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 27 th April 2006

Summary  Ireland  Enterprise Ireland  Current interventions  Proposed interventions  Structural funds

Key Factors Behind Economic Success  “Outward Oriented” Economic Policies s  Membership of EEC  Major Investment in Education and Skills  Social Partnership Agreements s  Tax Reform s  Irish Industrial Policy – 1990s

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

Enterprise Ireland 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 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 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 Innovation Business Development Internationalisation Investing in applied research Exploiting Technology Building Competitiveness Growing Businesses Diversifying Markets Growing Exports

Enterprise Ireland Approach 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 Productivity  Fund management development  Support productivity funding  Provide enterprise space

Applied R&D Start-up Phase Early growth Accelerating growth Sustaining growth Maturity growth Investigative and Exploratory Research Funds Seed Corn First Round Second Round Development Capital Replacement Capital MBO / MBI Development Capital Founders, family and friends SFI, EU FP6 - Public Sector – Enterprise Ireland, BES, SCS Business angels Venture capital funds (EI Seed & VC Programme) Corporate venturing Public listing / IPO Basic R&D Proof of Concept Funding 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

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