1. 1
Patrick Cunningham
Chief Scientific Adviser to the Government
Ballyhoura Development Ltd, Nov12, 2010
Building the Knowledge Economy

2. “to become the most competitive and
dynamic knowledge-based economy in the
world, capable of sustainable economic
growth with more and better jobs and
greater social cohesion.”
3% of GDP on R&D
1/3 public; 2/3 business
Lisbon Agenda (2000)
2

3. 3
“Ireland by 2013 will be internationally
renowned for the excellence of its
research, and will be to the forefront in
generating and using new knowledge for
economic and social progress, within an
innovation driven culture.”
SSTI vision (2006)

4. 4
1776
2007
2006
4

5. Rich: $439k
The Wealth of Nations:
capital per person
Poor: $7k
5
Source: Where is the Wealth of Nations?
World Bank , 2006.

6. Human & Social; 83%
Produced; 14%
Natural; 3%
Ireland’s Wealth
Source: Where is the Wealth of Nations? World Bank , 2006.
6

7. 0
5
10
15
20
25
30
35
40
45
55-64 45-54 35-44 25-34
Age Group
%
0
5
10
15
20
25
30
35
40
45
55-64 45-54 35-44 25-34
Age Group
%
OECD
Ireland
% of 25-34 Age Group with Tertiary Education
Source: Education at a Glance, OECD, 2008.
1976 1986 1996 2006
7

8. The Tiger Years
1990 1995 2000 2007
€60Bn
€40Bn
€20Bn
Traditional
Manufacturing
Internationally-traded
Services
Modern
Manufacturing
Source: Forfás, 2008
Sales
Roots:
EU / Euro
Tax
Education
8

9. -12%
-10%
-8%
-6%
-4%
-2%
0%
2%
Global
Economy
US EU Ireland
Sources: International Monetary Fund;
Central Bank of Ireland
Depth of Global Recession
Decline in
GDP(GNP)
for 2009
9

10. Benefits to Society: Employment, Health, Quality of Life
Business
Research
Publications,
Citations
Patents
Capital Investment,
Start-ups
Money IdeasPeople
Public
Research &
Development
Patents
Money IdeasPeople
New/Improved
Processes,
Products, Services.
New/Improved Processes, Products, Services.
M
oneyPeople
Collaboration
10

11. GDP per capita
Source: International Monetary Fund, 2009

12. GDP per capita and Human Development Index
Sources: International Monetary Fund, 2009,
Human Development Report, UN Development Programme
Correlation = 0.90

13. GDP per capita and Satisfaction with Life Index
Sources: International Monetary Fund, 2009; White, A. (2007). A Global Projection of
Subjective Well-being: A Challenge To Positive Psychology? Psychtalk 56, 17-20
Correlation = 0.85

14. GDP per capita and Happy Planet Index
Sources: International Monetary Fund, 2009,
Happy Planet Index 2.0 from the New Economic Foundation (nef)
Correlation = 0.35

15. GDP per capita and GINI Coefficient
Sources: International Monetary Fund, 2009,
Human Development Report, UN Development Programme
Correlation = 0.22

16. 0
500
1,000
1,500
2,000
2,500
3,000
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
current €m
Investment in R&D (GERD)
1.66% GNP
Private
1.41% GNP
Source: derived from Forfás data
Public
16

17. 200
400
600
800
1,000
1,200
1,400
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
€m constant
prices (2007)
Public Investment in R&D*
-15%**
* GBAORD - Government budget appropriations or outlays on R&D.
** Indicative only: SSTI relative to 2008, 2009 (nominal), respectively. Source: Forfás, DETE, 2009
NDP 2000-2006
Total = €4B
NDP 2007-2013
Total = €8.2B
-4%**
17
?

18. Capital 12%
Education
13%
SSTI 1%
Social
Welfare 33%
Health24%
Justice 4%
Agriculture
2%
Enterprise
2%
Other 9%
Sources: Revised Estimates for Public Services, DF, April 2009; SSTI Finances, DETE, May 2009
Exchequer Expenditure 2009 (~€60 bn)
Investment
for the future
Spending
for today
Seedcorn
18

19. Gross Domestic Expenditure on R&D as % GDP
Source: Annual Competitiveness Report Vol. 1, NCC, August 2009
Ireland ranks 18th
out of OECD 28
19

20. European Innovation Scoreboard - Inputs
Human Resources
 S&E, SSH Primary Graduates
 S&E, SSH PhD Graduates
 Pop. with Tertiary Education
 Life-long Learning
 Youth Education Attainment
Finance & Support
 Public R&D Expenditure
 Venture Capital
 Private Credit
 Firms with Broadband
Linkages & Entrepreneurship
 SMEs Innovating In-house
 Innovative SMEs Collaborating
 Firm Renewal
 Public-Private Co-publications
Throughputs
 EPO Patents
 Community Trademarks
 Community Designs
 Technology Balance of Payments
Firm Investments
 Business R&D Expenditure
 IT Expenditure
 Non-R&D Innovation Expenditure
20

21. European Innovation Scoreboard - Outputs
Innovators
 SME Product / Process Innovation
 SME Marketing / Organ. Innovation
 Resource Efficiency Innovators
Economic Effects
 High-tech Manuf. Employment
 Knowledge-Intensive Serv. Employment
 High-tech Manuf. Exports
 Knowledge-Intensive Serv. Exports
 New-to-market Sales
 New-to-firm Sales
21

22. Summary Innovation Index 2008
(29 Indicators)
Source: European Innovation Scoreboard 2008, UNU-MERIT,
Maastricht , Jan 2009
Followers Leaders
EU-15
22

23. 0.4
0.45
0.5
0.55
0.6
0.65
0.7
2004 2005 2006 2007 2008
0.4
0.45
0.5
0.55
0.6
0.65
0.7
2004 2005 2006 2007 2008
EIS (“2008 methodology”) Time Series
EU-27
Ireland
Denmark
Finland
Switzerland
Sweden
23
Source: European Innovation Scoreboard 2008, UNU-MERIT,
Maastricht , Jan 2009

24. Summary
 Metrics now show Ireland close to EU-15
average
i.e. among the “followers”.
 Target peer group includes FI, SE, DK, CH & AT.
24

25. Challenges
 Monitoring Delivery against Correct Indicators
 Effective Linkages to Dual Business Sectors
 Close attention to needs of foreign-owned firms
 Special efforts to lift indigenous firms
 Keeping on Track to Target
 To match leading countries
 Achievable in ~10 years
25

26. Dublin: European City of Science 2012