Synopsis: Entrepreneurship:


forfas-Regional-Competitiveness-Agendas-Southeast%20vol%20II.pdf

Sectoral Opportunities 9the Bio-economy 10agri-Food 10bio-energy 12tourism 13internationally Traded Services (excluding ICT) 15ict Services & Software 16lifesciences 185.

Enhancing the Business Environment 21leadership and Strategic Capacity 21stimulating Entrepreneurship 22enhancing Quality of life 24innovation and R&d 25skills and Education 27connectivity Infrastructures 286.

Priority Actions 32accelerated Development of the Gateway 32enhanced Agency Collaboration 32building Innovative Capacity 33stimulating Entrepreneurship 33skills Development 34physical Infrastructures 34appendices 36 FORFÁS

We have seen already the impacts in terms of a decline in economic activity and increases in unemployment. The more recent downturn in employment is marked particularly in both the construction

The Government's'Building the Smart Economy'document identifies the fundamental importance of returning to export-led growth.

Returning to export-led growth requires that we create an environment that is conducive to attracting foreign direct investment (FDI

stimulating entrepreneurship and enabling companies to grow and serve global markets from an Irish base.

The RCAS take an enterprise perspective, recognising that enterprise is a key driver for regional growth and national economic development.

The document does not seek to suggest how immediate term issues might be addressed as these are being addressed through other channels2.

and make strategic investments now that pump-prime the potential of each of the regions to position them as contributors to Ireland's national growth

and priorities for regional enterprise development. 1 East (Mideast & Dublin), Border, Midlands, West, Midwest, Southwest, Southeast 2 Refer to National Competitiveness Council's Annual Competitiveness

Highlight opportunities to build on each region's distinctive strengths Identify barriers to achieving objectives and/or issues specific to the region together with actions to address them Identify infrastructure priorities relevant to future enterprise needs within the regions.

The RCAS take a broader interpretation of infrastructures to include‘softer'factors such as innovative capacity, leadership and quality of life factors.

Methodology Desk-based research and one-to-one consultations with a range of stakeholders were undertaken to outline the current status of the region and highlight opportunities and challenges specific to it.

and to address barriers to enterprise development. Report Structure The report outlines: Global Drivers of Change that impact on enterprise needs The Competitiveness Factors that provided the framework for analysis A Summary of the Current Status of the Region Strengths

and Challenges Realising Future Potential Identifying areas of opportunity: Sectors and activities at firm level Business environment factors Priority Actions FORFÁS REGIONAL COMPETITIVENESS AGENDA:

REALISING POTENTIAL: SOUTHEAST 3 2. Regional Competitiveness Global Drivers of Change It is never easy to predict how enterprise is likely to evolve over a given time,

and within the context of the current economic downturn, it is even more challenging. Having said that, there are a number of global drivers that will continue to have implications for how companies will do business in the future3,

and in turn, inform the needs of the business environment and factors of competitiveness. Globalisation: The pace and extent of global competition has intensified significantly over recent years.

Globalisation enables companies to reach new untapped markets. The supply chain is increasingly disaggregated so that companies tend to outsource non-core activities

or to offshore them to locations where it makes business sense. Even firms serving the domestic market are facing international competition (e g. in retail, pharmacy, supermarkets.

People are also more mobile and high-value talent is scarce relative to global demand.

People can and will choose where they want to live and work. Quality of life factors take on a new dimension in this context.

Advances in Technology have a significant impact, not only on the ICT industry itself, but on almost every business, regardless of the nature of its activities.

and will continue to be, a key enabler for the remote delivery of services. Increased convergence of technologies has seen companies from formerly discrete sectors enter into partnerships to provide end solutions to customers.

Changes in business models the convergence of formerly discrete sectors and increased mergers & acquisition (M&a) activity call for a work-force with multi-disciplinary skills and a flexible and problem-solving attitude.

Rising Concerns About the Environment: The increased focus on environmental (and energy related) issues presents opportunities for companies to innovate with alternative sources of energy, new solutions and services.

Consumers will drive all companies to reconsider aspects of their business from an environmental perspective.

For companies, this involves considering their own production and business processes, carbon footprint, materials and waste.

Shift Toward Services: Services contribute a higher proportion to GDP in developed economies driven by consumer demand, increased disposable incomes and a demand for‘personalised'solutions.

Within the business to business (B2b) sector, companies are responding to the disaggregated supply chain model, and providing services which had been managed formerly‘in-house,

'including e g. laboratory and testing services, R&d, logistics, supply chain management, and customer technical support. Manufacturing firms are‘bundling'services with their products to provide a more tailored and higher value solution to their customers.

Competitively priced, high-speed resilient broadband networks and services are now a basic requirement to underpin future economic development.

The Importance of Dynamic Urban areas: Ireland's economic structure is shifting towards a higher proportion of services exports, balanced with a core of high-value added 3 Forfás (2008) Sharing our Future, IBM (2008) Drivers

of Change, Enterprise Strategy Group (2004) Ahead of the Curve FORFÁS REGIONAL COMPETITIVENESS AGENDA: REALISING POTENTIAL:

SOUTHEAST 4 manufacturing activities although this is more immediately apparent in the city of Dublin and to a lesser extent in the urban centres of Cork, Limerick, Galway and Waterford.

