Comments by Minister Micheál Martin at the Official Opening of “The Rubicon Centre” (Business Incubator) at the Cork Institute of Technology

12^thth JUNE 2006

Ladies and Gentlemen, I am delighted to be here today to officially open the Rubicon Centre here on campus at the Cork Institute of Technology.

The Rubicon Centre will support the incubation and development of new enterprises as well as providing support for the commercialisation of Applied Research for SMEs.

It will focus on business opportunities emerging in all technology based sectors but particularly in the following areas:

• Sciences (Instrumentation, Chemicals, Biotechnology)
• Engineering (Electronics, Medical Devices)
• Information Technology

Enterprise Ireland has provided € 2.54 million towards the capital costs of the Incubation Facilities within the 1,800 square metre

Rubicon Centre building through its Regional Business Incubation Centre Initiative. Enterprise Ireland has also provided support for the employment of a Centre Manager.

I was pleased to learn that the centre already has 13 tenant companies currently employing 58 people, with capacity to employ a further 30 people. In this knowledge intensive age the centre will play a key strategic role in the development of the Region.

Enterprise Ireland supports the construction of Campus based Business Incubation Centres in Institutes of Technology and Universities. To date EI has approved 19 Incubation Centres, 16 of which are in Institutes of Technology or equivalent third level colleges, and 3 in Universities (DCU Invent Centre, UCD Nova Centre and NUI Galway).

In addition, EI has also supported 6 specialist Bio-incubation facilities on University campuses.

The Incubation Centres in Institutes of Technology will support the development and expansion of campus company activity; they will encourage and support the commercialisation of R&D undertaken in the Institutes of Technology; and they greatly enhance the ability of Institutes of Technology to support the development of high-tech companies in the Regions.

To date, total investment in campus business incubation activity (Centres in Institutes of Technology, Universities and Bio- incubation) amounts to over €46 million.

By the end of 2006 I am pleased to say that all Institutes of Technology in Ireland will have Business Incubation Centres on campus. Currently, there are 63 companies operating in the various business incubators around the country employing a total of 218 staff.

In order to maximise the industrial potential of the very significant public funding for scientific research in Ireland, there is a need to further develop key physical incubation and commercialisation infrastructure. The role of incubators in the promotion of entrepreneurship, employment and economic growth is widely acknowledged. Furthermore, the 2000-2006 Structural Fund guidelines highlights business incubators as a key instrument of EU regional policy.

The main objectives of these incubators are to support the development and expansion of campus company activity and to encourage and support the commercialisation of R&D undertaken in the third level sector. Campus based incubators are an ideal environment to encourage and support the growth of new companies as they:

• Serve as an important catalyst for the commercialisation of research and technology;
• Provide a physical space to house and promote entrepreneurship;
• and encourage entrepreneurs in developing their ideas from inception to commercialisation and launch of a new enterprise;
• Can significantly improve the survival and growth prospects of start-up companies and small firms at an early stage of development; and
• the growth of companies which have the potential to become substantial generators of employment and wealth.

On the 29^th May 2006 I launched a fund of €30 million to strengthen the technology transfer function in Higher Education Institutions. This fund will support the employment of experienced individuals focussed on getting technology out of the colleges into Industry. This is seen as being an important part of the process of spinning out high potential start ups from research.

Enterprise Ireland has a wide range of supports for start up companies. As part of its new strategy “Transforming Irish Industry” launched in May 2005, Enterprise Ireland works more intensively with High Potential Start Up companies at their initial start up phase in order to accelerate their growth; to help build management capability; to provide direct financial support and further develop EI supported seed and venture capital funding; to provide business advice and mentoring; and to assist the High Potential Start Ups through their overseas network to develop their exports.

On 22^nd May 2006 I also announced a major injection of liquidity into the venture capital market by Enterprise Ireland which is investing €175 million in a new round of Venture Capital funding, which will leverage an estimated € 1billion for investment in start-up; early stage; and development stage businesses.

In 2005 Enterprise Ireland supported a total of 75 new start-up companies - the highest number in any year to date. Total financial assistance approved to these projects was in excess of €17 million which it is anticipated will result in the creation of over 1,450 new jobs with an estimated € 183 million in additional exports over the next two years.

The third level sector has also been an important source of High Potential Start Up’s. Growth in the life sciences sector and the success of the Genesis Programme, designed to provide hands-on support and management development for those who would like to start their own business, is expected to show an increase in third level start ups. In 2005, 9 projects ( representing 12% of the total ) were from the third level sector.

Enterprise Ireland partners the Department of Education and Science, Cork Institute of Technology, Institute Technology Tralee, UCC and Údarás na Gaeltachta in supporting the Genesis Programme in the South West Region.

In conclusion, I would like to declare the Rubicon Centre officially open and to wish all involved with it every success. Thank you all very much.

ENDS/ETE1585