Intel Ireland is Ireland's largest industrial employer - -Since 1989, Intel has invested over $7 billion transforming the 360 acre former stud farm campus in Leixlip, Co. Kildare into a state of the art manufacturing centre of excellence.

Irish Economy: The Government today launched what it terms an economic recovery plan in Dublin Castle and a central focus is to establish a series of venture capital funds worth a total of €500 million to attract innovative US firms to the country and boost research and development activity here.

However, it has already been argued that the plan to become a world-class knowledge economy by 2013, through a reliance on university research, is misguided.

Finfacts Reports:

Innovation, The Venturesome Economy and Ireland

Irish investors bought €13 billion work of commercial property in 2007 while about €200 million in venture capital was channeled to Irish business

In the plan,  Building Ireland's Smart Economy: A Framework for Sustainable Economic Renewal, five State-backed venture capital funds in partnership with private sector players and overseen by the National Treasury Management Agency (NTMA), are proposed.

The funds will be 49 per cent supported by cash from the National Pension Reserve Fund (NPRF) and 51 per cent backed by private sector venture capital companies who specialise investing in start-up companies focused on developing new technologies and products.

The money will be used to invest in such companies that are based here, or move their operations here, and is designed to attract such businesses and workers with scientific and technological expertise, to the Republic.

The funds will have a life cycle of 10 years, over which they will invest in such businesses.

State officials have already begun talks with what sources they say are "top" US venture capital funds that have expressed an interest in setting up here under such a regime.

The Government is supporting the funds with a tax regime designed to keep the businesses here. This will include tax breaks for intellectual property and a 15 per cent charge on profits that the funds make. This is the same rate as is charged on venture capital profits in the US and will be the lowest levied in the EU.

European technology start-ups receive less than €1 million in funding, while their equivalents in the US get an average of €6 million.

Taoiseach Brian Cowen says the Framework sets out in a realistic and sustainable way, how Government proposes to re-orientate and reprioritise its business over the next few years so as to weather the global economic storm. We will then be in a position to restructure our economy to plan for the next phase of economic growth.

There are no plans for fundamental reforms and an economy that is dependent mainly on American firms for 90% of its exports, is turning again to America.

Finfacts Report: Irish Economy - Putting Brass Knocker on Barn Door: Cowen to launch pre-Christmas break "framework" plan; Long-fingers serious reform

Commenting in advance of the launch, Cowen, said: "Many countries are simply trying to ride out the global economic difficulties. By putting a Framework on the table today, this Government is showing its commitment not only to lead the country through this once-in-a-century downturn, but also to restructure the economy so that we are in pole position when the global recovery occurs - we must plan for the recovery now.

"Achieving a successful transition to economic recovery based on a new and sustainable dynamic requires a national effort, in particular, to meet short-term, but crucial, challenges. The Government intends to work with all who have a stake in our country's future, including the unions, employers and other Social Partners. I met with the Social Partners on Tuesday and outlined the Government's thinking. I invited the Social Partners to work with us in a constructive spirit so as to finalise the necessary actions to develop and implement the Framework. I look forward to working with them as they engage with us in the context of the Government's ideas set out in this Framework."