Leyton's 2011 Innovation Conference was a great success and many positives can be taken from Ireland's innovation performance to date and its prospects for the future...
Positive Rays in Gloomy Economic Sky
Today, policy makers, government officials, economists, R&D experts, consultants and many of Ireland’s most innovative companies gathered together at the Irish Management Institute for an innovation conference which sought to highlight the importance of research and innovation in securing Ireland’s economic future. Many key topics relating to innovation were discussed including the funding/incentives available, strategies for commercialisation and management of IP that derives from innovation…The general message for the future was one of optimism…
It was agreed that it will take careful planning, inspired thinking and a lot of hard work put in place a framework and holistic set of cohesive measures necessary to allow Innovation to play its role in this country’s future. But it is possible...“We can aspire to a great future but we have to work very hard to achieve it”, Martin Shanagher, Head of Science & Technology at the Department of Enterprise, Trade and Innovation said. He also said that he believes that “research and innovation will be a key component of building that future”.
Research shows that there is a direct link between the gross value added (GVA) and innovative companies verses non-innovative companies. “Productivity levels in innovation active firms are twice those in non-innovative firms” announced Mr. Shanagher, (CIS2008 analysis – Ireland: GVA for non-innovative enterprises was 96,031 and 170,977 for innovative companies). “The EU Innovation scoreboard shows that firms in Ireland spent 3.4 percent of GNP on innovation, the third-highest level of the 25 countries measured”, he continued.
Martin Shanagher also highlighted the new Government’s initiatives to make the Smart Economy we hear so much about a reality rather than an aspiration. “The new Programme for Government continued emphasis is placed on the role of knowledge and innovation in driving economic productivity. This has been reinforced in the Government’s Draft National Reform Programme submitted to the European Commission on 29 April last wherein clear commitment is given to improving the conditions of research, development and innovation with the aim of raising combined public and private investment levels in R&D to 2.5% of GDP.”
Specific measures undertaken include driving and supporting in-company R&D through the R&D Fund and, by creating awareness of the benefits of innovation through R&D Advocates. Mr. Shanagher mentioned that Innovation Vouchers are being successfully used to stimulate a cultural shift in the small business community by encouraging them to build links with the research community. He said that in 2010, “254 Innovation Vouchers were redeemed worth over €2.5m, bringing the total number of Innovation Vouchers redeemed since the scheme opened to over 1000”.
Other initiatives by The Programme for Government were highlighted such as the establishment of applied research centres in cloud computing, manufacturing research and energy efficiency research. Support for start-up companies in sectors with export potential will continue to be established throughout Ireland. “80 High Potential Start-Ups were established in 2010 and the target is to reach 100 companies per year by 2015, stated Shanagher.
The Innovation Conference hosts, Leyton, commended the recent Jobs Initiative announcement, the sole purpose of which was to support innovation in this country. Specific sectors were targeted such as ICT, Energy, Cloud Computing and Life Sciences. In addition, a change to the R&D Tax Credit scheme was announced that will greatly enhance the manner in which company’s can account for the tax credit. For Leyton, a firm that specialises in the provision of R&D Tax Credit services to claimant companies, this change was particularly welcome. “Like other measures announced on the day, these changes do not represent a quick fix to the serious difficulties this country finds itself in. However, they are small steps in the right direction. And more importantly, it is a signal of intent of this administration’s desire to place Innovation at the very centre of future enterprise policy”, Andrew O’Reilly, Senior Manager at Leyton commented.
“This change to the R&D Tax Credit scheme will make it more attractive for multinationals to employ researchers and locate R&D facilities here. The value of the tax credit reached €400m in 2009 and is now a central component of our innovation ecosystem, Martin Shanagher added.
Two of Ireland’s most innovative and dynamic companies gave presentations at the conference and shared their experiences on how innovation has led to their continued success. IBM are celebrating their centennial year and Managing Director, Mr. Peter O’Neill provided with an insight into how they have remained adaptive and grown in Ireland to a highly skilled operation supporting domestic and international missions.
“IBM's investment in research reflects its commitment to innovation that has differentiated the company and IBMers for a century,” said Mr. O'Neill. “Our collaborative research projects in Ireland are an important element of our high-value business strategy, which is focused on enabling instrumented, interconnected, intelligent infrastructures that can change how systems of all kinds work to support a smarter planet.”
Logitech Ireland were also keen to share their success story in an attempt to inspire others to succeed. “Our research is different as it is all about what the end user wants/needs. We aim to delight and excite our consumers as well as prove convenient for them. Last year Logitech sold over 146 million products in more than 100 countries, proving we have the perfect blend of design and technology.”
“It’s not about being cheap; it’s about being the best in the world in what we do. It’s about reinventing how we add value on an ongoing basis. We exist because we supply research & innovation that there is a demand for, that adds value and which drives growth in our company.... We get to grow as a local site when we understand what will be in demand tomorrow and we supply before others, and better than others. We stay close to marketing functions and all trending to be able to deliver the type of research & innovation that will be required tomorrow.”
Other speakers giving their opinion on Ireland’s economic mission were representatives from Enterprise Ireland, Science Foundation Ireland, New Morning IP and former Innovation Taskforce Member and founder of Iona Technologies, Mr. Chris Horn.
The conference concluded that there are many positives to take from Ireland’s innovation performance to date and there is certainly potential for innovation to play the part marked out for it in this country’s economic recovery and the creation of sustainable growth into the future. Firms are engaging in innovation activity, levels of expenditure are relatively high and reasonably high levels of turnover are attributable to product innovation.
However, Ireland still needs to transform itself into a global innovation hub and to do that the innovation system needs to be all embracing. To achieve this, barriers to innovation need to be identified and removed. For example, cash flow difficulties are having a significant impact on the level and type of innovation being undertaken by our SME companies. This needs to be addressed. “It is about levelling the playing field and allowing our innovative companies to do what they do best on the global stage ...succeed”, concluded Leyton’s Andrew O’Reilly.
Additional notes:
The event took place at 2pm yesterday (May 26th) at the IMI in Sandyford.
o In overall numbers, expenditure on R&D by enterprise has risen by 31% in real terms over the five year period to 2009 and now stands at €1.87 bn. Researcher personnel in enterprises increased by 16% (from 13,621 in 2005 to 15,773 in 2009), with the number of PhD level researchers nearly doubling (from 830 in firms in 2005 to 1,639 in 2009).
o There were 1,282 enterprises engaged in R&D in 2009, with a third of these spending €500,000 or more.
o 45% of our companies engage in technological innovation and 43% in non-technological. On the EU Innovation Scoreboard, SW, DK, FI, and DE are the star performers. Ireland is 5th in a group of 10 followers, slightly below the UK, above FR and alongside the NL.
Speaker panel:
1. Chairman – Andrew O’Reilly , Senior Manager, Leyton Ireland
2. Opening Address - Mr. Martin Shanagher, Department of Enterprise, Trade & Innovation
3. Dr. Chris Horn, former member of the Innovation Taskforce & Past President of Engineer’s Ireland.
4. Mr. Peter O’Neill, Managing Director, IBM Ireland
5. David O’Connell, Senior Scientific Consultant, Leyton Ireland
6. Dr. John Smith, R&D Technology Transfer Manager, Enterprise Ireland
7. Dr. Fred Logue, Managing Director, New Morning IP
8. Mr. Denis O’Keeffe, Director of Design and Experience Office, Logitech Ireland
9. Dr. Ruth Freeman, Director of Enterprise and International Affairs, Science Foundation Ireland