Government reviews innovation fund
A government review into the €500 million Disruptive Technologies Innovation Fund has found that applicants have been left confused about the fund’s focus.
The main source of confusion for applicants was said to be a lack of clarity over whether or not the fund was intended for “radical innovations” or “disruptive innovations”; the difference between the two being that radical innovation “involves a major change in technology, but unlike disruptive innovation, it reinforces the business model”.
The €500 million fund was established as part of Project Ireland 2040 and is managed by the Department of Enterprise Trade and Employment in collaboration with Enterprise Ireland with the idea of providing seed funding for the latest of disruptive technology innovations being carried out in Ireland. The review’s authors have urged the Department to be clearer in its outlines of the innovations it is seeking to back financially via the fund; otherwise, they warn, the number and type of applications will be limited.
The review, carried out by the Irish Government Economic and Evaluation Service, states: “The fund may have to consider if there is more focus on the ‘novel’ aspect of the technology or the ‘disruptive’ element and to make this clearer in the programme guidance… While the projects funded represent significant innovations and have the potential for large economic benefits, there may need to be increased clarity on what is meant by ‘disruptive technology’ in the guidance to applicants and assessors.”
At the time of the review, €140 million in funding had been provided to 47 projects through the fund, with the €500 million scheduled to be spent fully over a 10-year period. 159 project partners have received funding approval, 63 of these being SMEs. Funding awards have so far been primarily focused on innovations in the fields of health and wellbeing and ICT.
Among the review’s key findings was that the fund is a distinct new programme among other research, development and innovation supports due to “a combination of the scale of funding available for projects, the focus on collaboration and commercialisation, in combination with its funding of disruptive innovation”.
It also praises the fund’s commitment to developing the work of SMEs, with at least one SME member required for a consortium to apply for funding. Among the review’s recommendations are that this focus on SMEs is maintained. Also recommended is the idea of exploring “challenge-based funding, or more sectoral-focused calls, as a way to further develop interest and applications from certain sectors and address a broader spectrum of societal challenges as laid out in the National Planning Framework”.
The fund, now in its third call for applicants, opened on 24 September. Criteria laid down for applicants include the requirements that their projects alter markets, or the way businesses operate, or that they involve new products or the emergence of new business models. The call also states the projects should fall within the Government’s Research Priority Areas 2018-2023, answering the review’s call for sectoral focus. These priority areas are: ICT; health and wellbeing; food; energy, climate action and sustainability; manufacturing and materials; and innovation in services and business processes.
