IT IS “steady as she goes” when looking back at decisions made by Government in the research, innovation, enterprise sector during 2011. Rather than simply throw out coherent policies formulated under Fianna Fáil-led governments from as far back as 1998, the incoming Government took them on board reshaping them to suit their own agendas.

The result by end of year is a relatively calm research community that remains confident that support for scientific research will be maintained.

An indigenous sector that has been incentivised to pursue more research by offering higher tax write-offs for investment and by grant schemes. And an FDI sector that can find the scientists and engineers it needs but also believes the Government’s commitment to maintaining the 12.5 per cent corporate tax rate no matter what pressure the French or Germans apply.

The capital budget allocated to the Department of Jobs, Enterprise and Innovation was the final proof that reasonable policies developed over more than a decade by Forfás and departmental civil servants would not be abandoned.

Rather, the department, and its minister, Richard Bruton, have succeeded in placing research, innovation and enterprise at centre stage in terms of wider Government policy.

While social welfare, education and health all suffered savage – perhaps unsustainable – cuts to their capital allocations for 2012, enterprise actually saw an increase in its budget, up 4 per cent from €508 million to €514 million.

The department has been given the resources to boost innovation and competitiveness through scientific research, to create jobs and increase exports and to rebuild the economy.

This does not mean, however, that no changes have occurred in science and research policy since the Government took office last March. Bruton and Minister of State for Research, Seán Sherlock, have edged away from the previous government’s “smart economy”, which readily tolerated investment in basic research, fundamental studies where profound discoveries can be made.

The strictures required by severe Government cutbacks have placed new limits on that approach, with the replacement theme focused on gaining benefit from the State’s research investment.

Research is now meant to deliver discoveries that can be turned into products, companies and jobs.

The universities and institutes are exhorted to forge links with private sector companies. This was also the policy under the previous government, but there is a much greater emphasis now placed upon it by this administration.

This in turn has encouraged academic researchers to “follow the money” as a way to maximise the resources available to them. International credibility in research is built on being at the frontiers of science, as well as being able to take discoveries to market. There is great danger in winding down our capacity to conduct frontier-type research.

The emphasis on being near to market as a way to achieve a return on State investment in research is constantly repeated by the ministers.

The rise in academic/company collaborations “is certainly to be lauded and is in keeping with the Government’s agenda to facilitate greater commercialisation of research”, Mr Sherlock said last September when launching Science Foundation Ireland’s 2010 annual report.

The rise in collaborations “shows that forging relationships with critical sectors is being prioritised by our academic community in unison with enterprise”.

There is no secret about where this is leading. “This is where science needs to be in the context of helping to engineer economic rejuvenation in Ireland over the coming years,” Mr Sherlock said at the September event.

While the Government was committed to developing a knowledge-based economy, we needed to “ensure that there are tangible outcomes from this research”, he said also in September when announcing the high degree of success enjoyed by our academics in winning EU research grants.

There is no doubt that the Government and Mr Bruton understand the centrality of research and innovation at the heart of a modern economy. It attracts FDI, creates jobs for our graduates, stimulates indigenous company activity and helps to deliver breakthroughs that can be spun out into companies and jobs.

While this is hugely important, they must realise that fundamental research also has value even it is that bit further from market. It helps fill the pipeline of ideas and findings that trigger discoveries and products further down the line.

Bruton's 'innovation revolution' harks back to days of Whitaker and Lemass

ONE OF the most interesting but largely unreported speeches made by the Minister for Jobs, Enterprise and Innovation Richard Bruton during 2011 was delivered at the annual Macgill Summer School at Glenties in July.

In it he issued a rallying cry for an “innovation revolution”, a radical new approach not just to research or to business but to life in Ireland in general. “It is a revolution in mindset. It is a revolution in thinking and attitude. It is a revolution where new ideas and change are embraced, championed and realised,” he told delegates.

Invoking Seán Lemass and TK Whitaker, he said that “adversity and necessity” triggered by the economic downturn and the jobs crisis could in turn help spur Ireland on to recovery.

In a sense the speech was a clear enunciation of Bruton’s thinking on research and enterprise policy. “It is my determination having taken on the massive task of tackling the jobs crisis facing our country to now prepare a 21st century version of Economic Development, the plan that Whitaker built and that Lemass drove,” he said.

Bruton outlined six areas that needed to be addressed in order to help bring these changes about. The Government had a role in delivering a “supportive environment” for enterprise. FDI had to be facilitated at all costs in order to sustain incoming investments from high tech, high value companies.

We had to foster home grown entrepreneurs to drive an “indigenous engine of economic growth”. Social programmes must be redirected in order to support enterprise through training and education.

We needed to target high tech areas such as cloud computing, life sciences, clean tech, digital gaming and others in order to tag into these fast growth areas. And “finally and most fundamental” is the “transformation of productivity or value added”, he said. This could be read as “yield on investment”, a key theme emphasised by Government when talking about State funding for research.

Was he talking about using research to achieve these goals? The science community would like to think so, given all of his priority areas had a knowledge economy dimension.