The Republic will become the headquarters for a new venture that will launch start-up companies emerging from the Massachusetts Institute of Technology's Media Lab in the US, and Dublin's Media Lab Europe (MLE).
The severe downturn in the technology sector, however, means that MLE may now receive as little as 50 per cent of its operating costs from corporate sponsors, and will have to look at alternative sources for funding.
According to Prof Nicholas Negroponte, founder and chairman of both Media Lab and MLE, an initiative called Media Lab Ventures will serve as an umbrella support company for spin-off firms from the two research labs.
The Government will hold an interest in the venture, which was a potential part of the MLE deal negotiated between the State and MIT's Media Lab two years ago.
"Media Lab Ventures will bring MLE and MIT Media Lab projects to the next stage and literally start new companies in Ireland," Prof Negroponte told The Irish Times in an interview. He believes the venture could be under way by the end of the year.
He said the two institutions were looking at new business models for themselves as the likelihood of a consistent level of corporate support faded. MIT's Media Lab's $40 million (€44 million) budget is funded entirely by 170 corporate supporters.
MLE's major sponsors include Ericsson and Eircom and sponsorship goals have so far been exceeded. But Prof Negroponte said this level would be hard to maintain given the state of the global economy.
Much of the corporate support for both labs is drawn from companies in the technology industry and in particular, the telecommunications industry. Both sectors are suffering in the current economic climate.
"MLE's got to change," Prof Negroponte said. "The open question is how imaginative we can be in coming up with new business plans." He said MLE would examine sources for support, such as EU grants, foundations, and possibly other states interested in supporting the lab's research. MLE's sponsors gain access to all intellectual property produced by both Media Lab and MLE.
After two years of preparation and small-scale research, MLE is beginning this academic year with a complement of 75 full and part-time lecturers and researchers, spread across nine new research groups.
About a third of the group leaders and members are Irish, with another third from across Europe and a final third from the US. Some are existing faculty members at MIT.
Prof Negroponte said it would be a mistake for the Government to decide to cut back on investment across the board in research because of the economic gloom. "Research is in fact even more important in hard times and government's role becomes even more important," he said.
The full interview with Prof Negroponte will appear in Friday's Business This Week supplement.
