I thank the Chairman and the members of the committee for the opportunity to attend this meeting and contribute to the committee's work. I wish to introduce my colleagues from Enterprise Ireland, Ms Julie Sinnamon, executive director, and Mr. Feargal Ó Móráin, executive director.
A return to export-led growth will lead Ireland's economic recovery. In that sense, Enterprise Ireland has absolute certainty of purpose. Exports equals jobs and high-quality, innovative and internationally competitive Irish companies are fundamental to Ireland's future prosperity. Enterprise Ireland client companies showed great determination and resilience in seeking out new markets and customers in 2009. As a result, they recorded new export sales of €693 million. Irish companies have the ambition and capability to identify opportunities in the most difficult economic conditions and build strong, export-focused businesses.
In 2009 Enterprise Ireland focused on ensuring that Irish enterprises emerged from the global downturn in the strongest possible position. We helped vulnerable but viable companies to stabilise, to retain and build their current exports, and introduced them to new buyers and markets. Enterprise Ireland implemented a number of financial and non-financial initiatives to help companies through the economic recession. We focused on winning new sales, supporting access to finance, working with new start-up companies and promoting capabilities in innovation and leadership.
While total export sales fell by 10% to €12.9 billion, a number of key growth sectors, including software, internationally traded services and life sciences increased exports. In 2009, Enterprise Ireland's priority was to consolidate the position of Irish exporters in key markets such as the United Stated and the United Kingdom. Enterprise Ireland also had a particular focus on helping client companies win new sales in the eurozone countries and, for selected clients, increased support for developing business in high-growth markets.
Accessing finance represented a major challenge for companies in 2009. In response, Enterprise Ireland prioritised providing access to finance for client companies through new and existing funding supports and through enhanced co-operation with the main banks. Approximately 7,800 jobs were sustained in the companies supported under the enterprise stabilisation fund, established to help viable internationally trading enterprises survive the global downturn. During the year the fund, administered by Enterprise Ireland, approved direct financial support of €68 million to 180 projects across all sectors. Under the first round of the employment subsidy scheme, temporary, administered by Enterprise Ireland on behalf of the Department of Enterprise, Trade and Innovation, a total of €66 million was approved for 455 companies to subsidise 7,275 jobs. As a result, those companies committed to maintaining more than 34,500 jobs as part of the support agreements under the scheme.
Strengthening the leadership and management capability of Irish companies is of critical importance. During the year, 60 chief executive officers participated in the Leadership 4 Growth programme which helps companies achieve significant international scale by enhancing the leadership and strategic capabilities of the senior team.
Enterprise Ireland acts as the bridge between companies and publicly-funded research institutions to build collaborative links and ensure that commercially viable knowledge is translated into economic return but more particularly, job creation and prosperity in Ireland. In 2009, Enterprise Ireland focused on supporting short-term, in-company research and development projects. Client companies' commitment to research and development is stronger than ever. By the end of the year, 52 companies were investing in excess of €2 million per year on research and development projects and 704 clients were spending more than €100,000 per year. A total of 492 innovation vouchers were redeemed in 2009, while Enterprise Ireland continued to support collaborative research through the competence centre initiative, applied research enhancement centres and industry-led research networks.
Enterprise Ireland is committed to supporting entrepreneurs to ensure that emerging technologies and innovative business ideas with export potential become a commercial reality. These entrepreneurs start high-potential companies that create jobs throughout Ireland. During 2009, more than €21 million was approved to 73 new high-potential start-ups. In addition, 13 prospective high potential start-ups in the ICT and life sciences sectors emerged from State-funded third-level research. Those companies are expected to create more than 900 new jobs and achieve total sales of more than €600 million in the following three years.
