FROM WIRED TO INSPIRED

Creating and sustaining

Ireland’s world-wide digital
media and software export edge

Kieran O’Hea, Sedona Conference, 2002

Ireland: A High-tech Success Story

 In the 15 years between 1983 and 1998,

Ireland turned itself from being a
geographically isolated and economically
disadvantaged society into the number
one exporter of software in the world.

 The hi-tech boom may be on the wane

but the knowledge economy presents
new opportunities for Ireland to once
again reinvent itself by leveraging its
creativity in new high growth areas such
as digital media.
A Dramatic Transformation

 The Irish economy outperformed all

other European economies in the
1990’s.
 It recorded a growth rate
throughout that period of three
times the EU average.
 Unemployment fell from 15.7% to
4.6%
 The number of students in third
level education rose by 80%
 Ireland now captures one third of all
US electronics investment in Europe
Vital Statistics

 Irish companies and consumers are

spending more on information
technology than any other country
in Europe
(International Data Corp).
 Ireland will remain one of the most
attractive business locations in the
world throughout the period 2002-
2005
(The Economist).
 Ireland now has the world’s most
globalised economy

(AT Kearney).
Today’s Economic Landscape

 Technology has reached saturation point

with unsatisfactory return on investment
 Tax breaks/skills model is exhausted
 Inadequate exploitation of IPR

 We don’t understand the one of the key

commodities of the knowledge economy:
content
 Skills are concentrated too low down the
corporate food chain
 In industry, very few people understand
the link between creativity and
productivity
 We have become afraid of risk-taking
The Future is Knowledge based

 An intellectual infrastructure built on

creativity, research, education and
business
 An environment abundant in knowledge
services that support the knowledge
economy
 Teachers, researchers and workers are
empowered to be creative and
encouraged to take risks
 An international reputation for new
thinking, creativity and innovation
 Re-branding Ireland around the world as
“The Source of Inspiration”
Steps Being Taken

 New industrial policy committed to

innovation and creativity (Government
National Innovation Conference 2001)
 A commitment to world-class research
(e.g. Science Foundation Ireland, Media
Lab Europe)
 Investment in the development of the
digital media sector (e.g. the Digital
Hub)
 A growing awareness of the need to
support the promotion of business
research and the commercialisation of
innovation
Focus on Creativity

 In Ireland, we are starting to examine

the possibility that policies can be
creative, that education can be creative
and that the fundamental infrastructure
that underpins our future industrial
development can be built upon
creativity.

 The way forward is therefore the

development of an intellectual
infrastructure, built on creativity and
knowledge, that penetrates the core of
our education system, our working
practices and our culture.
 The Digital Media Opportunity

Past Present Future

Literary/scholarly Software Content
production production
Book of Kells
Software Digital media
Ulysses
localisation
Bandwidth and
Culture and
Productivity and distribution
Creativity
technology

[Culture and Creativity] +

[Productivity and Technology] +
[Bandwidth and Distribution] =
An ideal environment for Digital Media
What is Digital Media?
 Digital Media encompasses many sectors
and sub-sectors such as content (text,
sound, (animated) images and video),
platforms, software and technologies.
 It represents convergence between
traditional media and the growing online
media segment, with the related
telecommunications and information
technology enablers.
 Digital Media is about content creation,
content management and content
distribution across multiple Internet and
digitally-enabled platforms such as the
PC, television, games console, mobile
and other devices, as well as packaged
media such as DVD.
Priority Areas

 Digital television
 Media and mobile software technologies
 Animation and special effects
 Online learning
 Games
 Digital asset management
 Streaming media
 eMusic
 eCinema

 New media and web services

Critical Success Factors
The ingredients for a thriving digital media
sector exist. However, the sector is at an
emergent stage in Ireland. The factors
critical to its future success include:

 Provision of infrastructure and supports

necessary for emerging digital media
enterprises.
 Development of new skills in digital
media technologies and software.
 An increase in digital media R&D and its
commercialisation.
 Increasing the indigenous sector's
capacity to effectively interface with the
international digital media market.
Intellectual Property Rights
 If a robust global position in digital
media is to be achieved, extensive
involvement in development of content
and core digital media technologies is of
vital importance.
 This is where intellectual property lies
and how the growth of other activities
and clusters within the Digital Media
sector can be fuelled.
 They represent a chance for Ireland to
pioneer innovative and creative ideas
with major commercial potential.
Digital Media Sector: The Bloc kbuster Digital Media Sector: The Unde rstudy
Mode l Mode l

 Invest in state-of-the-art infrastructure  Invest in local talent aimed at

aimed at attracting the best developing a strong indigenous base
internationally – within a few years. - starting now.

 Offer tenancy deals which will appeal to  Focus on subsidised bandwidth, the
research facilities and multinationals and currency of the digital media sector,
tie them in for the long term allowing companies to get on with
what they do best – making content

 Target established media companies with  Target riskier independent digital

digital media depart ments – film media companies who often tend to
companies, advertising agencies etc. be involved in more groundbreaking
work.

