2. Presentation on the Irish Transformation and the Role of the ICT Industry From Zero to Hero November 2006 Ronan Deignan Managing Director

3. Agenda 1 ) What Transformation ? 2 ) How was it achieved ? 3 ) Ireland and ICT Foreign Investment The Irish Industry 4 ) The Future

4. A small island in the Atlantic beside Britain Population 4.2 million people . 1) Ireland theTransformation

5. History of exporting people and cattle

10. Ireland’s Economic Transformation The Irish economy has grown at over three times the European and twice the U.S. average over the 90’s. Real GDP Growth 0 1 2 3 4 5 6 7 8 '70's '80's '90's % Growth US average EU Average Ireland (Source: OECD Economic Outlook - December 2000)

11. Components of Exports 1970 Components of Exports Today Ireland’s Economic Transformation

12. Destination of Exports 1970 Source: Central Statistics Office Destination of Exports Today Ireland’s Economic Transformation

13. The Unemployment Rate – Historically the key driver of economic policy Per cent Source: OECD; CSO; Census of Population; Labour Force Surveys; Live Register Statements; Dept of Finance

14. GDP Per Head: Ireland (and UK) Compared to EU Average --- Surpassed the UK in 1999 UK Ireland EU Average

15. . 2) How was it achieved ?

16. Strategic Development Agencies Clear Strategy and Objectives Sector Focus Many Other things combined to support strategy The Key Issues

17. 1) FDI for capital, know how and best practice but also 2) Grow a modern competitive Irish industry at the same time Dual Strategy

18. Strategic Development Agencies Foreign Investment IDA Ireland IDA Ireland Policy Research & Advice Science & Technology Policy Research & Advice Science & Technology Coordination Forfas Support for Irish-owned businesses (including trade & technology) Medium to Large Enterprise Ireland Minister for Enterprise, Trade & Employment Government Government Science Foundation Ireland Support for Science and Research

21. Why Ireland? “ Every success we’ve achieved around the world has been due to the old Irish recipe of big dreams, hard work and strong relationships.” Michael Dell, Chairman, Dell Inc. Many of the worlds top companies are here Young, well Educated flexible people Highly attractive Corporation Tax environment Flexible and Pro-Business environment Quality of Life English speaking global trading hub

22. Education & Skills Population projections: Growth rates in % (from 2000 to 2010) Source: Third European Report on S&T Indicators

23. Education & Skills Science & Engineering Graduates per 1000 population aged 20-34 Source: Third European Report on S&T Indicators

25. Labour Productivity in the Services Sector Source IMD World Competitiveness Report 2006 $ US

26. Favourable Tax Environment One of The Lowest Corporate Tax Rates in Europe Source: KPMG Corporate Tax Rate Survey 2006 % Business models built around Ireland’s standard 12.5% corporation tax rate help build shareholder value

31. Average % Rate of Return on US Direct Investment Abroad 2000-2004 Source: US Bureau of Economic Analysis, 2006 %

33. FDI in Ireland: Key Sectors, Key Players Intel Dell IBM Motorola Freescale Apple Hewlett Packard Ericsson Lucent EMC 2 Analog Devices Siemens Microsoft Oracle Google Accenture eBay Hertz SAP Yahoo Whirlpool UPS GE Capital GMAC Merrill Lynch ABN Amro Bankers Trust Citibank Deutsche Bank Bear Stearns AIG Morgan Grenfell Daiwa Eli Lilly Merck Novartis Pfizer Abbott Schering-Plough Bausch & Lomb Medtronic Wyeth Medica Gillette J & J Information & Communications International Services Financial Services Life Sciences

38. Who’s here?

39. . 3) Ireland and ICT

41. Value added in the ICT sector in Ireland is 11.6% of GDP compared to 5% EU average Source:: Economic Intelligence Unit

42. Ireland : A Home to Global Players Novell

43. Top 10 ICT Companies in Ireland TOTAL EMPLOYMENT Intel 5,200 Dell 4,400 IBM 3,300 Hewlett Packard 2,300 Xerox 1,600 Ericsson 1,400 Analog Devices 1,200 Microsoft 1,100 EMC 1,100 Apple 1,000

44. ICT Ireland – Recent Greenfield Wins Internet Space, Security, Storage, Telecoms

45. Research & Development Recent Expansions ICT in Ireland

47. Irish Owned ICT Sector

49. Irish Software Industry Export Markets

55. . 4) The Future

57. ‘ Ireland will be internationally renowned for the excellence of its research and be at the forefront in generating and using new knowledge for economic and social progress, within an innovation driven culture’ SFI – Built for Research

61. Strategic ICT Clustering in Ireland Interdisciplinary Research: components, systems, software & networks Tyndal Institute Industry Academic Collaboration Analog, Siemens, Philips, Intel etc. NCSR Dublin City Univ Sensors & Diagnostics Bell Labs / CTVR Telecoms, software Value chain etc. Xilinx CRANN Trinity College Dublin Nanostructures & Nanodevices INTEL DERI Univ. College Galway Semantic Web Hewlett Packard A I C Univ. College Dublin Dublin City Univ. PervasiveComputing Ericsson, IBM, Mitsubishi ISERC Univ. of Limerick Dublin City Univ. Software Eng. IBM, Oracle, Sun, Motorola & Iona TSSG Waterford Institute of Technology Telecoms Software Lucent, Motorola, Siemens& Nortel Centre for Intelligent Systems Univ. of Ulster Cognitive assistance Artificial Neurons

64. Conclusions Action Points 6. Empower key public sector agencies with private sector ethos to help the private sector make it happen 7 Eliminate bureaucracy and make it easy and profitable to do business 8 Be consistent