Interview with Eddie Goodwin, Enterprise Ireland
"Learning from each other is crucial to success"
Since 1998, the Irish state organization for economic development and cooperation, Enterprise Ireland, has been supporting Irish companies in developing and maintaining business contacts worldwide.
Germany plays an important role as Ireland's third largest trading partner. Andreas Mühlbauer spoke to Eddie Goodwin, Manager for Germany, Austria and Switzerland at Enterprise Ireland, about economic cooperation between the two countries and the impact of Brexit on the Irish economy.
SCOPE: Mr. Goodwin, after the Irish economy suffered a severe slump in 2009 and 2010 in the wake of the financial crisis, it has been on a steady and solid upward trend since 2012. This applies not only to the gross domestic product, where financial and investment effects are particularly noticeable in Ireland, but also to the real local economy, reflected in the so-called gross national product. The unemployment rate is also falling. How did this positive development come about?
Goodwin: Ireland has learned from the experiences and mistakes of the years in which the Irish economy has struggled. The economy is heavily dependent on exports as its own market is small. Ireland has always been outward looking in terms of trade. Therefore, Irish companies have had to think outside the box and prove their competence in international markets. Consider that in 1962, when Ireland opened its first trading office in Germany, the value of Irish exports was 7 million pounds (8 million euros) and the value of trade between the countries today is 15 billion euros - including 8 billion euros worth of Irish exports to Germany. Today, it is chemicals, electronics and medical devices that show how competitive innovative Irish companies have already become in a number of sectors.
Large companies from all over the world play an important role in the Irish economy and this is internationally recognized. However, it should not be forgotten that small and medium-sized enterprises are equally important. In fact, more people in Ireland are employed by SMEs than by multinationals. They also bring jobs to all regions of Ireland. Their innovation, adaptability and export capability have been instrumental in helping Ireland to bounce back quickly in recent years, creating over 200,000 jobs.
SCOPE: What importance do you attach to Germany as a business partner for Ireland, and in which sectors is there a particularly lively exchange?
Goodwin: Germany is Ireland's third largest export partner after the UK and the USA and is therefore a very important economic partner. In 2017 alone, goods worth 8 billion euros were exported to Germany.
However, we very much see trade as a two-way street for mutual benefit. There are many German companies that have established themselves in Ireland. At the same time, many Irish companies are establishing themselves in Germany. Around 12,000 Irish people are employed by German companies. And 14,000 Germans work for Irish companies in Germany. This cooperation is extremely important for both sides. It allows both Germany and Ireland to get the best out of development - especially when it comes to the exchange of knowledge and experience. We can see this very clearly in the fields of mechanical engineering, construction and agricultural technology, but also in software services.
A prime example in mechanical engineering is Burnside Eurocyl, which supplies the German construction industry with hydraulic cylinder technology. Another company that is setting a good example in medical technology is Aerogen. The company is based in Düsseldorf and supplies the German healthcare industry with respiratory technology.
SCOPE: What role does Enterprise Ireland play in economic cooperation?
Goodwin: Enterprise Ireland acts as a window to innovation and industry in Ireland for German companies and supports Irish companies in their search for partners and customers. In short, we bring German and Irish companies together to create mutually beneficial partnership opportunities. After all, cooperation and active knowledge exchange are crucial to the success of both countries. This is based on the good relationship that has existed between the two countries for many years. We support Irish companies in identifying the relevant sectors and companies in Germany and establish contact. We offer our Irish companies access to our network, develop market plans together and arrange introductions between German and Irish companies. Currently, 500 companies from various industries count on our support in the German market.
SCOPE: In which sectors does Enterprise Ireland see the greatest potential for start-ups, and how do you support them?
Goodwin: In Ireland, we support over 200 start-ups from various sectors every year. Our range of services is very comprehensive, from funding and management support to launching into global markets. Many of our clients say that while the funding they have received from Enterprise Ireland has been helpful, the non-financial support has proved even more valuable. This includes, for example, introducing experts, buyers and potential customers to the companies. Start-ups in the information and communication technology and medical technology sectors are particularly exciting in Ireland, as they have grown very rapidly. In our support, however, we do not pay attention to which sectors the start-ups come from, but rather examine their innovation potential. We even have our own program for this, for which we select so-called "high potential start-ups". These are internationally oriented companies with a sales potential of at least one million euros within three to four years of their foundation. During the first eighteen months, we work with them to validate their services and products, support their management and prepare them for international growth.
SCOPE: Everyone is talking about Brexit. Are you too? What does Ireland need to prepare for in terms of cooperation with its second largest trading partner, the UK, and how can the associated difficulties be overcome?
Goodwin: Of course, Brexit is also a big issue for us. The whole Brexit situation presents us with challenges in many areas and brings with it numerous considerations. As Ireland's direct neighbor and important trading partner, the UK is traditionally the first port of call. Two billion euros worth of goods are traded between Ireland and the UK every week. Some local businesses are dependent on the UK to a certain extent. In recent years, this dependency has already been gradually reduced - not least through partnerships with other countries such as Germany.
The Irish government recently set up a Brexit fund worth 300 million euros. It is intended to support companies that could get into difficulties as a result of Brexit. We at Enterprise Ireland also want to offer companies the best possible cushioning and have therefore set up a "Brexit Unit". This is specifically designed to educate our clients and prepare them for all eventualities. We use a Brexit Score Card to check the extent to which they are affected. We are currently very focused on stabilizing exports to the UK and at the same time diversifying companies into other markets. The eurozone is the most important target area for us, and the German market - as the European power plant industry - is the most important target market. We advise companies on which markets are suitable for them and help them to overcome language barriers and cultural differences.
SCOPE: How will this affect trade with other European countries and cooperation between companies?
Goodwin: On the one hand, we want to stabilize exports with the UK. On the other hand, we also want to conquer new markets to ensure market diversity. That is why it is so important right now that the 26 states that remain in the EU work together more closely and better than ever.
Our goal is to increase exports to the eurozone by 50 percent by 2020. That is ambitious, but feasible. The EU in particular offers many advantages due to its logistical proximity and lack of trade borders. Ireland is a trustworthy trading partner when it comes to international regulations and laws. Compliance with regulations, norms and standards is of immense importance, especially in light of Brexit. In these challenging times, there is a great opportunity for the European partner countries to learn from each other for the mutual benefit of the industry.









