THE GOVERNMENT’s smart economy agenda has received a boost with the announcement by a leading US digital entertainment company to invest €500,000 in its Irish operations.

DTS, which provides digital audio technology for the Hollywood film industry, PC and gaming console products cited Government policy as one of the main reasons for its ongoing investment.

The company, whose technology is also used the car audio and digital media player sectors, established its licensing division headquarters in Limerick in 2007.

The parent company’s first board meeting to be held outside the US will take place in Dromoland Castle today.

The company met Minister for State for Enterprise, Trade and Innovation Billy Kelleher yesterday and IDA representatives about expanding its Irish presence.

DTS Licensing managing director Len Lloyd said the company, which has invested more than €3 million in its Irish operations since 2007, is seeking to gain competitive advantage through Ireland’s emphasis on smart economy initiatives.

“Ireland’s reputation for interconnectivity between academia and industry, coupled with the Irish Government’s innovative policies makes Ireland the perfect location in which to conduct our knowledge-intensive, high- value-added activities,” he said.

DTS has annual revenues of €78 million, the majority of which is generated by its Irish division.

DTS chief executive Jon Kirchner said yesterday that the company expected 20 per cent growth in the next few years.

“We are positioned on the next wave of digital technology and intend to be at the forefront of technological and intellectual property developments,” he said. “Ireland, with its emphasis on high-end RD developments, has proven to be the right choice for the company and will become an even more significant contributor to the long-term success of DTS Inc.”

Founded in 1993, DTS owes much of its success to the fact that director Steven Spielberg endorsed its audio technology and insisted on its use during the production of Jurassic Park.