion of total S&T spending in 2007 (45.9%). Spending in this area of S&T will rise by 8.7% this year.
Increased spending on R&D activities will climb to €906.7 million in 2007, an increase of 16.1% compared to the 2006 outturn. The share of R&D spending in total S&T expenditure will rise to 36.2% in 2007, well ahead of the 24% share in 2001.
The spending intensity ratio will rise as the spending growth of S&T – 13.5%, will outpace the slower and estimated 7.1% rise in nominal GNP. The intensity ratio on S&T activities will rise from a low in 2006 of 1.49% of GNP to an expected high of 1.57% in 2007.
The internationally recognised indicator for benchmarking State funding of R&D is GBAORD. GBAORD, as defined in the OECD Frascati Manual, includes all exchequer and EU funding for R&D projects and also R&D spending on the arts and humanities. R&D spending by the government has more than quadrupled from €221 million in 1997 to nearly €1 billion in 2007. The average growth rate in GBAORD in the last 10 years has been 16%, among the top performances across OECD countries. GBAORD as a % of GNP has increased from 0.37% in 1997 to 0.62%.
