From Wexford to the world – Sonru goes global

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You know your product has arrived when its name becomes a verb. Just ask Hoover. To physicists at CERN, the prestigious European research organisation, Wexford video recruitment tool Sonru “is almost a recognised verb in the CERN in-house vocabulary.”

It’s just one of a number of testimonials captured on Sonru’s website from big name clients around the world. All are fans of its pioneering online interviewing tool, developed to streamline the selection and recruitment process.

The business arose in the mid noughties when founder Ed Hendrick saw his fellow university graduates travel extensively for job interviews. “I just though there had to be a better way,” he said. Online video tools such as YouTube and Skype were then taking off, sparking an idea for an innovative solution.

Sonru enables recruiters to replicate a live interview online, dismissing the need for early-stage phone, Skype or face-to-face interviews. It uses questions preselected by the employer and answers given by the candidate at a time that suits them. The result is recorded on video and stored for reviewing.

Because interviewers and candidates are not online at the same time, it does away with scheduling and time-zone constraints. It also eradicates no-shows and screens out unsuitable candidates, saving time and money.

Hendrick started the business in an office at Enniscorthy Enterprise and Technology Centre before being accepted on a South East Enterprise Programme, a one-year incubation programme for entrepreneurs.

There he met fellow entrepreneur Chris Horan, who helped him to design the product, and became Sonru’s chief technology officer.

In February 2008, they launched a beta version to the market for free in order to get feedback. By 2009, Sonru had landed its first paying customer, Eircom, and revenues grew.

A UK office opened in 2010, with sales built mainly via trade shows. Operations in Singapore and Australia followed.

“The idea was always to sell worldwide and be a global company. I didn’t want to develop a product that would be restricted to one market,” said Hendrick.

Expansion was funded with the help of private investors and support from Enterprise Ireland. Maintaining a strong media profile helped. “We were lucky in that our investors contacted us. They had read about us in the press and were interested,” he said.

“We entered and won a lot of awards in the early days, including from the Small Firms Association and InterTradeIreland. It is a good way to get your name out there, giving you visibility.”

Today Sonru has a string of international accolades under its belt too including Singapore Business Review’s “Human Resource Technology Award” and a Top 100 Cloud Companies in the World nomination from Amazon Web Services.

Client testimonials and case studies from global brands such as Rolls Royce, Nestle and Qatar Airlines remain important however because satisfied clients are key: “Our best sales people are our customers telling their peers about it,” he said. “Only this week we had the Head of Talent Acquisition and Development of Mercedes-Benz UK share his Sonru story at the FIRMday Spring Conference in London. One of his slides had ‘Sonru has been an intervention that has had more of an impact on recruitment than anything I’ve ever seen.’ You can’t buy that sort of impact.”

Sonru is now translated into 19 languages, many of them Asian. It has more than 500 enterprise clients and captures thousands of interviews every day.

The company employs 60 people – and growing. “We are competing in the war for talent ourselves,” said Hendrick, who knows first-hand that the selection process is an important touch point for any brand looking to be seen as an employer of choice.

“We’re very focused on providing a premium candidate experience. It’s important that the candidate gets a great impression of the prospective employer right from the start, including through the choice of tools they use. Sonru enables employers to present the tool as entirely their own branded experience,” he said.  “And we’re very focused on delivering great customer service.”

To learn more about expanding your business internationally visit Markets & Opportunities.

 

 

How Dublin’s Novaerus helps the world to breathe easier

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The soaring heat of 2018 highlighted the value of clean water. In Ireland, it was scarcely a matter of days before blue skies and barbecues were replaced by water shortage warnings and hosepipe bans.

Even in a country in which it rains much of the time, there was little grumbling about these restrictions. We understand the complex effort and investment required to ‘create’ water that is fit for human consumption.

Water grabs headlines. But there is another natural resource, just as important to human health, that until recently has been taken largely for granted – the air that we breathe.

Why the quality of indoor air matters

“It’s only recently that we’ve become aware that the quality of our indoor air is not as good as we thought, and is contributing to poor health and infection,” says Kieran McBrien of Dublin-based Novaerus.

“This problem is compounded by the fact that we humans spend most of our time indoors, where air gets trapped and endlessly recycled,” he says. “Each human being is shedding thousands of skin cells every hour, throwing off billions of micro-organisms every minute, and we’re breathing it – all of it.”

For humans who spend most of their time indoors – especially vulnerable populations like children, the elderly, and the sick – particulate matter and contaminants in indoor air can exacerbate asthma, allergies, and chronic diseases, and directly lead to viral and bacterial infections.

This is the problem Novaerus was founded to address. Operating mainly in the healthcare sector, the company has patented a plasma technology that reduces the airborne pollutants which lead to health problems like infection, allergies, asthma and irritation.

Novaerus manufactures a range of portable devices that can be found in hospitals – operating theatres, ICUs, emergency rooms, patient wards, construction areas – as well as elderly and child care facilities, schools, and emergency response vehicles, anywhere in fact that the quality of air can detract from human health, productivity and wellbeing.

Standing up for air quality

Kieran McBrien, Senior Vice President for International Business Development, has been with Novaerus since its foundation and says that in the early days, the main obstacle the company faced was an unwillingness to accept that anything was wrong with the air quality.

“In hospitals, for example, most hygiene standards still don’t apply to air quality so it’s an easy one to ignore,” he says. “That’s despite a mountain of scientific evidence showing that pathogens can travel for long distances on the air currents that swirl around hospitals and other buildings. As long as the air is moving, so is the bacteria.” These bacteria and viruses can transmit infection via the air or they can fall on to instruments or surfaces to contaminate hands.

“Some markets are more accepting that air quality is an issue,” McBrien says. “We started in the US where we targeted the elderly care sector, and today we have a significant number of installations that are helping to reduce the instance of respiratory illnesses and other airborne issues. We’re also branching out through hygiene programs in schools.”

The firm has also gained traction in Africa, Eastern Europe and particularly Asia – in South Korea, for example, a staggering 80% of all ambulance rescue vehicles now carry Novaerus technology. (Novaerus is also one of only two companies to pass stringent air sterilisation standards set by the South Korean government to enter operating theatres.)

Reaching global distribution

Having started small, Novaerus is now operating in the big time. Sales of the portable devices are expected to grow by 40-50% this year and the company is targeting markets including China, Germany, Japan and India next year and beyond.

Distribution is handled by a global network of partners, mostly in the healthcare sector, who pitch and sell the proprietary technology into hospitals, clinics, ICUs, operating theatres, anywhere there are people whose immune system is compromised – including the staff whose daily attendance is integral to the business operation.

