Stimulating Innovation Enterprise Ireland Strategies

1. Stimulating InnovationEnterpriseIreland Strategies Czech Delegation—Regional Council Office—NUTS 11-South East BMW Assembly, Ireland 12th February 2008 Michael White Enterprise Ireland Michael White Manager – Regional Technology & Innovation Michael.white@enterprise-ireland.com

2. Enterprise Ireland Mission To accelerate the development of world-class Irish companies to achieve strong positions in global markets resulting in increased national and regional prosperity

3. Sustainable Business ModelDetermining Success in Export Markets Market Knowledge Export Sales/ Internationalisation Innovation

4. Enterprise Ireland Vision Transformed Irish Enterprise Sector • Hotspot 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

5. Enterprise Ireland Vision for the Regions • Our Vision is the creation of an environment for business regionally in which competitive capability is developed and sustained within companies, high growth start-up business is encouraged and innovation flourishes

6. Regional Innovation • “Dynamic regional innovation systems stimulate knowledge creation and learning • Require an environment and infrastructure to enable the flow of knowledge, ideas and learning • To drive innovation, entrepreneurship and growth”

7. Ireland-Pre-Celtic Tiger Days –70’s and 80’s • High Unemployment • High Emigration • High Inflation • High Personal taxation • Poor Fiscal Management • High Debt Burden • From 1987-Order being Restored - Finances and Economy • 1986-1991-almost boom conditions but “jobless growth”

8. Historical background A Decade of Growth Department of Finance and AMECO, 2004

9. Department of Enterprise, Trade and Employment. Office of Science and Technology Department of Education and Science (DES) Other Departments Forfás • Funding Agencies • Health Research Board • Marine Institute • Environmental Protection Agency Science Foundation Ireland (SFI) Enterprise Ireland (EI) Industrial Development Authority (IDA) Public Research Institutes Industry Public Research Funding Structure

10. R&D Policy driven by Government Strategy Focus of Strategy For Science Technology and Innovation: • World Class Research • Capturing, Protecting and Commercialising Ideas and Knowhow • Research and Development for Enterprise, Innovation and Growth • Science Education and Society • Research in the Public Sector • All-Island and International STI • Implementation

11. Innovation

12. Making it Happen

13. Leadership---Innovation--Growth • Innovation will be the single greatest enabler of continued success for Irish Industry—new Business Models and the emergence of new Markets such as those related to Servicisation • But Leadership and Management are also critical to the successful adoption of Innovative Business Models, practices and processes, as well as the commercialisation of Innovative new products and Services • Leadership has been identified as one of the core enablers in driving Innovation, Competitiveness and the achievement of Scaled International Growth.

14. Leadership—Innovation--Growth • Leadership 4 Growth– Stanford • MSc International Business—Global Faculty TCD, IMD, Babson • International Selling-DIT • Sales STAR for CEOs • Introduction to Innovation and R&D Management • I2p—Innovate to Profit • Champions of Innovation Programme • BA/MSc in Technology Management + Distance Education

15. Letterkenny Sligo Dundalk Dublin Mid / East Galway Athlone Killarney Waterford Cork Enterprise Ireland’s Regional Offices

16. UK & European Offices

17. USA and the Rest of the World

18. Stimulating Innovation and Entrepreneurship • Enterprise Platform Programme – HEI and EI • Feasibility/Business Skills Programme • Business Angels Programme • Technology Management Skills Programme • Mentoring – 1 to 1 and Mentor Panel • Export Sales and Marketing Skills – Key Customer Sites • Development Adviser (DA) Coaching • Aim to Build Successful Entrepreneurial Teams and Projects

19. Stimulating Innovation and Entrepreneurship • Prospecting for Experienced Managers and Entrepreneurs • Prospecting – Academics and Post-Graduates • Venture Start Programme – 1st Time Entrepreneurs • International Sales and Marketing Mentors – Access and Connect • “Sales Star” Programme – Learning/Market Action based • Champions of Innovation Modular Programmes • Active coaching Panel, Pre-Seed, Early Stage Entrepreneurs • Aim to Build Successful Entrepreneurial Teams and Projects

20. Encouraging New Start-ups • New high growth start-up businesses • Over 200 since 2005, plus additional 200 target-2008/10 • Potential for significant growth+exports • In 3 years-sales e1.3m,employ 10+ • Financial and practical supports • Dedicated Sectoral Advisers

