Address by Mr. Noel Treacy, T.D.,Minister for Science, Technology and Commerce at the Launch of the Book by Mary Cryan entitled "The New Pioneers..... Building a Winning Company in the US Hi-Tech Market" on Thursday, 16th September at Friends of the National Gallery, Dublin

I am very pleased to be here with you this evening to mark the launch of Mary Cryan’s book "The New Pioneers ..... Building a Winning Company in the US Hi-Tech Market".

The book details in a comprehensive way the opportunities and pitfalls of doing business in the world’s largest hi-tech software market. As indicated in the Introduction to "The New Pioneers...", "The aim of this book is to provide more than just a roadmap. It will also point out the potential potholes along the way". It provides a valuable and practical guide for business people interested in exploiting the exciting and technically advanced US marketplace. The wide ranging and refreshing analysis by the author of the recipe for success should be of invaluable assistance.

Mary Cryan is to be congratulated in bringing together in her book the key components for successful entry to the US hi-tech software market. The book contains a succinct overview of the US market; it then proceeds to address key questions of preparedness for entry to this market, market entry strategies, including the ‘right model’ for success, the nuts and bolts of establishing a US company including the scope for partnerships and alliances, product marketing, the financing options and interviews with a number of successful Irish software entrepreneurs.

The "Pearls of Wisdom" (Chapter 9 of the Book) are fascinating "key pieces of advice from those who have gone before you" of the "does" and "don’ts" for success in the US market. Many, including myself, would fully endorse the views expressed in this section that "Entering the US market requires a long-term commitment. It could be years before you begin to see profit from a US operation so don’t expect success to happen overnight".

As is evident from Mary Cryan’s book, the US market offers considerable opportunities for Irish technology companies and this is reflected in the composition of Irish exports to the US. An increasing number of our high tech companies are focusing on that market. The profile of exports to the US has changed with rapid growth in technology exports which is outpacing the more traditional consumer and low tech sectors.

The US software and telecoms markets are the largest in the world and are expected to grow substantially over the next few years. These markets offer significant potential for technology companies which are niche focused and prepared to commit the required financial and personnel resources to developing business.

At present there are over one hundred and fifty Irish technology companies doing business in the US market through direct sales, value added resellers, distributors and systems integrators. In the last two years, there has been a significant increase in the number of software companies with offices in the US market.

Irish companies have found that the single most effective element in building a US customer base is to have people on the ground in the marketplace and to have an office there to support them, a factor confirmed in Mary Cryan’s book.

In 1998, Enterprise Ireland opened its first incubation centre for technology companies in Silicon Valley. Later this year, the Agency will open a similar centre in Boston. Eighty technology companies now have offices in the US and at least one Irish company per month opens an office there. - a significant change in focus for our technology companies, which traditionally concentrated on the UK and Continental European markets.

Just as the US represents opportunities for Irish companies to sell their technologies, we are also mindful of the opportunities for technology transfer between US companies and Irish companies. To date more than seventy technology transfer agreements have been signed as a result of Enterprise Ireland’s Partnership Programme and a further twenty are expected in 1999.

The Irish software industry is perhaps the most outstanding success story of Ireland’s economy. The United States is the biggest producer and exporter of software in the world. What may not be as well known is that Ireland is number two in the global rankings. We are the world’s second largest software producer per capita and, in absolute terms, we are the world’s second largest software exporter, with exports last year of over $7 billion. Software companies here employ over 22,000 people, mainly graduates, with some 50% of employment being in indigenous companies.

In conclusion, may I compliment Mary Cryan on her magnum opus and recommend her book as essential reading for potential entrants to the land of opportunity i.e., the US hi-tech software market. Mary Cryan’s wide experience with the software industry has provided the necessary base for her very informative and thought-provoking book, which should be of considerable help and guidance to all involved with hi-tech industry.