Innovation is the driving force behind this success – “our whole operation revolves around R&D,” says McBrien – and the company has an enviable facility including fully-equipped labs at its HQ in the DCU Innovation Centre, Dublin. (The company also has a US base.)

A decade or so on, however, Novaerus has not forgotten the role played by Enterprise Ireland in its growth. “Enterprise Ireland got involved with us at an early stage and helped us to find distributors in the US, Asia, Europe and the Middle East, most of whom are still with us, says McBrien.

“The effort that Enterprise Ireland puts in to help Irish companies is just fantastic,” he says. “Setting up trade missions, getting small companies onto the big stage, opening doors, where else would you get it?”

McBrien, a native of Belfast with a background in business and languages, is also adamant that being Irish on the global stage is an advantage. “For us, there’s the whole tech side of things where [Ireland] has a very good reputation,” he says. “The Irish are seen as friendly people, very receptive and good to do business with.”

Meditec US hospital supply chain

How Meditec conquered the US hospital supply chain

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Breaking into the US market isn’t always easy but with the right supports, infrastructure, attitude, and product, it is achievable.

Alan Sullivan, Managing Director of Meditec Medical, addressed the Enterprise Ireland knowledge event aimed at helping Irish manufacturers to navigate the US supply chain.

His company has enjoyed tremendous success in the US thanks to the Mediflex, a specialised mattress for clinical use, which prevents pressure sores. While the innovative product is now used in hospitals across the region, initial entry was made with the help of a planned introduction from Enterprise Ireland.

“Enterprise Ireland brings US companies to Ireland to showcase what our businesses do. One day we were told that Boston Children’s Hospital were in – the holy grail for suppliers,” he explained.

Opportunity knocks for Meditec Medical

“Dave Walsh, the hospital’s Director of Supply Chain Administration, came into our office and we showed him around. He said there and then: ‘When can you trial this?’

“We went to Boston with the sample and presented, then started talking about the innovative stain-resistant cover, and the traction started to build from there.”

From the start, Alan was keenly aware that opportunity only knocks once, which drove the company’s rigorous preparation ahead of every visit.

“I have one chance and I have to get that right.

“Before going into the US market, there are certain things you need to be ready for. The last thing you want to do is to go into a big seller and for them to ask, ‘do you have X in place?’ and for the answer to be ‘no’, or to have not even considered an answer,” he said.

“We got our product tested in the east coast of America for compliance with fire regulation. Because we were already looking for our FDA approval, we already had those wheels in motion.”

Securing a long-term relationship

There can be several boxes to tick, he explained, and no value in attempting to cut corners. Teaming up with local expertise is often a good idea.

“For the FDA approval, we did a lot by ourselves, but we also got a consultant in the US. Importing into the US is very different to importing into Europe. You have to have an importer on record, essentially a company in the States who will keep your records to be referenced by organisations like the FDA.”

“When it comes to customs clearance, you have to get a partner to ensure everything runs smoothly,” he added, noting that delays early in the process can have a disproportionate impact on long-term relationships.

“It’s important that all of the details are nailed down before it leaves Ireland. Don’t promise the order will be there by Tuesday, only for it to get caught in customs.

While an in-market distributor can offer big benefits in terms of access, contacts and local knowledge, Alan insisted that staying clearly visible in discussions was key to the success of the product’s sell-in.

“The main thing about dealing with a distributor is that you can’t just allow them to take the products on and present them,” he said. “I know my products, how to present them, the engineering that goes into it. It’s very hard to relay this to someone with 2,500 products in their portfolio.”

Nailing the process

This hands-on approach served Alan and Meditec extremely well over the course of their developing relationship with Boston Children’s Hospital.

“We sent the product over by flight and I followed it over myself. I met key people from the hospital and we got a chance to iron everything out. Anything we didn’t have in place, we nearly had in place. We got the trial.”

The process, Alan explained, was not simply a test use period – but also an ongoing opportunity to refine the product to suit the buyer’s needs.

“We already had a heel section and the clinicians wanted a head section too. So, we went home, added that and came back.

“Labelling, visibility, everything – we changed and customised it to get it right.

“The clinical aspect of the product stayed the same, but we adjusted the features.”

This detail-oriented approach was precisely what the hospital stakeholders were looking for and was an important element in the eventual success of the trial.

 “I trained up the people on the ground and put my distributor in the position where they could fix any issues,” he explained.

“If they feel like you’re far away and you’re not going to put in the hard yards, they’ll go for the safe option –  like a US multinational. You need to show them.”

Retail tech USA

Irish companies shop innovative tech solutions to US retail sector

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Eva Murphy Ryan, market executive for education and technology based in Enterprise Ireland’s New York office, explains how Irish companies are poised to disrupt the fast-moving US retail tech sector.

From the rise of data analysis and personalisation to voice recognition applications, new technologies are continually changing the retail landscape. With brands and retailers feeling an increasing pressure to stay ahead of the competition, the retail technology sector in the US represents a significant and growing opportunity for Irish exporters. The scale of that opportunity is huge, with the US retail industry already estimated to be worth $2.6 trillion. (Source: National Retail Federation)

While the US has long been a hub for digital technology, innovation is now poised to transform the ways in which consumers shop. This month, US retailer Nordstrom acquired two retail tech companies, integrating new tools to further improve customer experience. These acquisitions enable Nordstrom sales associates to communicate with customers outside of the store, offering style advice and personalised product recommendations, while strengthening Nordstrom’s ability to send consumers customised mobile messages.

With US giants such as Nordstrom and Amazon viewing tech integration as the future of retail, we have begun to see Irish companies target growing opportunities in the US. Hannah Webb, Head of Retail Technology for Enterprise Ireland in the USA, comments “Retail technology companies in Ireland understand the challenges that US retailers face. They provide highly advanced platforms and innovative solutions that address issues, such as how to track online to instore purchases, how to manage data analysis, and deliver enhanced customer experiences.” 

Three such companies supported by Enterprise Ireland are VisitorM, Pointy and Voysis.  

Limerick start-up VisitorM bridges the gap between physical and digital customer experiences. Touchscreen stations allow customers to provide feedback on their in-store shopping experience at the point-of-sale. VisitorM’s technology is soon to be used by shoppers in the US under a new deal with established clothing retailer Old Navy.

A second innovative Irish start-up, Pointy, makes it easy for local shops to display their full product range online, enabling them to be found by local consumers on search engines like Google. The solution helps retailers to reach a much wider audience and drive in-store visits. In the US, more than 2,000 retailers across 50 states currently use Pointy, with the company on track for adoption by 1% of all US retailers by the end of 2018.

