Dáil Éireann Debate, Tuesday - 14 May 2013
400. Deputy Nicky McFadden asked the Minister for Communications, Energy and Natural Resources if he will outline the way he is supporting the Digital Hub Development Agency and the National Digital Research Centre; the potential for these services to create jobs in the digital enterprise sector; and if he will make a statement on the matter. [22349/13]
View answerThe Digital Hub currently supports approximately 64 companies which between them employ over 805 people, making a significant contribution to job creation. The DHDA provides companies in the digital media sector with support to survive and grow. More than 160 companies have been located at the Digital Hub since 2003. The Digital Hub’s most recent Annual Report (2011) shows that client companies generated a total turnover of €34 million, of which €25 million was in exports and had a total payroll of approximately €30 million, generating payroll taxes of over €12 million. Many companies previously based there have gone on to notable success and expansion with resulting job creation, including Amazon, Havok, Houghton Miflin, Daft.ie and PopCap.
The Digital Hub Development Agency (DHDA) is currently funded by a combination of Exchequer subvention, commercial income and sponsorship. This year the DHDA will receive an Exchequer subvention of €2.49m.
As part of its overall plans to reduce the number of State agencies, the Government has decided to merge the Digital Hub with Dublin City Council. While obviously this will result in some annual savings to the Exchequer, it also provides a very good strategic fit for both organisations given their respective clear focus on supporting digital development.
The National Digital Research Centre (NDRC) has been funded since 2007 by my Department through a Concession Agreement, with the aim of translating research-based projects in the digital enterprise sector to market-ready stage.
I am informed by the NDRC that ventures set up from its projects have created 250 jobs to date in the digital enterprise sector. NDRC ventures have received follow-on investment of €16m to date and their market valuation has reached almost €40m. Support is provided by the NDRC for ventures by way of mentoring and development as well as share capital in some instances.
Following a strategic review of the NDRC last year, I have decided to extend the Concession Agreement, for another 5 years. Discussions on the details of this are currently on-going between my officials and NDRC Board and management in this regard.
I expect that both NDRC and the DHDA will continue to play an important role in assisting Government supporting digital entrepreneurship and increasing overall digital adoption rates in business and the community at large.
