BUSINESS spending on research and development rose from £271 million in 1993 to £397 million in 1995, according to figures just published by Forfas.
The figures represent a continuing real annual increase of 17 per cent since the beginning of the decade.
The Minister of State for Science, Commerce and Technology, Mr Pat Rabbitte, while welcoming the growing acceptance by business of the need for innovation, said the figures masked some underlying problems.
Multinational companies still account for 65 per cent of the spending and the bulk of the growth. Such spending was useful in so far as it helped secure these companies in Ireland, Mr Rabbitte said. However, only around 27 per cent of multinational companies carry out R & D on a consistent basis in Ireland. Also, only 25 per cent of indigenous companies were carrying out R & D on a consistent basis, the Minister said.
The 1994-1999 Structural Funds Programme (Measure 1) provided £105 million for industry R & D, the funding to be matched by industry spending. To date, just half way through the programme, two thirds of the funding had been committed, Mr Rabbitte said.
Based on anticipated demand, the balance will be committed by the middle of this year. Of the 400 companies approved for funding, 75 per cent are Irish owned.