As 2010 is almost at an end it is timely to provide a flavour of our year to date. We had to adapt quickly to provide the assistance our companies required in a context few previously experienced. While 2010 proved difficult, Enterprise Ireland moved from sustaining client companies in 2009 to positioning them for future growth. Feedback from our client base leads us to believe that a significant amount of the exports lost in 2009, perhaps up to 70%, have been regained. That is notable given the severity of the global economic crises. Consequently, the outlook for employment is more positive in 2011. Throughout 2010 we worked in partnership with exporters, helping them to maintain and build their business relationships with existing and new customers. Our primary focus remains unchanged, namely, aggressively seeking to generate foreign earnings and exploiting opportunities which emerge for client companies. This in turn will lead to sustained employment growth and wealth creation throughout the economy. Clearly, much depends on the economic performance of our trading partners. Uncertainty remains but economic contraction is not expected in 2011.
Recovery in the United Kingdom and the eurozone strengthened in the second half of 2010. While the United States economy slowed somewhat, our exporting base will benefit from even subdued growth. New economies such as China, Brazil, India and countries in the Middle East are leading the emergence from economic downturn and will be the drivers of world economic growth next year. We have remained focused on the opportunities those countries will present throughout the economic crises and have seen an increase in companies seeking to export for the first time to those markets to exploit the significant opportunities.
Our 31 overseas offices provide a range of services to client companies, supplemented by group events such as trade missions, trade fairs and inward market visits. We organised a greater number of targeted sectoral visits and a number of cross-sectoral visits led by the Taoiseach and Ministers to strategic overseas markets, including Russia, the Kingdom of Saudi Arabia, Brazil, the United States and Australia. Such visits showcased the innovative capabilities of the Irish enterprise base to key global influencers and buyers.
Success in overseas markets is not simply about export capability; excellence throughout the business is required. Innovation, efficiency, excellent management capabilities, skilled staff and access to required funding are all necessary elements for success and Enterprise Ireland supports are designed to address these needs collectively.
There has been a fundamental shift in Irish enterprises' approach to innovation and research and development. Despite the recession, EI client companies increased research and development by 2% to almost €600 million in 2009. We tailor our support according to company need. Our innovation vouchers, for example, provide a link between small and medium enterprises and the research base. The vouchers show innovation and collaboration can form part of business strategy regardless of size, sector or region. Up to 30 November, around 460 innovation vouchers have been redeemed in 2010. To date, 72 EI companies have been approved research and development funding in excess of €100,000 and more than €24 million was approved, with a number of significant research and development approvals worth more than €1 million.
EI supported 73 high potential start-ups in 2009. To November this year, 69 innovative HPSUs have been approved. Over the past two decades, almost a thousand such innovative start-ups have been supported, with half located outside Dublin. This demonstrates the regional importance of nurturing entrepreneurs and sources of innovative business, including commercialisation of research.
We remain focused on ensuring companies develop their own capabilities for sustained growth. Programmes such as Leadership 4 Growth, our international selling programme, and Lean Agenda all seek to embed a culture of leadership, sales and competitive improvements in companies. Three "Leadership for Growth" programmes took place in 2010, one for sustainable built environment and two for engineering life sciences, medical devices and service technology companies. We have evolved the concept and in October a strategic leadership for chief financial officers programme was launched with Stanford University.
Access to capital remains an issue but Enterprise Ireland is working to provide access to different sources of finance. Our enterprise stabilisation fund supports vulnerable but viable companies to undertake growth projects. To date, 239 projects have been approved €85.2 million to sustain 9,939 jobs in Ireland. The €500 million innovation fund was launched in September. Enterprise Ireland will contribute €125 million to this fund. A total of €4 million investment will be made in 20 clients by the Halo Business Angels Networks by the end of the year and EI will co-invest in all of them.
The enterprise base is constantly evolving, adapting and innovating. It requires a banking sector that evolves with it. This requires a much greater understanding and deeper appreciation of the Irish exporting base. We continue to work practically and positively with the banks through secondments, bank representation on trade missions and knowledge workshops.
Our client companies have worked extremely hard in 2010 to make their businesses more competitive, take advantage of the opportunities that presented and win sales in overseas markets. This work in preparation will stand to them in 2011 as markets continue to recover. We will be relentless in our determination to support our clients in every way possible to ensure they capitalise on the global recovery. By securing exports in international markets, Irish companies will help drive job creation at home.
On my behalf and on behalf of my colleagues, I thank the committee for inviting us to appear today and we will be pleased to respond to any questions.