Accelerating Irish Companies for Global Prosperity - Enterprise Ireland's Strategic Vision

1. 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

2. Summary • Ireland • Enterprise Ireland • Current interventions • Proposed interventions • Structural funds

3. 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

4. Policy Coordination Enterprise Development Structure in Ireland Indigenous Industry Trade Promotion Research Commercialisation Foreign Direct Investment County (Local) Enterprise Boards Research of strategic economic value Micro enterprise development

5. Enterprise Ireland International Network

7. 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

8. 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.

9. Enterprise Ireland Approach 2000 2007 Productivity • Fund management development • Support productivity funding • Provide enterprise space

10. 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

11. Key Elements of Approach Business Development Internationalisation Innovation Investing in applied research Building Competitiveness Diversifying Markets Growing Exports Exploiting Technology Growing Businesses

12. 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

13. Enterprise Ireland Approach 2007 2013 Productivity • Fund management development • Support productivity funding • Provide enterprise space

14. Funding of Basic Research, High Growth Start Up and Expanding SMEs Basic R&D Applied R&D Start-up Phase Early growth Accelerating growth Sustaining growth Maturity growth Investigative and Exploratory Research Funds Proof of Concept Funding Seed Corn First Round Second Round Development Capital Replacement Capital MBO / MBI Development Capital Risk Capital Gaps Evident at Various Times along these Stages of Development SFI, EU FP6 - Public Sector – Enterprise Ireland, BES, SCS Founders, family and friends Business angels Venture capital funds (EI Seed & VC Programme) Corporate venturing Public listing / IPO

15. 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

16. Thank you