The Department of Jobs, Enterprise and Innovation has warned that it faces a significant challenge in sustaining funding for programmes aimed at driving research and innovation within Irish-based firms, if the capital allocation for such programmes is not increased.
In a briefing document prepared for the new minister Mary Mitchell O'Connor, officials say that since 2011 there has been an over reliance on capital carry-over and the transfer of funds from one area to another when available.
The document warns, however, that demand for enterprise supports are now back at pre-crisis levels, and as a consequence capital savings are unlikely to arise elsewhere across the department's budget in future years.
As a result, it says significant challenges will be faced if funding for existing science, research and innovation programmes are to be maintained.
€307m was allocated in the department's budget for this year to spend on science, technology and innovation supports through Science Foundation Ireland, Enterprise Ireland and the Programme for Research in Third Level Institutions.
Since 2011, there has been a 16% reduction in funding for these programmes.
Last year the previous government made a pledge to increase public and private investment in research to 2.5% by 2020, under the State's new science strategy – Innovation 2020.
The ministerial briefing document states that there was no new additional funding provided for the strategy in 2016.
€330m was sought by the department for capital funding across innovation and R&D programmes for the period 2016-2020 as part of its bid to the Department of Public Expenditure and Reform for extra resources.
"Ireland's future prosperity rests on our ability to compete in a global economy that is increasingly driven by innovation," the brief says.
"A significant increase in Science Foundation Ireland, Enterprise Ireland, IDA Ireland investment in human capital and research infrastructure is needed from 2017 onwards to develop the innovation and enterprise capacity of Irish firms to enable them to compete and succeed on international markets."
