NORTHERN IRELAND: THE INDUSTRIAL RESEARCH
AND TECHNOLOGY UNIT
EFFECTIVENESS
OF
THE
IRTU PROGRAMMES
34. There was a scarcity of information available
on the impact of IRTU's programmes, particularly in view of the
length of time that some of those programmes have been operating.[33]
Given that IRTU is now an Executive Agency, we asked what action
was being taken to improve performance measurement and when there
might be a range of information that clearly demonstrated the
economic impact of its programmes.[34]
35. We were told that IRTU had instituted R&D
surveys in Northern Ireland. A survey for 1996 showed that business
expenditure on R&D had increased to £85 million, an increase
of 31 per cent in real terms compared with 1993. In the same period,
the United Kingdom had a decline of four per cent in real terms.
IRTU also said that they now had in place a comprehensive framework
for evaluating the impact of programmes. As well as reviews of
individual projects, all programmes are subject to periodic policy
evaluation, which includes the measurement of impacts and economic
benefits. In addition, IRTU had commissioned a number of tailored
studies on specific aspects of programmes and was undertaking
more detailed research in a number of areas.[35]
The Department also said that they were assessing whether the
methodology developed jointly by the National Audit Office and
the Department of Trade and Industry, for measuring the comparative
cost-effectiveness of support schemes, could be used to assess
IRTU's programmes.[36]
36. When we questioned IRTU on whether any qualitative
research had been carried out to measure the benefits of R&D
activity in terms of jobs and sales in Northern Ireland, we were
told that this was extremely difficult to measure, not least because
of the long lead-time between a research project and any resultant
jobs.[37] While we do
not underestimate the difficulties of such measurement, we nonetheless
expect IRTU to make every effort to develop suitable methods of
assessment in this area.
Level of R&D Activity
37. A 1994 survey commissioned by IRTU on the level
of R&D in Northern Ireland found that although there was a
significant level of R&D expenditure, activity was concentrated
in a small number of mostly large companies, with the top ten
businesses accounting for some 62 per cent of all R&D spend.[38]
While the relative lack of R&D activity in smaller companies
is striking, the Department told us that, with more than half
of the 300 companies entering the COMPETE programme being involved
in R&D for the first time, there was now some indication that
they were getting through to the smaller and medium-sized companies.[39]
Intellectual Property Rights
38. The Department informed us that they do not take
an equity stake in any of the research which they fund, the objective
of which was to bring about economic growth in Northern Ireland.
When we asked whether they should seek to recover some of the
income which companies earned as result of successful, assisted
research, the Department said that
as more progress was made in increasing the amount
of R&D in Northern Ireland, they
would look at ways in which they could reduce intervention
and perhaps recover some of their funding.[40]
We also asked whether there were any safeguards against successful
research being commercially exploited outside of Northern Ireland.
The Department said that, legally, they could not restrict commercial
exploitation to any smaller unit than the European Union. However,
they were able to apply moral pressure and they sought to ensure
as far as possible that research was directly related to a production
process which was located within the United Kingdom.[41]
Conclusions
39. We were disappointed that there was not more
information available on the impact of IRTU's financial assistance
programmes. We welcome the Department's assurances that they now
have in place a comprehensive framework for evaluating the impact
of IRTU's programmes and that more detailed research is being
undertaken in a number of areas.
40. It is essential that Executive Agencies have
a systematic and consistent set of measures, that focus on performance
and not just levels of activity and which facilitate assessment
of the rate and extent of progress over a number of years. We
place a very high value on this.
41. We recommend that IRTU should consider the introduction
of a specific performance target related to the spread of R&D
across a wider range of businesses in the future.
33 C&AG (NI)'s Report paragraphs 4.1, 4.17 Back
34 Q
9 Back
35 Qs
9, 53, 59-60, 79. Evidence, Appendix 1, p 10-11 Back
36 C&AG
(NI)'s Report paragraphs 4.12-4.15. Qs 69-71 Back
37 C&AG
(NI)'s Report paragraph 4.9. Q 54 Back
38 C&AG(NI)'s
Report paragraphs 4.7-4.9 Back
39 Qs
40-41 Back
40 Qs
55-58, 61 Back
41 Qs
65-67 Back
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