Enterprise Ireland today published its Annual Report and Accounts for 2006. Enterprise Ireland-supported companies recorded a strong performance in 2006, achieving a record €1.699 billion  in gross new export sales contributing to total exports of €11.779 billion  for the year.

In 2006, there was only a net increase in employment of 1,261 in Enterprise Ireland supported companies while a total of 86,000 jobs were created in the economy - 55% in Construction and Health.

Finfacts has reported that only 6,000 of the 86,000 jobs were created in the exportable goods/services sector, including half the addition, in foreign-owned firms. The Enterprise Ireland related jobs were equivalent to 1.5% of the total additional jobs in the Irish economy.

“A thriving indigenous industry is central to sustaining Ireland’s economic growth. Enterprise Ireland’s client companies make a very positive contribution to the Irish economy, spending in the order of €16 billion each year on home-sourced goods, services and payroll. These Irish companies have a considerable and often understated impact on regional economic development in Ireland” he added.

Frank Ryan, Chief Executive Officer, Enterprise Ireland, said: “Our clients made significant gains in 2006 in an ever challenging global economic environment and I am particularly pleased with a 12.1% net growth in exports. Irish companies are continuing to perform strongly in international markets against global competition and their achievements represent a significant outcome in the second year of our three-year strategy 2005 – 2007: Transforming Irish industry.

“The performance in 2006 should encourage Irish entrepreneurs, early stage and growing businesses to take the next steps in developing an internationally competitive business. Enterprise Ireland will continue to work with ambitious Irish companies to help them advance their research, innovate, enhance management capabilities, achieve scale and access new international markets”

Concluding his remarks Frank Ryan said: "2006 reflects a year of excellent performance.  Enterprise Ireland has made substantial progress across each of our targets in the 2005-2007 strategy: Transforming Irish Industry and the organisation is well positioned to deliver on all of our three-year strategic targets in 2007. With the Chairman I thank Enterprise Ireland staff and all of our partners in industry and Government for their continued support.

“Work is underway on the development of a new Enterprise Ireland strategy covering the period 2008 – 2010. In the meantime we will be unyielding in applying our full resources to achieve the aims of the current strategy.”

Highlights from the Annual Report 2006 include:

ADDITIONAL INFORMATION

Achieving Export Sales

The €1.699 billion gross increase in new exports led to a new high in total export sales €11.779 billion, with all industry sectors showing strong growth.

Highlights: 

• Software, Services and Emerging Sectors grew by 16% to €1.437 billion
• Industrial and Lifesciences Markets up 11.9% to €2.493 billion
• Food and Retail Consumer Markets continues as Ireland’s largest export sector, achieving €7.849 billion
   in sales, up 11.4%
• Northern Europe continues as the largest market for client companies, with €6.7 billion in exports, up 10.6%. Within Europe, the United Kingdom remains the largest export market, and increases in 2006 by 9.4% to €5.2 billion.
• Market showing largest growth is Asia, with an increase of 24.1% (€654 million ). Exports to the Americas grow by 12.5% to reach €1.29 billion 

Responding to client needs and to exploit the growing opportunities for Irish companies Enterprise Ireland realigned its international office network and opened new offices in India, Canada and Brazil in 2006. It also organised a total of: 

• 6,469 client-buyer meetings,
• 36 high-profile trade missions
• 29 international trade fairs
• 45 inward buyer missions to Ireland

Industry-led Research and Innovation

In line with the Government’s strategy for Science, Technology and Innovation, Enterprise Ireland focuses support for industry-led research and innovation on three key areas: developing in-company research capability; maximising the commercial potential of research; and, collaborating in international research. Significant progress was achieved in encouraging and supporting in-company R&D and innovation. During 2006, 601 companies invested €100,000 or more in R&D projects and 40 invested in excess of €2 million.