International evidence shows that high-value added services are attracted primarily to urban areas, and that today, internationally, cities are competing with cities for enterprise investment.

It also points to the fact that urban areas play a key role in driving the development of their hinterlands,

and successful regions have a dynamic and vibrant city at their core. The RCAS acknowledge the importance of gateways and their role as drivers of regional economic development

but in terms of access to skills and talent, access to markets and customers (whether physical or virtual), an innovative capacity and capability and a dynamic environment offering an attractive quality of life basically a good place to work,

or region provides a competitive environment that stimulates entrepreneurship, enables companies to grow and evolve,

and attracts and retains foreign investment. The following factors of competitiveness were developed to facilitate analysis of the regions,

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 Innovation research and development investment and activity,

collaborations and interlinkages between HEIS and firms, between firms and customers Economic Infrastructures transport and broadband infrastructures recent investments and ongoing infrastructure needs Quality of life based on factors relevant

to the attraction of mobile investment and labour/talent Leadership and Strategic Capacity outlining relevant organisations and indications of locally driven initiatives and outcomes 4 Forfás,

Gateway Investment Priorities Study; NCC (2009) Our Cities: Drivers of National Competitiveness; Fitzpatrick Associates (2009) Preparation of a Gateway Development Index (Stages 1&2) FORFÁS REGIONAL COMPETITIVENESS AGENDA:

) Population & Migration Estimates Leadership and Strategic Capacity Quality of life Innovation Skills and Education Economic Infrastructures Enterprise Dynamic Factors of Competitiveness FORFÁS REGIONAL COMPETITIVENESS AGENDA:

SOUTHEAST 6 Enterprise Dynamic The Southeast region exhibited strong employment growth over the period 1998-2008 and, not unlike other regions in Ireland,

New investments in recent years particularly in the Lifesciences sector, have boosted manufacturing employment and have helped to offset decline in the more established manufacturing sectors.

there are important initiatives being undertaken within the region in support of increased levels of entrepreneurship, for example the collaborative regional Spirit of Enterprise initiative7.

The higher education institutes in the region have adopted also a proactive approach with industry in terms of applied research,

while incubation and enterprise centres throughout the region are providing valuable supports to small firms.

and also delivers courses off-campus at 6 Enterprise Ireland defines A high Potential Start up'as a company which is:

Key investments in the electricity network are required to satisfy future demands, and the broadband offering in the region needs to be improved to support future enterprise potential.

Quality of life Quality of life could be discussed from many different perspectives, and is in itself a subjective concept.

However, from an enterprise development position there is recognition that a high quality of life that is inclusive and accommodating of diversity is an important component in regional competitiveness

and retaining internationally mobile skilled people attracting knowledge intensive internationally mobile Foreign Direct Investment (FDI) A variety of lifestyle choices can be accommodated in the diverse physical landscape and settlement patterns across the Southeast region.

and preservation of the natural environment and landscape and further development of cultural and recreational assets. 8 The absence of a university within the region has been cited as a key regional deficit

from the planning and delivery of critical infrastructures and the development of concentrated and well planned urban development to the facilitation of enterprise development through stimulating networking,

and perhaps also a missed opportunity to work with this distinctive diversity through a more coordinated approach to regional development.

The Spirit of Enterprise Forum indicates an ability within the region to act collaboratively. Conclusion The South East is distinctive in that its settlement pattern includes five major centres of population distributed across the region.

Recent infrastructure investments in the region are welcomed, and will enhance the physical access and connectivity of the region, both nationally and internationally.

Further investment will be required to enhance future economic development potential. FORFÁS REGIONAL COMPETITIVENESS AGENDA: REALISING POTENTIAL:

Sectoral Opportunities This section considers the assets of the region, and how they might be harnessed to further develop the enterprise base.

The challenge over the next decade (faced by the entire country), is to shift economic growth toward export oriented sectors

and activities and to stimulate employment opportunities in particular. The areas outlined below were highlighted during the regionally based workshop9

and one-toone consultation, informed by employment trends and the existing enterprise base. The outline for each sector that follows demonstrates the suite of assets that provide a platform for growth;

for attracting investment from foreign and indigenous companies, stimulating entrepreneurship and enabling companies based in the region to grow

and target international markets. The sectors considered for the Southeast are10: The Bioeconomy incorporating: Agri-Food Bio-energy Tourism (incl.

Marine based tourism) ICT Services Internationally Traded Services (excl. ICT) Lifesciences While the listing above suggests discrete sectors with potential,

a key characteristic of global enterprise trends is increased the blurring of sectoral boundaries-where advances in science,

and develop new and more valuable products and services. Examples include: ICT and Healthcare (remote diagnostics, bioinformatics;

and more recently, software development provide a strong platform for future growth in emerging convergent sectors. 9`A workshop for key economic stakeholders was held in Kilkenny on 9th june 2009 10 The sectors listed should not be considered an exhaustive listing,

SOUTHEAST 10 The Bio-economy In its long term strategy, Towards 2030: Teagasc's Role in Transforming Ireland's Agri-Food Sector and the Wider Bioeconomy11,

Food production and processing Value-added food processing Agri-environmental Products and Services Energy and Bio-processing We consider the potential for the Southeast specifically as it relates to Agri-Food and Bio-Energy.

