Micheál Martin (Cork South Central, Fianna Fail)
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Question 226: To ask the Minister for Jobs, Enterprise and Innovation his views on how the innovation fund is contributing to job creation; and how the fund is currently being used. [32728/11]

Richard Bruton (Dublin North Central, Fine Gael)
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Innovation Fund Ireland is an important element of enterprise policy as investments through the Fund facilitate job creation in innovative export focused sectors as well as proving a return to the exchequer over time. The Fund has 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 (NPRF) to make a similar level of commercial investments assuming its criteria are met.

Over the lifetime of the funds, it is envisaged that the State will make a return on its investment. 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 and

the persistence of Ireland as a centre for technology, life sciences and venture capital investment within Europe through multiple fund iterations.

Following the first call for expressions of interest in September 2010, a large number of responses were received from a sectorally and geographically diverse group of companies. To date the NPRF have made three investments. The first investments were in DJF Esprit and DFJ Venture Capital resulting in a partner being hired on the ground in Ireland to invest in Irish companies. The other NPRF investment is in Polaris which has resulted in the establishment of the first Dogpatch Incubator Lab outside of the United States.

The first round of commitments out of the €125m of Enterprise Ireland managed funds are expected to be to be formalised in the near term. As you will be aware I issued a statement on October 5th indicating my intention to issue a second call for expressions of interest for the balance of the €125m fund, when the first of the new Irish offices associated with these new investments is established. The operation of the Innovation Fund will continue to be managed by EI in ongoing co-operation with the NPRF.

I am 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. Apart from the tangible benefits this brings to the domestic economy, the message that is sent out to the international market is that Ireland is open for business.