Connect & Invest

Donal Flavin of IDA Ireland

Donal Flavin of IDA Ireland

The Irish Government recently published its National ICT Skills Strategy and Plan, which aims to increase the supply of Information and Communication Technologies (ICT) talent.  The plan, involves a partnership approach between the private and the public sectors and intends building on the 2012 National ICT Skills Plan and earlier activities, which have appreciably increased the supply of computing, software and electronic engineering graduate talent since 2008, when, around that period, output was at its lowest level for many years.

For example, primary degree (honours) computing output from mainstream undergraduate programmes in 2013 was estimated to be about 80% higher on 2008, while primary degree (honours) electronic engineering output was higher by 50% (table 1). Electronic engineering doctorate output doubled during the same period. The calibre of student has also been enhanced, underpinned by much larger numbers taking higher level maths in their final leaving cert exam at secondary school; for example, between 2011 and 2013 there was a 59% increase in the numbers taking higher level maths and this is forecast to increase further in 2014.

Strong Supply Forecast

Looking ahead to 2018, primary degree (honours) computing output last November was forecasted by the Higher Education Authority (HEA) to grow by about 70% between 2013 and 2018, with electronic engineering growing by over 100%.

Table 1: Summary of (Forecasted) Increase in Graduate ICT Output between 2008 and 2018

DEGREE

2008 vs. 2013

(% cHANGE)

2013 vs. 2018

(% Change)

Primary Degree Honours Computing (Level 8)

 

+82

 

+69

Masters Computing (Level 9)

+63

+50

Primary Degree Honours  Electronic Engineering (Level 8)

 

+50

 

+106

Masters Degree Electronic Engineering (Level 9)

+64

+164

Source: HEA November 2013

The 2014 National ICT Skills Plan aims not alone to meet the November 2013 HEA forecasts, but to substantially exceed them. To achieve this, the plan has some significant new initiatives, including a special provision to increase by about 45% the number of university/institute of technology places to be made available annually for mainstream undergraduate honours degree ICT students (Level 8 – 4 Year programmes). This initiative will be underpinned by a national promotion campaign encouraging primary and secondary level students to choose computing, software and electronic engineering as a career choice. Upskilling courses will continue to be used to increase graduate output.

Higher graduate output will be complemented with an enhanced focus on attracting from abroad greater numbers of highly skilled and experienced computing, software and electronic engineering personnel.  A new international talent portal, to encourage experienced expatriate and non Irish technical and multilingual talent to work in Ireland, is planned. A more streamlined and efficient approach to processing employment permits will be introduced, involving an eForm and fast-track mechanism for pre-registered employers. The new measures will complement the provision in 2013 to increase by 50% the annual number of ICT employment permits to be made available to companies.

Industry Participation in Curricula Design

Greater talent availability will minimise wage inflation and make Irish operations more competitive with lower cost locations, where high wage inflation is an increasing concern. A further benefit to companies is Government policy advocating that universities and institutes of technology work closer with companies in curricula design, to ensure that computing, software and electronic engineering graduates adequately meet the contemporary skills requirements of enterprise. Companies are being increasingly encouraged to participate in curricula design and to avail of internship and work placement programmes, a growing feature and requirement of many third level educational programmes.

Outlook Positive

In summary, the outlook is very positive for both the supply and calibre of computing, software and electronic engineering talent in Ireland. Projected, substantial, growth is providing increasing confidence to companies in their investment decisions, and this confidence is evident with some very significant technology based investments over the last 12 months. These include investments from Qualcomm, Microsoft, EMC, AOL, Tyco International, VCE, Huawei, Citrix, McAfee, Guidewire and FireEye.  

It is a good time for multinational corporations to invest in Ireland.

 

 

 

 

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Is Dublin Silicon Valley’s ‘Second City’?

