OPINION: MNCs and SMEs can work together

Multinational corporations have been arriving to our shores since the 1960s and over the course of that decade, foreign companies – British, American, German and Dutch – set up an impressive 350 new enterprises in Ireland. Prior to this, it was really only British firms who viewed the Emerald Isle as a potential location. When businesses from West Germany and the US began to take a step into new territory, it was the beginning of a new era for Ireland.
The arrival of new industry coincided with – and arguably played an important role in – a period of substantial economic growth and prosperity for the country. It was a time of investment in agriculture and industry, with free trade encouraged and exporters given levels of support previously unseen. During the 1960s, Foreign Direct Investment (FDI) proved vital for the Irish economy. It delivered 70 percent of new employment and 90 percent of increased exports in transportable goods. Moreover, it created valuable new jobs in regions where existing employment opportunities had been in rapid decline.
Of course, the Ireland we live in today has changed considerably since then, and now, it is a crucial combination of homegrown enterprise and multinational (MNC) involvement that has resulted in the country’s vibrant business ecosystem. In fact, it is the symbiotic relationship between Ireland’s small and medium-sized enterprises (SMEs) and the FDI from global businesses that has proven fundamental to the country’s economic performance.
Here in the west, and indeed all across the country, embracing MNCs has huge potential to create significant job creation. That said, it is important that we strike a balance and ensure the domestic industries also have an opportunity to grow.
In addition to direct job creation, MNCs stimulate job growth across the sectors, increasingly in research and development, services and technology adoption. They also boost technology transfer, bringing the latest in global best practices, raising the bar for local firms, enhancing competitiveness, and promoting further innovation.
A wonderful example of the mutually beneficial relationship between smaller indigenous industry and larger enterprises can be found in the recently introduced Innovation Exchange programme. This is Ireland’s innovation marketplace that connects large companies facing digital transformation challenges with technology companies that can fast track the solutions. Platform94, formerly GTC, was announced as the first regional channel partner of The Innovation Exchange earlier this year. The initiative is a partnership between Skillnet Ireland and Furthr (formerly Dublin BIC).
For SMEs in Mayo, and across the west of Ireland, who are operating in the digital transformation space, the programme offers a unique opportunity to pitch to, and collaborate with, large corporates who are looking to access innovation. So far, on a national scale, more than 500 SMEs have engaged to solve the biggest digital innovation challenges, and Innovation Exchange members have responded to 25 innovation challenges from companies such as Glanbia, Bord na Móna, Ryanair and ESB. Among the new corporates joining the innovation marketplace are InterSport Elverys, Uisce Eireann, BWG Foods and Ireland West Airport.
Platform94 is a fast growing technology hub for scaling technology companies across the West of Ireland and beyond, opening up a whole new world of possibilities and opportunities for indigenous technology companies across the region. Established by the Digital Task Force in 1994 to encourage the development of technology-based industry in the West of Ireland, it also acts as a soft landing site for multinationals looking to establish a base in the region. Since its foundation almost 30 years ago – when it was known as Galway Technology Centre or GTC – Platform94 has extended its remit to a regional level, and has supported over 300 companies, facilitated 3,000 jobs and generated at least €1.3 billion in GVA (gross value added) for Ireland’s west. It is owned by non-profits Galway Chamber and WestBIC, and has developed key partnerships with Enterprise Ireland, Local Enterprise Offices and IDA Ireland.
There is no doubt that our knowledge economy in the west, and on a national level, is second to none. We have developed an enviable research ecosystem, an impressive MNC sector, and a thriving startup and scaling space. Of course, we must get the balance right.
Yes, it is important that we embrace US multinationals, but it’s equally important that we embrace ‘us’ – the indigenous SMEs. If we can bring all of these together, we can lead the way in commercialising new technologies and drive an ongoing cycle of economic growth and innovation. Together, we can make the difference.

• Oliver Daniels, CEO and Director of Entrepreneurship and Innovation at Platform94.