Agri-Food Globally, the agri-food industry has transitioned from being led largely production to being led by market demands.

'This has resulted in a growing demand for lifestyle related products such as health enhancing functional foods (e g. cholesterol reducing products.

Agribusiness also plays a significant role as part of a wider‘bio-economy, 'as scientific advances, consumer trends

and market developments create novel and nontraditional uses for natural resources (including agri-environmental products and services,

The sector contributes the highest proportion of IEE (Irish Economic Expenditure) in terms of salaries and third party services and materials-higher than any other agency supported sector13.

The map overleaf highlights some of the enterprise and research strengths of the agribusiness sector (particularly food in this instance) in the Southeast and in adjacent regions. 11 See http://www. teagasc. ie/publications/2008/20080609/Foresightreportvol1. pdf 12 Teagasc

and the wider Bio-economy 13 Although this does not take into account contributions toward corporation tax Significant Future Potential‘Agriculture, forestry,

Teagasc's Role in Transforming Ireland's Agri-Food Sector and the wider Bio-economy FORFÁS REGIONAL COMPETITIVENESS AGENDA:

SOUTHEAST 11 As with many other sectors of the economy, agribusiness faces difficult trading conditions today.

Commodity prices are low for agricultural goods with strong competition arising from low cost production locations.

Demand for food products in the UK, a key market, has fallen due to lower aggregate demand conditions

Agri-Food Sector Enterprise and Research Activity Realising Potential Companies operating in the sector need to move to higher value activities,

Alignment of research with near term development opportunities in the region, i e. ensure that areas being researched can be exploited in the region Continuation of Teagasc advisory role to assist potential agribusiness entrepreneurs in the identification and exploitation of opportunities in the area (in co-operation with Enterprise Ireland and CEB's,

and other enterprise support bodies) Continuation of EI's role in enterprise development for firms operating in the sector, particularly in the areas of productivity improvement and market/product diversification FORFÁS REGIONAL

COMPETITIVENESS AGENDA: REALISING POTENTIAL: SOUTHEAST 12 Support from regional and local authorities for the development of the bioeconomy in the planning process and in infrastructure provision.

Growth is driven principally by a growing demand for energy and a move to cleaner sources of energy production as the costs of carbon and other polluting emissions of traditional fossil fuels are being priced into production processes.

which every region has an opportunity to benefit, albeit to differing degrees. Key Assets The Southeast has fewer natural advantages in the renewable energy sector than other regions,

and enterprise'with a focus on environmental technologies, including Envirocore, which is focused on the 14 Driven by the Southeast Regional Authority

SOUTHEAST 13 development of niche areas within bioenergy, waste management, bioenvironmental monitoring and high value commodity products from biomass,

investigation and analysis techniques for the built environment Teagasc has its national headquarters in the Southeast,(at Oak Park,

and develop opportunities in this area. Existing frameworks which have been developed (e g. the Bioenergy Implementation Plan steering group) can be advanced to deliver practical initiatives in the utilisation of environmental goods and services in the region.

Leadership and enhanced focus on specific areas where returns can be identified will be required for the successful realisation of opportunities.

From a usage point of view more efficient and sustainable generation and consumption of energy can deliver benefits to the region's businesses and consumers.

and one which is likely to have positive spillovers into other aspects of the region's economy and society,

and increasing the attractiveness of the region for inward investment. The‘Sunny Southeast'has established an reputation for tourism, particularly domestic tourism, a market

Improve transport services to and within the region through actions to address issues relating to road, rail, sea and air services.

Realising Potential Some challenges need to be addressed to enhance the contribution of tourism to the region's economy:

Access: Ongoing road improvement projects such as the M9 and M8 will greatly enhance access to the south-East.

As well as large scale infrastructural investments, access for the tourism market can also be improved through innovative initiatives using local facilities,

in order to maintain the quality of the local environment. Product: Fáilte Ireland's strategy for the region is multifaceted based on a brand, building on key regional strengths:

A joint approach needs to be taken to developing the Southeast's tourism products by stakeholders and tourism promoters for the successful exploitation of particular market segments, especially domestic holidaymakers.

Internationally Traded Services (excluding ICT) 16 Today, a wide variety of services are traded internationally, including such activities as finance, insurance, computer-related activities, R&d, advertising, marketing, accounting and consultancy.

In addition, there is an increasing level of services activity taking place within manufacturing firms the so-called‘servicisation'of manufacturing.

Moreover, globalisation, along with the enabling technologies that underpin it, has seen the emergence of new and more complex business models.

