REGIONAL COMPETITIVENESS AGENDAS Overview, findings and actions FORFÁS REGIONAL COMPETITIVENESS AGENDAS: OVERVIEW, FINDINGS & ACTIONS i Table of contents 1. Introduction 1 Objectives 1 Process 1 Outputs 2 2. Report Structure 3 3. Background and Context
The Enterprise Agenda 4 Regional Competitiveness for Enterprise 5 4. Overarching Findings 6 Overview 6 Planning,
Development and Delivery Infrastructures 6 The Enterprise Development Agenda 8 Enterprise Related Regionally Based Initiatives 11 Critical Infrastructure Broadband 12 Conclusion 14 5. Regional
and the Mideast (the East) 29 6. Regionally and Locally Driven Initiatives 32 Túsnua 32 Dundalk 2020 32 Spirit of Enterprise Forum 32 The Young Entrepreneur Programme 33
Successful enterprise development depends on a well planned spatial environment, which efficiently delivers the appropriate supporting infrastructures (both physical and soft) to create competitive and attractive locations for foreign and indigenous business investment.
This study assesses how each region1 could build on its own potential, and continue to develop a competitive environment to support
and stimulate enterprise development2. Global and national developments over the past year mean that regional competitiveness has become even more important.
Ireland faces unprecedented challenges against the backdrop of a world recession. The irish economy is operating within tough budgetary conditions and fiscal constraints.
The Government's response includes its Building the Smart Economy which identifies the importance of returning to export-led growth3,
and budgetary steps taken in December 2009. The downturn in employment is marked particularly in the construction,
and make strategic investments now that pump-prime the potential of each of the regions to position them as key contributors to Ireland's national growth
Highlight from an enterprise perspective, how each region can continue to develop its competitive environment,
build from its strengths and national and international networks, and address barriers to development; Provide the economic context to inform the update of the Regional Planning Guidelines (RPGS;
and to Influence the refresh of the NSS being undertaken by Department of Environment, Heritage and Local government and planned for completion early 2010 (Doehlg).
Process The process involved extensive collaboration with the Development Agencies4, the Department of Enterprise, Trade and Employment (DETE), the Department of Environment, 1 NUTS III level:
Investment Priorities,(Fitzpatricks Associates, Consultants, Doehlg and Forfás, 2004), and complements the NCC report: Our Cities:
. ie 4 Including IDA, Enterprise Ireland, Shannon Development and Western Development Commission FORFÁS REGIONAL COMPETITIVENESS AGENDAS:
The research, analysis and wide consultation broadened the original scope to encompass sectors outside of those supported directly by the enterprise agencies,
and was used to inform stakeholder consultation and workshops Regional Competitiveness Agendas Volume II: Realising Potential for each region:
and enterprise development Informed the regional economic strategies (RES) for the update of the Regional Planning Guidelines6 (RPGS)
and informed priority actions Developed a Regional Competitiveness Agenda in support of the enterprise development agencies
from an enterprise perspective Section 4 Outlines the overarching findings arising from the study that have relevance at national level,
Communications Overview & Findings Regional Level National Level Volume II Realising Potential and Actions for each region Volume I Baseline analysis for each region Regional Planning Guidelines NSS Refresh NDP 2007-2013 Regional Agenda Development Agencies Regional
The concepts remain valid from an enterprise development perspective and arguably have increased in importance7, in particular:
Ireland's enterprise structure is shifting as services contribute a greater proportion to overall economic growth.
Urban centres are attractors for knowledge intensive and services activities, and from an enterprise development perspective, the gateways take on an increasingly important role9.
Realising potential: The NSS defines balanced regional development as developing the full potential of each area to contribute to the optimal performance of the state as a whole economically, socially and environmentally.
for development, arising from its endowment of natural resources, population, labour, its economic and social capital, infrastructure and its location relative to markets.
In knowledge intensive and service oriented economies, what actually happens at the level of the regions will increasingly account for the success of the national economy in the first place10.
Sustainable Recovery and Growth: The Enterprise Agenda The Government's Building the Smart Economy identifies the importance of returning to export-led growth
and the enterprise agencies have a crucial role to play in leading and supporting that objective.
