Speech by Minister Devins at the launch of Microsoft’s Programme for high potential start up companies

6 November 2008

It is a pleasure to be here tonight to launch Bizspark, Microsoft’s new programme designed to help accelerate the development and growth of Irish high potential start-up companies. Microsoft’s contribution of a support package to enable indigenous start up companies develop and grow is a welcome addition to the range of services provided to dynamic entrepreneurs.

Current economic conditions are extremely challenging and uncertain. The world economy is facing a difficult period of uncertainty. As a small open economy Ireland is vulnerable to the fall-out from the current global turbulence. Now, more then ever, there is increasing need for greater efficiency, quality and productivity.

We face ever-challenging competition in a rapidly changing global marketplace. Innovation in its broadest sense is crucial to meeting this challenge and for our continued economic and social advancement. It is clear that a high level of investment in innovation in all its forms is essential for economic competitiveness and growth.

The Irish economy has been greatly influenced by the scale and quality of ICT related multinational investments over the last number of years. The ICT sector has played a hugely significant role in the development of Ireland and new investment from global companies in Ireland reflects the continuous transformation of the industry and the development of the operating environment in Ireland.

It is gratifying to see the depth of involvement by Microsoft in Ireland. Microsoft Corporation is the largest software company in the world and Microsoft Ireland employs 1,200 people directly and a further 600 people on site across its four business units. Indeed, Microsoft’s operations in Ireland are their largest in the world outside of company headquarters in Seattle and its operation centre in Japan.

I am delighted that Microsoft has recently announced that it has selected Ireland as the location for its new European data centre. This planned Dublin facility will be Microsoft’s first such facility on this scale in Europe.

Microsoft’s new programme that is being announced tonight will focus on helping indigenous companies get fast and easy access to their software and help them to get technical and business support so that they can build their solutions and grow their companies both here in Ireland and internationally. In that, we share a common goal.

In order to achieve growth in these challenging times, Irish companies must focus on improving productivity and increasing competitiveness. They also need to continue investing in research and applying innovation and technology to the development of new products, services and processes. Companies that do this will sustain existing jobs and generate new employment and economic growth for Ireland.

The focus of the development agencies is therefore to assist firms to innovate and internationalise in order to ensure long-term survival and growth.

It is critical to support the work of start up companies as many of these have the potential to be the heart of our future economy.

In our highly competitive and rapidly changing global markets, success is hard earned. Creative ideas, new and better ways of working, innovative products and services, and improved ways of marketing and delivering goods to the world will be the drivers of future success.

Start-up companies with international potential are imperative for the continuing growth of the Irish economy and of employment opportunities. Ireland ranks 4th across the OECD and 2nd in Europe for the number of early stage entrepreneurs with 8.2% of adults in Ireland engaged in entrepreneurial activity in 2007 up from 7.4% in 2006.

Enterprise Ireland is focused on supporting the creation of Innovative High Potential Start-ups throughout Ireland, which can take full advantage of the international knowledge economy.

I am pleased to note that there is a strong relationship between Microsoft and Enterprise Ireland. As part of its commitment to increase innovation in Irish companies and to help them to maintain and enhance their competitiveness in a rapidly changing marketplace, Enterprise Ireland assists client companies identify, licence and/or acquire new technologies developed by global corporations.

Enterprise Ireland has established strong business relationships with a number of leading global companies including Microsoft and has successfully assisted client companies to partner with these corporations. As a result a number of clients have acquired access to significant technologies via licensing and technology spin-outs and have benefited from high level technical and marketing support from these global corporations.

In conclusion, I am sure that Bizspark, the initiative for the development and growth of Irish high potential start up companies will be an extremely positive contribution and I would like to wish all of you here tonight continued success into the future.

ENDS/IP72