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While everywhere in the world is trying to be the next Silicon Valley, I think Ireland has succeeded by taking a different approach. Instead of trying that impossible task, Dublin (and Ireland in general) has established itself as one of … Continue reading

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At the RSA Conference networking event with IDA Ireland

Craicing the Code at RSA with IDA Ireland

March 3, 2014 – Senan Ryan, Vice President Technology with IDA Ireland

Judging by the crowded expo floor at the RSA Conference and the number of attendees at our Craic’ing the Code event in San Francisco last week, it is hard to imagine the security industry is experiencing a staff and skills shortage. This shortage was a major trend discussed at the conference and is an issue Enterprise Strategy Group’s Senior Principal Analyst Jon Oltsik has been researching for years. During his session “The Security Staff and Skills Shortage is Worse Than You Think,” he stated that 65 percent of companies find it somewhat difficult to recruit/hire information security professionals and 18 percent find it extremely difficult. We know there’s a problem, but what is being done to close the skills gap?

I recently had the pleasure of joining Stephen Brennan, Board of Directors for AdaptiveMobile and former VP of Symantec Research Labs, and Sara Peters, contributing editor for Dark Reading, to discuss the shortage and the measures we’re taking in Ireland to address this issue.

The security sector in Ireland has steadily grown in the last decade with the addition of several Silicon Valley giants, such as Symantec, McAfee and FireEye, creating two main security clusters in Dublin and Cork.

To aid in the growth and success of these companies and make way for more, Irish universities are working with multinational companies to develop degree courses that will produce purpose-ready graduates, ensuring the availability of high quality technical talent continues to increase. Ireland’s research institutes have a worldwide reputation for research in information security. UCD is renowned for its work in cyberforensics, and the Telecommunications Software and Systems Group (TSSG) are recognized European leaders in trust management research.

Additionally, as the only English-speaking country in Europe that uses the Euro and the closest European country to the U.S. time zones, Ireland is a great place to live and conduct business.

Today, Ireland’s security sector is thriving with more than 6,000 people employed through several multinational companies, carrying out a range of security-focused activities from R&D to customer support. Symantec, FireEye, McAfee and Mandiant created more than 700 jobs in Ireland in the last year alone.

Outside of setting up operations in Ireland, what else can we do to address the shortage? According to Oltsik, companies should look to improve the work experience for infosec professionals, integrate security into the corporate culture and outsource, among other actions. We may be experiencing a shortage now, but there’s hope. A recent study by Frost & Sullivan projects that the number of professionals will grow globally by more than 11 percent annually over the next five years. What are you doing to “craic” the code on this shortage and ensure the information security talent pool flourishes?

 

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by Emmet Oliver

ITS been a tough few years for owners, renters and indeed investors in Irish property. The falls in values have been truly extraordinary- for instance apartments fell 63% in value from their Celtic Tiger peaks to 2013, with houses down by almost 50% from peak.
According to the Irish Financial Regulator these falls in capital values were “one of the OECD’s largest and most protracted” property downturns ever ( http://tiny.cc/6rphbx ).
Understandably a recovery from such falls was going to come at some point, property prices often overshoot on the downside, veteran property watchers like to remind us all. The Economist for instance reckons Irish property prices have overshot already- based on a number of metrics, including rents.
The recovering values have attracted a great amount of buying interest in Irish property- Donald Trump has just purchased the luxury Doonbeg resort in Co Clare, US investors Kennedy Wilson have bought 21 properties in Dublin already and this firm has publicly called the bottom of the Irish property market ( http://bit.ly/1c1gls1). Russian, UK and other European buyers are also active.
What this means for companies investing in Ireland in a corporate sense is slightly different. Firstly value abounds in terms of making capital investments compared to the peak of the Irish boom. Secondly, workers working for overseas companies can avail of far cheaper accommodation than was available in the boom years, although there is some renewed pressure in this area, in Dublin in particular, such has been the wonderful growth of the Silicon Docks area.
Also getting a strong regional property offering was starting to become a challenge in some areas, particularly with the private sector nursing significant losses on developments built during the boom years.
However in order to plug this gap, IDA itself has moved to build property in regional locations in Ireland, as our annual statement in January(http://www.idaireland.com/news-media/press-releases/ida-ireland-reports-13-36/  indicated.

“IDA has identified a number of specific locations where the private sector is unable currently to develop property solutions. In order to boost regional development and win new business, IDA plans to build new advanced manufacturing facilities in Waterford and Athlone, and office space in Letterkenny, Co Donegal”.