Irish start-up Voysis helps retailers to respond to Alexa and Amazon’s position in the market. The brand-specific platform that Voysis provides adds voice capabilities to websites and mobile apps, delivering a more conversational experience to consumers, that moves beyond the use of smart speakers. Voysis aimed to replicate the experience of speaking to an in-store associate, allowing their solution to be just as helpful and knowledgeable about the context of what the consumer seeks while shopping. With the prediction that, by 2020, 50% of all searches will be voice searches, solutions like Voysis are shaping the consumer experience now and informing the future of retail. (Source: comScore)

Showcasing Irish innovation and building strong networks with keys buyers are important steps to growing business in the US retail tech sector. With support from Enterprise Ireland, these companies and others from Ireland’s retail tech cluster have the opportunity to present their solutions at major US trade shows, such as NRF Big Show, which attracts 40,000 attendees, and Shoptalk, attracting 8,500 attendees. David Andreasson, Director of Finance and Operations at Voysis, comments, “At Shoptalk, one of the largest retail conferences in the world, brands immediately saw the value of what we provide and the experiences that are brought to life through the Voysis platform.”

With retail evolving rapidly, brands and sellers, from the established to the emerging, will continue to source innovation and technology that will help them compete into the future. As Irish technology companies continue to target the US retail market, they will succeed by promoting strong and highly differentiated value propositions.

This article was originally published in the Sunday Independent.

Switzerland

Time is key when capitalising on Swiss export opportunities – you can bet your watch on it

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Vincenz Wagner, senior market adviser for Switzerland at Enterprise Ireland, explains why it is time for smart Irish companies to consider this early adopter market.

Switzerland is known as one of the most competitive economies in the world, with one of the highest rates of GDP per capita, an attractive tax regime, and a stable legal and political system. What is less well known is that Switzerland imported more from Ireland than from the United Kingdom in 2016, at a value of €6.4 billion.

Switzerland is also already Ireland’s 5th bilateral trading partner. With a population barely double that of our own, Switzerland is the 11th largest market globally for sales from Enterprise Ireland-backed companies, ahead of larger markets including Canada and Australia. Exports to Switzerland from such companies in 2016 alone were valued at €300 million.

In the context of Brexit, now is a good time for Irish exporters to consider the market. Switzerland uses the English language widely for business, overcoming one challenge Irish exporters to Europe often face. Payment defaults and returns rates are significantly lower than elsewhere. Switzerland’s VAT rate of 8% is much lower than other European countries, for example Germany at 19% and France at 20%. The generally stable exchange rate between the euro and Swiss franc also creates favourable conditions for Irish exporters.

Two innovation nations

Switzerland shares a number of parallels with the Irish market, the most significant being innovation. Switzerland is the world’s most innovative country according to the Global Innovation Index, with almost 3% of GDP invested in research and development.

With Swiss buyers requiring quality, reliability and flexibility, Irish Small and Medium Enterprises can offer greater agility and customer focus than larger competitors.

Many Irish companies find customers in Switzerland more prepared to adopt innovative new solutions than those in nearby markets. With its early adopter reputation recognised across Europe, winning business with a well-regarded Swiss customer carries a lot of weight.

Switzerland is home to unique leading industry clusters, for example the life sciences cluster in the Northwest region of Basel. In addition to chemical and pharmaceutical firms like Novartis, Roche, and Syngenta, it encompasses a dense network of medtech, biotech, and nanotech companies, well-suited to the capabilities of innovative Irish companies in the sector.

Mark Ennis, Business Development Manager at Perigord, a leading provider of communication solutions to the pharmaceutical and healthcare industries, comments, “Swiss business people are interested in Ireland and are very professional. Customers in Switzerland expect the highest quality and service levels and Irish companies like Perigord can exceed their standards. Swiss customers are willing to pay for a pharmaceutical service that meets regulatory requirements and a vendor that fulfils their needs”.

Acquiring an ever-greater relevance is the Swiss ICT sector, with companies such as IBM and Google setting up offices in Switzerland, a good match for the capabilities of Irish technology companies. As a high-tech export nation, the market is in need of sophisticated high-end component suppliers.

Pam Chahal-Harris, Vice-President of Global Marketing at Nualight, a leader in LED case lighting technology, says, “One of the main reasons Nualight entered the Swiss market was due to its adoption of energy-efficient and sustainable technologies ahead of the rest of Europe. Switzerland has always had a very progressive retail culture, one that is happy to invest and test new ideas. Almost anything we launch which is new or likely to disrupt the market, we find Switzerland is one of first markets to adopt it.”

There remain challenges to doing business in Switzerland that Irish exporters should be aware of. Switzerland is not a member of the EU but its relations are governed by a series of bilateral agreements. EU standards are largely, but not always adopted. The Swiss government does not impede trade and investment; it considers liberalisation of existing laws to ensure Switzerland remains an attractive business location.

As Enterprise Ireland recognises the potential of the Swiss market, it has allocated resources and appointed a dedicated market adviser who will assist Irish companies in identifying opportunities and offer guidance on how to deal with challenges, including pre-visit support, in-market support, mentors, networking events, and financial assistance.

This article was originally published in the Sunday Independent.

Bright Horizons for Irish Innovators

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Sean Burke of Enterprise Ireland describes the factors that enabled Ireland to achieve one of the highest success rates for the Horizon 2020 SME Instrument in Europe.

There are areas of innovation we excel at in Ireland and results that prove it. At 13%, Ireland has one of the highest success rates for the Horizon 2020 SME Instrument in Europe, compared to the EU average of 6%.

Horizon 2020 is the EU’s €80 billion programme to support research and innovation, which launched in 2014. A 7-year programme, it is due to end in December 2020. Ireland’s overall success rate exceeds the EU average, with €475 million in funding secured to date for more than 1,100 successful applications by 536 higher education researchers and 430 Irish companies.

The SME Instrument funds the programme’s most commercial applications and is designed to support innovative companies to realise global ambitions and turn strong business ideas into market leaders. Its commercial focus helps companies to convert findings from cutting-edge research into a productised offering for international markets. Delivering grant funding in the range of €1-€2.5 million to support 70% of project costs, no repayment or equity dilution is required. Those conditions make the SME Instrument very attractive to companies with ambitions to internationalise.

The programme is highly competitive. Only 6% of the 31,000 European companies that applied were successful. Projects that succeed are truly innovative, with the potential to disrupt the marketplace. Approval has become a mark of pedigree on an international scale. A successful application can be transformative, elevating a company into the position of market leader. Successful companies span sectors, with big winners in areas including biotech, energy, agriculture, food sustainability, health and environment.

