Nevertheless, the longerterm target should be to raise R&D expenditure in this country above the European average.
Apart from providing a stable macroeconomic environment and ensuring high standards of competition and an appropriate regulatory regime, the main challenges for Ireland in terms of increasing innovation will be: •  To increase the number of researchers in science, engineering and technology, both by funding advanced research degrees and making Ireland an attractive location for world-class researchers;  •  To continue to strengthen co-operation between third-level institutions and high-technology firms;  •  To increase the availability of venture capital and equity capital to high-technology enterprises, particularly for SMEs;  •  To increase linkages between technologically-intensive multinationals and domestic suppliers; and  •  To ensure by our education and training that the domestic workforce is sufficiently skilled to enable the economy to absorb innovation developed elsewhere.