Increasingly, multinational companies seek to maintain competitive advantage by out-sourcing, moving selected business processes to more economic or strategic locations,

This has generated a raft of new mobile investment activity in global business services (& global business services centres) to manage more complex global corporate structures and activities,

such as shared services, customer support & customer management, business process outsourcing, supply-chain/procurement, IT operations, human resources and finance/transaction processing.

In Ireland, services that are traded internationally currently account for 43%of Irish exports. This is expected to rise to 50%by the end of the present decade17.

Key Assets Regional Competitiveness Agenda Volume I for the Southeast highlighted the fact that the region has a lower than average proportion of employment overall in services activities.

Moreover, services growth (excluding the public sector) contributed significantly less in terms of employment creation in the Southeast (38%)than it did nationally (50%)over the past 10 years.

employment in internationally traded services has been far more rapid. Employment levels in agency supported firms (typically internationally trading) almost quadrupled over the 1998 2008 period from a very low base of c. 900 to over 4

Much of the growth is accounted for by investments by overseas companies into the region such as AOL (Carphone Warehouse;

and customer/technical support services. The region has built a sizeable portfolio of international financial services (IFS) companies

Many 16 ICT Software & Services are considered separately below 17 Forfás (2008) Catching the Wave A Services Strategy for Ireland FORFÁS REGIONAL COMPETITIVENESS AGENDA:

This view equally holds true for the broader international services sector. Future business investment within the region in international and financial services will require advanced, high quality and competitively priced broadband infrastructure and access to data centre capacity.

Foreign language skills will become increasingly important. However, the limited demand for language skills by the existing cohort of companies can result in reduced retention of graduates with such skills and perhaps reduced interest in acquiring language skills.

A focus on innovative ways to promote language training and reinforce existing education initiatives within the region may enhance language capabilities in the region.

ICT Services & Software A new environment has emerged for software companies globally in what has been called‘The New Software Economy'19.

This new context sees a number of trends that provide both opportunities and challenges for software companies,

and for small and medium sized companies and start-ups in particular. These trends include: 18 Expert Group on Future Skills Needs (December 2007) The Future Skills and Research Needs of the International Financial services Industry 19 Enterprise Ireland (2009) Best

Connected-Software from Ireland-A strategy for development of the indigenous software industry 2009-2013 FORFÁS REGIONAL COMPETITIVENESS AGENDA:

more efficient ways of paying for software Vendors responding to these demands by embracing new delivery and pricing models, such as software as a service (Saas), infrastructure as a service (Iaas), platform as a service (Paas);

a distributed business model where different value adding activities are carried out where they can be done most efficiently and cost-effectively The application of software technologies (such as Services Oriented Architecture SOA, Open source,

Web 2. 0 and Mash-ups) are continuing to drive the development of new applications and business models.

These trends are reflected through the phenomenon of‘cloud computing'a now widely used term to describe how scalable and flexible IT capabilities are provided as a service to multiple customers using internet technologies.

while maintaining high quality IT services. ICT Impacts All Sectors: ICT today is more than an enabling technology.

it changes the way services are delivered e g. remote learning or healthcare and diagnostics, simulation (training), virtual reality (architecture and design;

it provides opportunities for new converged products and customised digital content (e g. ipod, blackberry); and it enables the monitoring of large scale phenomena such as energy consumption, pollution, weather and global warming.

and Enterprise (CORE) within the Institute. Gamecore is focused on industry relevant research under a number of themes, such as networks, games engines and development,

Unum and IT Carlow The software development capabilities at IT Carlow were a key attractor in the recent investment by Unum,

Autonomic Management of End-to-end Communications Services. The TSSG's main area of research is communications software services

and it has developed strong expertise in the areas of distributed systems and service oriented architecture. With 160 active staff and students, the TSSG is a significant pool of specialist expertise within the Southeast

The companies typify the kind of activities associated with the‘new software economy'and include: Nubiq mobile website generation and personalisation;

Akruu on-line billing and accounting services; Hasf6 interactive radio; IMS-Stream Voip solutions. Realising Potential The Institutes of Technology in the region have adopted a focused approach in the area of software development

The TSSG's deepening expertise in the area of future internet infrastructure and services and its strong commercial focus provides the region with a strong platform for future indigenous and FDI enterprise potential.

and a focus on‘wellness'provide high growth opportunities. There is also a greater focus on enhanced efficacy of treatments and cost within increasingly pressurised health systems.

SOUTHEAST 19 There has also been an increase in disaggregation of value chain activities within the sector creating opportunities for smaller companies to position themselves within the global supply chain with innovative,

technology intensive solutions, partnering opportunities, shared revenue deals and licensing. Multinational companies in the sector are tending to focus on activities where they have strengths and to outsource non-core activities (such as late stage manufacturing,

and services activities serving the life sciences sector e g. Dataworks (Waterford based Irish software company providing manufacturing control systems

and Eirgen (Waterford based Irish pharmaceuticals company specialising in formulation development and clinical trials supply services.

