Government Structures of Innovation Policy

3.2.1 The Irish Policy Creation and Implementation Structure

In the past development focus was on the development of infrastructure and policies to attract investment from overseas and the area of innovation was considered a side issue (The Economist, 2004). This perspective has recently changed - the government made innovation a key part of its National Development Plan 2000-2006 (European Commission - Enterprise Directorate General, 2005). One consequence to this new focus on innovation was dramatic changes in the Irish innovation policy structure. These changes included the establishment of new organizations, changes in the responsibilities of existing organizations and the renaming of some councils. Perhaps the most significant change within the new structure was the establishment of the Cabinet Subcommittee on Science, Technology and Innovation, which first met at the beginning of 2005, as it is this committee that coordinates overall innovation related activities. The present structure is shown in Figure 11 Institutional Framework of the Ireland Innovation System.

Many of the policies and institutes involved in the stimulation of innovation in Ireland are somewhat new and their effectiveness is not yet known. Because of this uncertainty over the effectiveness of policies a number of pilot schemes exist to stimulate innovation (particularly in rural areas).

Not all innovation policies within Ireland are carried out across the whole country, this is due to difference in development patterns in the Southern / Eastern areas (strong growth) and the Northern / Western (weaker growth). This has lead to two development agencies being developed and more basic infrastructure policies being implemented in the North.

3.2.2 Key Government Organizations in the Irish Innovation Policy Network Cabinet Sub-committee on Science, Technology and Innovation

This is the highest coordinating committee for innovation within the government. It determines the general direction of innovation policy.

Inter-Departmental Committee for Science, Technology and Innovation

This high level committee is charged with implementing and coordinating innovation plans between departments. As part of its duties is has responsibility for ensuring that STI is a priority across government departments and subdivisions

Department of Enterprise, Trade, and Employment

This department responsible for the science and technology budget including the distribution of European Union funds. It is the main body for the allocation of public research funds. In addition it is responsible for industrial policy, the development, execution and coordination of STI policy. Through is local development agencies it is responsible for regional development planning and promotion.

Forfás

The role of this agency is to; measure and advise on industrial development, develop enterprise and the promotion of science and technology in Ireland.

In addition it has responsibility for coordinating the activities of Enterprise Ireland, Science Foundation and the Industrial Development Authority.

Department of Education and Science

This department is responsible for all forms of state education including vocational and further. It also oversees the Irish Research for Science, Engineering & Technology and the Irish Research Council for the Humanities & Social Sciences, which are organizations whose primary objectives are to research and advise on developments and appropriate policies in their respective areas.

3.2.3 Current Stated Objectives for Irish Innovation Policy

According to the Forfas 2005 Annual Report the innovations objectives for the period 2006-2013 as approved by the Cabinet Subcommittee on Science, Technology and Innovation are (Forfás , 2006):

• Accelerate the rate of human capital development in the country, through increased investment in research by teams of excellence that will produce the skills and graduates required for the enterprise sector of the future and for economic and social well-being;

• Proactively support and encourage much greater commercialization of the output of research through more timely and efficient technology transfer to enterprise and a higher level of technology based start-up enterprises;

• Increase significantly the capacity to absorb technology and the R&D performance of enterprises in Ireland, so as to secure the current employment base, create new jobs and wealth and increase productivity. This can be done through increasing in company R&D and promoting greater links between the enterprise sector and the science base in academia; and

• Internationalize further Ireland's innovation system through the continued attraction of excellent researchers and talent to Ireland, the attraction of mobile enterprise R&D and effective linkages of researchers and companies in Ireland with technology networks, centers of excellence and scientific infrastructures on the island of Ireland, in Europe, the US and elsewhere.

Figure 11 Institutional Framework of the Ireland Innovation System

3.2.4 The Taiwanese Policy Creation and Implementation Structure

Due to the tradition of being a nationalist government Taiwanese government has a long history of intervention in industry and of actively developing the economy (European Commission - Enterprise Directorate General, 2005). It has been aggressively championing policies that promote the government aim of developing the high technology industry and of raising national prosperity to a stage where it has caught up with the first world. Within the Taiwanese system of government the ultimate responsibility for science and technology policy lies with the President’s office however in reality much of the decision making is undertaken by the Executive Yuan. Implementation of policy is carried out three government agencies: The Council for Economic Planning and Development, The Center for Economic Deregulation and Innovation and The National Science Council (technically part of The Executive Yuan). The government often liaises with larger corporations (such as TSMC, ACER and BENQ ) within Taiwan's major companies when deciding innovation policy (European Commission - Enterprise Directorate General, 2005) .

Both the government and firms of Taiwan have been aware of need to move to towards a more innovation society for the past 15 years. In the early 90’s Taiwanese firms conducted little research and relied on reverse engineering for product development (VINNOVA - The Swedish Governmental Agency for Innovation Systems, 2005). Realizing the risks involved in this many firms and academics encouraged the government to stimulate innovation and thus the Taiwanese government has long term experience of shaping innovation via policy.

In addition to government created research organizations such as ITRI many research centers have been set up by universities and are located on university campuses for example National Chaio Tung University houses the following: Center for Nano Science and Technology, Microelectronics and Information Systems Research Center, The Center for Telecommunications Research and the Brain Research Center. These research centers are receive research projects from industry, the National Science Council and well as serving as locations for student research. Figure 12 Institutional Framework of the Taiwan Innovation System shows the present configuration of the framework.

3.2.5 Key Government Organizations in the Taiwanese Innovation Policy Network The President’s Office

The office of the president is independent and not answerable to lower levels of government (although he serves as the chairperson of the Executive Yuan). The President is the supreme chief of government (Luo, 2001).

The Executive Yuan

The is the lead organization in the innovation development systems and non-defense science and technology related activates. It is the executive branch of government and one of the five yuans that that form the basis of the government in Taiwan (the others being Legislative Yuan, Judicial Yuan, Examination Yuan and Control Yuan). The Executive Yuan controls the budgets of and itinerary of the three main agencies involved in innovation and economic development.

The National Science Council

This organization is part of the Executive Yuan and is the premier body charged with development of the science based industrial parks, supporting academic research and promoting national technology development. It is this council that allocates public research projects and budget.

Council for Economic Planning and Deregulation

This recently created council is charged with the task of researching and enhancing, the internationalization, deregulation and re-engineering of the economy. One of its main tasks is to aid investment in industry both domestic and FDI. Another key task is to remove or alter national regulations to make them more suitable for the creation of innovation and economic development.

Ministry of Economic Affairs

This ministry is responsible for industrial development, commerce, the stimulation of entrepreneurship, trade, intellectual property rights, technical research and the provision of basic infrastructure. It is this organization that is tasked with the running of the research institutions and incubators who carry out a major role in the national innovation system.

3.2.6 Current Stated Objectives for the Taiwanese Innovation Policy

The National Science and Technology Development Plan (2005 to 2008) produced by the National Science Council lists the following development and policy objectives:

Goal 1: Strengthening the knowledge innovation system.

Goal 2: Creating industrial competitive advantages.

Goal 3: Enhancing citizens' quality of life.

Goal 4: Promoting sustainable development.

Goal 5: Raising citizens' S&T standards.

Goal 6: Strengthening autonomous defense technology.

Figure 12 Institutional Framework of the Taiwan Innovation System