Building Ireland’s Knowledge Economy

1. Building Ireland’s Knowledge Economy The Use of Strategic Policy Intelligence Tools International Conference on Industrial Technology Innovation Taipei – 3rd /4th August 2006 Helena Acheson, Head of Division Science, Technology & Innovation Policy

2. Introduction – Ireland in Summary Population 4.13 million Total at work 1.95 million (was 1.1m in 1990) GDP per capita€38,740 A GROWING ECONOMY - 2005 GDP €160 bn Exports €127 bn Imports €106 bn Trade Surplus €21 bn - 13.1% of GDP The average annual rate of increase in Irish GDP has been 9% over the 7 year period 1994 - 2000, the highest in the EU and the OECD

3. A Decade of Growth Sources: Department of Finance and AMECO, 2006

4. Ireland’s Share of World Merchandise and Services Trade 1993-2004

5. Ireland’s Economic Success – key factors • 1950s Tax breaks for exporters and foreign investors • 1960s Shift from protectionist to more “outward oriented” economic policies Free universal secondary schooling • 1973 Joined the Common Market (EU) • 1980s Fiscal and monetary consolidation Social Partnerships Expenditure restraint and deregulation Demographics and highly elastic labour supply “These policies when considered individually, may be unexciting and unimportant. However, the cumulative impact can make the difference between convergence and divergence”(FitzGerald,2004)

6. Forfás’ Mission • To lead the development of public policy and to support the implementation of, ambitious, coherent and widely understood long-term enterprise & science policies aimed at developing Ireland as one of the most competitive and successful economies in the world • A “think tank” for Government • Forfás Board composed of the CEOs of business, enterprise development agencies, research funders, national training agency, higher education, Government (multi-actor)

7. Department of Enterprise, Trade and Employment advice County Enterprise Boards IRISH OWNED ENTERPRISE POLICY ANALYSIS AND ADVICE RESEARCH AND TRAINING S&T, Innovation Enterprise Competitiveness research support & secretariat INWARD INVESTMENT INDEPENDENT ADVISORY COUNCILS

9. RTDI - where have we come from? • 1970’s National Science Council • 1980’s National Board for Science & Technology Gap between effort put into policy analysis and policy implementation & programmatic funding However, 1989 – 1993 Community Support Framework • substantial resources available for Science & Technology

10. Operational Programme for Industrial Development (1989 – 1993) • Funded the first S&T Development Programme • to enhance industrial R&D • to support industry – higher education collaboration • to develop university research infrastructure • STRIDE (EU initiative) • Funding research in the Natural Resources including Marine, Agriculture & Forestry

11. Priority setting and budget allocation +/- incremental up to 2000

12. Moving from Vision to Action with Strategic Policy Intelligence Tools • SPI is the set of activities to search, process, diffuse & protect information in order to make it available to the right persons, at the right time, so that they can take the right decisions • Technology Foresight – priority setting • Technology Assessment – agenda setting • Technology Assessment improves thefocus of the vision by checking which of the possible options arerealisticandimplementable

13. How Technology Foresight changed the mindset and culture for the National Development Plan (2000-2006) • In 1998 the Government asked the Irish Council for Science, Technology & Innovation, ICSTI, to undertake a national Technology Foresight exercise to select strategic S&T priorities for investment under the National Development Plan . • The recommendations in the Foresight report lead to the decisive shift in public policy and funding initiated under the current NDP e.g. • expansion of Programme for Research in Third Level Institutions (PRTLI) • establishment of a Technology Foresight Fund (~€ 700m)

14. Technology Foresight Ireland the key message Knowledge-based economy- but a gap at the ‘4th level’ More of what we do well Current Excellence at all levels

15. Technology Foresight Ireland – Outcomes • Creation of a Technology Foresight Fund of over €700 million in the NDP – a significant investment needed for basic research in niche areas of ICT and biotechnology - two pervasive technologies underpinning strategically important sectors in the Irish economy • Establishment of Science Foundation Ireland (SFI) to manage the Fund • Each Government Department to incorporate sectoral Panel Report conclusions in their own strategic planning

