State Expenditure on Science & Technology, 2001 Volume One – The Total Science and Technology Budget January 2003 Science and Technology Budget 2001 Review of State Expenditure on Science and Technology 1990-2001 Incorporating financial expenditures in 2000 and allocations for 2001 by Government to Institutions engaged in any activity related to science and technology. Evaluation and Indicators Unit January 2003 2 Contents 1 SUMMARY 4 2 INTRODUCTION 7 3 TOTAL GOVERNMENT FUNDING OF SCIENCE AND TECHNOLOGY 8 3.1 Total Funding and Trends 8 3.2 Funding by Type of Cost 9 3.3 Comparison with GDP and Total Government Budgets 10 3.4 Government Departments/Agencies funding science and technology 10 3.5 Funding by activity 15 3.6 Public Funding Trends by objective 17 3.7 Matrix of Science & Technology funding sources 18 3.8 Transfer payments between Departments/Agencies 18 4 SCIENCE AND TECHNOLOGY FOR THE PRODUCTIVE SECTORS 20 4.1 Industry 20 4.2 Agriculture 21 4.3 Environment 22 4.4 Marine and Forestry 22 4.5 Energy 24 4.6 Transportation 24 5 EDUCATION AND HEALTH ACTIVITIES 25 6 GENERAL PUBLIC SERVICE ACTIVITIES 28 7 ECONOMIC AND SOCIAL ACTIVITIES 30 Appendix 1: METHODOLOGY & DEFINITIONS 31 Appendix 2: INDEX OF ACRONYMS 35 Appendix 3: INSTITUTIONS' PROGRAMMES 37` 3 1 Summary Vol. 1 Science and Technology Budget – State expenditure on scientific and technological activities. The ‘Science and Technology Budget’ provides details of the allocations made by Government to all scientific and technological activities, both those undertaken by the public sector and the private sector. The most important of these activities is research and development (R&D) and other activities are education and training, technical services (including information and advice) and technology transfer. In all, 40 government departments and agencies are involved in allocating the total S&T budget. And the definitions of S&T used are quite broad, so that the report includes activities of Met Éireann, the Geological Survey, the Office of Public Works and other similar organisations. The table below shows the total allocations for both 2000 and 2001, as well as the outturn for 2000. The difference between outturn and allocations reflects changes that took place during the year and resulted in a variation from the budget plan at the start of the year. Allocations and Outturn (€m) 2000 Allocation 2000 Outturn 2001 Allocation Exchequer 1,050.51 1,068.05 1,491.69 EU 135.52 91.45 73.03 Total Public 1,186.03 1,159.50 1,564.72 Earned income 211.32 200.95 195.05 Total 1,397.35 1,360.45 1,759.76 The 2001 allocation represents an increase of just €400m over the 2000 outturn. Exchequer funds accounted for all of the increase as both EU contributions and private sector funds declined. The table below indicates the areas where the major increases in public expenditure occurred (i.e. ignoring earned income). Changes in Expenditure 2000 – 2001 (€m) 2000 Outturn 2001 Allocation Change Dept of Education & Science 743.4 927.6 +184.2 Dept. of Public Enterprise 44.1 124.3 +80.2 Dept. of Enterprise, Trade & Employment 138.3 177.0 +38.7 Dept. of Social, Community & Family Affairs 8.0 33.6 +25.6 Dept. of Agriculture, Food & Rural Development 98.4 118.4 +20.0 Central Statistics Office 28.2 43.6 +15.4 Dept. of Marine & Natural Resources 27.9 39.3 +11.4 Office of Public Works 5.6 14.8 +9.2 4 The increase in the Department of Education and Science was mainly for additional funding for science and engineering courses in third level institutions and also extra funding (€39m) for research under the Programme for Research administered by the HEA. Most of the increase in the department of Enterprise, Trade and Employment relates to additional R&D funding via Forfás and Enterprise Ireland. The Department of Public Enterprise is investing strongly in the Digital Hub and in MediaLab Europe. Vol. 2. Research and Development in the Public Sector Financial allocation by Government for 2001 to institutions involved in R&D. As research and development is a very important component of total S&T spend, a separate report on R&D is prepared in addition to the Total S&T Budget report. This analyses both the funding of R&D by government departments/agencies (whether performed in the public sector or the private sector) and the performance of R&D in the public sector. Forfás prepares separate reports on the performance of R&D in the business sector (‘BERD’) and in the higher education sector (‘HERD’). The table below shows the total allocations for R&D for both 2000 and 2001, as well as the outturn for 2000. Public Funding of R&D, 2000-2001 2000 Allocation 2000 Outturn 2001 Allocation Exchequer 201.05 175.78 285.09 EU 94.77 68.28 56.74 Total Public 295.68 244.06 341.84 Earned income 73.08 76.88 