Obviously many investors are getting on with their own building and property development programmes, with the likes of Allergan in Co Mayo, Regeneron in Co Limerick, Hewlett-Packard in Co Galway and Microsoft in Dublin, among those either building now, or planning to build in the near future.
While this is good news for Ireland and these companies in terms of accessing new plant or office capacity, it is even better news for an embattled Irish construction sector – we estimate here in IDA that IDA client companies, if the numbers are combined, are among the largest providers of construction employment in Ireland at present.
While the sharp downturn in the construction sector has left a painful legacy, it represents a sharp advantage for Ireland when attracting international mobile capital.
The Ireland Society of Chartered Surveyors estimated last year even building materials are down by 40% from the peak in 2007 ( http://www.scsi.ie/tenderindex13 ) as the value game takes hold. As long as Ireland retains these competitive gains, and the Government in Ireland is determined on this front, value will remain ever present for those making investments in Ireland.

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This weekend marks an important moment in Irish economic history. After three very difficult years Ireland will be able to stand on its own, fund itself on the credit markets and look towards a new era, where growth has resumed and employment creation has started to ramp up.

It is worth recalling that when the IMF/EU/ECB agreed a lending programme with Ireland in late 2010, most observers expected Ireland to remain in the programme for years. Others expected Ireland to default on its sovereign debt, and some actively supported this, claiming it was sensible policy option.
But those options were not taken and on Sunday another path will be followed- out of of the ‘troika’ lending programme.

It is interesting to look back over the last three years, and reflect on how businesses survived during this period in Ireland. Many firms did not survive of course and others only survived after re-shaping their balance sheets and cutting debt. The sector IDA represents, overseas companies in Ireland, battled hard to shirk off the impact of this difficult period.

Ireland benefitted directly from the faith overseas companies placed in the Irish economy during those three years and longer. Often senior executives in Ireland, representing IDA client companies, had to answer searching questions about staying the course in Ireland during difficult times from their own HQs. But they answered those questions convincingly and credibly. Many other companies had to survive by transforming their operations internally in Ireland. Others saw that Ireland would actually emerge stronger following the troika years, with the cost of doing business in Ireland reduced across a whole range of areas.

IDA continues to work with companies in Ireland on transformation initiatives, helping with training, upskilling and research & development (R&D). Just this week IBM noted in a report on location trends the sheer amount of R&D that companies in Ireland are now doing. Forbes magazine made a similar point recently that companies are increasingly going to Ireland so they can innovate and face less red tape.

Of course some sectors were hit harder than others during the last three years. The obvious one was financial services, where the domestic Irish banking sector underwent a hugely painful upheaval. But that sector is now stabilising and overseas banks in Ireland have recovered all the job losses they experienced during the financial crisis and European heavyweights like Deutsche Bank have recently announced expansion plans in Ireland.
While the key group who got Ireland to this point are the Irish people, many companies also played a part and many of these firms are set to play a part in shaping the new era too, which begins on Sunday December 15th.

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By Guest Blogger Brendan Fay (IDA ICT Division)

 As Ireland celebrates National Microelectronics Week, it is opportune to look back over the past year, a year which has been positive in terms of semiconductor and microelectronics investment and activity.

 For example, Qualcomm announced in September the establishment of a new Global Technology Delivery Centre in Cork. Meanwhile Huawei, Hittite Microwave and u-blox also established new R&D centres.

 Qualcomm, Huawei and Hittite Microwave join companies such as Intel, Analog Devices, Microsemi, ON Semiconductor, Maxim Integrated, Cadence, Xilinx, Altera and M/A COM Technologies, which have significant strategic operations in Ireland.

 For instance, Analog Devices has over 1,000 people at its manufacturing, distribution, sales/marketing and R&D operation in Limerick.

 New investment and ongoing activity reflects corporate confidence in Ireland as a supportive and successful location for the international activities of global corporations.

 One recent example of such success is Intel’s new Galileo development board, containing the Quark SoC X1000 chip, which, with the support of IDA Ireland, was developed from inception at the company’s plant in Kildare. The new chip will enable a range of low power devices in wearable technology and the Internet of Things.