Today, location decisions by companies (both foreign and indigenous) are considered not only in terms of the (relative) cost base,
but also in terms of access to skills and talent, access to markets and customers (whether physical or virtual), the innovative capacity and capability of the locale and a dynamic environment offering an 7 The concepts are outlined in Section 1 of the National
Region as an important region in its own right, given Dublin's significance as an international city and its own challenges and potential in that context. 10 NESC (2008: 178) The irish Economy in the Early 21st
In light of this, the business environment in Ireland needs to continually evolve to meet the changing needs of companies.
Successful enterprise development and the creation of an attractive location are interdependent. Regions that support strong and dynamic enterprises are crucial to Ireland's return to overall economic growth.
Regional Competitiveness for Enterprise Ensuring an optimum business environment'on the ground'within the regions requires a specific focus.
International research11 informed the development of a framework of competitiveness factors that facilitated a comprehensive analysis of The irish regions-to determine not only performance
but also to identify key regional assets and areas of enterprise potential (Table 1) 12. Table 1:
Competitiveness Factors Enterprise Dynamic assessing the enterprise structure, employment and GVA, the contribution from agency supported enterprises,
and sectoral diversity and/or clustering Skills & Education an analysis of the skills, educational attainment and education resources Knowledge and Innovation research and development investment and activity, collaborations and inter-linkages between HEIS and firms,
between firms and customers Economic Infrastructures Access and Connectivity transport and broadband infrastructures recent investments and ongoing infrastructure needs Quality of life based on factors relevant to the attraction of mobile investment
and enterprise potential are optimised regardless of location It is important that governance and leadership structures at the regional level are efficient
This challenge is evident for the National Spatial Strategy, Enterprise Strategy, the Strategy for Science, Technology and Innovation, the National Skills Strategy and enterprise agency sectoral strategies.
There is a strong interdependence between the planning, development and creation of an attractive environment (the NSS) and enterprise development.
We need to consider the roles of the Regional and Local authorities and of the Enterprise Development Agencies,
and prior to the development of the NSS, land use and infrastructure investment decisions at county and city levels were made not in the context of a regional framework.
It will also inhibit the regions in embracing opportunities for cross-boundary collaboration. Actions Accelerated Development of the Gateways-Governance Gateways have a critical role in driving regional economic development.
and financial) Regional Authorities should develop strong linkages with neighbouring regions in particular to harness services
OVERVIEW, FINDINGS & ACTIONS 8 Actions The Enterprise Development Agenda Enterprise investment plays a crucial role in achieving balanced regional development.
The enterprise development agenda comprises a suite of interdependent elements, which take on an added complexity when considered in the regional context:
Sectoral focus Entrepreneurship Rising unemployment and reskilling The‘new'unemployed Innovation Supports for SMES A Sectoral Focus The RCAS are premised on the fact that a main platform for the realisation of regional potential
is based upon building on existing sectoral strengths as well as preparing to take advantage of new opportunities. It acknowledges that regional boundaries are'fluid'in this context,
It is important that specialist sectoral knowledge within the enterprise development agencies is employed where necessary to support regionally based sector development initiatives.
Prioritise and target investments (national, regional and local) in a coordinated and complementary way that accelerates the development of the gateways Reinstate the GIF at the earliest opportunity.
OVERVIEW, FINDINGS & ACTIONS 9 Entrepreneurship Our analysis has been based on an assessment of competitiveness factors
However, entrepreneurs and indigenous SMES also require an attractive and competitive environment from which to start
and grow a business enabled by access to markets, skills, facilities,(sector specific) supports and networks, services and R&d.
It is important to leverage the investments made in the regions to date17 and to harness the potential of the hubs,
Rising Unemployment and Reskilling The current economic downturn has resulted in a significant increase in unemployment across the country, primarily within construction, retail/hospitality and manufacturing activities.
and to engage proactively with firms and the enterprise development agencies. Having said that, concerns were raised in most (if not all) regions about initiatives to fasttrack re-skilling of the unemployed
and those in more‘vulnerable'sectors to meet the needs of growing sectors and services activities18.
The current economic downturn the pace at which unemployment has been increasing and uncertainty have exacerbated fears and a call for action.
