Enterprise Ireland today reported that its client companies achieved new export sales of €1.3bn in 2008, bringing the total value of exports from Enterprise Ireland-supported companies to €14.3bn. This represents a net increase of 3% on 2007, which was itself a record year for export growth. Exports from the food sector accounts for 57% of exports by Irish-owned firms and it grew only 1% despite a global commodity price boom.
More than half of exports from Irish-owned firms go to the UK.
Reporting on progress against its other strategic targets, the Enterprise Ireland Annual Report outlined that, by the end of 2008, 49 companies were engaged in "significant" R&D (spending over €2m on R&D a year) and 707 clients were engaged in 'meaningful' R&D (spending over €100,000 a year).
Reflecting what EI said was Ireland's "continuing strong trend of entrepreneurship," the annual report also shows that EI supported 71 new "innovative high potential start-up companies" (42 outside Dublin) across a range of knowledge-intensive sectors, including life sciences, biotechnology, medical devices and telecommunications, and a number of specific niche areas, such as compliance and risk management. These companies are expected to create close to 1,000 new jobs over the next three years.
In 2008, approvals for financial support to Enterprise Ireland client companies totalled €157.1m. This included support for R&D, start-ups, expansions, competitiveness improvement projects, and management development and training. Total financial payments to companies in 2008 amounted to €100.3m.
This included €30.7m in share capital investment, €55.1m in R&D, training and other capability building support, and €14.5m in capital and employment support for capacity expansion.
While some 10,522 new jobs were created in Enterprise Ireland-supported companies in 2008, for the first time in many years, Enterprise Ireland reported a net decline in employment of 8,003. This brought total employment in Enterprise Ireland-supported companies in 2008 to 145,758.
Frank Ryan, Chief Executive Officer of Enterprise Ireland said: "These companies and their success play a significant part in stimulating local economies. The flow of innovative high potential start-up enterprises into the Irish economy is equally critical for future growth and this remained strong in 2008. The 71 new high potential start-up companies that Enterprise Ireland supported in 2008 will be part of the wave of home grown companies whose success will drive the revival of the Irish economy.
"Clearly, Irish enterprises are operating in economic circumstances that most have never seen before, and are facing severe challenges in terms of securing their businesses and retaining jobs.
"The answer to our challenge is of course a return to export-led growth which drove the economy forward in the foundation stages of the boom. There remain real opportunities in that regard, and we are actively working with our clients to identify those opportunities and to ensure that the companies have the resources and support they need to exploit them.
"Innovation is, and will continue to be, a critical success factor so the continued commitment to R&D among our client companies is welcome and will help ensure that they are ready for growth when the global economy takes its upward turn. Enterprise Ireland will continue to support companies and play a key role in driving industry-led R&D."
"Irish companies can apply the same kind of creativity and energy to prospering in this time of recession as they did during boom times. The problems are different; the solutions will almost certainly be different - but the requirements for innovation, productivity and management skills, allied to a keen understanding of customer needs, are still the same."
"Enterprise Ireland has a key contribution to make to national recovery and building Ireland's Smart Economy. We are determined to discharge our responsibilities for the benefit of our clients, the economy and Irish society."
