IRELAND NEEDS to invest more in indigenous start-up firms rather than concentrating on attracting investment from multinationals, according to former Intel chief executive Craig Barrett.
Speaking in Dublin yesterday, Dr Barrett said Ireland now faced “incredible competition” to win foreign direct investment and that advantages such as our corporation tax and our “decent” education system were being eroded by the efforts of more dynamic economies.
“By all means, save your banks, save your financial system, do the triage that’s necessary but don’t forget to make those longer-term investments,” said Dr Barrett.
“Because when you bounce back from the real estate bubble, the only thing you have going for you is your educated workforce and the new companies, the innovation that is going on in society,” he added.
Although he had no insight into the intentions of his former employer, Intel, he says its Irish operations, which employ almost 4,000 staff, were “doing very well” for the technology corporation.
While it was understandable that Irish citizens were concerned about the fiscal situation, there are many parallels with what is happening in the US, Dr Barrett said.
“You should recognise that in the US during the recent congressional elections, the main topic of conversation was deficits and government spending.
“Talk to the average US citizen and they are more concerned with their own financial problems rather than Ireland’s.”
The former Intel boss is in Ireland this week in his role as chairman of the Irish Technology Leadership Group, a network of Irish and Irish-American executives seeking to build links between Irish firms and Silicon Valley in California.
The “Silicon Valley Comes to Ireland” conference will take place at the University of Limerick tomorrow, while Dr Barrett will speak at NUI Galway this morning on the topic of “Education for Innovation”.
Twelve start-up companies – Amartus, Equiendo, ImeeGolf, InishTech, InteleSens, Mcor Technologies, Movidius, RedZinc, ResourceKraft, Suntico and Weedle – have been selected to meet the US venture capitalists and advisers during their trip.
These include John Denniston, a partner with Kleiner Perkins Caufield Byers (investors in Google, Amazon and Electronic Arts); Tim Danford, a partner in Storm Ventures and an early stage Silicon Valley investor; and Ed Colligan, the former chief executive of smartphone maker Palm.
