In the period 2004 to 2006 inclusive, over 47% of enterprises in Ireland indicated that they were active innovators. Almost 57% of industrial enterprises were classed as innovation active while 41% of service enterprises were innovation active.
The survey collected information about product and process innovations along with other key variables for the three year period 2004 to 2006 inclusive. The CIS is jointly conducted by the CSO and Forfás.
Large industrial enterprises had innovation rates of 84% compared to 63% of similarly sized service enterprises. In excess of 67% of medium sized industrial enterprises engaged in innovation activity in the period while 58% of service enterprises were innovation active. Small industrial enterprises had an innovation activity rate of 51% compared to 38% of small service sector enterprises.
Total spending on innovation activities across the Irish economy is estimated to have been €4.6bn in 2006. Just under 41% of all expenditure was for acquisition of machinery, equipment and software, which totalled €1.9bn in 2006. Almost 38% of expenditure or €1.7bn was spent on intramural R&D. Acquisition of external knowledge accounted for 15% of expenditure and extramural R&D accounted for 6%.
The total spend by industrial enterprises on innovation activities was almost €2.7bn in 2006 while the total spend in the services sector was €1.9bn. Industrial enterprises spent €1bn on machinery and equipment, €920m on intramural R&D, €550m on acquisition of external knowledge and €195m on extramural R&D.
The services sector spent €860m on machinery and equipment, €805m on intramural R&D, €150m on acquisition of external knowledge and €85m on extramural R&D.
Forfás has produced a number of reports on innovation but comparative data on patents granted and related commercialization, is lacking.
A paper published by the ESRI this week, showed that innovation in Irish manufacturing was almsot static over the past 15 years ( see link in Related below).
The figures also show that:
- In excess of 33% of all enterprises were engaged in product innovation while 30% were engaged in process innovation.
- Almost 13% of total turnover in the industrial and services sectors in 2006 was estimated to be the result of product innovations between 2004 and 2006.
- Total spending on innovation-related activities was almost €4.6bn in 2006.
- Of those enterprises who were innovation active, 27% engaged in innovation collaboration.
- The principle barriers to innovation for those firms who did not engage in any innovation activities in the period were a lack of funds and high innovation costs.
- Just under 42% of all enterprises introduced an organisational innovation in the three years 2004 to 2006.
