More investment in higher education is essential to enable the economy to compete internationally on the basis of intellectual assets rather than costs, maintains John Dunne
Education is the foundation on which a successful economy and a fulfilling society are built, and the Irish education system is recognised as one of the most successful in the world in meeting business needs.
One of Ireland's advantages for attracting investment is the speed of response and agility it displays in meeting the changing needs of business. This has been evident in the past decade when international companies were undergoing transformation as a result of globalisation, technological advances and the adoption of new business models. In Ireland they found a location which could move at the pace and flexibility required.
To sustain and renew our success, we must now apply this famed agility and responsiveness to our education system. We can only be successful nationally if we position ourselves as a knowledge-rich, innovative and creative society and economy rather than one which has merely cost advantages. Developed societies demand jobs that are more intellectually based, with greater job satisfaction and fulfilment.
This is where our education sector must make a new and more demanding contribution. Education can be the power driver of the next stage of national development, or a constraint upon it if it does not meet changing economic and social needs.
Knowledge driven, high-tech businesses will form the base of the new economic environment. Two fundamental technologies, biotechnology and information technology, are likely to be at the heart of future growth. It is estimated that the potential market in biotechnology alone will grow in value to over €250 billion by 2005 and sustain over three million jobs globally. To successfully compete for world class industries in these areas, Ireland must invest heavily in educating and equipping graduates with high-level skills.
We have identified three aspects that we believe require special attention: raising public awareness and acceptance of the importance of the sciences; increasing participation at third level and beyond in science, technology and engineering disciplines, and investing in research and development capabilities.
There is a poor public awareness of science and its opportunities. The key educational issue is how to make science a more attractive option and reduce the current negativity and lack of interest in science. Suggestions made by IDA Ireland in relation to this issue include the adoption of a general science programme for the Leaving Certificate.
A general science subject, which covers all aspects, as a fourth option to physics, biology and chemistry, may prove more attractive to students than the current separation of the subjects. Heavier investment should also be made in training science teachers and funds should be available to provide more and better labs in second level schools to encourage more practical work. The availability of a skilled and relevantly educated workforce will increasingly become Ireland's key competitive advantage, perhaps its most sustainable competitive advantage. The knowledge base that will underpin our future success will be driven by our third level sector, but it will cater for increasing numbers of post-graduate, doctoral and post- doctoral students.
THIS higher participation at more advanced levels will demand additional resources, especially in our research base; a greater integration of universities and institutes in national development efforts; and new and more flexible forms of teaching. The Skilbeck Report, commissioned by the Higher Education Authority (HEA) and the Conference of Heads of Irish Universities (CHIU), is a welcome contribution to thinking in this regard.
The third level educational sector should be characterised by an agility and responsiveness linking the best of academic inquiry and excellence to evolving national aspirations. It should lead national development through generating sources of new learning of international significance and be central to the national ethos of creativity and innovation, through links to businesses which are globally competitive. The education sector should also be close to community needs to provide for lifelong and more advanced education. Such a relevant and engaged third level education sector would be a real national asset. Ireland's education system has repeatedly proven itself capable of being flexible and responsive to changing needs. Now it must rise to these new challenges, so that we can surpass those other countries that compete through superior knowledge and skills.
As Dr William Harris, director general of Science Foundation Ireland, has stated "strong research capacity is vital to prosperity". There is a need to create a much stronger and more extensive research base in Ireland. The foundations for this have been laid and a variety of initiatives are underway to establish Ireland as a world-leading research centre.
Fostering an active research and development environment in Ireland will result in new ideas being formulated and economic breakthroughs realised. Research spurs innovation. A liberated research policy opens doors to new markets and sectors, cascading its effects into the wider economy.
To maintain the momentum, it is essential that support for current programmes such as those of Science Foundation Ireland and others are agreed on an ongoing basis. Such programmes cannot be short-term, once-off programmes. They should be the beginning of sustainable long-term funding such as was committed for investment incentives in industrial development for the past 40 years.
With the ongoing reductions in direct grants for industrial investment, this is the opportune time to shift the incentive focus to R&D. These steps can have very practical benefits. We can achieve an increase in higher value investment, with Ireland moving up the value chain. Ireland will become a recognised home base for global companies because new ideas for global operations will originate in Ireland and more intellectual property will be created and used here. Businesses in Ireland will be in greater control of their own operations. We will compete on the basis of our intellectual assets rather than on costs.
We are now at a turning point in our economic and social development. If we are to achieve the world leading society to which we aspire, we must invest more in our people, through education.
That has been a highly successful policy over past decades; it can be even more so in coming years as we continue to compete with the best in the world.
John Dunne is chairman of IDA Ireland and a former director general of IBEC, the employers' body. This article is an edited version of his statement in the IDA Ireland annual report published last week.