[31.12.2007 first posted on silicon republic]
Key business leaders in Ireland’s technology and science industries look back on 2007 and highlight what’s needed for Ireland’s emerging knowledge economy in 2008. Dermot O’Connell is the new general manager at Dell in Ireland.

What in your opinion have been the key developments of 2007 in terms of industrial and infrastructural progress in Ireland?
The acceptance that the economic environment has become more competitive has led to a welcome focus on policy measures that will help Ireland to maintain its competitiveness, increase productivity and continue to attract significant investments in R&D and science, technology and innovation.
Key milestones this year included the opening of the Microsoft/IMI National Productivity Centre, which is supported by Dell. This centre will facilitate private and public sector alike to address competitiveness challenges by improving overall levels of productivity. Several key investments were announced, such as the GlaxosmithKline R&D facility, Intel’s Tech Research for Independent Living and Microsoft’s new Data Centre. The common denominator of all of these recent investments is that these are all existing companies that continue to invest in Ireland.
Dell is another example of a company that continues to grow and evolve in Ireland. When a base for Dell was first established in Ireland 16 years ago, Dell was almost entirely focused on manufacturing. Over the years we have continued to add an increasing number of EMEA support services at both our Limerick and Cherrywood sites.
The continuing trend that sees companies add high-end R&D functions to their operations in Ireland is driven by the fact that operations here for many companies are evolving and innovating. An ongoing harnessing of innovation will be the key for Ireland to remain competitive. The commitment by the Government to invest €184bn in the National Development Plan for the next seven years is the most significant infrastructural development this year. The infrastructural programme that will be delivered through the plan will help to underpin Ireland’s economic growth and development in the years ahead.
What issues have not been addressed and you believe should be a priority if we are to create genuine knowledge-based industries as we go into 2008?
To maintain competitiveness in the future there is a need to continue to focus on attracting and developing high-end R&D capabilities to ensure future growth of the digital economy. I would like to see Government continue to commit to funding innovation endeavours to ensure Ireland moves up the value chain. I welcome the announcement in the recent Budget to expand the tax credit system to maintain the 2003 base year used to calculate expenditure on R&D for a further four years to 2013. This measure should help to encourage investment in R&D and is a step in the right direction.
In order to maintain our competitiveness a high-calibre workforce is crucial. We need to continue to produce high-quality graduates in the technology and engineering sector. A recent OECD report showed that our students’ maths and science scores in schools are well below the international league tables. While I welcome the increased commitment by Government for provisions in science, technology and innovation in the recent Budget, it is a disappointment that primary- and secondary-level education were not included as part of this package.
Government should fund a cohesive ICT strategy for schools from primary right up to fourth level. Critical to this will be mobile technology as notebooks move between home and school, allowing students and family to benefit from a single computer. Dell has a number of programmes that it drives under its community affairs banner, aimed at increasing technology penetration among young people.
One flagship programme is Coláiste Chiarain in Croom, Co Limerick, where, through a partnership with Dell, the pupils all have notebooks and the entire school is wirelessly networked. This is having a significant impact on the students in school but just as importantly it is having a knock-on effect in terms of encouraging the parents of the pupils to re-engage in learning by giving them access to the PCs at home.
In its endeavour to create a knowledge-based economy, where do you think Ireland stands in relation to other nations with a similar agenda?
The future for Ireland’s competitiveness is dependent on our ability to truly position ourselves as a knowledge-based economy. Recent league tables show that we continue to lag behind other countries in terms of ICT infrastructure, and if allowed to go on, this will damage our ability to attract high-end investment. In addition, low penetration means that our young people are not gaining access to the technological education they require.
We need to continue to produce high-quality graduates in the technology and engineering sector. A cohesive ICT strategy for the education sector – from primary to fourth level – is essential in this regard. We need to urgently move away from the model of having a dedicated computer ‘lab’ in each school and find a way to integrate technology across all subjects and in all classrooms. Any discussions about positioning Ireland to truly compete in the knowledge-based economy do not ring true when there is no cohesive ICT strategy for primary and secondary schools and limited investment is being made in this area.
>From a business perspective, at a basic level there is also no doubt that the integration of IT solutions into a business helps to drive efficiencies and productivity within that business. If our SME sector is not taking advantage of the benefits that technology can bring then individual companies’ ability to sell their products and services on price – both in the local and in international markets – will be adversely affected.
Communications and PC penetration are central to Ireland’s industrial development. Yet league tables suggest we are not at the races. How can these deficits be best addressed?
Any solution to this problem needs to be integrated with industry and Government working together on behalf of the general public. It also needs to be looked at from both the supply and the demand side.
In terms of demand, the availability of high-quality low-cost PCs has been a feature of this market for quite some time, helped in no small part by Dell’s direct model. It is clear that further measures are required to stimulate demand. As access from a cost perspective has improved significantly in recent years we all need to do a better job at selling the benefits of being part of a digital society.
By John Kennedy