Speech by the Taoiseach, Mr. Brian Cowen T.D., IBM SmartCamp Finals at the National Convention Centreon Thursday 18 November, 2010 at 12.30pm

I am delighted to be here with you today.

I would like to welcome those of you who have travelled from abroad to be here with us.

In particular, I would like to welcome a number of very senior executives from IBM, and thank them for their vision in developing the Smartcamp concept and bringing the event to Dublin.

This competition shows that despite the recent global economic difficulties, there are ambitious, dynamic entrepreneurs with new ideas all over the world, developing products and services and creating jobs.

And the message I want to give to you today is that Ireland is an ideal location for people who want to start or develop their business in a supportive, dynamic environment.

Economic situation
I would like, at the outset, to say a few words about our current economic situation.
The Minister for Finance had very good discussions with our
European colleagues over the last couple of days and I would remind you of what the conclusions of the Eurogroup were.

The Eurogroup welcomed the measures Ireland has taken to date including the Guarantees, Bank Recapitalisation and NAMA. The Eurogroup said these measures have helped to support the Irish banking sector at a time of great dislocation but market conditions have not normalised and pressures remain, giving rise to concerns that further reforms and stabilisation measures may be appropriate.

What we all need to do is to have a clear and shared
understanding of what the facts are. Then, and only then, can this
Government decide on what is the best course of action in this regard.

Furthermore, we are working on our consideration of the 4 year
plan. This will be made public very shortly and this will set out the
very difficult but necessary decisions that we must take as a country to bring order and sustainability back to our public finances.

The main focus of the ongoing consultations will be on the
banking situation and yes there are very big issues there and in this
regard our officials will over the coming days be working closely and intensively with the officials from the EU Commission, the ECB and the IMF.
I want to be very clear - the real economy in Ireland is strong and sustainable.
The OECD Economic Outlook 2010 for Ireland published this morning underlines that point. It forecasts GDP growth of 1.5% for 2011 and of 2.5% in 2012. Growth in exports of 6.7% is expected in 2011 and of 5.8% in 2012.
The four year plan will set out the measures necessary to ensure that we meet our target of bringing our deficit below 3% of GDP by 2014.

But this plan will not just be about reducing our debt.

We will use it to introduce a number of structural reforms that will help ensure that we meet our ambitious plans for economic renewal.

Innovation and Entrepreneurship
One important part of our Framework for Economic Renewal, entitled 'Building Ireland's Smart Economy' is our goal of making Ireland a Global Innovation Hub. Since I became Taoiseach I have prioritised measures to position Ireland as:
- the best place in Europe to turn research and knowledge into products and services;
- the best place in Europe to start and grow an innovative company;
- the best place to relocate or expand and scale an SME; and,
- the best place in Europe for research-intensive multinationals to collaborate with each other and with clusters of small companies.
This is ambitious, but achievable. It is fully consistent with the European Union's vision under the EU 2020 process.

And there are still plenty of reasons for confidence in Ireland's future, our potential and what we can achieve over the coming years.

Ireland's economy retains very significant strengths:

- we are ranked number 5 in the UN Human Development Index a composite national measure of health, education and income for 169 countries;
- we have the youngest population in Europe, with one in three under 25;
- we have the highest proportion of graduates amongst the 25-34 age group in the EU;
- our exports are performing strongly, as confirmed by recent figures, which show that industrial production rose by 12 per cent in annual terms in the third quarter;
- according to the World Bank we are the ninth best country in which to do business;
- Ireland's stock of direct inward investment is five times greater than the OECD average;
- our competitiveness has significantly improved. Unit labor costs will improve by 13% relative to the EU average over the 2008-2011 period; and,
- We have clusters of the world's leading multinational companies, and continue to attract high levels of investment. Almost 1,000 companies - including household names such as IBM, Google, eBay and Facebook- have chosen Ireland as the hub of their European networks.
These are just a few reasons why the real Irish economy - which is an open, flexible, trading economy - will prosper in the future.
Contribution of IBM
I would like to take this opportunity to thank IBM for their contribution as Ireland's longest standing IT multinational - present here for 50 years.

IBM's decision earlier this year to establish their Smart Cities Technology Centre in Dublin was a great boost - and I'd like to acknowledge the role of the IDA, Dublin City Council, IBM's Irish management team, and senior IBM executives here today, in making that possible.
It allows us to show that Ireland provides a great environment for innovative companies, large and small, to work together and to develop and pilot smart solutions for global markets.
That IBM chose Dublin to host the finals of this global competition is another vote of confidence. It is highly complementary to our vision of positioning Ireland as a Smart, high-productivity economy.
I would like to thank the competitors for bringing all this energy and innovation to Dublin.
Regardless of who wins, you are all welcome back to Ireland - especially if you are looking for a place to locate and grow your company.
Supportive environment for starting and growing companies
The Irish Government is determined to make Ireland into an ideal location for ambitious companies like yourselves.

We commissioned an expert Group with private sector representatives - the Innovation Taskforce - to advise us on how to make Ireland even more attractive to entrepreneurs and innovators.

And when the Taskforce reported last March, we did not delay in acting on it. For example:
- our capital investment programme continues our very significant investment in science, technology and innovation up to 2016, despite the fiscal pressures;
- an expert group is working to reform our Intellectual Property system, including development of a national protocol for ownership and access to State-supported IP;
- we are increasing seed and venture capital funding, and improving Business Angel Funds;
- a new Group has been established that will identify priority areas where Government investment in research will be targeted; and,
- new visa arrangements for students are being introduced, while further reforms of our visa system, including for foreign entrepreneurs coming to Ireland, are being developed.
Most significantly, we have established the €500 million Innovation Fund to attract leading international venture companies to locate Ireland.
There has been significant interest in the call for expressions of interest in the Fund which closes on 26 November.
We have already seen the first investments under the Fund which will see DFJ Esprit establish an international office in Dublin.

In addition, DFJ, which is based in Silicon Valley, will also work with the IDA to identify opportunities within its network to bring fast-growing venture-backed companies to Ireland. This is a crucial step in implementing the Taskforce's proposal for a European Accelerator Programme to get these emerging companies to locate their headquarters in Ireland.
There will be further announcements under Innovation Fund Ireland over the coming months as we build a strong base of venture capital expertise in Ireland.
And we will shortly be launching a new campaign to attract overseas entrepreneurs to locate Ireland. Our Enterprise Development Agency. Enterprise Ireland has 31 offices all over the World to help Irish company's open doors and win business - these are available to you when you locate your next start up in Ireland.

Conclusion
I'm sure you are all in suspense to hear who has won the title of IBM Global Entrepreneur of the Year so I will not keep you any longer.
I would just like to wish all the finalists, every success for the future.
I would also like to extend an open invitation to all our international visitors to return to Ireland and to take advantage of the hospitality and business supports we have to offer.
And I would like again to thank the organisers of the event today. Innovation and entrepreneurship in all sectors of the economy will be an important part of economic recovery - and the Irish Government will support this in every way we can
Go raibh maith agaibh go leir.
ENDS