These include non-formalised and ad hoc relationships between key stakeholders; reactionary rather than strategic collaborations;
challenges in achieving buy in from stakeholders; the requirement for effective leadership and management of expectations;
A more proactive regional approach to collaborative initiatives, within the context of a region's enterprise potential, would enhance the current position. 17 Including national road networks, research centres,
incubation and community enterprise centres etc 18 Although this section focuses primarily on the unemployed,
The interest in entrepreneurship has increased significantly and EI/CEB/FÁS workshops are attended well. The agencies are considering how best to harness these available skilled individuals.
Innovation Many of the regional stakeholders view HEIS as the primary source of innovation, although international research shows that it is one source only (and not a primary source) 20.
In relation to the role of HEIS, stakeholders highlighted the real challenges for SMES to access and absorb the‘appropriate'Intellectual Property.
Based on Edquist (2005)‘ Systems of Innovation-Perspectives & Challenges'in Fagerberg et al (2005) The Oxford Handbook of Innovation More importantly, there is a lack of appreciation regarding the paradigm of open innovation (customers, suppliers, partners,
Edquist et al (2009) Evaluation of Finnish Innovation System Full Report Provision of R&d & New Knowledge Networking & Interactive Learning Entrepreneurship/Intrapreneurship Customer Demand & Feedback New
Market Formation Competence Building Skills and Education Provision of Consultancy Services Financing & Commercialisation Institutional Supports & Regulation FORFÁS REGIONAL COMPETITIVENESS AGENDAS:
It is now timely to complement this approach with a deeper understanding of the demand‘pull'factors of innovation.
The current lack of a broader awareness hinders the development of an environment within the regions that stimulates greater company engagement-with each other, with customers,
suppliers and markets to deliver on new products and services. It is also worth noting that there is a difference in terms of innovation readiness in the context of the existing industrial structure across regions.
The establishment of a CEB Coordination Unit in Enterprise Ireland in 2007 is beginning to have impact, particularly in terms of consistency in approach across all of the CEBS.
Enterprise Related Regionally Based Initiatives As a developed economy (facing significant challenges in the current economic downturn) successful enterprise development is premised upon enhanced skills and innovation, leading to improved productivity and competitiveness.
The business environment is becoming ever more complex and requires local and global networking for companies to remain successful.
Twenty-first century enterprise development requires a balance between the top-down (globally linked) national approach, and collaborative engagement at a regional level.
Our research has demonstrated that enterprise related actions are being taken at a regional or local level (Section 6). However,
These initiatives bring together a range of stakeholders, for a variety of reasons, for example: to respond to a particular need and/or crisis (e g.
Túsnua, Midwest Task force), to stimulate enterprise development (e g. Spirit of Enterprise, Southeast) or entrepreneurship (Young Entrepreneurship Programme, Kerry), to drive an increase in innovation (Regional Innovation Cluster, Southwest),
or to drive'smart'energy usage (Dundalk 2020). 21 Particularly in relation to a number of agencies including Shannon Development,
consistent and cohesive approach to realising the potential of the regions and stimulating enterprise development.
Our analysis raises the fundamental question as to how the enterprise development agencies themselves might best engage strategically at a regional level to drive the realisation of the RCAS
The development agencies can also play a vital role in influencing investments in infrastructures specific to enterprise (and in some cases sectoral) needs.
Action A mechanism needs to be established with the Enterprise Development Agencies and within the Doehlg structure that harnesses the range of stakeholders required to deliver, at the regional level, on a cohesive and coordinated enterprise focused agenda.
Establish a Regional Economic Forum23 in each region to meet quarterly that brings together the appropriate expertise and competences,
and to deliver on a cohesive and coordinated enterprise focused agenda, to include: the enterprise development agencies planning and development authorities (Regional and Gateway) The Forum should be oriented action,
update on progress, identify and address barriers to development. They should also facilitate knowledge sharing and best practice,
Critical Infrastructure Broadband In every workshop and one-to-one consultation the need for access to high quality, competitively priced broadband infrastructures was cited as the main infrastructure barrier to enterprise development today within the regions.
OVERVIEW, FINDINGS & ACTIONS 13 From a regional perspective broadband is an enabler for enterprise to establish in locations outside of the main gateway centres
In order for adequate broadband25 services to reach businesses and homes across the country two things are required: Existing backhaul assets need to be managed in a coordinated way to optimise usage,
The dispersed nature of Irish population patterns makes returns on private investment more difficult to achieve.
