Post on 21-Nov-2014
description
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Patrick Cunningham
Chief Scientific Adviser to the Government
Ballyhoura Development Ltd, Nov12, 2010
Building the Knowledge Economy
“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&D1/3 public; 2/3 business
Lisbon Agenda (2000)
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“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)
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17762007
2006
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Rich: $439k
The Wealth of Nations:capital per person
Poor: $7k
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Source: Where is the Wealth of Nations?World Bank , 2006.
Human & Social83%
Produced14%
Natural3%
Ireland’s Wealth
Source: Where is the Wealth of Nations? World Bank , 2006. 6
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
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The Tiger Years
1990 1995 2000 2007
€60Bn
€40Bn
€20BnTraditional
Manufacturing
Internationally-tradedServices
ModernManufacturing
Source: Forfás, 2008
Sal
es
Roots:
EU / EuroTaxEducation
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-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 inGDP(GNP)
for 2009
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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/ImprovedProcesses,
Products, Services. New/Improved Processes, Products, Services.
MoneyPeople
Collaboration
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GDP per capita
Source: International Monetary Fund, 2009
GDP per capita and Human Development Index
Sources: International Monetary Fund, 2009, Human Development Report, UN Development Programme
Correlation = 0.90
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
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
GDP per capita and GINI Coefficient
Sources: International Monetary Fund, 2009, Human Development Report, UN Development Programme
Correlation = 0.22
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
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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 2000-2006Total = €4B
NDP 2007-2013Total = €8.2B
-4%**
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?
Capital 12%
Education 13%
SSTI 1%
Social Welfare 33%
Health 24%
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
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Gross Domestic Expenditure on R&D as % GDP
Source: Annual Competitiveness Report Vol. 1, NCC, August 2009
Ireland ranks 18th
out of OECD 28
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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
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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
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Summary Innovation Index 2008(29 Indicators)
Source: European Innovation Scoreboard 2008, UNU-MERIT, Maastricht , Jan 2009
Followers Leaders
EU-15
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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
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Source: European Innovation Scoreboard 2008, UNU-MERIT, Maastricht , Jan 2009
Summary
Metrics now show Ireland close to EU-15 average
i.e. among the “followers”.
Target peer group includes FI, SE, DK, CH & AT.
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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
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Dublin: European City of Science 2012