Forfas 2009 - The National Documentation Centre on Drug Use

Economic Appraisal of State Support to Enterprise Projects
An economic appraisal model is used by the enterprise development agencies to assist them
in deciding whether to provide support for enterprise development projects in Ireland. <strong>The</strong>
economic appraisal model helps to discriminate between enterprise projects with different
characteristics, so that resources are devoted to assisting those that most closely match the
criteria as set down under legislation and industrial policy. It is effectively a cost benefit
analysis, designed to assess the likely benefits arising primarily from employment creation
projects supported by the development agencies.
In the context of the current economy climate, Forfás undertook a review of a number of key
parameters that influence the outcome of the ex-ante project appraisal. <strong>The</strong> parameters
reviewed were the shadow price of labour, migration and unemployment, reference regional
wage rates, and discount rates. Adjustments are now reflected in the models in use by the
enterprise development agencies so that they more accurately reflect the structural shifts in
the economy.
Productivity
Achieving higher productivity levels is an important ingredient for international
competitiveness and sustainability, particularly when today’s businesses are facing increased
competition and are under pressure to cut costs. Forfás worked with the enterprise agencies
and others to develop two publications to help maximise productivity among firms in Ireland.
Published in <strong>2009</strong>, the first is a short guide aimed at business managers called Boost Your
Company’s Productivity: Simple Steps, which highlighted some proven tactics for boosting
productivity. <strong>The</strong> publication explains how to measure current productivity levels and make
these figures meaningful by tracking them over time. <strong>The</strong> second publication, Boost Your
Company’s Productivity: a Guide for Managers and Employees builds on and provides more
information on the points highlighted in the short guide.
In <strong>2009</strong>, Forfás continued to provide post graduate bursaries to encourage supervised research
in productivity that is likely to contribute to the identification of policy options. Bursaries
were awarded to four postgraduate students undertaking research on:
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<strong>The</strong> effects of innovation on productivity in Irish firms;
Which technology transfer channels are most effective at raising productivity;
How exporting can drive firm productivity; and
<strong>The</strong> links between public investment and enterprise productivity.
<strong>The</strong> SSTI Enterprise Feedback Group
<strong>The</strong> Strategy for Science, Technology and Innovation (SSTI) Enterprise Feedback Group (EFG)
was established by the Tánaiste and former Minister for Enterprise, Trade and Employment,
Mary Coughlan, TD, in December 2008 to provide advice to the Government on how to ensure
that investments made under SSTI are directly linked to economic outcomes like job creation
and retention, higher value-added activity, increased exports and increased number of startups
and spin-outs. <strong>The</strong> Group forms part of the implementation structure for the Government
Strategy for Science, Technology and Innovation (SSTI) 2006-2013. <strong>The</strong> 14 members of the
EFG, chaired by Lionel Alexander of Hewlett Packard, are actively involved in enterprise at a