Recent measures by the European Commission27 to facilitate public investment in broadband infrastructure acknowledge the wider spillover benefits for economic and social development
and suggest that insufficient private investment in this area is not unique to Ireland. The broadband debate has been ongoing for many years in Ireland,
high quality, cost competitive broadband needs of enterprise as a matter of priority. The government needs to develop an investment plan to deliver on its broadband strategy.
The plan should explicitly state where and when government investment will take place to address market failure, particularly in the provision of:
Augmenting gaps which exist at different points of the existing network/backhaul Delivering the‘last mile
and optimises the interaction with hubs and their immediate hinterlands A coordinated approach to driving the enterprise agenda at regional levels,
and An awareness of the factors that influence enterprise investment decisions and prioritisation of infrastructure investments and actions that address the needs of enterprise.
and to stimulating debate and ensuring that the enterprise agenda is embedded firmly in regional policy.
and resource efficient approach and to leverage existing initiatives to deliver on the regional enterprise and planning agendas.
More recent developments and investments have seeded the basis for change and future growth, although the challenges remain significant.
and deliver on a coherent enterprise strategy The region benefits from its ability to access EU
and cross border development funds for investment There has been a reduction in the number of‘unskilled'within the labour force over the past decade
and tourism sectors A number of regionally developed initiatives/strategies highlight the potential for the energy/environmental goods and services sector,
although prioritised investments at a national level, as well as the need for community buy in (e g. in the grid infrastructures) may have implications for its timely realisation.
and services used in its production latest available data is for 2006 FORFÁS REGIONAL COMPETITIVENESS AGENDAS:
A simple renaming could have a positive impact for marketing the region for enterprise development
provides an attractive environment for enterprise investment, for tourism development and from a lifestyle choice perspective.
new start ups and informal investments 32 This is an extract of regional level actions included in the full report it is noted that some of the regional actions could be replicated across other regions 33 http://www. delni. gov
and in ICT with the Digital Enterprise Research Institute (DERI) Comprising 13%of the total workforce,
manufacturing remains an important part of the economy of the West. Manufacturing employment declined however over the 1998-2008 period in line with the decrease nationally Medical Devices is the most significant employer within the exporting sectors
There is short term potential to harness opportunities in wind and wood energy and related technologies, and longer term potential in wave energy There is a strong recognition of the need to ensure that development is undertaken in a way that is harmonious with the local landscape and implemented in a manner consistent with habitat designations and directives.
Public sector Employment 26%23%23%Entrepreneurship (Early Stage as a%of the Population) 10%8%8%FORFÁS REGIONAL COMPETITIVENESS AGENDAS:
OVERVIEW, FINDINGS & ACTIONS 19 Key Actions (extract) Harness the capabilities of the'new'highly skilled professional unemployed to identify potential opportunities
IP negotiations, developing business plans, identification of sources of finance, mentoring)( FÁS, EI) Harness the design and creative skills in the region through the establishment of skills based networks and application across sectors,
and/or the holding of demonstration events Stimulate interactions between sectors-particularly where there are opportunities for convergence (e g. medical devices and ICT), working with the relevant industry associations.
recent major road infrastructure enhancements have helped to strengthen the value proposition for international services activity in the Midlands,
and investments have been attracted to the region in recent years37. The region is also developing expertise in telecommunications and software development,
Georgia Tech 36 Using agency supported enterprises as a proxy 37 e g. Teleflex (shared services operation
Axa (customer support centre) and PPD (contract research organisation), joining companies such as Capmark Services (commercial mortgage administration) FORFÁS REGIONAL COMPETITIVENESS AGENDAS:
OVERVIEW, FINDINGS & ACTIONS 21 Ireland represents a potentially important strategic resource for the Midlands region and in the national context.
Discussions at the workshop and through one-to-one consultations demonstrated an understanding and'maturity'across a wide range of stakeholders of the importance of innovation to the future growth of the region
Points of interest and potential The Southwest has a dynamic and broad enterprise sector with predominance in Pharmaceuticals,
ICT (hardware and services) and Food (including functional foods), and 38 http://www. forfas. ie/publication/search. jsp?
