Annual Review of Activities and AnnualAnnual Accounts Report 20082007 Contents JOINT MINISTERIAL FOREWORD 5 CHAIRMAN’S INTRODUCTION 6 CHIEF EXECUTIVE’S MESSAGE 8 2008 BUSINESS PLAN PERFORMANCE SUMMARY 10 BOARD MEMBERS 12 ORGANISATION AND STAFFING PROFILE 18 STRATEGY & KEY PERFORMANCE INDICATORS 23 2008 BUSINESS PLAN PERFORMANCE REPORT 27 Programme Areas 1. Science, Technology and Innovation 28 2. Sales and Marketing 31 3. Enterprise Capability Development 33 4. Business Networks 35 5. Business and Economic Research 39 AUDITED ACCOUNTS 47 Joint Ministerial Foreword We are pleased to introduce InterTradeIreland’s enterprises, to upskill our workforces and to Annual Report for 2008, a year which saw encourage growth in knowledge, skills and significant challenges posed to the economies creativity to enable the translation of ideas into of both Northern Ireland and Ireland. world-class products, processes and services. During the year, the global recession prompted Efforts must be made to reduce the cost of a sharp downturn in economic activity doing business and we must continue to invest exacerbated by adverse exchange rate in our infrastructure and take advantage of the movements, rising energy costs and a rapid significant potential from the development of increase in unemployment. the green economy. Northern Ireland and Ireland were as adversely By working together pragmatically we can affected as other world markets and total strengthen our respective positions to take cross-border trade was down from advantage of the upturn in the global economy £2.4/€3.1bn to £2.2/€2.8bn. as recovery begins. On a positive note, the political stability in It is encouraging to note that in 2008, the Northern Ireland continued to offer significant total value of trade and business development new opportunities for growth in trade and activity generated by firms engaged in cross- business development opportunities in border business through InterTradeIreland both jurisdictions. projects amounted to £65.45/€77.88m - a 10:1 return on investment. InterTradeIreland is an organisation uniquely placed to offer proactive and relevant This is an impressive result and we would like interventions which are in the interests of both to extend our gratitude to the Chairman, economies. It recognises that by building on our Board members, Chief Executive and senior mutual strengths we have the best chance of management and staff of InterTradeIreland surmounting ongoing economic challenges. for their hard work and dedication over the past year. There are opportunities to be grasped in leveraging the potential of cross-border We will continue to support them in their unique co-operation to deliver mutual benefits to role of undertaking research and developing both jurisdictions in terms of economies practical programmes and networks that of scale, efficiency savings and building demonstrate, to both Ireland and Northern increasing competitiveness. Ireland, the mutual economic, trade and business benefits of increased co-operation. We need to stimulate the growth of the private sector, including small and medium indigenous Mary Coughlan TD Arlene Foster MLA AN TÁNAISTE AND MINISTER FOR MINISTER FOR ENTERPRISE ENTERPRISE TRADE AND EMPLOYMENT TRADE AND INVESTMENT 5 Chairman’s Introduction During the last year the economic landscape All-Island Business Monitor Survey has proved business activity levels and generate and has dramatically changed and the need to especially valuable in acting as a barometer protect employment. With public expenditure create trade and business development of the needs and aspirations of businesses north and south coming under severe pressure, opportunities and to improve our international especially SMEs. the challenge to InterTradeIreland is to deliver competitiveness has become even more maximum value for money in terms of economic important. It is therefore encouraging to note During the year we have stepped up the level outcomes and to optimise our effectiveness that despite a fall in overall cross-border of our direct contact with businesses to ensure and efficiency. trade related to the economic downturn, that we can better understand their needs and InterTradeIreland far exceeded its performance improve the relevance of our programmes, In facing the tough challenges that lie ahead I targets for the year, helping businesses to services and research activities. In addition we am grateful for the support of both Ministers generate £65.45/€77.88 million of additional have increased the level of co-operation and and their departments and to the dedication and trade and business development value. co-ordination with Invest NI, Enterprise Ireland, enthusiasm of the Board, senior management the IDA and other economic development team and staff of InterTradeIreland. This result was achieved by encouraging bodies so as to optimise overall effectiveness businesses to engage in North/South trade and eliminate any overlap or provision gaps. for the first time, supporting companies through our sales and innovation programmes and At the beginning of 2008, nine new board helping fledgling companies to raise new equity members took up their appointments resulting funding. It is clear from these outcomes and in a substantially refreshed InterTradeIreland from the ongoing demand for our programmes Board. In view of this and the rapidly changing and business support services, that North/ economic environment the new board has South economic co-operation offers much decided to undertake a strategic review. The needed opportunities to businesses in both main purpose of this review is to consider how jurisdictions to grow their sales and improve the organisation can best deliver its remit going their competitiveness. forward and become more outcome focused and business relevant. The review process, InterTradeIreland’s activity is underpinned which is well underway, should conclude shortly Dr David Dobbin CBE by solid market and economic research and is already feeding into our approach, CHAIRMAN and in 2008 we were involved in 14 studies resulting in new services and support packages and reports in areas as diverse as transport, which have been rolled out during 2009. business regulation, shipping, agrifood, managerial capability, environmental services, Looking ahead the economic environment and R&D/innovation. These studies have has not only become very difficult but also helped us identify further trade and business increasing volatile and hard to predict. Against development opportunities, address areas of this background it is essential that North/ market inefficiency/failure and optimise the South economic co-operation continues to economic outcomes and business relevance focus on sound basic business principles that of InterTradeIreland’s activities. In the current will generate short term as well as long term tough financial times it is vital that we can benefits. Key objectives for the organisation closely track business trends and our quarterly in the current year will be to help stimulate 6 7 Chief Executive’s Message Everything we do at InterTradeIreland is aimed Business networks, which play a vital role in None of this would be possible without the at adding value to business and despite the helping firms grow by sharing costs, risks and support of both Governments, the spirit tough financial climate of the past year we were research opportunities, produced £2.3/€2.7m of partnership from the business agencies able to record some outstanding successes. of business value through initiatives such as across both jurisdictions, the leadership of the All-Island Software Network, whose Mobile our Chairman and Board, the expertise of the A total trade and business development value Advertising Alliance product secured 200 leads senior management team, and the dedication of £65.45/€77.88m and a return on investment on launch. of InterTradeIreland staff. I am confident that of 10:1 was generated by 2,985 companies by working together we can build on our involved in our programmes and networks. Under the pilot phase of the Innova programme, achievements in helping businesses North Nearly 100 new firms took advantage of our which stimulates, promotes and supports and South, to work together, to reach even support with more than half of these becoming cross-border R&D co-operation, seven greater success. first-time exporters. partnerships completed their projects. Phase II, launched late in 2008, attracted 130 Our sales and marketing and innovation Expressions of Interest, with 26 partnerships programmes offered an invaluable helping hand invited to submit full proposals. I to businesses which were feeling the strain of the economic downturn and looking for practical The past year also saw the launch of the All- assistance and readily accessible information. Island Innovation Programme which aims to bring international expertise in innovation and FUSION, which partners companies with a encourages the sharing of best practice with technology need with third level institutes business leaders, academics and policy makers and high calibre graduates, reported a value through a two-year programme of conferences, of £12/€14m, while Acumen, Focus and lectures, seminars and master-classes. This MicroTrade, which help businesses with their is complemented by the establishment of a sales and marketing, produced a total value Community of Innovation Researchers. Liam Nellis of £22/€26m. Chief Executive Officer Our EquityNetwork programme supports early