“Enterprise Ireland – Driving Innovation and Competitiveness in Irish Business”

6th May 2011

Frank RyanCEOEnterprise Ireland

BMW Assembly 2011 Annual Conference

“Enterprise Ireland – Driving Innovation and Competitiveness in Irish Business”

Overview of EI’s Business Development Activity

Taking the positives from the resilient performance of Irish Companies today

Enterprise Ireland is a key enabler of applied research, incubation and commercialisation activities in the Institutes of Technology and Universities.

Enterprise Ireland partners with entrepreneurs, Irish businesses, and the research and investment communities to develop Ireland’s international

trade, innovation, leadership and competitiveness.

The ultimate objective is increased exports, employment and prosperity in Ireland.

What is Enterprise Ireland’s Mission?

Entrepreneursstarting companieswith the ability to

compete in world markets

Ambitious co’swith the ability togrow to scale and

achieve significant global success

Manufacturing and Internationally

traded services companies

employing ten or more

Established SMEs

Irish-basedfood and natural

resource companiesthat are overseas

owned orcontrolled

MNC’s

Enterprise Ireland works with Irish companies to develop export capability and grow jobs

High PotentialStart-Ups

Scaling

How Enterprise Ireland Works with Companies

Finance/Investment/VC

Human Resources Organisation Dev.

Training

Production/Efficiency/LeanResearch, Development and Innovation

MarketingInternational Sales

Business Strategy

2007 2008 2009 2010 2011* 2012* 2016*

US 1.9 0.0 -2.6 2.8 2.8 2.9 2.7

Eurozone 2.9 0.4 -4.1 1.7 1.6 1.8 1.7

UK 2.7 -0.1 -4.9 1.3 1.7 2.3 2.6

China 14.2 9.6 9.2 10.3 9.6 9.5 9.5

Japan 2.4 -1.2 -6.3 3.9 1.4 2.1 1.2

Russia 8.5 5.2 -7.8 4.0 4.8 4.5 4.0

Brazil 6.1 5.2 -0.6 7.5 4.5 4.1 4.2

India 9.9 6.2 6.8 10.4 8.2 7.8 8.1

Ireland 5.6 -3.5 -7.6 -1.0 0.5 1.9 3.4

*Forecast

Source: IMF World Economic Outlook April 2011

World Growth Rates

9.610.5

12.7

10

12.3

13.9 14.3 13.93

5

7

9

11

13

15

17

2003 2004 2005 2006 2007 2008 2009 2010 2013

Exports recovered to 2007 levels

€ B

illio

n

YearF=Forecast

Impact of 2010 - Exports

F

70% Recovery

Exports – our best bet to Grow

“Ireland is Open for business”

We have a positive story to tell:

• Ireland is punching above its weight globally – 1st in the world for…

• A strong entrepreneurial culture with high volume of business start-ups

• Largest VC in Europe

• Irish diaspora in key positions of influence; new diaspora will be educated in Ireland

“The significance of telling stories”

Innovating, Competing and Winning in the BMW

Community Enterprise Centres Scheme

Jobs

• EI client companies employ a total of 34,400 Full-time in the BMW (2010), with a further 4,200 Contract/Part-Time Positions

• 2009 was the worst year on record - Jobs were lost, but the tide is turning

• EI clients made smaller losses, and greater gains than in 2009

• Impact of Construction and related industries a major factor

• EI working with companies, in every town in Ireland, to secure employment and target overseas opportunities

Jobs Challenge

• Export growth will drive job creation in established companies

• Assisting Start-up and Scaling companies to achieve their potential

• Building Innovation and R&D capability and making sure Ireland benefits

• People – Working with the Leaders, Key Managers and Graduates who will form the finest business generation yet

• Filling the finance gap by partnering with the investment community

• Enterprise Ireland has probably the largest portfolio of early stage equity investments in Europe (circa 800)

• Investment in > 80 new companies in 2010

• Investment in > 120* companies targeted for 2011 (*including 40 new early stage Internet enabled businesses)

Focus on Investing in High Potential Start-Ups

Innovation

• We are all agreed that Innovation is an important part of succeeding and winning in business.

• Innovation Strategy is important for industry to create competitive advantage – who are we competing with?

• Build World Class Research Groups relevant to industry

• Realise the potential of the research investment

• Develop greater synergies between industry and research

Innovation Challenge

• Giving Voice to the Customer

• Leadership and Strategy

• Structured Systems and Processes which facilitate Innovation Outcomes

• Making Your Organisation a Learning Organisation

• Collaboration and Connectedness with the Partners that Matter

Drive Commercialisation of the State Drive Commercialisation of the State Research InvestmentResearch Investment

Drive Commercialisation of the State Drive Commercialisation of the State Research InvestmentResearch Investment

Drive Increased R&D Activity in our Client BaseDrive Increased R&D Activity in our Client BaseDrive Increased R&D Activity in our Client BaseDrive Increased R&D Activity in our Client Base

Drive Industry Collaboration with Third LevelDrive Industry Collaboration with Third LevelDrive Industry Collaboration with Third LevelDrive Industry Collaboration with Third Level

Enterprise Ireland Science, Technology and Innovation Responsibilities

Getting the System Working Right

Quality R&D Performers

Skills to manage the absorption of technology

Funding

Contacts

Influence

Where EI operates: Sustained funding for infrastructure

Effective systems to capture and protect IP

Incubation space

A culture to recognise and reward

commercialisation

Research EnvironmentResearch Environment TheThe InterfaceInterface IndustryIndustry

Building on Research Investment

Proper technology strategies – thinking ahead

Regional Collaboration in Ireland

Competence Centres(~€2-3 million per annum over 5 years)

Industry Led Research projects(~€2-3 million over 2-3 years)

Innovation Partnerships(~€300k over 18 months)

Innovation Vouchers(Once off payment of €5K)

What Local Industry wants

Competitiveness

• Business in Ireland is facing a serious challenge to be competitive.

• It is about learning what is the best way to work and ensuring that you and your people are really committed to continually improving what, and how you do things.

• Introduction of the Lean initiatives (Start, Plus and Transform) a major strategic initiative to make companies competitive.

• Companies in food, cleantech, electronics and lifesciences have been approved funding in every County in the BMW. Already, improvements in lead times, unit costs and profitability in the order of 10-15% have been achieved by participating companies and Enterprise Ireland will continue this drive in 2011.

The Competitiveness Challenge

• Need for a banking sector that meets the needs of a modern, internationally focused enterprise base

• The availability of risk sharing schemes (e.g. Loan Guarantee) similar to those available for competing companies in other countries

• Mitigate identified skills shortages that are both sector specific (e.g. ICT and Software) and cross functional

• Energy and waste costs remain an issue as well as Local Authority Charges

• Increased Focus on Exports

• Overseas Entrepreneurs

• New Seed Funding for Start-Up companies

• International Education Services

• Additional Competence Centres e.g. Cloud Computing

• Steadfast Focus is vital for success

Our Objective: Increased exports, employment and prosperity in Ireland

Thank You

Enterprise Ireland