Eight Irish companies were among 210 European SMEs that achieved Phase 2 funding of Horizon 2020’s SME Instrument in 2017. Securing €15.45 million between them from a budget of €297 million, they include companies like AltraTech, Axonista, Soapbox Labs, and SwiftComply.

Axonista received €1.7m in funding in 2017 to develop its interactive video technology product, Ediflo, which enables customers to bring multi-platform interactive story-telling experiences to market faster. COO Dee Coakley explains, “Our product originally served large enterprises through direct sales made by the founders. Horizon 2020 allowed us to hire product development specialists and build a team focused on simplifying the enterprise product for a broader market. New verticals include media companies and brands that want to deliver interactive experiences, using existing video content to better engage audiences.”

The Instrument’s application process thoroughly assesses each company’s proposed innovation-led solution and its potential to achieve market penetration. Project support covers every stage of the business acceleration lifecycle, from business definition to planning and execution leading to full commercialisation.

Axonista’s Horizon 2020 proposal was strengthened by Research & Development work they had recently undertaken. Dee explains, “The R&D grant we received from Enterprise Ireland really helped. The application for Phase 2 funding asks if you have undertaken feasibility research. Being able to describe what you learned from an R&D project and how it helped to identify an opportunity or develop a solution delivers a robust proposal.”

Enterprise Ireland leads the Irish Horizon 2020 National Support Network, the expertise of which acts as a resource for new and seasoned applicants. Enterprise Ireland’s team helps companies to determine the best Horizon 2020 programme to meet their needs, prepare for their initial engagement, and provides feedback to improve the draft proposal. The objective is to build on Ireland’s strong track record and provide hands-on assistance to Irish researchers and companies that participate in the programme.

All innovative Irish companies with an eye on international expansion should apply. An award of up to €2.5 million and the mark of pedigree that Horizon 2020 brings changes a company’s prospects. As Dee concludes, “From an investor’s perspective, securing Horizon 2020 is a validation of the business and your ambitions. Investors know that an investment of nearly €2 million has been made to push your offering past the competition. That validation gives you a lot of leverage.”

Enterprise Ireland’s Sean Burke works with Jill Leonard to support the SME Instrument and Fast Track to Innovation actions in the new European Innovation Council (EIC) pilot in Horizon 2020.

This article was originally published in the Sunday Independent.

Local Enterprise heroes

Following in the footsteps of Local Enterprise heroes

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For many companies, becoming an Enterprise Ireland client is a significant step on a journey that started at a regional level. Local Enterprise Offices throughout Ireland provide supports, advice and training to start-up companies and existing micro-enterprises of up to ten employees. It is in this environment that experience is gained and vital lessons are learned which allow companies to prepare for growth and to take their ambition global.

A recipe for successful growth to €21 million annual turnover

It was in 1993 that a young man from Clonakilty got in touch with his Local Enterprise Office (LEO) in West Cork to ask if they could help him turn his business idea into a reality. Diarmuid O’Sullivan wanted to produce traditional churn-made yogurts. He knew how to make yogurts but he didn’t have enough funding to get the venture off the ground.

“I had the idea but not enough money,” Diarmuid recalls. “I heard there was funding available from the Local Enterprise Office, so I contacted them and put in an application. The maximum support they could provide at the time was £50,000 and the LEO in Clonakilty was able to help me put my ideas into a business plan to help secure funding.

“I also received quite a lot of mentoring and coaching. That was all done at concept stage – I hadn’t even identified a production site – but the support meant that I was able to get Irish Yogurts up and running by March 1994.”

Diarmuid’s yogurt-making idea was a recipe for success. His company grew quickly and its products were soon on the shelves of Irish food shops and supermarkets.

“In one of those early years, we grew by about 78.5%. That brought its own challenges, with regard to working capital. The Local Enterprise Office suggested that I move onto Enterprise Ireland, where there were financial supports for fast-growing companies which were creating jobs.

“We hadn’t really focused on exports, not at that stage. That came after we started working with Enterprise Ireland. Our first export customer in the UK was Tesco.”

This progress was recognised in 1998, when Irish Yogurts was named winner of Ireland’s first ever National Enterprise Award. In just a few years, it had gone from being a bright idea with insufficient funding to becoming an award-winning food producer.

Today, Irish Yogurts employs 160 people at its Clonakilty base and sells to every major supermarket chain in the UK and Ireland. Its annual turnover has grown from €300,000 to €21 million, with exports accounting for 30% of their business.

“We appreciate the input of the Local Enterprise Office and Enterprise Ireland, who supported us and our staff every step of the way,” Diarmuid says. “We still work with them and avail of supports and advice. Enterprise Ireland is very much a part of our team.”

A roll of honour

Irish Yogurts is one of hundreds of companies from every corner of Ireland that have transferred from Local Enterprise Office support to become Enterprise Ireland clients. Last year, 80 companies made the move. In 2016, the figure was 40. The roll of honour includes 10 other former winners of the National Enterprise Awards:

It is a track record that the Local Enterprise Offices are proud of. Oisín Geoghegan, chair of the network of Local Enterprise Offices, said, “It’s one of our targets to transfer companies to Enterprise Ireland – it’s progression. Companies which transfer into Enterprise Ireland are companies with growth ambitions to be exporting and creating jobs, which is incredibly important, particularly for the regions. So we would see it as an indicator of success when a company moves on to Enterprise Ireland.”

Local expertise supporting global ambition

Engineering services provider Obelisk engaged with their Local Enterprise Office in Cavan, even before they set up the company in 1996. Four years later, Obelisk won the National Enterprise Award.

Founder director Colm Murphy said, “We were looking to capitalise on the growth of mobile phone usage by offering installation services for operators. The people in our LEO understood the idea that opportunity was coming down the track. That gave us the confidence that our idea was good and could to grow into something big.

“They had an incubator office which we were able to rent and provided grant aid for early employees. They also provided us with advice about how to set up a company, and other supports such as training and mentoring – there was a lot more to it than financial support.”

The support has been paying off ever since, Colm says. “Last year we turned over €27 million. Employee numbers are between 250 and 300 people. We’ve expanded to include infrastructure solutions for fixed telecoms and the energy sector in Ireland, the UK, and South Africa.

“We want to continue growing. We’re looking for further investment. Over the next two to three years, we’re looking to hit the €100 million mark in sales. Exports are currently a third of our turnover but we expect that to become a 50/50 split.”

