Commercialising Research Boosts Entrepreneurial Activity - Dan Flinter

Commercialising Research Boosts Entrepreneurial Activity - Dan Flinter

galway.net , 29 April 2003

Dan Flinter, Chief Executive Officer, Enterprise Ireland, today, Tuesday 29 April, said that the commercialisation of research in the Third Level educational sector is the key to boosting entrepreneurial activity. He was speaking at a business lunch hosted by Galway Chamber of Commerce and Industry and sponsored by Galway Airport.

Dan Flinter said: It is vitally important that we build and maintain a momentum in the development of intellectual property through the Third Level colleges which will lead to the introduction of a new wave of products and solutions with commercial application in international markets. In tandem with this there is an increasing imperative that the educational requirements of future entrepreneurs be addressed in more innovative ways.

"It is simply not enough for a business to have the best product, service or solution in the world if senior management in that business do not have the capability to convince potential buyers. Combining educational resources and skills development in international sales and marketing with engineering, science and technology disciplines is a prerequisite for the development of a new cadre of entrepreneurial managers.

"An ever increasing number of existing senior managers in new technology companies are endeavouring to improve their sales and international marketing skills. This is particularly the case in sectors such as software, photonics, medical devices and functional foods. The CEO's and managers of companies in these sectors are highly qualified graduates in their particular disciplines but need to develop critical skills and experience in sales and marketing. In the current difficult global economic climate the ability to close the sale is paramount for all Irish companies trading internationally.

"Not withstanding this, the level of new technology based start-ups with high export growth potential remains strong. Since 1999 almost 200 high potential start-ups were established generating employment for in excess of 7,600 people over the 5 years. Last year alone Enterprise Ireland supported the establishment of 51 such enterprises involving a total investment of EUR70 million and projected employment of 1600 in 3 years.

"This number of start-ups during a time of difficult global markets is clear evidence of a strong level of serious entrepreneurial activity. Despite the continuing tough global environment the rate of new start-ups continues to be strong running at approximately one every week. In the first quarter of this year 14 start-ups with a total investment of EUR6 million are being supported by Enterprise Ireland.

"These companies have emerged from a number of backgrounds. Some are the direct result of research in our Third Level Institutions that resulted in the creation of campus companies, others are serial entrepreneurs that have realised value from their previous businesses and were prepared to re-invest in a new venture, and still more had the courage to leave the relative comfort of secure employment to realise their own business venture. At the same time they all have one thing in common - the drive and ambition to grow their businesses in international markets.

"We have arrived at a point where the culture of entrepreneurship has taken firm root in Ireland. It is vitally important for the future, however, that we facilitate the individuals who will be responsible for the creation and development of the next wave of internationally successful Irish owned and Irish led companies. We can make a difference by: sourcing the people with the ideas; encouraging them to pursue the venture; providing a physical environment that is both attractive and helpful; and providing access to the necessary funding and expertise.

"This is already happening at a national and a local level. With a commitment of EUR30 million, 76 Community based Enterprise Centres have been completed, providing start-up space for 420 new businesses now employing in excess of 3,500 people. Here in Galway Community Enterprise Centres are providing accommodations for 25 businesses employing 375 people and the Chamber's Galway Technology Centre houses 26 businesses employing 175 people.

"In addition, when the incubator units at GMIT, NUIG and the Web Works come on stream, they will provide further high quality start-up accommodation to provide an impetus for market led research, encourage the emergence of technology companies out of that research and attract start-ups from other sources. The entrepreneurs will come from: existing businesses and spinouts from multinational companies; they will emerge from R&D and innovation activities; they may be returning migrants, serial entrepreneurs, or graduates.

"The availability of venture capital is also vital for new and emerging businesses. The recently announced establishment of a new EUR7million seed capital fund for the BMW region located in Galway and managed by Enterprise Equity Venture Capital Group will provide much needed seed finance and mentoring for young companies in the Border, Midland and Western Region.

"The key to fostering a new climate for entrepreneurship to flourish in the region is to leverage all of the actions and initiatives that are being put in place to maximise the outcomes in terms of new business creation." Dan Flinter said.

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