Irish companies looking to do business in Silicon Valley have signed up as tenants, writes JOHN COLLINSin San Jose

TAOISEACH BRIAN Cowen formally opened the Irish Innovation Center in San José, California, last last night Irish time.

The centre is the brainchild of the Irish Technology Leadership Group (ITLG), a Silicon Valley-based group of Irish and Irish-American technology executives, who are trying to foster the growth of innovative Irish start-up companies.

The group’s recently appointed chairman, former Intel chief executive Craig Barrett, officially opened the centre with Mr Cowen.

The 8,000sq ft facility is in a 19th-century building in downtown San José. It will have deskspace for about 50 people when the fit-out is completed.

Already, a number of Irish companies looking to start doing business in Silicon Valley have signed up to be tenants of the centre, according to Gordon Ciochon, executive director of the Irish Innovation Center.

The idea for the Irish Innovation Center grew out of a proposal brought to the Global Irish Economic Forum held at Farmleigh last September by ITLG co-founder John Hartnett.

In December last year the Government provided $251,000 (€182,000) to the ITLG so it could establish a secretariat to support its work. “We said in September 2009 we would do it, and six months later here we are,” said Mr Hartnett.

“We are really trying to talk the talk and walk the walk.”

He singled out Minister for Foreign Affairs Micheál Martin for praise, saying he “stepped up in his role” by embracing the opportunity to back the IIC.

Although formally opened yesterday, final building work on the historic building in downtown San José is still being carried out. It is expected to be ready for occupation by the end of April.

Mr Hartnett, a former global head of sales with smartphone maker Palm, compared the development to the Digital Hub project in Dublin’s Liberties.

That project began by refurbishing run-down buildings in the inner city and has now expanded to have 150,000sq ft of office space occupied by 68 companies. “We would envisage having a waiting list of companies who want to be in here because of our proven success,” said Mr Ciochon.

Both he and Mr Hartnett said the innovation centre was different from other facilities because tenants would be able to use the ITLG’s network of contacts to access business partners and potential investors.

Of the $17.6 billion invested by venture capitalists in the US last year, about $7 billion was invested in companies in the Silicon Valley area. “Young companies who want smart money should be coming here,” said Mr Hartnett. “This is not about real estate – it’s all about access to technology, capital and connections.”

The ITLG is setting up its own venture capital arm, Irish Technology Capital, which will invest in promising Irish technology start-ups.

The building in which the Irish Innovation Center is located is owned by Tom McEnery, a former mayor of San José who was instrumental in establishing the San José and Dublin “Sister City Program” in 1986.