21. Encouraging New Start-ups • New high growth start-up businesses • Feasibility Study Support • Build R&D capability • Preference & ordinary shares & grants • “Proof of concept”/proto-type support • Mentors and Incubators • Seed and early stage V.C. funding

22. Innovation Infrastructure CEC 2002 Construction 2003/4 CEC 1999 (2) CEC 1999 (1) CEC 1989

23. Encouraging Entrepreneurship and New Start-ups • Campus Enterprise • Enterprise Platform Programme (EPP) • Rapid education/mentoring for Entreprenuers- Business Start-ups • Managed by IOTs-funded by DES • Additional funding available from EI for high quality innovative business concepts with export potential • Bankable Business Plans

24. Encouraging Entrepreneurship and New Start-ups • Campus Enterprise • New Regional Incubator Programme • Partnership-Institutes of Technology • Business Incubation and Commercial R&D space • Aimed at stimulating hi-quality start-ups • 15 Incubators approved to-date-euro 40m • Plus Hi Spec University Incubators • Funding for trained Incubator Managers

25. College Based Incubation Space Webworks Innovation Infrastructure

26. Stimulating Innovation • Commercialisation Fund • Key Partners-Higher Education Sector “ to encourage and facilitate high quality applied research and Innovation that can be commercially developed to create new business ventures”

27. Stimulating Innovation • Commercialisation Fund-3 phases • Proof of Concept Phase • Technology Development Phase • Business Development phase • 2004/2006—Approvals € 65 m

28. COMPANY COLLEGE COLLABORATION Product & Process Innovation Enterprise Ireland INNOVATION PARTNERSHIPS

29. Stimulating Innovation • Innovation Partnerships • Industry/Universities/IOTs • Stimulating Commercial Research • Technical feasibility studies • Access to diverse range of expertise • Funding—35%-75% of College costs • Maximum grant per project-euro190k • 2004/2006—Approvals--€ 15 m

30. Stimulating Innovation • Research Technology & Innovation (RTI) Competitive Grants Scheme • To encourage and support Irish based firms on commercially focused,industry led projects in product and process development. • Funding-25%-45%-depends Company size and Region • Maximum grant € 450k plus max Loan € 200k

31. Stimulating Innovation • Taking venture capital to the Regions • Enterprise Equity Investment Fund • AIB Equity Fund 2002 • ICC Regional Venture Capital Fund • Kernel Capital Partners • BOI Venture Capital Limited • 4th Level Ventures Univesity Seed Fund • 2007-2013-€ 175m to Leverage € 1 billion VC

32. Innovation Vouchers • “Objective of the Innovation Voucher initiative is to build links between Ireland's public knowledge providers & small businesses and create a cultural shift in the small business community's approach to innovation”. • Vouchers give small companies access to the vast knowledge available in Irish Institutes of Technology, Universities and other public research bodies. • Vouchers open doors to knowledge providers and give small companies the financial support to start them on the innovation ladder. • All small* enterprises are eligible to apply for an Innovation Voucher • Worth €5,000 • Euro 10 m Fund—but initial pilot phase * (<50 employees & < or = €10m annual turnover)

33. Innovation Vouchers Innovation Vouchers can be used for any kind of innovation such as: • new business model development; • new service delivery and customer interface;  • new service development; • tailored training in innovation management;  • innovation / technology audit  They can also assist in the knowledge of: • efficiency audits, process change, • supply chain management and logistics; • Product and service testing and economic impact assessmentVouchers can be exchanged for knowledge transfer projects from the knowledge provider.

34. Enterprise Ireland Strategy --Targets 2008--2010 • Client Companies to achieve New Export Sales of € 4 Billion • Increase no of Companies engaged in *meaningful R&D to 800 • Increase no of Companies engaged in **significant R&D to 55 • New High Potential Start Ups—200 • Growing Companies of Scale ; • Increase Clients achieving Annual Global Sales of €5M to 635(+15%) • Increase Clients achieving Annual Global sales of € 20M to 225(+20%) • * Minimum € 100k in-house R&D spend per annum • ** Minimum € 2 Million in –house R&D spend per annum • LEAD----INNOVATE---GROW

36. Michael WhiteManager – Regional Innovation PolicyMichael.white@enterprise-ireland.com www.enterprise-ireland.com