Research and development expenditure in Ireland increased to €1,780 million in 2004 up 10.7 per cent on 2003 and is estimated to reach €1,910 million for 2005, according to a report published today by Forfás.
The higher education sector has significantly increased its R&D spending from €322 million in 2002 to €492 million in 2004 - a 53 per cent increase.
But business expenditure on R&D as a percentage of economic activity has remained static as the strong R&D gains only matched the strong economic growth posted in the period.
Business-sector R&D recorded a 16.3 per cent increase totalling €1,150 million in 2004, up from €988 million in 2002.
"The continuous improvement in R&D performance will assist Ireland in boosting the competitive position of our goods and services in the international marketplace in the years ahead," said Martin Cronin, chief executive of Forfás.
"While these increases provide us with a stronger base on which to build, it is vital for long-term national economic success that we promote further investment in R&D to meet the targets in the National R&D Action Plan," he added.
"Firms with an eye on long-term growth in international markets need to ensure that they have clear plans to introduce higher value products and services and to improve operating efficiencies," continued Mr Cronin.
Total R&D spending in Ireland increased from 1.35 per cent of GNP in 2002 to 1.43 per cent of GNP in 2004. This compares with the EU25 average of 1.85 per cent (GDP) and the OECD average of 2.24 per cent.