75.07 Total 368.90 320.95 416.90 The table below indicates the areas where the major changes in expenditure occurred. Changes in R&D Expenditures (€m) 2000 Allocation 2000 Outturn 2001 Allocation Change Dept. of Education & Science 95.3 82.5 121.6 +39.1 Dept. of Enterprise, Trade & Employment 120.2 61.6 89.5 +27.9 Dept. of Public Enterprise 1.4 7.4 18.0 +10.6 Dept. of Agriculture, Food & Rural Development 37.1 51.1 58.6 +7.5 Dept. of Marine & Natural Resources 3.6 13.6 21.0 +7.4 Dept. of Health & Children 12.9 12.5 15.6 +3.1 5 Allocations of public funds to research and development by government departments and their agencies in 2001 amounted to €341.8m. This compares with an original allocation of €295.7m in 2000 and an outturn for 2000 of €244.1m. The difference between allocation and outturn in 2000 reflected a wide variety of different factors. On the one hand, the outturn for the Department of Enterprise, Trade and Employment was nearly 50% below allocation (€61.6m instead of €120.2m); this was caused mainly by the slower than expected build up in Science Foundation Ireland (shortfall of €31m) as well as an underspend of €17.5m by Enterprise Ireland. On the other hand, additional unanticipated expenditures by the Department of Public Enterprise (+€6m for the Digital Hub/MediaLab Europe) and the Department of Marine & Natural Resources (+€9m for the construction of the Celtic Explorer Research Vessel) contributed to reducing the overall shortfall between allocation and outturn that year to €51.6m The allocations for 2001 are up by 40%, or €98m on 2000 outturn figures and by 15% or €46m compared to the original 2000 allocations. The major contributors to this increased funding are: Department of Education and Science: €39.1m Department of Enterprise, Trade and Employment: €28m Department of Public Enterprise: €10.6m Other significant increases are in the Department of Agriculture, Food and Rural Development (€7.5m), the Department of the Marine and Natural Resources (€7.5m) and the Department of Health and Children (€3.1m) Additional funding from the Department of Education and Science relates to expenditures under the Programme for Research in Third Level Institutions. The Department of Enterprise, Trade and Employment increase reflects a build up in expenditures to Forfás to fund Science Foundation Ireland as well as additional grants for R&D from Enterprise Ireland to the business sector and to third level institutions. The Department of Public Enterprise has begun to support R&D in a significant way in the Digital Hub and in MediaLab Europe. The levels of R&D performed in the various Government Departments and their agencies do not match the total amounts they fund. An individual Department or its agencies might perform little or no R&D themselves while providing funding to other performers in either the public or private sectors. The allocation for performance of R&D in 2001 is €127.7m, up from €95.6m in 2000. This figure includes €13.1m, which is earned income so that the public funds invested in R&D performed in the public sector amount to €114.6m in 2001, compared with €82.7m in 2000. 6 2 Introduction This document provides details of the allocations made by Government to scientific and technological (S&T) activities. In all, 40 government departments/agencies are included in the 2001 S&T Budget. The information on which the analysis is based was supplied by government departments, offices, agencies and other recipient institutions following finalisation of the overall government estimates for the public services for 2001, and after the operating institutions had decided on the distribution of their allocations over their programmes. Figure 1 indicates the public sector organisations funding and performing S&T activities in 2001. Figure 1 Government Departments/Agencies Funding S&T, 2001 DEPARTMENTS AGENCY DEPARTMENTS AGENCY Agriculture, Food Teagasc Education & Science HEA & Rural Development DIAS Enterprise, Trade & Employment Forfás Environment & Local EPA Enterprise Ireland Government NRA IDA Ireland Social, Community Patents Office and Family Affairs MAC Arts, Heritage, Gaeltacht Údarás na Gaeltachta FÁS and the Islands Natural History Museum NSAI Public Enterprise GSI Health & Children HRB RPII Postgraduate Medical Met Éireann & Dental Board Marine & Natural Resources Marine Institute Taoiseach NESC BIM Central Fisheries Board COFORD OFFICES CSO OPW State Laboratory Ordnance Survey Central Bank INCORPORATED COMPANIES ESRI Shannon Development See appendix 2 for explanation of acronyms. Section 2 brings together the total S&T picture for the public sector, including non-exchequer monies – mainly fees and other earned income – of institutions that operate science and technology programmes.