Accelerating the development of world-class Irish companies to achieve strong positions in global markets resulting in increased national and regional prosperity

Enterprise Ireland

Prague 27th April 2006

Summary

Ireland Enterprise Ireland Current interventions Proposed interventions Structural funds

Key Factors Behind Economic Success

“Outward Oriented” Economic Policies - 1960s Membership of EEC - 1973 Major Investment in Education and Skills - 1975 Social Partnership Agreements - 1980s Tax Reform - 1990s Irish Industrial Policy – 1990s

Enterprise Development Structure in Ireland

Policy Coordination

Foreign Direct Investment

Indigenous IndustryTrade Promotion

Research Commercialisation

Research of strategic economic valueMicro enterprise development

County (Local) Enterprise

Boards

Enterprise IrelandEnterprise Ireland International Network International Network

Enterprise Ireland’s Agenda

Addressing market failure

Lack of very early stage risk capital Inadequate feedstock of start ups Lack of scale Low productivity Low propensity to export Low level of Research & Development activities Low level of training activities

Enterprise Ireland Approach 2000 2006

Funding high potential start ups

Start up capital for start ups Venture capital market

Funding R and D

Funds for R and D projects Build research capability in colleges Support college infrastructure for spin offs.

Enterprise Ireland Approach 2000 2007

Productivity

Fund management development Support productivity funding Provide enterprise space

Enterprise Ireland’s Vision for Ireland

Centre for new product and service innovations

Market knowledge and innovation will characterise company formation and competitive differentiation

Superbly positioned in key emerging growth sectors

SMEs of scale and globally competitive

World-class technology commercialisation and absorption mechanisms

Highly skilled innovative and customer driven management teams

Cadre of large indigenous companies competing on the global stage

Key Elements of Approach

InnovationBusiness Development

Internationalisation

Investing in applied research

Exploiting Technology

Building Competitiveness

Growing Businesses

Diversifying Markets

Growing Exports

Enterprise Ireland Approach 2007 2013

Finance for SMEs

Provide seed capital for start ups Develop venture capital market

R and D

Support high risk R&D projects Build research capability in colleges Support college infrastructure for spin offs. Encourage collaborative R&D

Enterprise Ireland Approach 2007 2013

Productivity

Fund management development Support productivity funding Provide enterprise space

Applied R&DStart-up

PhaseEarly

growthAccelerating

growthSustaining

growthMaturitygrowth

Investigative and

Exploratory Research

Funds

SeedCorn

FirstRound

SecondRound

DevelopmentCapital

ReplacementCapital

MBO / MBIDevelopment

Capital

Founders, family and friends

SFI, EU FP6 - Public Sector – Enterprise Ireland, BES, SCS

Business angels

Venture capital funds (EI Seed & VC Programme)

Corporate venturingPublic listing / IPO

Basic R&D

Proof ofConceptFunding

Funding of Basic Research, High Growth Start Up and Expanding SMEs

Risk Capital Gaps Evident at Various Times along these Stages of Development

Use of Structural Funds

Advantages

•Supports Member States programmes •Provides additional funds •Requires very clear programming •Requires performance indicators

Disadvantages

•Inflexibility•Administration •Burden on SMEs

Thank you