INNOVATE or die. That was the message from the Minister of State for Commerce, Science and Technology, Mr Pat Rabbitte, who launched the government's long-awaited White Paper on science and innovation yesterday.

Countries and companies that do not innovate will lose out, he said, squeezed between those that do and those that can operate in a low-cost economy. Innovation is vital to a healthy economy and Ireland urgently needs a vibrant, innovative culture, he said.

The new White Paper sets out a variety of measures to foster "a national system of innovation" and other institutional measures.

Key among these is the establishment of a new science council. As an advisory body with representatives from industry, colleges and research institutions, it is expected to be in place within a month. The previous national science council was disbanded in the 1970s.

The Government will also establish a permanent inter-departmental committee to plan and manage State spending on science and technology. This currently amounts to £780 million and spans 12 departments and 34 agencies, covering as it does everything from agricultural research to science teaching and hospital laboratories.

The 150-page document does not, however, set down any priorities or targets for how that money should be spent. Asked about this, Mr Rabbitte said the main aim is to put the administrative structures in place first. "I'm doubtful about the system's capacity at the moment to set targets," he said, though national strategy documents on information technology and natural resources are already planned.

As for increased funding, he said: "This White Paper is not about short-term injections of cash in response to the desires of individual policies, programmes or pressure groups."

He added that he would be seeking additional funding for the area in this year's Estimates.

But the primary emphasis, he said, "should be on changing the prevailing culture. "The low level of innovation in Ireland has nothing to do with money or the lack of it, and everything to do with attitude."

Other themes in the White Paper, which is primarily discursive, include the need for increased public understanding of science and innovation; the need for debate, especially about the information society and the ethical issues thrown up by scientific developments; the need for scientists to come out of their laboratories and engage in public debate; and the need for value for money when it comes to funding research.

The White Paper was welcomed yesterday as a first step in the debate by both IBEC's Industry Research and Development Group, which represents 100 firms, and the Irish Research Scientists Association, representing 550 scientists.

Mr Tony Gannon, the IR&DG chairman, said the new institutional arrangements mean that science and innovation are now embedded in the political system, though the group would also like to see the business expansion scheme extended to include investments in R&D.

The IRSA welcomed the document's acknowledgment of the important role of research, but said without a full cabinet minister for science and technology there can be little progress.