Address by Mr Noel Treacy, TD Minister for Science, Technology and Commerce at the Official Opening of the NUIG Incubation Centre on Monday 8th October, 2001 at 12 noon.

I am delighted to be invited here today to the National University of Ireland, Galway (NUIG) to formally open the new Incubation Centre for small businesses. This new Centre is a welcome step in facilitating and stimulating further growth in the high-technology sector in the Western Region.

We have been enjoying the fruits of economic success and development in Ireland for quite a number of years now. Much of this has been driven by our ability to attract large-scale high-technology multinational investments. These in turn have helped to spawn Irish owned high-tech industry, which has achieved significant successes, particularly in the software and electronics sectors.

However, our long-term prosperity and continued growth depends very much on our indigenous companies. The challenge ahead is to put in place conditions which allow for the further development of an indigenous enterprise culture. We must aim at improving growth in output and employment, by encouraging our own high technology, high growth companies. Small and medium sized enterprises are the main agents for growth and employment in the local economy and increasing the number of high-potential start up companies is a key feature for the development of the Regions.

I know that one of the main aims of this Incubation Centre here in Galway is to encourage entrepreneurial activity and technological innovation in this region. One very effective way of doing this is to create the right facilities and conditions for growth. This Centre will nurture start-up companies arising from research or teaching activities in this university. It will also host high tech companies who can benefit from access to the expertise and specialised facilities in this university campus. By making available valuable high tech workspace the Centre will add considerably to Galway's capability to support enterprise development. I know that this Centre is projected to host twenty companies over the next few years, employing a total of 150 people.

The demand for suitable high tech incubation space in this region is shown by the success of the Galway Technology Centre. This Centre has grown from strength to strength since its establishment in 1994 and will be a potential location for companies graduating from the NUI Galway in a few years time.

Internationally, the college campus has been identified as an ideal location for high-tech, start-up companies. Early stage technology companies have a huge potential to grow and the academic community plays a major part in their success. There is a tendency to just link the success of the indigenous sector with the huge investment by multi-nationals. However, it is in fact the academic sector which acts as a catalyst for many successful companies like Iona, Trintech and many others.

The benefits of close collaboration and interaction between higher education and industry are well recognised in this country. The importance of this interaction stems from the fact that Science and Technology is the most important factor determining economic growth in the developed economies. Although the missions of higher education and industry are different, there is a potent synergy between the two which can enhance both job creation, economic development and industrial competitiveness and which can provide mutually beneficial advantages including the provision of training and the exchange of knowledge and expertise.

Back in 1997, we recognised the key role that universities can play in industrial development, and wealth creation, when Enterprise Ireland launched the Third Level Business Incubation Programme. The main objectives of this programme are to support the development and expansion of campus company activity throughout this country, to strengthen the role of the Third level Sector in supporting the development of high-tech companies here in Ireland, and to encourage and support the commercialisation of R&D carried out in the Third Level Sector.

I believe that it is important to emphasise that this Government is investing substantially in the Research and Technology base of this country. In the current National Development Plan, €2.48 billion has been allocated to Research, Technological Development and Innovation over the seven year period of the Plan. This level of investment represents the very high priority that this Government assigns to the role of R&D in stimulating our future economic growth. The National Development plan has provided for a major capital Investment Programme to develop the R&D physical infrastructure of the Third-Level Institutions in line with National strategic priorities. Here in Galway, our Government has provided funding for the further development and expansion of both this University and the Institute of Technology.

In order to reposition Irish industry higher up the economic value chain and channel investment into areas with the greatest potential, a Technology Foresight Fund has been established totalling €711million (£560m). To implement the Technology Foresight initiative, a dedicated Research Foundation, Science Foundation Ireland was established last year. The Technology Foresight Fund will support projects in key technologies which are strategic to long-term sectoral and national development and is a vital element in this Government's strategy for industrial development. Initiatives like Technology Foresight will ensure that Ireland is at the forefront of scientific developments in Information and Communication Technologies and Biotechnology.

I believe that the increased funding of R&D in the education sector will boost human potential in research, science and technology and will strengthen the research and science capability of our higher education institutions. This will in turn increase the potential for commercialising the outcome of research and for growing spin-out companies. This Government is determined to ensure that Irish universities can benefit from this funding and contribute fully to economic and social growth and development in the years ahead.

Finally, I would like to congratulate everybody involved in the development of the new Incubator Centre here in NUIG for their excellent work and commitment. I would particularly like to thank Mr. Seamus Bree of Enterprise Ireland for inviting me to speak here today. I am confident that this and similar Incubation Centres will play a key role in our continued prosperity.