 While the track record of companies is an important factor in influencing investments, the availability of suitably qualified talent, a strong publicly funded research base and a favourable corporate tax structure are also influencing factors.

 Ireland’s talent availability is often cited by companies as a core reason for new investment.

 Ireland currently has in place a National ICT Skills programme, which is helping to increase the supply of electronic engineering talent. For example, graduate output from masters degree electronic engineering programmes in 2013 is estimated by the HEA (Higher Education Authority) to be up by circa 60% on 2008 and is projected to increase by over 160% by 2018.

 The country’s low 12.5% corporate tax rate, 25% R&D tax credit and IDA Ireland’s grant support are also factors that influence investment decisions.

 Ireland has some of the most progressive research institutions to support semiconductor corporate R&D programmes; the institutions include the Tyndall National Institute, with over 460 researchers and support staff, CRANN (Centre for Research on Adaptive Nanostructure & Nanodevices), with over 300 researchers, MCCI (Microelectronics Circuits Centre Ireland) and CCAN (Collaborative Centre for Applied Nanotechnology).

 Some world leading technologies are being developed at the aforementioned research centres.

 Technologies include the development in Tyndall of the world’s first junctionless transistor, which will help facilitate increased miniaturization of electronic devices. CRANN have also discovered a new material that could transform the quality, lifespan and efficiency of flat screen computers and televisions.

  MCCI is currently developing the world’s first skin cancer-detecting single chip phased-array radiometer, which may be developed into a handheld device that could be used in doctors’ surgeries.

 Ireland has much to offer global semiconductor and microelectronics corporations. The success of the existing corporate base and ongoing greenfield investment is testimony to the confidence that currently prevails in the country’s semiconductor/microelectronics industry.

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What is the underlying economic impact of a job in the technology sector?
All over the world as disruptive digital technologies push the established order aside, economists are keen to weigh up the economic value of the new jobs being created and those they are replacing.
This is no dry academic question. In virtually every major western economy, there is concern about the impact of what most loosely call increased computerisation or increased automation.
This trend is blamed by some for eliminating bookkeeping roles, clerical work, and production jobs in the manufacturing sector. Where will this trend lead next, many ask?
Some people have already made up their minds – one of the most interesting long form articles on the subject published recently (by TechnologyReview.com) carried the unambiguous headline, How Technology is Destroying Jobs.
While clearly many work roles in western economies have disappeared and will not return due to advances in technology and greater computer processing power, there are two common sense reflections we should not discard as this debate grows louder.
One is that jobs don’t die as such, jobs migrate. In economic terms we talk about creative destruction, but it is a lot more subtle than just companies going out of business and other companies taking their place. Instead activities in society (and by extension the economy) get re-prioritised and re-ordered, particularly in the services economy, but also in manufacturing.
Entirely new job types are being created every day. Ultimately nobody knows 20 years from now how many data analysts will be working say in the US, but it is likely to be a lot. US magazines are full of other types of roles we are likely to see in the future- from exotically titles roles like “urban shepherds” to microbial balancers”!
Forbes last year came up with a fascinating list of 10 jobs that didn’t exist 10 years ago (http://onforb.es/K2wf5X) and if you analyse it, it gives real support to the idea that activity previously not given strong economic (or social) priority, can suddenly be in strong demand, spurring a fresh burst of employment creation.
For smaller economies this kind of re-ordering of employment and economic activity, can be very challenging, mainly because the trends involved tend to come from larger countries and larger economies and trickle down to smaller ones over time.
For a country like Ireland this is very true. One of Ireland’s largest employers as recently as 2004 was clothing firm Fruit of the Loom, which at its peak (pre-2004) employed 3,500 staff in counties Donegal and Derry.
Now less than 10 years later, Google is one of Ireland’s largest employers, employing over 2,500 people in Dublin (for information on Google in Ireland see http://bit.ly/1eDwHdZ). Its not just about Dublin, regionally Ireland also has a large collection of tech players.
Last year this debate about high tech versus low tech, got revved up by the release of a book by economist Enrico Moretti, which suggested that for every high-tech job created in the US, another five additional jobs in the service economy were also created. Apple, Moretti pointed out, employs 13,000 directly in Cupertino but has spurred 70,000 indirect jobs in the region.
Clearly scale matters and the US is a big market. Also the precise roles matter to, in terms of the multiplier.
But even controlling for these factors, clearly attracting high end tech roles into a city and putting a supportive infrastructure around them, pays off hugely economically and also creatively.
Dublin, as Ireland’s capital is very much doing that at present with its large scale tech hub, where the likes of Google, Twitter, Facebook, Indeed.com, Dropbox, LinkedIn and Tripadvisor now rub shoulders within a small geographical patch.
At IDA we have also looked at a variety of multipliers and the results are encouraging, with tech jobs supporting a high ratio of spin-off roles in the wider economy.
While debates will rage on about what different sectors offer, all the evidence suggest that tech jobs create a very high level of secondary jobs and economic benefits- particularly when they are in clusters.
As a result for good economic reasons, Ireland’s government and various agencies, including IDA, will be seeking to enhance even further the critical mass already present in Dublin’s tech hub.