So what part did being able to access business expertise and support at a local level play in the company’s success? “Back in 1996-97, we would have found it difficult to kick-off from a zero base,” Colm explains. “We were just a couple of guys with an idea, and sometimes going for funding and that kind of stuff can be daunting. But when you get the kind of support that we did from the Local Enterprise Office, that’s a massive kick start.

“I would recommend that any company should be in touch with their Local Enterprise Office. They’ve always been good at describing the product set they have and how they support you. If you don’t ask, you don’t get and if you’re not engaging with them then you won’t necessarily be aware of new supports that are on offer.”

Reassurance and support

The view that “if you don’t ask then you won’t get” is shared by John Lynch, Chief Technology Officer of Acutrace. The Dublin tech company provides software and hardware which allows companies to control and monitor their energy usage. They count the likes of Google, Twitter and IBM among their customers.

Founded in 2015, Acutrace wasted no time in contacting their Local Enterprise Office in South Dublin. John says, “We reached out to the Local Enterprise Office immediately and they were brilliant. They gave us an employment grants and we managed to employ two engineers under that scheme. Within the first three months, we were exporting to London.

The company was growing quickly and the Local Enterprise Office was instrumental in steering Acutrace towards Enterprise Ireland’s High Potential Start-up (HPSU) programme.

John says, “Once we learned the criteria for the HPSU, we used that as our yardstick to reach for. We knew we had to have significant exports, we knew we had to have a scalable product that would generate employment and we needed to have the magic number of a turnover of €1 million, so it was a good objective to hit and we exceeded the target that year.

“By the end of 2016, we had turned over more than €1.5 million and we were exporting 40% of a product that was created in Ireland to the UK.”

The advice, professional support and reassurance they received has left a lasting impression on John and Acutrace.

He says, “I’m coming off the back of 20 years in the industry and so is my business partner Aidan, but it’s a little bit different when it’s your own enterprise – the risks are higher and there’s an isolation you feel, it can be profound. Then you engage with your Local Enterprise Office and you feel part of something, that you’re being protected or mentored.

“There’s funding and that’s important, but it’s also having that extra bit of confidence that there’s someone else behind you who has your back, that if you are going to create employment, well there’s someone there who’s grateful for that and they’re helping you, and they’re encouraging you.”

“You might be destined for Enterprise Ireland but until you hit that criteria the LEOs will mentor you and steer you in the right direction.”

Working hand in hand

That direction involves advice and supports, which evolve and change to meet the needs of encouraging start-up companies and other micro enterprises of ten or fewer employees, says Oisín Geoghegan.

“We provide a very broad range of supports – initial business advice, information and guidance, training and mentoring, and financial supports such as feasibility, priming or expansion grants. It can include money to employ people or towards marketing costs, business development, and so on.

“We also point entrepreneurs and companies in the direction of other supports that are available, such as the New Frontiers incubation programme and Innovation Vouchers from other agencies such as Failte Ireland, Intreo, Bord Bia and Microfinance Ireland.”

“For companies with strong growth ambitions, we work hand in hand with Enterprise Ireland on their journey and ensure that they make that contact at an appropriate stage so their development continues to be supported.”

hospital supply chain

How Irish medtech suppliers can navigate the US hospital supply chain

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For Irish medtech suppliers, few opportunities are more attractive than successfully breaking into the US market. But doing so is not always easy.

 That isn’t just because the US medtech market is fiercely competitive. It’s also a matter of navigating a supply chain environment which is radically different to that familiar in Ireland.

Enterprise Ireland recently hosted a knowledge event aimed at helping Irish suppliers to prepare for entering the market. Dave Walsh, Director of Supply Chain Administration at the Boston’s Children Hospital, and Charlie Miceli, VP Network Chief Supply Chain Officer at the University of Vermont Health Network, shared insider insights on what US hospitals expect from potential partners.

Understand the role of supply chain

As an Irish supplier, you should begin by understanding the landscape and, importantly, how communication, collaboration and relationship building are more important than what Dave described as “the hot pitch”.

“If this isn’t a need we have right now, we’re going to tell you,” he explained. “If the opportunity isn’t there right now, but we think we’re going to need it in six months, we’re going to keep in touch with you.”

Establishing an introduction is based on networking and understanding that, as long as a deal is mutually beneficial, business can inevitably be done.

“We’re a team, we all work together. We want to work with you if there’s a benefit on both sides.”

Get to know different types of hospitals and procurement methods

Buying in the US market usually takes place either directly, when a hospital or health network deals with distributors and suppliers, or via a group purchasing organisation (GPO), in which smaller systems pool together to help them buy at scale.

While the promise of bigger orders can make large networks and GPOs attractive, their scale can also force them to be more risk-averse, so that sometimes it is more beneficial for Irish companies to work directly with smaller hospitals.

“Getting in at group level can reap huge rewards. There are six hospitals in the University of Vermont Health Network,” explained Charlie. “But innovation can sometimes take place at smaller hospitals.”

Make sure you have boots on ground

As working with a supplier on another continent can be perceived less favourably than local alternatives, perceptions of risk must be minimised for potential buyers.

“Being Irish can raise questions,” Dave said, “‘It’s a good quality product, but what if we have problems?’”

The most effective solution is also the most straightforward: to be present in the US, and available for regular meetings with key stakeholders. While that can mean frequent flights, it is also often essential to success.

US hospitals and GPOs will often expect to meet the boss, and just not their representative or distributor. The founder and head of your organisation will bring a uniquely intimate knowledge of the solution, and their involvement is also crucial to the collaborative approach required by US supply chains.

Consider your first move

While your first interaction is crucial, it will also depend on where your business is in its growth pattern. Begin by determining what stage you are at, and then select the time and venue to meet the right people.

“Trade groups are great,” explained Dave. “Whether national or smaller, such as regional meetings, they’re all worthwhile. I can meet 50 people in two days at these events. It could take an entire year at the hospital to achieve that.”

And while getting a slot at some trade shows can be expensive, ‘reverse expos’ – in which buyers occupy stands and are approached by suppliers, rather than the more traditional format – offer an increasingly popular approach to networking.

“Is it worth investing for a small company? A booth can be pricey but get into a reverse expo with the right plan and it could easily become money well spent.”

Consider your reimbursement model

Frustratingly for suppliers, there is little consensus on how the reimbursement model may change with the rise of the Internet of Things (IoT) and subscription models.

However, it is a matter of ‘when’ rather than ‘if’ things will change, and the best advice for now is to monitor the market closely to prepare for an impending shift.

“If change happens, it will happen quickly,” commented Charlie.

Avoid the ‘circular wheel’

The selling cycle in the US medtech market can be very long – approximately six months for a defined need, followed by a vetting cycle of three to six months, and longer again if a solution is not in response to a specific requirement.