Parametric Modelling and Rapid Prototyping which have varying applications in the Medical Technologies area 21 Using enterprise agency supported companies as a proxy (Forfás, Annual Employment Survey, 2008

Lifesciences Sector Enterprise and Research Activity Realising Potential The development of the life sciences sector in the Southeast should be considered in the context of the sector nationally.

and delivering programmes providing for up-skilling relevant personnel as well as ensuring that mainstream undergraduate programmes evolve to meet the needs of the sector. 22 Forfás (2009) Health Life sciences in Ireland-An Enterprise Outlook FORFÁS REGIONAL COMPETITIVENESS AGENDA:

Enhancing the Business Environment The region has many of the building blocks in place to attract investment from foreign and indigenous firms.

To achieve Ireland's ambition as outlined in the Smart Economy, the business environment needs to continuously evolve to meet these changing needs to provide a dynamic environment that is supportive of early start ups and entrepreneurial activities,

that stimulates company engagement in innovation and R&d and that ensures that companies have access to the high quality skills

Leadership and Strategic Capacity The ability of a region to realise its economic potential hinges very much on the ability of key regional stakeholders to act cohesively-in support of key enterprise sectors/activities with potential for growth,

and there are good examples of where the regional stakeholders have acted collaboratively to achieve certain regional goals-for instance,

or the organisation of'Enterprise Week'which is coordinated through the Spirit of Enterprise Forum.

There is an opportunity through the existing regional authority and/or Spirit of Enterprise Forum to provide strong leadership

and a space for constructive debate on overarching strategic issues, not least the accelerated development of Waterford City as the regional Gateway.

The regional stakeholders also need to consider the unique urban configuration within the region and how the other strong centres in the Southeast along with the Gateway can operate more effectively in concert to achieve critical mass.

SOUTHEAST 22 Stimulating Entrepreneurship Whereas mobile investment tends to be attracted to the larger urban areas, there is potential within the region to create competitive environments to attract a concentration of new company start-ups in the hub towns and other locations.

As an increasing number of people face unemployment, many are stimulated to develop their own businesses

and consider entrepreneurship as a realistic option. The region needs to ensure that it facilitates ease of access to the‘right'information at the right time

and the local authorities in the region, the enterprise agencies and education institutes can work together to ensure that all the elements are in place

that enable companies to access core support services such as reception, secretariat, accounting, HR, facilities management etc.

and support to invest in infirm innovation 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.

Enterprise Support Agencies, Higher education institutions, Primary and Post-Primary Teaching, Research Organisations, Entrepreneurs, Industry Representatives (indigenous and multinational), Local government, Research Centres and the WIT Centre

for Entrepreneurship. The Forum meets every quarter 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. ie/FORFÁS REGIONAL COMPETITIVENESS AGENDA:

REALISING POTENTIAL: SOUTHEAST 23 Access to markets and to market intelligence Facilitated networking, introductions and access to shared learning opportunities (e g. through business networks, workshops, seminars.

The GEM entrepreneurship report contains some positive indicators for the Southeast Region. Of particular note is that the region generates the highest rate of early stage entrepreneurship of all the regions in Ireland23.

It is estimated that the rate of new firm formation is second only to Dublin. Anecdotal evidence from EI confirms a distinct increase in new business prospects over recent months,

which is happening in the context of increasing unemployment and the proactive Enterprisestart initiative currently being rolled out regionally by EI in conjunction with the CEBS.

A specific focus on harnessing the entrepreneurship capabilities within this cohort to stimulate new business start-ups is required.

The region has a range of support structures and services in place for entrepreneurship and business development

The Spirit of Enterprise initiative (see box above) is particular to the south-East Region. Adopting a cross-regional partnership approach,

the Spirit of Enterprise Forum has coordinated a'Make Business Happen'conference and'Enterprise Week'.

'The initiative has introduced a coherent approach to enterprise and entrepreneurship development within the region that can be built upon.

Also, Waterford City Development Board along with the enterprise agencies has developed a website to provide a‘one-stop'information portal for businesses.

It is a good example of what can be done locally and incorporates an excellent ‘which agency can help me'chart 23 New firms and nascent entrepreneurs 24 SEBIC Southeast Business Incubation Centre;

SEEPP Southeast Enterprise Platform Program Ideagen Ideagen is new initiative involving a collaboration between four HEIS in the Southeast (IT Carlow, WIT, NUI Maynooth (Kilkenny Campus) and Tipperary

Institute) and the Spirit of Enterprise Forum, in partnership with EI. The initiative seeks to stimulate the next wave of research collaborations and market led business innovations in the Southeast.

The intention is for Ideagen to spark new ideas for new businesses and joint ventures with high-growth potential in an open environment.

Map of Enterprise Agencies from‘waterfordbusinessinfo. ie'website Enhancing Quality of life The Southeast has many positive quality of life attributes,

particularly those associated with its high quality natural environment and the range of very accessible cultural and recreational amenities across the region.

however the key considerations from an enterprise development perspective suggest a broadly based interpretation based in the main on inclusiveness and diversity.

However, there are some opportunities for strengthening the quality of life proposition of the region. The fragmented and competitive urban structure in the region with the associated lack of spatially concentrated critical mass may militate against the development of larger scale cultural facilities and events

continually enhancing the city's built environment (streetscapes, public spaces, transport and communications networks etc. through careful and sustainable planning.