 Create an international hub for the  Create a knowledge base where new
creation, storage, localisation and forms of content are being created,
distribution of content new delivery techniques developed
and new business models tested.

 Rely on creating an instant community  Grow a digital media community

by adopting a “build it and they will organically, by consulting with
come” philosophy. companies and providing
opportunities for networking and
resource sharing.
Digital Media Cluster

 Creative enterprises need a range of

support: mentoring, business and
management advice, advice on IPR,
contracts, deal making and funding
 The cluster could be a one-stop-shop for
research, including research by digital
artists, production and consultancy services
 A community atmosphere is a crucial
ingredient
 The digital media sector is dispersed and
needs a central facility to collaborate in
 A Media Knowledge Centre could help
industry to understand the diversity of
creative practice
Grooming Plan for Digital Media Talent

 Objectives: engaging digital media talent on

an ongoing basis, fostering a sense of
community, supporting sector development
 Production Facilities (workspace)
 Business Plan Verification (consultancy)

 Ongoing mentoring (advisory service)

 Development Pool (peer-to-peer collaborative

working group)
 Introduction to research partner (academic)

 Peer Exposure (seminars/demonstrations)

 Market Exposure (international exhibition)

 Introduction to international partners (EU

collaboration)
The Digital Mindset

 For currency, think bandwidth

 For capital equipment, think gadgets

 For assets, think talent

 For business sectors, think communities

Type of Support Needed
 Investigation of what NEW CONTENT
and types of content can be and what
will really work.
 PLATFORMS / TECHNOLOGY -
understanding the platforms and tools,
the systems, and the skills needed to
develop for them.
 INTERNATIONALISATION - The need to
work with systems and technologies that
work across national boundaries.
 NEW BUSINESS AREAS in terms of
funding, markets and distribution.
 All aspects of DEAL-MAKING including IP,
rights, contracts, etc.
Ireland’s Approach

 In Ireland, the development of the

digital media infrastructure and the
digital media talent base must take
place in parallel.

 By grooming the talent and developing

the business models while others build
the hubs and the linkages, the two sides
can merge into a global showcase for
digital media.

 One where local firms work hand in hand

with multinationals who have the
autonomy to roll out Irish digital
innovations across the world.
Conclusions

 The development of an indigenous digital

media sector needs a grassroots approach
to leverage the talents of entrepreneurs,
experimentalists and established players.

 The growth of e-business and electronic

publishing indicates that large
organisations outside the entertainment
industry are going to have a major
requirement for digital media services.

 As rigorous early adopters of new

technology, digital media practitioners are
well qualified to act as catalysts in the
development of tools, software and
standards that will enable new forms of
expression and interaction.
“If anyone wants to keep creating
they have to be about change.”
Miles Davis

For further information, contact:

Kieran O’Hea
kjohea@eircom.net
 DIGITAL OPPORTUNITY

The Irish Government has pinpointed digital media

as a key growth sector for internationally traded
services. They predict this market will grow to a
value of €600m+ by 2005, and has the potential to
create up to 7,000 new jobs.
 COMMITMENT

The Government through the Department of Public

Enterprise has already committed public funds of
€130 million for The Digital Hub, and for Media Lab
Europe. The Digital Hub is the largest urban
regeneration project in the history of the state.
 THE DIGITAL HUB

The vision of the The Digital Hub is to create a

centre of excellence for innovation, creativity,
research and learning focussed on developing new
and existing media enterprises.
 BUSINESS ENVIRONMENT

Ireland’s Digital Development

 Low cost of business

 Available skills

 Transparent regulation and

legislation

 Focus on infrastructure (2nd in

OECD)

 Focus on Research and Development

(Euro 700m fund)
 CLUSTERING

Leading-edge creative enterprises:

 Intelligent content
 Games, animation, e-Learning niches
 Distribution models
 Information technology enablers
 Linked to R&D, Media Lab Europe
 Learning and entrepreneurship

Irish entrepreneurs of the future

 A UNIQUE LOCATION

Creating the new market place in the

oldest market areas of Dublin.

 City Centre Location

 Cultural Heritage: Guinness home
 State of the Art Infrastructure
 Media Lab Europe
 Vibrant Community
 MEDIA LAB EUROPE

An alliance between Irish

government and MIT Media
Laboratory, US

 New 3rd level research

and education centre
 Linking R&D to
enterprise
 MLE Ventures

Inventing the Future

 THE FUTURE

 High value employment

 Competitive advantage
 Vibrant enterprise community
 Nation-wide sector
 FEEDBACK

 Ireland's Digital Hub will be our

national treasure for the digital
expression of our wealth of culture
and heritage, and of our
entrepreneurial spirit.

 It will be a showcase for a community

enthusiastically embracing
technology, creating new
worlds, visions and opportunities
where none such existed before.

 It will mark the evolution from Celtic

Tiger to Celtic Tigress, infusing culture
with business growth, and powerful
dynamism with the birth and
incubation of new concepts, new ideas
and new prosperity.
 DETAILS

For further information, contact:

Fergal Marrinan
Marketing Director
fmarrinan@thedigitalhub.com

www.thedigitalhub.com