For that reason, finding the right person at the right stage is crucial. Every time you’re passed sideways to another department or another contact can add days or weeks to an already lengthy process.

There is one simple way to avoid ending up on what supply chain calls the ‘circular wheel’: ask the question of how to engage.

“Try to understand what the roles are,” said Dave. “Ask us the question, we’ll find you the right person to talk to at the right stage.”

Take the heavy lifting off IT

“As everything becomes more digital, there is more pressure on IT departments in hospitals,” Charlie noted. “So you need to be able to take the heavy lifting off IT.”

At a minimum, it means that producers of digital products should be able to demonstrate an intimate working knowledge of technical details, from the interface standard to security risks and mitigations.

But beyond that, it may also have implications for companies that rely on free pilot schemes in healthcare facilities as part of their sales process. Such is the time and cost associated with implementation, that they must also be sold convincingly to make the offer worthwhile.

“A pilot has to go through the governance process, because IT has bigger cost growth than other departments,” added Charlie. “Free pilots do happen, but not without work. Implementation will be costly.”

Know your suppliers

There are few, if any, medtech suppliers who do not rely in some way on third-party suppliers. It’s crucial to recognise that, as the producer, you hold full responsibility for who they are, how they work, and their components or contributions to your end product.

“You’re accountable for everyone who feeds into your product,” explained Dave.

“It’s important to bear in mind that customs, standards, specs, and so on will vary from region to region.”

Use the data you have

One of the perceived barriers to entry into the US market is a lack of data, particularly in instances where it’s difficult to implement an initial pilot.

While local data is always preferable, due to differences in health system structures, European and Irish data can nonetheless make an incredibly strong contribution to the case. In fact, depending on the industry, it can even offer an advantage if it happens to be one where the EU is seen as a leader.

“Sterilisation, for instance, is more advanced in EU than the US,” said Charlie. “And the latency is five to seven years, due to testing and so on. So the demonstration of reliability and data from successful European adoption can make all the difference.”

 

Ireland enjoys a unique advantage in trading with the US and is Ireland’s second largest export market. Learn more about entering the US market here.

Focus on Exports Helped Kirby Triple Turnover

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“We’ve achieved growth in three ways, through strengthening our capabilities, going deeper into our chosen sectors, and through geographic expansion.”

Jimmy Kirby, MD Kirby Group Engineering

Key Takeouts:

  • Kirby provides full mechanical and electrical engineering contracting services, as well as specialist voltage design and construction services to clients.
  • Has achieved growth in three ways, through strengthening capabilities, going deeper into chosen sectors and through geographic expansion.
  • Enterprise Ireland has supported Kirby to develop its international operations.

Case Study: Kirby

Developing export markets has helped Kirby treble its business in just seven years.

Founded in 1964, Kirby provides full mechanical and electrical engineering contracting services, as well as specialist high voltage (HV) and medium voltage (MV) design and construction services, to clients across several key sectors. These include data centre, life sciences, industrial manufacturing, commercial, petrochemical, and substations and renewables.

With the support of Enterprise Ireland, Kirby operates in a number of markets including the UK and Northern Europe.

Growing international operations

“In 2008, we began our first overseas work in the UK, initially focusing on the pharmaceutical, industrial manufacturing and power sectors,” says Jimmy Kirby. “Originally, we were invited in by one of our large multinational power sector customers to deliver projects for them; then we successfully expanded into the other sectors.”

Kirby has continued to develop and grow its international operations.

“Over the past seven years, we have almost tripled our turnover, from €58 million in 2010 to €167 million for 2017. To meet our growth targets, we increased employee numbers significantly. We currently directly employ over 700 people.”

Kirby has strengthened its management team too. “Earlier this year we announced a number of key appointments at senior level to support growth and success,” Jimmy Kirby says.

The company has recently announced further expansion in its international operations to include the new geographical area of the Nordics. “Expansion into the Nordics market is proving to be a successful development for us, having secured a data centre project and with more in the pipeline. We have the capability to execute projects in Ireland, UK, Sweden, Finland, Denmark, Netherlands and Belgium, and are currently developing the capability to execute projects in Norway, Germany, Switzerland and Luxembourg.”

Preparing for further growth

The business is poised for significant further growth. “Kirby has excellent future prospects due to the strength of our management team, our staff and associated capabilities, our strategy formulation and implementation capability, and our customer value proposition.”

The company has developed an in-house, integrated project execution process called the Kirby Way. “At the core of the Kirby Way is efficient and successful project delivery” explains Jimmy Kirby, Kirby Group Managing Director.

“It involves understanding our clients’ needs, collaboration, building high-performance teams and supporting our clients through every stage of the project,” 

Strengthening its systems and processes is helping too. “Lean practices, such as standardisation, have become important components of our project delivery, bringing significant value to us and our customers,” says Kirby.

Staff members have taken ownership of continuous improvement. “We operate an Innovation Suggestion Scheme with participation encouraged among all of our workforce. This approach allows us to encourage a culture of innovation and continuously generate innovative and lean ideas from our site and office employees. The suggestions are focused around introducing efficiencies into the business through cycle-time reduction.”

Recent project wins include Gemini Data Centre and Substation in Dublin and Kilgallioch Windfarm Substation in the UK. Kirby is currently working on a confidential data centre site in Sweden, a biopharma facility in Meath, and Wembley Park Energy Centre in the UK, among many others.

Three ways to achieve growth

“We have achieved growth in three ways, through strengthening our capabilities, going deeper into our chosen sectors, and through geographic expansion,” Kirby says. “To ensure that there is a continuous pipeline of projects, it is important to track the investment levels in our selected geographies and sectors.”

Working with Enterprise Ireland is helping. “Enterprise Ireland has supported Kirby to develop its international operations over the years in a number of ways. It has done so by providing market research support, local market information and advice on new markets, providing access to its global network of contacts, and hosting networking events and seminars – such as a construction seminar held in Stockholm recently.”

Jimmy Kirby personally participated on Enterprise Ireland’s International Selling Programme in 2010, and went on to do a Masters Degree in DIT afterwards. The company also availed of a Market Access Grant, “which was a valuable support in our internationalisation efforts,” says Kirby.

Learn more about Enterprise Ireland’s Competitiveness supports here.

Fuelling company growth AsiaPac

Fuelling your company’s growth in AsiaPac

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The size of Asia reflects the scale of the opportunity it presents to Irish businesses, delegates at Routes to Growth AsiaPac, a major conference held in Dublin’s Aviva Stadium, heard recently.