Innovation and R&d Innovation is about translating ideas into high-value products and services. There are many sources of innovation,

including end customers, firms with complementary products and/or services, and research institutes. Figure 5 Activities that Stimulate Innovation Source:

Based on Edquist (2005)‘ Systems of Innovation-Perspectives & Challenges'in Fagerberg et al (2005) The Oxford Handbook of Innovation 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

Innovative thinking and creativity is stimulated in an environment that is dynamic, interactive and collaborative Enablers and supports provided by government facilitate innovation

and range from establishing the‘right'fiscal, IP and regulatory environment, to supporting education and training,

There are also a number of supports available through the enterprise agencies and elsewhere including company network supports, industry-led research platforms, innovation vouchers, and skillnets.

or by their understanding of the benefits of collaboration with others in a way that realises the value of complementary capabilities (rather than direct competition in the same‘space),

and services they produce, the processes they employ to create them, and the strategies they employ to market and sell.

It will also rely on the region's ability to stimulate entrepreneurship and promote entrepreneurial thinking.

SOUTHEAST 27 Skills and Education As in the rest of the economy, the Southeast is facing a major skills deployment issue over the medium term.

Low levels of educational attainment, both at leaving certificate and graduate level compared to other regions High numbers of relatively low skilled unemployed High levels of skills where demand has reduced significantly,

training providers such as FÁS and the enterprise support agencies, and other interested stakeholders representing business, local authority and community interests.

Skills related labour market interventions at both national and regional level will need to realise the following aims:

(and in adjacent regions) in producing graduates with enterprise focused skills, oriented towards sectors which are growing

and including UL, FÁS, Enterprise Ireland, IDA the VECS, and the City and County Development Boards which aims to retrain

and educate those who have lost their jobs by providing comprehensive details about opportunities across the Midwest.

and other stakeholders. Initiatives such as the North West Cross-Border Workforce Development Forum can be important tools in identifying how the existing skills base can be reoriented towards areas of growing skills demand within the region26.

Connectivity Infrastructures As companies increasingly engage in activities that involve building direct relationships with customers

The opportunity for SMES to improve business productivity, tap into new markets and to innovate in new service delivery can be facilitated through effective use of IT applications and broadband infrastructures.

The development agencies contend that the future needs of enterprise require investment in Next Generation Networks

Access to next generation infrastructure and services in all the gateways of at least 12mbps uncontended, symmetric service for premises and homes by 2012;

Access to next generation infrastructure and services in all the hubs and county towns of at least 12mbps uncontended, symmetric service for premises and homes by 2015.26 http://www. delni. gov. uk

Rail Rail services in the region are underdeveloped due to a combination of interrelated factors including time-tabling issues

lack of demand and limitations due to existing track infrastructure. While improvements have been achieved for example enhanced commuter services to Dublin (from Carlow and Wexford especially) and the introduction of an early morning service on the Waterford-Dublin inter-city line,

services overall remain infrequent and journey times too long. FORFÁS REGIONAL COMPETITIVENESS AGENDA: REALISING POTENTIAL:

SOUTHEAST 30 Key enhancements are required in the following areas: A reduction in travel time (to two hours) on Dublin-Waterford services27 An increased level of service on the Limerick-Waterford route Development of freight services in the region, serving port facilities

at Waterford and Rosslare. Air Primary international air access for the region is through airports at Cork, Dublin or Shannon,

and has concentrated on developing services to the UK and to Europe. The airport also carries out a wide range of other activities including:

Albeit from a low base, the airport has achieved a fourfold increase in passenger numbers between 2003 and 2008.28 Waterford Airport can play an important role in offering alternative and convenient services to business travellers into the UK

Future expansion of services will require implementation of critically important infrastructure developments including a runway extension to accommodate larger jet aircraft (c. 20m government funding is currently on hold.

Further development of tourism-related opportunities will require a specific focus-in conjunction with Fáilte Ireland and other relevant stakeholders.

To facilitate this demand, Eirgrid has suggested that the following investments in the Southeast's electricity grid are necessary;

An investment of approximately €830m to upgrade approximately 490 km of the existing network and to build new infrastructure;

27 Iarnród Éireann have announced recently the commencement at the end of November 2009 of a new express train from Waterford City to Dublin (Monday to Saturday) departing at 7:

Journey times will be reduced by as much as 15 minutes on existing services due to operational improvements arising from introduction of new fleet 28 BMW Regional Assembly (2009) Maximising the Economic Impact

Water and Waste Water Substantial investment in the region's water and waste water infrastructure has been undertaken in recent years through the individual local authorities.

Continued investment in water services under the current NDP aims to address remaining capacity shortages.

In the recent Forfás (2008) assessment of water and waste water services from an enterprise perspective, a number of issues were highlighted for the Southeast,

and addressed where possible. 29 Forfás (2008) Assessment of Water and Waste Water Services for Enterprise FORFÁS REGIONAL COMPETITIVENESS AGENDA:

SOUTHEAST 32 6. Priority Actions Many of the suggested actions below will serve to address a number of the opportunities

There are many actions that can be taken at a regional level, with the relevant regional stakeholders acting collaboratively,

and support enterprise related regionally based initiatives). The following are considered priority areas for action in relation to the Southeast.

