Deirdre Clune (Cork South Central, Fine Gael)
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Question 15: To ask the Minister for Enterprise, Trade and Innovation the progress to date in establishing the €250 million innovation fund overseen by Enterprise Ireland; the number of new projects funded and their aggregate employment potential. [45368/10]

Conor Lenihan (Dublin South West, Fianna Fail)
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I announced the first call for expressions of interest in Innovation Fund Ireland on 23 September 2010. Enterprise Ireland and the National Pensions Reserve Fund (NPRF) will manage the Fund and investors had until 26th November 2010 to signal their interest in establishing a presence here. Now that this deadline has passed, Enterprise Ireland and the NPRF are now commencing the process of evaluating the applications.

Innovation Fund Ireland will have up to €250 million available to make commitments. This funding runs along two parallel tracks. The first comprises a €125 million pool of funds provided by the Exchequer and managed by Enterprise Ireland. Successful applicants who receive an investment from Enterprise Ireland will have to commit to investing an equivalent amount in Irish companies or companies with substantial Irish operations over the lifetime of their fund. The second is for a similar amount and designed to allow Ireland's National Pensions Reserve Fund to make a similar level of commercial investments assuming its criteria are met. The National Pensions Reserve Fund announced its first investments under the 'Innovation Fund Ireland' on 7 October 2010.

The establishment of Innovation Fund Ireland builds on existing enterprise policies including the Government's continued commitment to the Irish venture capital sector through Enterprise Ireland. It is part of a suite of policy initiatives to position Ireland as a Global Innovation Hub. The objective of the Fund is not just to increase the availability of capital but also to transform the market by attracting top tier Fund managers to Ireland.

The Funds will invest in Europe with a focus on Ireland. Over the lifetime of the Funds, the State envisages making a return on its investment and in terms of economic growth where the Funds invest in Irish start-up, scaling companies or companies with operations in Ireland the State can expect to see an increase in employment; an increase in the number of high potential start-ups; the attraction of high potential start up and scaling European technology and life science companies requiring growth capital investment to Ireland; increased commercialisation of the ideas and R&D coming out of the Universities and Institutes of Technology in line with the Government's Strategy for Science and Technology and the persistence of Ireland as a centre for technology, life sciences and venture capital investment within Europe through multiple fund iterations.

The Government is committed to increasing the number and scale of innovation driven and high-growth businesses in Ireland and a dynamic and progressive venture capital market is a prerequisite in this endeavour. This Fund is further evidence of the Government's continued commitment to generate high quality jobs in Ireland.