OVERVIEW, FINDINGS & ACTIONS 22 significant potential in tourism, medical devices, other internationally traded services and maritime The Southwest derives a higher proportion of its Gross Value Added (GVA
and given the nature of its existing enterprise and research base the cross sectoral aspects may present real opportunity for differentiation capitalising on convergence opportunities (Figure ii) Kerry in particular has a strong entrepreneurial culture.
Initiatives such as those driven by Jerry Kennelly (ex Stockbyte) in conjunction with Tralee Institute, a strong cohort of internationally trading indigenous firms (e g.
OVERVIEW, FINDINGS & ACTIONS 23 Figure (ii) Convergence Opportunities Key Actions (Extract) Consider how best to enable companies (particularly small companies) to access technologies and research from HEIS, at a basic level such as:
Enterprise Connection Point) as currently, a‘push'approach is required more often to garner interest from firms to engage with research institutes,
the current environment could provide opportunity to take a proactive, regionally based and creative approach in the short term.
The Development Agencies should work with companies and Tourism ICT Services Maritime Green Tech Food Lifesciences Functional Foods Aquaculture-Fishing Marine Tourism and Leisure Key Enabler
OVERVIEW, FINDINGS & ACTIONS 24 HEIS to consider work placement where students would take up opportunities in a flexible
Consider the benefit of extending/replicating the Young Entrepreneurship programme (Tralee Institute) in other institutes/colleges in County Cork,
harnessing the commitment of an industry champion Taking into account the business environment requirements for entrepreneurship,
and internationally 42 The IBEC coordinated Export Orientation Programme (EOP) Graduate Placement Programme indicates the potential in collaborative approaches between industry and the enterprise agencies in this area. 43 CSO Population
but also in relation to its wider impact on firms providing third party services to the company44. The regionally based Túsnua initiative is focused on providing advice
and supports to those impacted There has been a notable growth in ICT and other internationally traded services as well as the Medical Technologies sector,
and the region recorded the highest number of EI supported high potential start-ups (HPSUS) of all regions during 2007 Informed by employment trends and the existing enterprise base,
the regionally based workshop highlighted potential in the areas of Medical Technologies, taking advantage of the increasing convergence with ICT, Logistics and Supply Chain Management, Energy and Environmental products and Services, Software
and other Services, Food and Tourism Key Data and Statistics Midwest Midwest State Average Dublin Unemployment (Q1 2009) 11.4%10.2%8. 9%Employment
As companies increasingly network, it presents opportunity for the development agencies in the Midwest to enhance their collaborative actions to facilitate companies in this environment, and to:
Building on the Túsnua initiative, continue to develop a more structured approach for ongoing and proactive communications with the HEIS (in terms of innovation,
but also presents an opportunity to work with this distinctive diversity through a more coordinated regional approach.
and although there have been developments in recent years the transition to a more knowledge intensive enterprise profile has been relatively slow.
OVERVIEW, FINDINGS & ACTIONS 28 Key points of interest and potential The absence of a university within the region has been cited by regional stakeholders as a significant deficit
Kilkenny Medieval City and Wexford Opera Agency supported sectors that experienced the most significant growth in the region over the last decade included pharmachem, medical technologies and ICT services industries.
the agricultural sector remains a significant part of the Southeast economy. Strong international players in the food processing industry provide a solid platform for future growth
Although the performance of the region in terms of entrepreneurship has been comparatively low, regionally based initiatives such as the Spirit of Enterprise demonstrate local capacity
and capability to stimulate a collaborative and regional approach to the development of indigenous enterprise The small portion of the total R&d spend in the higher education sector (HERD) underlines the importance of establishing linkages
and networks, including with relevant HEIS and research institutes beyond the region (nationally and internationally).
Key Actions (Extract) The enterprise development focussed Spirit of Enterprise Forum is an initiative that has brought together the relevant stakeholders over the past 3 years,
and a cohesive approach to enterprise development throughout the region although the role and engagement of the agencies in this context should be clarified A cross-regional Gateway Implementation Group should be established to garner proactive support for the gateway
and to accelerate its strategic development, in terms of enterprise potential, infrastructures and the built environment Recognising the resources of potential entrepreneurs from the farming community,
and given the business opportunities that are arising in the agribusiness/environmental sectors, ensure optimal co-ordination of supports from relevant agencies such as Teagasc, EI,
LEADER and the CEBS 48 Including the development agencies, WIT, chambers of commerce, business representatives etc.