“Three of the four top economies of the world are in Asia. It accounts for half the world’s population and a growing middle class,” said Julie Sinnamon, chief executive of Enterprise Ireland, which organised the event.

“China, India and the ASEAN countries are showing more than double global growth rates, so they are not alone large markets but ones have massive growth within them. And ASEAN is one of the world’s largest economic zones, with a population greater than the EU and economic growth of double the EU’s.”

The AsiaPac region also includes Australia, remarkable for enjoying more than 25 years of continuous growth.

The region offers particular opportunities right now for Irish businesses in sectors such as aviation, financial services, international education and construction & engineering.

But there are challenges too.

“With Asia, you can’t go in, do a bit of business, and come home. You have to be really committed to the market. You need a balance sheet that can withstand the investment and you need an understanding of the culture,” she said.

There are logistical challenges related to distance, cost, lack of relationships and the need for a local presence. It’s not a homogenous block either. “Each of these countries has different culture that we need to recognise and appreciate. The Western mentality – believing we have the answer to your problem – doesn’t go down well in AsiaPac, you have to listen, and have patience.”

Be aware of distinct operational requirements in markets such as China, said MJ Guan, a partner at the China Ireland Growth Technology Fund.

It isn’t a question of simply translating your marketing materials but of doing first hand, on the ground market research for yourself. “Don’t just rely on third party agents,” he said.

Localisation requires much more than translation too, as companies such as Google and Uber have discovered. To assume that just because your business is successful in the Western world it will be successful in the AsiaPac region is a mistake.

Trip wires can include not finding out if you can get a direct licence to operate in your sector, and, if not, partnering with a local business. If you sell B2B get your “China Pricing” right. “In China we like to ask for a high discount from a vendor. If you don’t give a discount the customer may think you are not serious about the business,” he said.

Guan was at the event representing the second China Ireland Growth Technology Fund, which is newly launched. It aims to support Irish companies looking to access the Chinese market, as well as Chinese firms looking to use Ireland as a European base.

Announced in March 2018 by Ireland’s sovereign wealth fund, the Ireland Strategic Investment Fund (ISIF), and its Chinese equivalent, the CIC Capital Corporation (CIC Capital), the Euro 150 million fund is a successor to the now fully-invested China Ireland Technology Growth Fund launched in 2014.

That USD 100 million fund supported six Irish technology firms expanding into China, including Irish-founded Movidius, the global leader in machine vision technology that was subsequently acquired by Intel.

The new Fund will once again be co-managed by Dublin-based Atlantic Bridge and Beijing-based WestSummit Capital.

The sectors it is open to applications from are quite wide, said Elaine Coughlan, founding managing partner of Atlantic Bridge. They include agri-tech and med-tech, enterprise and consumer software, semi conductors and industry-4.0 “all the things China wants access to and wants to buy,” she said.

Even where a company is not ready for investment, the Fund can help applicants make contacts and start building crucial relationships.

“We look at thousands of companies on an annual basis and with a lot of them we say ‘You are not ready yet, here are some contacts, here are some relationships, do a little more work, a little more market research, and come back to us’” said Coughlan.

“It’s very rare we say ‘no, never’. We say ‘not now, come back to us’, and give them some pointers to think about in terms of execution. We’ve a portfolio now of companies – of CEOs, VPs (vice presidents) and BDs (business development executives) – who are in China and who can share that knowledge with other Irish companies.”

One company the Fund has already invested in is indoor positioning systems company Decawave, which currently has five people based in China.

“You need to get out there on the ground so use Enterprise Ireland and the Department of Foreign Affairs and all the resources open to you. There is always someone who can give you introductions,” said Paul Costigan, chief sales and marketing officer at Decawave.

Its technology is based around “really precise GPS that works indoors, with very many applications for robotics, drones, AI, automation and smart factories, all the areas that China is so far ahead in,” said Costigan. In fact, “China already accounts for 60% of our revenues and we haven’t even got going yet.”

US flag - exporting to the US

Top 10 Tips for Exporting to The USA

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Ireland enjoys a unique advantage in trading with the US because of our deep historical links. Relations between the two governments are exceptional; and cooperation at an institutional level is excellent including in areas such as research, innovation and education.

There is, without doubt, huge opportunity in the US. Around 700 Enterprise Ireland client companies are exporting there and companies like Aerogen, Fenergo, Cylon Controls, Candidate Manager and Rubicoin have set up offices and accelerated exports in the past 24 months. To date, over 20 clients have won contracts worth over €500,000.

1. Preparation

Before entering the US market, extensive research at home is strongly advised. Make contact with State agencies, relevant support organisations and companies who currently export to the US, if possible. Targeting the US usually requires additional financial and human resources, so to keep costs and operations manageable in such as geographically big country, first-time entrants are advised to segment the market and target a particular region or state. Give careful consideration to the resources needed to serve the selected market, for instance, will the operation use a direct or indirect sales channel. Some companies hire locally and others (often in the early stages) put a C-level member of the team in the market for a short period to get things off the ground.

2. Legal

Corporate – Confirm your corporate structure. Typically setting up a US subsidiary makes sense both for tax and liability reasons. Your US subsidiary also will need to appoint a registered agent, and “qualify to do business” in every state in which you have an office or similar presence.

Intellectual Property – Address US trademark issues defensively (confirming that no one else has prior registered or unregistered rights in respect of name and key brands); and offensively (by filing a US trademark application). Patent issues may need addressed depending on the business.

Contractual Terms and Conditions – These must be converted to the laws of a US state, for legal and commercial reasons.

Employment – Get professional employment advice locally. Most US employees do not have employment contracts but employers are bound by offer-letter terms, employee manuals and other undertakings. Also, ensure confidentiality and IP assignment agreements with all employees are established.

3. Tax Structuring and Compliance

Establish appropriate arm’s-length arrangements between the Irish parent and US subsidiary to separate taxable income. This is particularly important because US corporate tax rates (federal and state), totalling about 40% are typically three times the level in Ireland. Have appropriate compliance procedures in place to address federal and state corporate income tax, as well as other potentially relevant tax regimes (sales tax, personal property tax, etc.), particularly at the state and local level.

4. Trends

US import trends indicate high potential for Irish exporters. Meat imports were valued at €9.4bn which was the second fastest-growing import; while dairy went up over 40% to €2.8 billion. The US also imports pharmaceuticals worth $86.1 billion; medical and technical equipment worth $78.3 billion and organic chemicals worth $52.1 billion. These are all among the top 10 Irish exports by category. It is also a big importer in sectors such as aviation and aerospace, mechanical and electronic equipment, insurance and ICT services – all of which are growing in Ireland.