Highlights: 

• 194 in-company R&D projects approvals involving €52.9 million  of Enterprise Ireland support
• 155 applications-driven research projects approvals through the Commercialisation Fund, involving €29.7 million  in support
• 63 company-college collaboration projects supported through the Innovation Partnerships Initiative
• 4 industry-led research projects approvals in the BioIndustry, eLearning, Power Electronics and Mobile Telecoms sectors, bringing companies, industry associations, and academic institutions together to work on industry-led research agendas
• Over €10 million  invested in initiatives and research projects to commercialise biotechnology research in Ireland, bringing investment in the area to over €40 million  since 2001
• 19 client companies are helped to secure contracts (estimated at €5.7 million ) with the European Space Agency

World-class Productivity and Management Development

A strong performance in this area throughout 2006 saw the organisation work closely with client companies to build and improve world-class levels of productivity and competitiveness in areas such as product innovation, technology acquisition, automation processes, management development and leadership.

Highlights:

• 150 productivity improvement projects supported during the year. Covering all sectors, the projects involved a total investment of €102 million  supported by €28.6 million  from Enterprise Ireland. 63% of these clients are in the Industrial and Lifesciences sector, 30% in Food and Retail Consumer Markets and 7% in Software, Services and Emerging Sectors
• Almost 200 client companies from across all sectors participate in management development programmes – a 50% increase on the previous year’s participation levels
• Two major management development programmes launched during the year:
  • Leadership 4 Growth programme - major programme exposing clients to world-class leadership practice launched in 2006. 31 leading Irish software and technology company CEO’s undertook the programme, developed in conjunction with the Irish Software Association and world-renowned Stanford Graduate School of Business, which aims to extend and enhance the ambition, mindset and world-class leadership capability of participants
  • International Selling Programme – 32 participants (with 60 more planned for 2007) from a wide range of sectors work on export sales strategies targeting markets across the globe. Delivered in association with the Dublin Institute of Technology the programme is totally export sales focused, designed to help Irish companies win international sales and sustain export growth

• Starting and Scaling Companies

• Enterprise Ireland supported the establishment of 76 high potential start-up companies (HPSUs) in 2006, the highest number established in any year to date. Six scaling clients were also helped to achieve international sales of over €20 million  for the first time. Creating new HPSUs and growing companies to scale are critical to the success and long-term strength of Ireland’s economy. HPSUs support local economies, secure wealth and high-value employment and foster a culture of innovation and entrepreneurship.

Highlights:

The 76 new enterprises come from a wide range of knowledge-intensive sectors and have the potential to grow rapidly and develop a sustainable competitive advantage. The total investment in the 76 companies was €47.5 million , of which Enterprise Ireland invested €17.5 million. 

• These companies are expected to create in the region of 1,260 high-skilled jobs and generate exports worth €110 million  over the next two years
• A number of the new enterprises are involved in highly innovative R&D in emerging sectors such as Mobile Telecommunications, Semiconductors and Biopharmaceuticals
• 89 key reference sales secured for start-up clients, 79 in first-time export markets 6 scaling client companies reach sales of over €10 million, 7 attain sales of €15 million and 6 achieve €20 million
• 13 scaling companies invest at least €2 million on R&D.
• Enterprise Ireland supported eight major investments by scaling companies

Driving Regional Enterprise

Enterprise Ireland’s approach to regional enterprise focuses on three key elements: driving the creation of innovation based start-ups; pro-actively developing existing clients in all regions; and, facilitating entrepreneurship and the enterprise environment in local and rural communities. Strong, balanced regional development and thriving entrepreneurship in all parts of Ireland are fundamental to the country’s economic growth, and thus a key Enterprise Ireland strategic objective. The commitment to balanced regional development was underscored in 2006 by the investments made to client companies.

Highlights: 

• 70.9% of all Enterprise Ireland company-related funding approved to regionally located clients
• 81% of the investment channelled through the Productivity Improvement Fund assigned to companies based throughout the regions of Ireland
• 41 of the 76 high potential start-ups supported in 2006 are located in regional areas.
• €7 million  approved for Community Enterprise Centre Scheme projects in 2006, leading to 24 community enterprise centre projects including 14 new-builds and 10 extensions to existing centres approved in 2006

The full Annual Report for 2006 is available here.