Business models are being transformed whereby open innovation (across companies) is becoming a reality; smaller technology intensive companies have a range of options for targeting their end customers,

including entering into licensing and/or revenue sharing arrangements with larger global companies. As companies increasingly network, the enterprise development agencies in the Southeast can also enhance their collaborative actions to facilitate companies in this environment.

The enterprise development focused Spirit of Enterprise Forum is a significant initiative with potential to provide leadership and a cohesive approach to supporting enterprise development in the region.

The Forum can be the vehicle to drive many of the priority actions set out here.

Ongoing and structured communications between the enterprise agencies and the HEIS (in terms of innovation technology transfer, skills needs etc) is required focused on a clear agenda, objectives and actions.

It is important that interactions between sectors are initiated-particularly where there are opportunities for convergence (e g. medical devices and ICT;

agribusiness and environment/life sciences), working with the relevant industry associations and the HEIS. Promote interaction between indigenous SMES

and MNCS in the region-for example, include relevant indigenous companies as demonstration sites on inward investment itineraries

Further engagement will be required to advance specific actions to achieve the potential of opportunity sectors in the region.

The formation of small, sectorally focused teams under a regional umbrella-possibly the Spirit of Enterprise Forum-to further explore specific opportunities in identified sectors could be most effective.

and stimulate innovative practices in business-facing services (Development Agencies, Local authorities). Consider how best to enable companies to access technologies and research from HEIS, for example:

and searchable in terms of technologies and their application to'real'industry problems/potential (and not by research department) Stimulating Entrepreneurship The relatively high level of early stage entrepreneurial activity in the Southeast offers potential for future

enterprise growth in the region and needs to be nurtured in a supportive environment: Provide clarity on the availability of business supports to potential entrepreneurs,

the role of each regionally based agency and key contacts in order to avoid a‘pillar to post'scenario.

SOUTHEAST 34 Harness the capabilities of the'new'highly skilled professional unemployed to identify potential business start-up opportunities

IP negotiations, developing business plans, identification of sources of finance, mentoring. 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 Teargas, EI, LEADER and the CEBS.

Skills Development A continued focus on aligning education provision with industry needs in the region is required through collaborative actions (enterprise agencies,

Physical Infrastructures Broadband High quality and pervasive broadband is a fundamental enterprise and quality of life requirement. National efforts will have to be made to overcome these issues in the main;

the following routes should commence at the earliest opportunity: N11 (Arklow/Rathnew; Enniscorthy Bypass) N25 (New Ross Bypass) N24 (various improvement schemes along N24 route) 30 30 The Southeast Regional Authority have produced a report examining the need for an upgrade of the N24,

Water/Wastewater Continue with planned investments in water and waste water infrastructure to ensure forecast deficits in key centres do not arise. 31 Iarnród Éireann have announced recently the commencement at the end of November 2009 of a new express train from Waterford City to Dublin (Monday to Saturday

Journey times will be reduced by as much as 15 minutes on existing services due to operational improvements arising from introduction of new fleet FORFÁS REGIONAL COMPETITIVENESS AGENDA:

SOUTHEAST 36 Appendix I Existing Enterprise Agencies, Initiatives and Supports32 The enterprise development agencies play a key role in stimulating the development of new businesses,

and targeting new foreign direct investment through a broad range of initiatives. In conjunction with Forfás they influence policy by providing on-the-ground information about the real issues facing business (in areas such as infrastructures, education and regulatory environment.

The agencies work together to market and promote Ireland internationally as a‘good place to do business'and with a strong reputation for high quality exports,

Enterprise Ireland Enterprise Ireland's core objective is to drive export growth by creating and growing internationally competitive businesses

and facilitating entrepreneurship throughout the country. They have offices and representatives established in a range of locations throughout the country

Stimulate and support entrepreneurship Stimulate investment in R&d and innovation through financial supports, Intellectual Property advice,

Techsource (technology acquisition) Support company expansions and investment in capital and productivity initiatives Provide supports for training

Enterprise Ireland Activity in the Southeast Region The Enterprise Ireland client base in the Southeast (in 2008) employs over 17,000 people, accounts for approximately 8%of total employment in the region,

Forfás, Annual Employment Survey, 2008 Enterprise Ireland has supported the development of 15 Community Enterprise Centres across the region, with one in Carlow, two in Kilkenny, seven in Waterford, three

and referral for established and nascent entrepreneurs about EI and other enterprise supports at a local level.

IDA Ireland IDA is responsible for the attraction and development of foreign investment in Ireland. It is focused on securing investment from new and existing clients in the areas Of high End Rubber and Plastic Products 3%Nonmetallic Mineral Products 13%Basic and Fabricated Metal Products 13

%Computer Electronic and Optical Products Machinery and 1%Equipment 9%Transport Equipment 1%Other Manufacturing ICT Services 9%3%Business and Other Services

5%Food, Drink, Agri 38%Wood and Wood Products 3%Chemicals and Chemical Products 2%FORFÁS REGIONAL COMPETITIVENESS AGENDA:

SOUTHEAST 38 Manufacturing, Global Services and Research, Development and Innovation. Key sectors include Life sciences, ICT, Engineering, Financial services, International Services, Digital Media and Consumer Brands.