16. Science Foundation IrelandThe First Years 2001 - 2005 International Evaluation Panel Report (October 2005) • SFI Achievements • €10m in 2001 → €121m in 2005 • established 163 PI-led research groups • 35 PIs have come to Ireland from laboratories abroad • groups employ >1,150 research staff and 450 PhDs • established 6 Centres for Science, Engineering & Technology (CSETs) with significant industry involvement • “……..that SFI has been a positive driving force for change in the Irish research system and that Government should continue to take a long-term, strategic view of research funding.”

17. Moving from Vision to Action with Strategic Policy Intelligence Tools

18. The wider S&T rationale for Technology Assessment • Ireland is a small, open economy making (internationally) relatively small investments in the S&T base • Need for coherent national strategies towards emerging S&T areas • Request from Department of Enterprise, Trade & Employment to Forfás to pilot a TA exercise – capability building with respect to a strategic policy intelligence ‘tool’ to contribute to better decision-making • D/ETE Chair the Inter-Departmental Committee for Science & Technology; reports to the Cabinet Committee on S&T – part of the new governance structure for S&T policy in Ireland • Seeking improved policy coherence and more ‘joined up’ thinking and implementation by the different actors in theNational Innovation System

19. What is NanoIreland ? • A technology assessment initiative • managed by Forfás • guided by a high-level Task Force • to assess current and future Nanotechnology developments and their potential applications and, • within the context of the current and developing Irish science, technology and innovation landscape – • to develop robust policy & investmentoptions • which can be used by Government to focus and guide national priorities • in the context of the European Action Plan for Nanotechnology

20. NanoScience and NanoTechnology • Fundamental changes in whole economy/ society • Need to deal appropriately with advances (+ve and –ve) • Scientific knowledge is not enough – expert findings require translation for target groups • Structured communication and co-operation between stakeholders • Nanotechnology has the potential to be a stimulus for improved policy coherence since, for success, inherently requires a cross-area integrated co-operation

21. Methodology used - Scenario construction • Definition of scenario: • Integration of trends, decision-output simulations and uncertainty characterisation into one or several systematic future developments • Properties: • Not one single future but several futures • Mix of hard facts and subjective judgments • Data collection through research, surveys and discourse • Separation of assumptions, parameters and variables • Systematic linking of variables

22. Nano Electronics CONNECT MAKE HEALTH PURE LIFESTYLE NanoBio Scoping the Exercise NanoMaterials Scenarios 2 x Make 2 x Pure 1 X Connect 1 X LifeStyle 3 x Health

23. Priority setting and budget allocation +/- incremental up to 2000

24. Three main Pillars for RTDI policy Applied Research and Technology Strategic Areas Firms Research and Technology Competence, Critical Mass Science Base Critical Mass, Excellence • To drive the commercialisation of research • To internationalise the research system

25. Strategy for Science, Technology and Innovation (2006 – 2013) • Important to ensure that our investment in excellent research also has regard to economic and social needs and that these should play a guiding role in where investments are made. • The broad based portfolio analysis approach will be supplemented by more detailed exercises focused on specific areas of science and technology. • A pilot Research and Technology Assessment exercise is currently underway focusing on Nanotechnology. • The learning from this pilot will be used to further develop the role of Research and Technology Assessment in the planning and implementation of the Strategy.

26. Lessons learnt regarding the use of SPIs • National foresight should draw from international foresight, focus on national / local specificities • Foresight can be a process of mutual learning – understanding the key drivers of change, identifying the emerging opportunities and preparing for the future • can be more effective when linked to other national level intelligence and strategy processes – consensus/partnership processes,policy evaluation, technology assessment, etc. • Foresight, TA and evaluation should be seen as an integral part of improved innovation policy governance