I’m going to take some time (when I get a chance) to pull together what I think might be a way forward and put it out there to see what kind of interest there is.

My specific interest is in product based SME potential (as opposed to services or digital ventures). In the product case I think we have to be realistic and understand that few MNs are likely to be attracted under the current economic and regulatory environment. If you are looking for growth in this sector I believe SMEs will offer a catalyst to regenerate some degree of manufacturing in Ireland.

I am reminded of the subject matter covered by Charles Handy in his book; “The Flea and the Elephant” where he indicates that the days of stable and permanent employment in large MNs is a dying cause and the need for employees to consider their independence and be flexible. His theories support the Havoc development of the “flea” supporting the “elephant” (not meant to be disparaging to Havoc by describing them as fleas by this is the example used in Handy’s book).

I also fully support the need for EI and IDA involvement. In the on-line incubation network concept I have touted here I have constantly identified the need for an independent arbitrator who can create the legal, IP and support infrastructure. There would be no point for an incubation network if some of the outcomes could not be commercialized with the assistance of the EI or IDA. Has this not been one of the problems of third level research in Ireland?

Brian technological innovation is only one of many potential requirements for any SME. I also work in the high tech sector and innovation don’t necessarily need to come from within the company. There are a wealth of accessible patents, licencees, third level research and inventive people from which technological innovation may be sourced. I work in the area of business development and one of the key factors is how we differentiate ourselves from the competition. I work in a highly competitive market where we are an independent minnow compared to our competitors and yet we have won business from our competitors.

In conclusion I would like to suggest that the future success of Ireland is the continued support for MN investment but also the belief that we can derive more export % from indigenous Irish industry.

While I don’t deny that EI in particular has a lot of room for improvement, we should not forget to be proud of them and their achievements.

Perhaps the proposed merger of the two agencies can enable the undoubtedly excellent talent in IDA applied to the EI mission.

I agree with Brians comment that the innovation can be in the marketing or indeed as I said above in the “business model”. Compare the recent fortunes of Nokia and Apple when it comes to Smartphones and related services. Nokia have their version of iTunes, called Ovi (which means Door in Finnish) but I guess many have not even hear of it! Apples execution (design and marketing) have been much better.

Somebody mentioned also earlier about starting from the creation of a product rather an industry. It might even be good to bring the business model thinking in right at this stage also; perhaps even start at the customer rather than the product.

Personally I took from the comments that MNCs were a positive feature of Irelands economy and I would not question their benefit but there is no harm in having ambitions to have homegrown success stories also. There are examples of economies of a similar size to Ireland with a larger portion of SMEs that are sustainable economies also.

I would also not dismiss EI and IDA to quickly (although I did point out in a previous comment that the positioning with them might not appeal to everybody). Not every start-up will have the benefit of an investor like Intel who can afford to “create the market” as they want/must with Wimax i.e. see also $900m investment in (Sprint)Nextel.