The Tánaiste today said increased investment in research and technology would be central to maintaining the economy's competitiveness.
Speaking at the launch of the Department of Enterprise, Trade and Employment's new Statement of Strategy, Ms Harney said: "To grow our competitiveness, we must drive productivity through increased competition and regulatory reform, continue to invest in key infrastructure, grow skills, boost investment in research, technology and innovation, and ensure that pay increases are linked to increased productivity and performance".
The statement comes in the wake of a Government decision to proceed with cutbacks in research funding to universities.
Last week The Irish Timeslearnt that university presidents were seeking an urgent meeting with the Minister for Education after what they described as a "highly disturbing development".
Some €150 million needed to buy laboratory space and equipment will not now be paid this year.
The move comes despite the Government's repeated assertions that investment in research and development was crucial for economic progress.
The cutbacks are in the Programme for Research in Third-Level Institutions (PRTLI), a programme run by the Higher Education Authority on behalf of the Department of Education and Science.
The colleges which will be affected by the cutbacks include TCD, UCD, UCC, DCU, NUI Galway and the Royal College of Surgeons.
In today's statement the Tánaiste said: "This statement of strategy is a key vehicle for monitoring performance and for driving forward the public service modernisation agenda".
"The delivery of added value to customers and stakeholders will be a key metric by which the effectiveness of this strategy will be measured, and I have every confidence that my Department will meet the challenges set out in the Statement", she said.
