The Enterprise Ireland Commercialization Fund Program

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The Enterprise Ireland Commercialization Fund Program is a funding initiative designed to support researchers in transforming their research into commercially viable products or businesses.
What are the main aims and objectives?

The Enterprise Ireland Commercialization Fund Program primarily aims to bridge the gap between academic research and commercial applications, fostering innovation and economic growth in Ireland. Its main objectives include supporting researchers in Irish higher education institutions and research centers to transform their innovative ideas into marketable products or services. The program seeks to identify and fund projects with strong commercial potential, providing financial support and expert guidance throughout the commercialization process. By offering access to dedicated Commercialization Specialists and covering various stages from proof of concept to market validation, the program strives to accelerate the development of new technologies, products, and services.

How does the program work?

The Enterprise Ireland Commercialization Fund Program operates through a structured process designed to support researchers in transforming their innovative ideas into commercially viable products or services. The program typically begins with researchers submitting their proposals to Enterprise Ireland, outlining their research project and its potential commercial applications. These proposals are then evaluated based on their scientific merit, market potential, and alignment with Ireland's economic priorities.

Once a project is selected for funding, the program provides financial support to help researchers develop their ideas further. This funding can cover various aspects of the commercialization process, including proof of concept work, prototype development, and market validation studies. The financial assistance allows researchers to dedicate time and resources to exploring the commercial potential of their research without the immediate pressure of securing private investment. The program provides financial assistance for projects typically ranging from €80,000 to €450,000, with potentially higher amounts for life sciences projects

A key feature of the program is the assignment of a dedicated Commercialization Specialist to each funded project. These specialists play a crucial role in guiding researchers through the commercialization journey. They provide expert advice on various aspects such as intellectual property protection, market research, business planning, and identifying potential industry partners. This mentorship helps bridge the gap between academic thinking and business acumen, which is often critical for successful commercialization.

The program also facilitates networking opportunities and connections with industry partners. This can include introductions to potential customers, collaborators, or investors who might be interested in the developing technology. Such connections are vital for researchers to gain insights into market needs, refine their product concepts, and potentially secure follow-on funding or partnerships.

Throughout the funding period, projects are regularly reviewed to assess their progress and commercial potential. This ongoing evaluation ensures that resources are being used effectively and allows for adjustments to the commercialization strategy if needed. Successful projects may progress through different stages of funding, from initial concept validation to more advanced development and market preparation.

What is the overall cost?

The total cost (indirect cost and direct cost) of the program from 2003 to 2009 was €147.6 million. 

How was it implemented?

Enterprise Ireland, the government agency responsible for the development and growth of Irish enterprises in world markets, took the lead in establishing this program. They recognized the need for a comprehensive support system that would nurture researchers through various stages of the commercialization process. This led to the creation of a multi-tiered funding approach, including initial Commercialization Case Feasibility Grants and full Commercialization Fund awards.

What impact has been measured?

An impact assessment of the program found that:

  • Supported 895 projects across all stages of technology development from 2003-2009, with total funding of €144.2 million
  • Generated 73 patents, 35 licensed outputs used by companies, and 21 spin-out companies created
  • Resulted in 76 research staff moving into the private sector, joining companies like Beckman Coulter, Abbott, EMC and Nubiq
  • Stimulated an estimated additional €14.7 million in company R&D spending to further develop licensed technologies
  • A cost-benefit analysis estimated a return of €2.04 to the Irish economy by 2015 for every €1 of grant provided during the evaluation period
  • Companies licensing technologies were predominantly in Industrial Technologies (22%), ICT (48%), and Life Sciences and Food (29%) sectors
  • Enhanced Principal Investigators' abilities to develop relationships with commercial partners and deliver applied research projects
  • Nearly half of Principal Investigators reported objectives directly linked to commercialization activities like developing products/services (49%) or business opportunities (42%)
What lessons can be learned?
  1. The strategic and longer-term nature of collaborations fostered by the program led to more pre-commercial outputs compared to shorter-term interactions
  2. The full economic impact takes time to materialize due to the long-term nature of commercializing research
  3. There is a need for clear metrics to track patent progress through to licensing and spinouts to gain a more complete picture of impact
  4. The program has been effective in bridging academic research with commercial applications and stimulating increased industry engagement with higher education institutions
Notes + Additional Context

Why do Knowledge Spillovers Matter? An excerpt from Nesta's ‘Idea Bank’ for Local Policymakers:

Startup ecosystems often evolve around prominent ‘anchor institutions’: large, resource-laden organisations such as universities or major technology firms, which are locally active and relatively immobile.

Such institutions may spawn spinouts directly: many leading digital firms including Google, Facebook, Sun Microsystems and Deepmind owe much to university roots; others, like AMD, Nuage Networks and Agilent Technologies spun-out from major technology firms.

Anchor organisations also serve other important functions. They can act as a reservoir of technical skills which can benefit startups through employment of skilled individuals, training courses, collaborative research, contract research, consultancy and equipment hire. They can act as testing, measurement and certification facilities, providing validation, advice about metrology, equipment calibration, standards and quality control. They may provide assistance with prototypes, especially where startups have needs beyond the technical capabilities of ‘makerspaces’. They can also act as a local market for goods and services.

It should also be noted that the presence of a large, acquisitive company helps boost a city’s ecosystem in other ways: analysis also shows that cities which have more active acquirers also have more startup exits. 

Since emerging as a concept a couple of decades ago, anchor institutions have come to play a core strategic role in urban regeneration and local economic growth. As such, they may already have a formal role within the planning and policymaking process with a city, with various policies designed to facilitate knowledge spillovers through formal knowledge transfer (like collaborative research and direct movement of people). Many universities have consciously adopted these community interactions as part of their so-called ‘third stream’ activities; these are often granted tax exemption in recognition of the broader social benefit.

CURATED BY

Simona Bielli

Research Programme Coordinator – Digital Startups
Nesta
United Kingdom