€53bn budget to push innovative projects

ARTHUR BEESLEY

MÁIRE GEOGHEGAN-Quinn’s research and innovation portfolio in the new commission is in keeping with the Government’s “smart economy” policy, a drive to modernise Irish commerce and find new focus after a risky overdependence on property.

It also finds particular resonance in the wider economic strategy of commission president José Manuel Barroso, who sees innovation as the source of new growth opportunities in the face of competition from China and other developing economies.

With that in mind, Mr Barroso has widened the remit of Ms Geoghegan-Quinn’s portfolio in the new commission. In the research arena throughout Europe and further afield, she will be a powerful figure.

She takes over the science and research brief held in the outgoing EU executive by Slovenian commissioner Janez Potocnik, as well as the innovation mandate previously managed by outgoing German commissioner Günter Verheugen in the enterprise and industry portfolio.

Ms Geoghegan-Quinn will have a multibillion-euro budget to manage in her new job.

One of her prime responsibilities will be stewardship of a major research initiative known as the Seventh Framework Programme for Research and Technological Development 2007-2013 (FP7).

This programme is designed to promote the development of Europe’s “knowledge economy”. For the duration of the initiative, the budget exceeds €53 billion.

Research funding can be secured under FP7 in 10 sectors: health; food, agriculture, fisheries and biotechnology; information and communications technologies; nanosciences, nanotechnologies and new production technologies; energy; environment (including climate change); transport (including aeronautics); security; space; socio-economic sciences and the humanities.

According to a briefing note, 418 Irish organisations benefited from FP7 by €107 million in 2007 and 2008. This equates to roughly €1 million a week flowing into small and medium-sized enterprises, multinationals and educational institutions.

EU rules dictate that no commissioner can offer any special privileges to projects in their home state.

However, the Government’s pursuit of the portfolio implies it sees great merit in associating Ireland with the research undertaken to modernise the wider European economy.

The implied objective is that this will produce spin-off benefits for Ireland in the battle to increase foreign direct investment and boost employment.

As it stands, the Government has already introduced significant taxation measures designed to stimulate research and innovation activity in the Irish economy.