Dáil Éireann debate -
Thursday, 5 Dec 2002

Vol. 558 No. 6

Written Answers. - Digital Content Industry.

David Stanton

Question:

34 Mr. Stanton asked the Tánaiste and Minister for Enterprise, Trade and Employment her plans to support the development of digital content enterprise here; the funding available from the Government in this regard; and if she will make a statement on the matter. [25102/02]

Tánaiste and Minister for Enterprise, Trade and Employment (Ms Harney)

Digital content is emerging as a new economic sector with tremendous enterprise and creative potential for Ireland.

Based on available data, indications are that the market size for digital content was worth at the very least, $178 billion in 2001, and will be worth, at a minimum, $434 billion by 2006, representing an average annual growth rate of about 29%, and a highly attractive market. The projected growth of the industry between now and 2006 gives Ireland a window of opportunity to carve out a place for itself in new areas of potential strength and expertise and establish a significant presence in a number of high growth digital content sectors.

For the opportunity to be exploited to the full my Department requested Forfás to develop a co-ordinated strategy for the promotion of the digital content industry. As a first step in that process Forfás in conjunction with the Department, Enterprise Ireland and IDA Ireland commissioned a review of the relative stage of development and potential of the digital content industry in Ireland and internationally. Published in November of this year, the review pinpoints future opportunities and identifies priority actions to achieve a co-ordinated and strategic approach to the promotion of the digital content industry into the future.

My Department in association with Forfás will establish a digital content steering group, comprising the industrial development agencies and relevant Departments to guide and co-ordinate the development of the sectoral strategies and to progress the implementation of the actions in this report.

Already, Ireland has strengths in the software, e-learning and wireless sectors both in terms of the enterprise base and specialist research activity in the third level sector.

Ireland also has a strong creative tradition and a track record of partnership between industry and university in the development of skills and research and development.

The digital hub is the Government's flagship project in the digital content sector. The project intends to cluster Irish and international digital media companies, research and development and educational initiatives. MediaLab Europe, the educational and research facility established as a joint venture between the Irish Government and MIT, is already operational in the area.

Government funding for the project amounts to €130 million. The bulk of the funding has been allocated to property purchase in the area which is now complete. Refurbishment of property will be undertaken mainly by the private sector using the PPP model.

Construction of a 3 km high speed, fibre broadband network in the hub at a cost of €2.29 million was completed in September 2002 and a network operations centre is scheduled to be in place by the first quarter of next year.

In addition, Enterprise Ireland is at an advanced stage of development of its major new regional web works initiative. This initiative is being developed in association with the private sector and local authorities. Web works are technology hubs designed to generate a critical mass of high potential start-ups in a region.

These hubs will provide office facilities, highly wired in terms of telecommunications infrastructure offering flexible leases designed to meet the needs of small but fast growing companies and will facilitate the development of digital content industries in the regions.