In terms of economic activity, the most prominent sectors in employment terms are the public sector, the financial services sector,
Unlike most other regions in Ireland, the East's employment was not dominated by construction sector during Ireland's period of rapid economic growth.
unemployment has risen sharply over the last twelve months, rising from a rate of 4. 6%at the end of 2007 to almost 9%in early 2009 ICT services accounts for over a third of agency supported employment,
and includes UL, FÁS, Enterprise Ireland, IDA, the VECS and the City and County Development Board.
and educate those who have lost their jobs by providing comprehensive details about opportunities across the Midwest.
Túsnua opportunities are based on three pillars: Education Enterprise and Employment. Its website presents a comprehensive overview of the range of supports available,
enables on-line requests for meetings with relevant agencies, and/or registration to relevant information seminars, workshops and events. www. tusnua. ie Dundalk 2020 Sustainable Energy Ireland has engaged in a pilot programme in Dundalk that is intended to act as an exemplar of sustainable energy best
000 tonnes of CO2 and cost avoidance by industry of approximately €500, 000 per annum since 2007. www. sei. ie/dundalk2020 Spirit of Enterprise Forum The Spirit of Enterprise Forum is integrated an,
interactive group of all interested parties involved in the promotion and encouragement of enterprise and entrepreneurship in the Southeast region.
The Forum recognises that a critical element to the success of the Southeast developing as an entrepreneurial region is to have cooperation, dialogue and common regional goals with and between the Regional Authority, Enterprise Support Agencies, Higher education institutions, Primary
Research Organisations, Entrepreneurs, Industry Representatives (indigenous and multinational), Local government, Research Centres and the WIT Centre for Entrepreneurship.
OVERVIEW, FINDINGS & ACTIONS 33 and one of its key achievements, now in its third year, has been the establishment of a Spirit of Enterprise Week:
a week of intensive advice, inspiration and training to stimulate entrepreneurship and business growth, that includes a variety of events that are coordinated throughout the Southeast region. http://www. spiritofenterprise
The programme has seen over 300 students submit business plans which are shortlisted to allow 15 finalists to pitch their business plans to the judging panel.
It is focused on developing an environment within the region which is conducive to innovation through cooperation in joint action aimed primarily at building capacity sharing knowledge
and articulate the skills needs for the local economy and encourage and promote a strategic response from existing local FORFÁS REGIONAL COMPETITIVENESS AGENDAS:
The Northwest WDF initiated a crossborder engagement that involved the enterprise development agencies in the Republic.
along with the enterprise development agencies has developed a website to provide a‘one-stop'information portal for businesses.
which recommends consolidation of a number of indigenous enterprise development agencies. FORFÁS REGIONAL COMPETITIVENESS AGENDAS:
%70%80%90%100%O-Q Other Services L, M, N Public sector J-K Financial and Other Business Services I Transport, Storage
and Communication H Hotels and Restaurants G Wholesale and Retail Trade F Construction C-E Other Production Industries A-B Agriculture, Forestry and Fishing FORFÁS
Employment in Enterprise Agency Supported Companies, Selected Sectors, 2008 Source: Forfás Annual Employment Survey, 2008 Table A2. 1 GVA Statistics by Region Distribution of GVA across Regions(%)GVA per Person at Basic Prices (Euro) Region
CSO National Accounts, Database Direct Food and Drink 15%Pharmaceuticals 6%Medical Technologies 7%ICT Hardware 9%ICT Services Financial services 20
%7%Other Services 5%Other Manufacturing 31%FORFÁS REGIONAL COMPETITIVENESS AGENDAS: OVERVIEW, FINDINGS & ACTIONS 40 Figure A2. 4:
Entrepreneurs(%of Adults) Informal Investment Activity(%of Adults) Border 12.8 5 3. 1 7. 9 2 Dublin 10.5 3. 8 3. 6
Fitzsimons & O'Gorman (2008) Entrepreneurship in Ireland (Global Entrepreneurship Monitor Report for Ireland) 0 20 40 60 80 100 120 140 State
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