5. Banking

It can be difficult for a non-US company to set up banking for its US subsidiary. Some banks are particularly focused on banking high-growth companies on a trans-Atlantic basis, which can help ease the process.

6. Immigration

Most Irish companies exporting to the US find it critical to establish a presence in the market. This is particularly true in software and high-tech. An estimated 65% of Irish exporters to the US have a full-time presence, ranging from a single-person sales office to manufacturing operations with thousands of employees. Route-to-market decisions are crucial and the role of agents and distributors cannot be ignored. Buyers rarely purchase directly from manufacturers, particularly those from overseas. So fulfilment centres have become increasingly important in the supply-chain, especially since the growth of e-business. This approach is better suited to non-perishable items and consumer products.

7. Insurance

The US is a high-risk environment. Get an insurance broker with trans-Atlantic experience to advise on types of cover, terms and limits.

8. Recruitment

The most difficult aspect of setting up in the US is finding the right people. Obtaining recommendations from trusted people including investors and advisors is often the best way. Otherwise get professional support (especially with sales people). Consider outsourcing for book-keeping, employee tax withholding, HR and mandatory employee insurance and benefits, and similar matters. Also note that visas permitting Irish personnel deployed in the US to work are needed. Allow three to four months to sort this out.

9. Offices

Get professional advice on office space and other properties such as co-working spaces (like WeWork), accommodation offices (like Regus) or renting an individual premises.

10. Incentives and Supports

US supports should not be overlooked. Federal, state and local development agencies and international chambers of commerce can provide very useful support. State and local incentives for investment and job creation also may be available.

 

How Aerogen’s ‘Born Global’ Mindset Drove Export Success

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“The more resources you apply — particularly on the ground — the more traction and sales you achieve. We found that you can’t dabble in a market; you have to go all-in.”

John Power, CEO, Aerogen

Key Takeouts:

  • ‘Born Global’ mindset drove export success.
  • Strong distributors plus people on the ground accelerated market penetration.
  • Each market entry enabled locally by Enterprise Ireland.

Case Study: Aerogen

CEO of Aerogen John Power recognised long before he established the company in Galway in 1997 that he would have to make sure it developed a unique solution that could be sold globally — distinct from something designed specifically for Europe or the US.

The result was an aerosol drug delivery system that reduces the length of time a patient needs to be on a ventilator, meaning they recover faster and have a shorter stay in hospital. Its proprietary vibrating mesh technology turns liquid medication into a fine particle mist, gently and effectively delivering drugs to the lungs of critically ill patients.

Aerogen is now synonymous with the effective treatment of respiratory illness among patient groups of all ages, playing a critical role in emergency departments and intensive care units in over 75 countries worldwide.

“Medtech companies by nature are ‘born global’. I knew there was no chance of setting up and sustaining a business developing original medical equipment just for sale in Ireland and the UK,” says Power.

“All of our products are heavily regulated and any new iteration has to get both European and US approvals, so we have always brought those markets along in parallel since early 2000. A lot of our partners, such as GE Healthcare and Medtronic, want products that sell internationally and are regulated internationally.”

The US is Aerogen’s leading market — its aerosol drug delivery system is now being used in the intensive care units of 60% of the top 200 hospitals in the US. Europe, including the UK and Ireland, is its second biggest market accounting for around 30% of sales, followed by Asia and the Middle East.

Aerogen’s Partnership with Enterprise Ireland:

  • Partnership began with feasibility funding in 1997.
  • Accesses Enterprise Ireland’s network in every market it enters.
  • R&D supports have enabled risky and costly innovation.
  • Shares Enterprise Ireland presence at important trade events.

To see how Enterprise Ireland has enabled Aerogen’s success, click here.

Working with distributors

While Aerogen currently sells through distributors in all of its markets, its entry strategy in many cases was to partner with large healthcare multinationals which sold its solution alongside major pieces of capital equipment. Power’s connections in the industry helped in this regard as he had worked in multinationals previously.

Aerogen’s annual revenues have been growing by 25-30% over the past number of years, reaching €50m in 2016. Of its total workforce of 130, there are now 20 people based full-time in the US, four in Germany, three in France and two in the UK. It added 35 people to its headcount in 2016 and will do the same this year.

 

“One of the things we have learned is making money in any given market is all down to putting more resources into it – both commercial and clinical. The more resources you apply, particularly on the ground, the more traction and sales you achieve. We found that you can’t dabble in a market, you have to go all-in” says Power.

Selecting the right distributor in each market for Aerogen’s products has been crucially important and the expertise and experience that exists within the workforce has played a key role in this regard.

“I have a group of guys involved in our export markets who have worked all their lives in export sales for big multinational companies and specialise in different regions,” says Power. “They know who the good distributors are. Most of the time distribution is done on the basis of personal experience or a strong recommendation from someone you know.

 

Germany and France – challenges overcome

While Ireland is a huge exporter of medtech products, a large percentage of this is by US multinationals based here. This is in contrast to Germany and France which have large indigenous medtech sectors.

“Germany and France dwarf Ireland when it comes to their indigenous medtech sectors. Both are quite protectionist in many ways and want to support their own industries in their own countries,” says Power.

“For that reason, our products have to be better than those manufactured by German and French companies to make sure they will sell. Germans like to develop their own innovative products and France has a long engineering and technology track record. So any technology you’re trying to sell has to be substantially better than what they have developed themselves if it is to interest them.”

In order to sell into Europe, a medtech product must achieve the CE Marking certification. After that, it must be approved by the individual authorities in each country. How easy or difficult this is depends on the structure of the health system.

“For example, in France, there is a very strong public health system which can mean a reticence to change. You have to ensure products are properly coded by the relevant health authorities before you can sell into that market,” says Power. “Normally there is more of a mix of private and public health systems – sometimes it is easier to get in the door of private hospitals as there is less bureaucracy.”

A further challenge in France and Germany has been that healthcare providers demand proof of the economic, as well as the clinical, benefits of any new medical technology. Aerogen has concentrated a lot on this area in the past 18 months, investing in clinical studies to prove the benefits of its technology clinically and how it can reduce the cost of care – for example by reducing admissions from accident and emergency departments.

“Everybody prefers data from their own market. It is an expensive game, but if we want scalability in terms of our product, we have got to be prepared to invest in this area,” notes Power.

Top Tips for Exporting to Europe:

  • Develop a superior, differentiated solution — not a ‘me too’.
  • Start with a narrow market focus and service that well.
  • Work long and hard to identify the right distributor.
  • Nothing beats your own people on the ground, driving your distributor.

For more details, click here .