IT WOULD seem that for all the efforts over recent years, and talk of a smart economy returning us to our rightful place as the economic poster-boy for small nations, we need not fill our diaries with international speaking engagements just yet.
The latest EU innovation scorecard, published at the start of this month, ranked us in the second division, taking into account a broad range of criteria. We are apparently followers rather than leaders in the innovation arena.
It might not surprise many that we are not in the upper echelons on the world stage, but the fact that countries like Denmark and Finland rank much higher proves that simple population scales are not the leading contributors in the innovation debate. As a barometer of our so-called knowledge economy, the report suggests our performance is average rather than impressive.
In fairness, given the economic conditions and our level of public expenditure in areas such as research up to recently, the results are not all bad. And there is plenty of merit in being a strong follower. But it has become clear that one weakness in our approach is innovation by small and medium enterprises (SMEs). Europeans who lead the rankings have created viable infrastructures that enable innovation in this sector. One element is in the nurturing of active venture capital operations, particularly in SME areas.
The problem is not that innovative start-ups or good ideas are thin on the ground here. Sitting in on the judging for the Irish TimesInterTradeIreland Innovation awards offered a wonderful insight into the strength and enthusiasm of Irish business activity. The shortlisted firms are shining examples of innovation in action on this island. Addressing the financial and regulatory hurdles they face in taking their ideas to fruition should be a priority. Setting in train an environment where access to investment is available is also vital. These innovators are well above the European average – the ranking does them a disservice. As a nation we need to understand what conditions allow them to prosper. Then we will be much closer to the top of future scoreboards.
