Launch of Enterprise Ireland’s Strategic Plan for Irish Industry

On May 4^th 2005

The future development of Irish industry through innovation and internationalisation is a priority for me as Minister for Enterprise Trade and Employment. The Enterprise Strategy Group’s report “Ahead of the Curve – Ireland’s Place in the Global Economy” provided a blueprint for the actions that need to be taken to secure and build on Ireland’s position as a developed economy. The Enterprise Strategy Group’s vision was designed to give us a long-term competitive edge in world markets. This event reflects the process already in place of implementing ESG’s policy prescriptions in a way that will have a significant impact on Irish enterprise. As Minister for Enterprise, Trade and Employment I want to work with enterprise to build businesses that will win increasing market share and respect for their ingenuity, technologies and innovative abilities. Today represents a key stage in the process that sees the ESG recommendations move from strategic statement to operating change at agency level.

Following Government consideration of the recommendations of the Enterprise Strategy Group, I published an Enterprise Strategy Group Action Plan. As part of that plan, I asked Enterprise Ireland to creatively rethink how to help business deliver on the core ESG recommendations.

In particular, I asked Enterprise Ireland to focus on how best to accelerate the development and internationalisation of Irish owned business as a priority for future economic development.

Irish industry and entrepreneurship are of paramount importance to the Irish economy and to Irish society - not least because of the critically important regional economic spin off that Irish companies create. In 2004 for example, Irish companies generated €17 billion in payroll and procurement expenditures, with every county in Ireland benefiting.

An increasing number of entrepreneurs – many of them ex-patriates – are starting high value added, high export growth, high potential companies. Many of these are developing cutting edge products in areas such as software, medical devices, engineering, food and biotechnology. We are also seeing a very welcome rise in the number of Irish firms availing of early stage and development capital funding – which is encouraging for the future.

Over the last number of years Enterprise Ireland has supported 470 such firms, which today employ 7,500 people and have a cumulative turnover of approximately €1billion. These firms represent a new breed of globally competitive Irish industry based on knowledge and innovation. They are a pointer towards the future of Irish industry.

Ireland is at a turning point in its economic development. The reality is that the low cost model is no longer an option for Ireland. Irish companies must increasingly compete though innovation, adopting best practice, a relentless focus on driving productivity gains and increased automation. We are about the ongoing transformation of Irish industry. That transformation will be no easy task because of the significant challenges that have emerged for Irish companies as a result of globalisation and increased competition.

If we are to succeed, as I believe we will, Irish companies must increasingly compete through innovation, superior market knowledge and a relentless focus on productivity gains and increased automation. We will need to see substantially increased levels of applied research in Irish firms and must foster an environment where there exists a close working relationship between companies and third level colleges. This I believe is where Enterprise Ireland can add real value. In addition, to be successful, companies need to be outward looking in their development strategies. Enterprise Ireland will partner with business to harness the undoubted development opportunities, which global markets offer.

Enterprise Ireland has now undertaken a complete re-engineering of its overseas network and marketing supports, both in terms of business process and organisation structure, with a clear focus on client need. In a moment Frank Ryan, CEO of Enterprise Ireland will outline some of the initiatives that will underpin the future performance of Irish industry.

I am satisfied that the strategy is appropriate, necessary and achievable and will position Irish industry as a key driver of Irish economic growth, jobs and wealth creation in an increasingly competitive global environment. Mindful of the immediate competitive pressures facing Irish companies I am pleased to announce the establishment of a new competitiveness fund, the ‘Productivity Improvement Fund’ with a total budget of €17 million until the end of 2006, to assist Irish industry in its on-going drive for efficiency and economic competitivness.

My Department has already sanctioned a €20m increase in R&D expenditure by Enterprise Ireland in 2005 and a new cabinet sub committee on Research & Development has been established, and charged with providing a detailed road-map towards the achievement of a 2.5% spend on R&D in line with the Lisbon Target.

I should add that in supporting Irish industry EI does not exist in a vacuum and therefore partnership with other state bodies, with CEB’s and with academic and research institutions will be vital to future success.

Before handing over to Frank Ryan I want to thank Enterprise Ireland for this strategic and constructive response to the Enterprise Strategy Group Action Plan. Today marks the commencement of its implementation which will bring real and tangible benefits to every county in Ireland over the years ahead.

ENDS

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