2009 Press Releases
UCC economist criticises ‘techno-fetishists’ on RTE’s Prime Time
01.12.2009
Dr Declan Jordan argues that current Irish innovation policy is wrong-headed as it is based on a science-push model of innovation on Prime Time, RTE TV 1, at 9.35pm tonight.
01.12.2009
Dr Declan Jordan argues that current Irish innovation policy is wrong-headed as it is based on a science-push model of innovation on Prime Time, RTE TV 1, at 9.35pm tonight.
Innovation is a business phenomenon, not a scientific or technological one, and a policy that places university-based basic scientific research at its centre downplays the fundamental importance of the market as a source for commercially successful innovation. The ‘techno-fetishist’ mind-set that underlies such a policy leads policy makers into attempts to ‘pick winners’ and emphasise the production, rather than the consumption, of new products and processes.
The pursuit of targets such as doubling PhD numbers and achieving R&D expenditure of 3% of GDP does not necessarily result in a more innovative economy – or indeed a more prosperous economy, which is the ultimate objective. The indicators mentioned are inputs to the innovation process and there is no systematic international evidence that greater R&D spending results in stronger economic growth. The usefulness or not of the indicators is reflected in the fact that Ireland’s spend on R&D as a percentage of GDP will increase markedly this year without any change in the level of funding – simply due to a fall in economic output. It’s unclear how we could say we were more innovative in such a situation.
Furthermore, in the current economic situation, the opportunity cost of funding scientific research has increased. It is clear that this budget will be cut along with other aspects of government expenditure. We will be gambling on technological breakthroughs with borrowed money and there is no evidence that Irish-produced technological knowledge is a prerequisite for a recovery in Irish economic fortunes.
Dr Jordan is a lecturer in Economics at UCC. Prior to his appointment and completion of a PhD on the sources of innovation in Irish ‘high-technology’ businesses, he had significant experience in the corporate sector, as Manager, Consulting, with the leading Irish treasury and financial consulting firm in the International Financial Services Centre (IFSC), and as Treasury Manager with Intel Ireland.
He will take part in a public debate on whether or not academic research is of value to the taxpayer at Trinity College, Dublin tonight. Further details are available at http://www.tcd.ie/longroomhub
RMcD
Picture: Mark Little, Prime Time, RTE and Dr Declan Jordan, Economics Department, UCC
The pursuit of targets such as doubling PhD numbers and achieving R&D expenditure of 3% of GDP does not necessarily result in a more innovative economy – or indeed a more prosperous economy, which is the ultimate objective. The indicators mentioned are inputs to the innovation process and there is no systematic international evidence that greater R&D spending results in stronger economic growth. The usefulness or not of the indicators is reflected in the fact that Ireland’s spend on R&D as a percentage of GDP will increase markedly this year without any change in the level of funding – simply due to a fall in economic output. It’s unclear how we could say we were more innovative in such a situation.
Furthermore, in the current economic situation, the opportunity cost of funding scientific research has increased. It is clear that this budget will be cut along with other aspects of government expenditure. We will be gambling on technological breakthroughs with borrowed money and there is no evidence that Irish-produced technological knowledge is a prerequisite for a recovery in Irish economic fortunes.
Dr Jordan is a lecturer in Economics at UCC. Prior to his appointment and completion of a PhD on the sources of innovation in Irish ‘high-technology’ businesses, he had significant experience in the corporate sector, as Manager, Consulting, with the leading Irish treasury and financial consulting firm in the International Financial Services Centre (IFSC), and as Treasury Manager with Intel Ireland.
He will take part in a public debate on whether or not academic research is of value to the taxpayer at Trinity College, Dublin tonight. Further details are available at http://www.tcd.ie/longroomhub
RMcD
Picture: Mark Little, Prime Time, RTE and Dr Declan Jordan, Economics Department, UCC