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by Emmet Oliver

By guest blogger Donal Flavin (IDA ICT Division)
Earlier this year, the Irish Government announced its strategic objective to make Ireland a leading country in Europe for Big Data.

 The Government outlined its intention to invest heavily in new research facilities in Big Data, to put in place the appropriate skills, to use Big Data to deliver solutions to public challenges and to establish a public/private partnership to strengthen all elements of the Big Data ecosystem.

The strengthening of that ecosystem is now underway.

Global corporations have strong confidence in Ireland as a strategic location for their Big Data and data analytics projects, as is evident by recent investments and ongoing activities from companies such as EMC, Fujitsu, NTT DATA, IBM, Accenture, AON, Qualtrics, Quantcast and Adara.

For example David Goulden, President and COO, EMC Corporation, in July when he announced a €100 million investment, 200 person expansion of the company’s Cork based operation said: “EMC’s investment in Ireland is key to our global growth strategy which is focused on ….cloud, Big Data and trusted IT. Cork is a critical innovation hub”.

  Ireland is well positioned to become a leading country in Europe for Big Data for a number of reasons, which include:

• The presence of a strong technology cluster provides a solid foundation for Big Data activities: 9 of the top 10 global software companies (e.g. Microsoft, Oracle, SAP, HP and IBM), many in the business intelligence space, already have significant strategic international operations in Ireland (e.g. International/EMEA HQ’s, R&D and shared services). In addition, the top 10 global ‘born on the internet’ companies (e.g. Google, Facebook and LinkedIn) are in the country in a strategic way.

• Talent Availability: Ireland in 2013 was rated by Manpower Recruitment as number 1 globally for skills availability. To support the growth of the ICT sector, including Big Data, the Government, in partnership with enterprise and educational institutions, have in place a National ICT Skills Plan to increase the supply of technical and analytical talent (e.g. upskilling programmes, national campaigns promoting ICT as a career choice and measures to increase the uptake of higher level maths subjects in schools).

The partnership approach is working well, with computing graduate output at primary degree honours level (Level 8) expected to double in 2013 compared to 2012 due to recently introduced upskilling programmes and ongoing output growth from conventional undergraduate courses. Growth is forecast to continue too. Also the future is positive for data analytical talent. A number of new master degree programmes in data analytics have been introduced this autumn (e.g. DCU and UCC/IMI) and these will complement existing programmes (e.g. UCD Smurfit School of Business and DIT). Upskilling (conversion) programmes have also being introduced (e.g. CIT and National College of Ireland).

• Supportive R&D Infrastructure: During the spring, the Government announced the establishment of INSIGHT, Ireland’s new national data analytics research centre and CeADAR, the country’s new applied research centre for data analytics. The objective of both centres is to support companies with their Big Data R&D activities and the development of world leading technologies.

Areas of focus for INSIGHT include machine learning & data mining, optimisation & decision analytics and media analytics. Areas of focus for CeADAR include intelligent analytical interfaces and data management for analytics (e.g. data validation).

Taken together, Ireland’s strong technology cluster, talent availability and talent growth and development plan, supportive R&D infrastructure, coupled with a corporate tax rate of 12.5% and R&D tax credit rate of 25%, and improving competitiveness, all highlight how Ireland is well positioned to support companies in their Big Data activities.