The IDA is focused also on emerging areas such as Clean Technology, Convergence and Services Innovation-areas that offer exciting new investment opportunities.

The IDA attracts overseas and inward investment by: Focusing on business sectors that are matched closely with the emerging needs of the economy

and that can operate competitively in global markets from an Irish base. Building links between international businesses and third level education, academic and research centres to ensure the necessary skills

and research and development capabilities are in place. Pursuing Ireland's policy of becoming a knowledge-based economy by actively building world-leading clusters of knowledge-based activities.

Compiling up-to-date statistics and facts for research into industry, the economy and foreign direct investment in Ireland.

The IDA also provides serviced sites preplanning approval and buildings (buildings are provided by the private sector on IDA serviced sites.

The IDA is developing a limited number of larger scale strategic sites that are intended to service utility intensive enterprise activity (e g. bio/pharma manufacturing, data intensive services.

Teva Pharma 165 Waters Technologies Medical Technologies 125 Equifax ICT Services 180 Citi Financial services 250 Unum Software 200 Coca cola Beverages

Forfás Annual Employment Survey, 2008 A key activity for IDA in the regional context is the development of a strong value propositions for attracting high value foreign direct investment to the region based on its particular strengths

Its economic mission seeks to encourage new investment and employment opportunities in Gaeltacht areas. The Gaeltacht covers parts of counties Donegal

Transport Equipment5%5%Medical and Dental Instruments and Supplies 27%Other Manufacturing 7%ICT Services 10%Financial services 6%Wood and Wood Products 3

Attracting high value investments (especially in high technology services), both indigenous and from overseas, to the Gaeltacht Providing attractive property solutions for enterprise development in the Gaeltacht Working to upgrade services

and infrastructure (physical access and telecommunications) especially where Industrial Estates and Business Parks are located Initiatives to strengthen the competencies

and qualifications of the workforce Initiatives in support of entrepreneurship and early stage start-up companies, including provision of incubation facilities.

In providing supports to both FDI and indigenous enterprise investments, Údarás operates within the same regional aid framework as EI and IDA and offers a similar suite of supports to enterprise as the other

in some instances effectively acting as an‘agent'for mainstream programmes managed by EI or IDA (for example the R&d programme and the more recent Enterprise Stabilisation Fund.

Science Foundation Ireland Science Foundation Ireland (SFI) is the state agency that promotes investment in basic research,

SFI's stated mission is to help build in Ireland research of globally recognised excellence and nationally significant economic importance through strategic investments in the people, ideas and partnerships essential to outstanding research in strategic areas.

City and County Enterprise Boards (CEBS) The Southeast has six CEBS. The CEBS support the start-up & development of local business in Ireland.

Through the CEB Co-ordination Unit based in Enterprise Ireland regional headquarters in Shannon the CEBS are developing a closer working relationship with Enterprise Ireland,

and LEADER and they provide a range of enterprise supports to SMES and start-up businesses.

These goals cover areas such as services for jobseekers and the unemployed, workforce development, labour market policy, social inclusion, equality and diversity, and customer service.

Secondly, it supports enterprise development in Irish tourism, promoting best practice in operations, quality and standards and facilitating investment in tourism infrastructure.

Thirdly, it builds human resource capability in the industry, investing in training provision and standards across the publicly supported educational system, through a training network of outreach centres and also via an executive and management development programmes for the tourism industry.

Regional support for people and enterprises is provided at a local level through the office of the Business Development Manager.

The role of the Business Development Manager in each region is to liaise with Industry stakeholders to provide support in developing businesses capability and standards to support business goals, service standards, profitability and longterm sustainability,

They primarily facilitate an enterprise-led approach to training and development and also aim to address the lack of investment in Human Resource Development by business by tackling some of the real and perceived barriers to training.

Skillnets is funded under the National Training Fund through the Department of Enterprise Trade and Employment.

FORFÁS REGIONAL COMPETITIVENESS AGENDA: REALISING POTENTIAL: SOUTHEAST 43 Appendix 2 IDA Business & Technological Parks The availability of a choice of high quality property solutions to a potential investor or startup company is essential.

It is key to stimulating enterprise investment, concentration and well-planned structured growth within a region.

and landscaped to a high standard including a services infrastructure to suit both manufacturing and international services sectors.

The Business Park has some Greenfield sites available to suit both manufacturing and international services clients.

000 sq ft currently available) and Greenfield sites to suit both manufacturing and international services sectors.

All main services are in the immediate vicinity. FORFÁS REGIONAL COMPETITIVENESS AGENDA: REALISING POTENTIAL: SOUTHEAST 45 Notes FORFÁS REGIONAL COMPETITIVENESS AGENDA:


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