This section provides news and information of interest to those involved in Science, Technology and Innovation and the development of the Irish Smart Economy.  Sources are provided for those wishing to follow-up any story.  The items listed do not necessarily reflect the views of the CIRCA Group Europe Limited.  It is updated regularly.

"The Irish government is quite visionary" says Bell Labs President

Alcatel-Lucent 's Bell Labs views its research lab in Dublin as a "spectacular success".   It set up a modest research operation in Dublin five years ago.   It currently employs 27 researchers and plans to add 70 more in the next five years.   Its president, Mr Jeong Kim, a successful researcher, academic and entrepreneur said "What's unique about the Irish location is the special collaboration between academia and government.  The Irish Government is quite visionary." 

Over the five years that Bell Labs has been in Ireland, the government has taken on board the need to move from low-end manufacturing and outsourcing to higher-end jobs in areas like research and continues to invest  during the downturn.   Bell Labs could have expanded in any of its other locations, as no one country has a monopoly on bright people, but Kim thinks the relationship the company has in Ireland is particularly good and productive, and therefore the jobs went the its Irish research centre.   "I think our research effort, supported and co-ordinated with academia here and with the Government and the IDA has benefited everybody" Kin said.

Bell Labs Irish centre is considered an important part of the Labs' fresh focus on the 'smart growth energy sector',  a topic area in which it is expanding research, especially through its Green Touch initiative to make the communications industry more efficient. The Green Touch initiative is built around collaboration and open innovation.   The problem is too big for any one company.   So collaboration means collaboration with competitors, customers, academia and with governments.   The goal is 1,000 fold improvement in energy usage, that is the equivalent of powering all communications networks and the Internet for three years on what it takes to run them for a single day today.   Bell Labs in Ireland has already been focusing on sensors and network management, both central to the Green Touch project.

Source: Based on an Irish Times Interview, Business this Week, February 5, 2010.

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Developing the Green Economy in Ireland

In November 2009, the Irish Government published a report on developing the Green Economy, which can make a significant contribution "to restoring Ireland's economy to growth by creating employment and export opportunities in green enterprises. It can also help existing companies in all sectors to improve their competitive position through adopting innovative environmental goods and services". The global market for environmental goods and services is vast and it continues to grow quickly. Ireland is well placed to capture a significant share of this growing market in niche areas. Ireland has strong capabilities in key areas such as energy, electronics, software, and waste/ recycling.

The value of the Irish market was conservatively estimated by Forfás at €2.8 billion in 2008 with over 6,500 people employed. A number of reports suggest that there is potential to create over 80,000 jobs in the coming years.

The report was prepared for the Government by a High Level Group representing industry and the public sector. The key recommendations of the High-Level Group were:

1.       Promote key sectors that can drive exports and job creation such as renewable energy, efficient energy use and management (including eco-construction), waste management, recovery and recycling; water and wastewater treatment.

2.       Deliver green zones and a green IFSC (International Finances Services Centre) to consolidate the current green industries which are highly dispersed across various sectors (e.g. ICT, engineering, finance, energy, waste, water, etc.) and across various supporting State organisations (e.g. infrastructure/ service suppliers, education and research institutions, Government, etc.).

3.       Create world-class research centres by pooling research expertise and/or the development of formal (national, all-island and international) research alliances to develop scale and critical mass in energy and environmental research. These developments should include an assessment of the merits of consolidating and aligning the range of R&D funding programmes and the development of an over-arching strategy with a focus on products and services with export opportunities.

4.       Remove basic hurdles to the development of the green economy such as  technical, regulatory and planning barriers, and new infrastructure that are delaying the development of renewable energy projects (such as  cost effective minigrids and new distribution lines); implement green public procurement; and ensure that green firms can access finance; develop Ireland's brand.

The Group also recommended that a Minister or a Minister of State be charged with responsibility for implementation of this report's actions. A Cabinet Committee, chaired by the Taoiseach and supported by the Senior Officials Group, should oversee and ensure timely cross departmental and state agency responses to the actions required to develop the green economy, commencing with the recommendations set out in this report.

For more information:

http://www.entemp.ie/publications/trade/2009/developing_the_green_economy_in_ireland_01.12.09.pdf

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Irish Tech Firms Raise €111m in First Half 2009

- IVCA Reports Funding Holds up Well Despite Recession

The Irish Venture Capital Association (IVCA) VenturePulse survey finds that Irish technology firms raised €110.7 million in the first half of 2009, up 7% on the previous year.

The number of companies raising funds increased by 35% to 66 compared to  49 in the same period in 2008 and to 29 in 2007.  The amounts raised ranged from €50,000 to €18 million. First round funding represented 22% of funds raised.

2008 was the best year for funding since 2002 so it is encouraging that investment levels have been maintained despite the recession. Research finds that VC backed firms employ more graduates, export more and grow faster than other companies and so are an important element in the goal of creating a smart economy.

17 Irish based venture capital funds and private investors were involved in 111 investments representing 67% of funds raised. 17 international funds and private investors participated in 19 investments and 33% of funds raised.

The companies funded included

• 6 Pharma/Biotechnology companies raised €28.6m.
• 14 drug delivery and medical device companies raised €22.8m.
• 4 telecoms companies raised €5m.
• 5 environment technology companies raised €17.4m.
• 12 companies raised €17.8m in other technology including nano technology, fibre optics, photonics and semiconductor chips
• 14 companies in the business services sector raised €11.2m.
• 11 other companies raised €7.9m.

In the first half of 2009 24 seed or early stage companies raised €23.9m or 22% of funds raised.

In the third quarter of 2009 technology firms raised €42.1million from venture capitalists. A further €47 million refinanced an Nasdaq quoted company and €13 million funded a management buyout of XtraVision. While these  two investments are not strictly speaking new ventures, they were part funded by IVCA members.

About IVCA

The Irish Venture Capital Association is the representative organisation for venture capital firms in Ireland. Irish VCs have invested €1.5 billion in Ireland in the last ten years and have successfully leveraged a further €1.5bn from international investors into the Irish market.

Published by IVCA  (http://www.ivca.ie/)

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