Donal Flavin is a vice-president, IDA ICT Division

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Alistair Tosh is Director of Executive Education at the Irish Management Institute.
Alistair is a specialist in the area of Management Development and Leadership at the IMI. He has over 10 years experience in training and development.

landscape app

IDA Ireland’s Landscape App

I downloaded the IDA’s App, ‘Landscape’, recently, and it’s excellent! Designed as a “tool for researching and investigating Ireland’s business landscape”, it’s full of information about companies and examples of why Ireland is the right place for locating a business.

Whilst navigating the tool, and looking at Dublin as a location for FDI, I was struck by the parallels with the work of Richard Florida – an ‘urban theorist’ and Professor in the School of Management at the University of Toronto. His recent book, Who’s Your City?, insists that modern-day creative economies are making our choice of the place where we live the most important decision of our lives.

Whilst technology makes remote working more and more possible, our choice of city, he argues, exerts powerful influence over the jobs and careers we have access to, the people we meet, our “mating markets” and thus our ability to lead happy and fulfilled lives.

Although not radical, it makes sense. Cities with high concentrations of technology workers as well, he says, of artists and musicians, exhibit a higher level of economic development. Referred to as the “creative class” these individuals foster an open, dynamic, personal and professional urban environment. This environment, in turn, attracts more creative people, as well as businesses and capital.

And it is this that brings me back to the real world!

I was recently in conversation with a Senior VP from one of the West Coast’s most successful software companies – a beacon for the creative workers I refer to. Having recently secured significant investment in terms of money and jobs from his global parent, and incubated his part of the business here in Dublin, he told me that Ireland, and Dublin in particular, is a hotbed for the type of ‘inside sales’ organisation he leads. Indeed he finds it easier to recruit for roles in Dublin than in other, more exotic locations.

What does he put it down to? Two simple reasons:
1. A Cluster of Expertise – there is a significant cluster growing up around this area (inside sales) in Dublin, with the likes of Facebook, LinkedIn, Twitter, Salesforce, Oracle etc locating in Dublin, and this self-perpetuating network of expertise and talent makes Dublin in particular a fantastic place for companies to invest and talented people to locate

2. Availability of Talent – when selling services my contact tells me that they can train for the sales skills but they need raw talent. Ireland’s universities provide that talent, and when they don’t, Dublin, as a city of choice for technology professionals, provides enough of a pull to attract the talent

And this brings me back to Ireland’s landscape. When it comes to an open, dynamic, personal and professional environment for technology companies Dublin, Ireland is the city.

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Great news to see the west coast of the US opening up, in terms of air connectivity, for Ireland yet again.

It was certainly a blow in 2009 when Aer Lingus ended a direct Dublin flight service to San Francisco, albeit understandable for the carrier at that time.
When one considers how many Californian companies (Intel, Facebook, Apple, Oracle, Twitter, Google) have substantial bases in Ireland, such a service can only bolster links with key corporates with operations in Ireland.

The traffic won’t only be in one direction. A lot of Irish businesses have operations and customers in the west coast, and don’t be surprised to see strong leisure traffic on the route too.

The commitment by Aer Lingus to five services a week and an Airbus A-330 to service the route is a signal of intent.
It also prompts the reflection, how important is air connectivity to investment decisions?
Maybe not vital, but deeply important, most would agree. As one executive said to me this week, no busy person likes being a transfer passenger if possible, and while hub airports are always going to have a part to play, direct connections do enhance locations, over more indirect locations. Measuring precisely how much an enhancement it is, is difficult.

Ireland’s connectivity is growing all the time through Aer Lingus, Ryanair and a host of international carriers which use Dublin Airport and other airports.
The government in Ireland is currently drawing up a national aviation strategy and air links to key markets will no doubt be considered as part of that process.
Whose to say what direct flights may yet emerge from talks between authorities in Ireland and individual air carriers. A direct flight between China and India is likely to be in prospect at some point, many surmise.

Either way air connectivity is only growing to grow, rather than shrink as globalisation gathers pace.

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