REGIONAL COMPETITIVENESS AGENDAS Overview, ï ndings and actions FORFÃ S REGIONAL COMPETITIVENESS AGENDAS: OVERVIEW, FINDINGS & ACTIONS
i Table of contents 1. Â Introduction 1â Objectives 1â Process 1â Outputs 2â 2. Â Report Structure 3â
3. Â Background and Context 4â Balanced Regional Development: The Spatial Agenda 4â Sustainable Recovery and Growth:
The Enterprise Agenda 4â Regional Competitiveness for Enterprise 5â 4. Â Overarching Findings 6â Overview 6â
Planning, Development and Delivery †Infrastructures 6â The Enterprise Development Agenda 8â Enterprise Related Regionally Based Initiatives 11â
Critical Infrastructure †Broadband 12â Conclusion 14â 5.  Regional Competitiveness Agendas 15â Border 15â
West 17â Midlands 19â Southwest 21â Midwest 24â Southeast 27â Dublin and the Mideast (the East) 29â
Spirit of Enterprise Forum 32â The Young Entrepreneur Programme 33â Regional Innovation Cluster 33â Cork Area Strategic Plan 33â
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, retail and
manufacturing sectors and, given the reliance on these sectors, is being felt more starkly in
vital that we prioritise 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 when the
ï§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 ï§Provide the economic context to inform the update of the Regional Planning Guidelines
ï§Influence the refresh of the NSS being undertaken by Department of Environment Heritage and Local government and planned for completion early 2010 (Doehlg
Department of Enterprise, Trade and Employment (DETE), the Department of Environment 1 NUTS III level:
and the Gateways Investment Priorities,(Fitzpatricks Associates, Consultants, Doehlg and Forfã¡s 2004), and complements the NCC report:
4 Including IDA, Enterprise Ireland, Shannon Development and Western Development Commission FORFÃ S REGIONAL COMPETITIVENESS AGENDAS:
outside of those supported directly by the enterprise agencies, including tourism and maritime Outputs The outputs include
competitiveness factors and was used to inform stakeholder consultation and workshops ï§Regional Competitiveness Agendas Volume II:
critical interplay between regional competitiveness and enterprise development ï§Informed the regional economic strategies (RES) for the update of the Regional Planning
ï§Developed a Regional Competitiveness Agenda in support of the enterprise development agencies and identified actions for enhanced collaborative action
across factors of competitiveness, from an enterprise perspective Section 4 Outlines the overarching findings arising from the study that have relevance at
Communications Overview & Findings Regional Level National Level Volume II Realising Potential and Actions for each region
enterprise development perspective and arguably have increased in importance7, in particular ï§Gateways as key drivers:
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
ï§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. It describes potential as the capacity that an area possesses,
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 Spatial Strategy 2002-2010 as:
potential critical mass, gateways and hubs, complementary roles and linkages 8 European commission (2007) State of European Cities Report
10 NESC (2008: 178) The irish Economy in the Early 21st Century FORFÃ S REGIONAL COMPETITIVENESS AGENDAS:
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 inter -dependent. 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 labour/talent Leadership and Strategic
Capacity outlining relevant organisations and indications of locally driven initiatives and outcomes Regional Boundaries NUTS III13 regions were used to facilitate systematic data analysis.
Notwithstanding the arbitrary nature of these administrative regional boundaries, this study posits a role for
regional level coordination and delivery of certain initiatives The main objective is that key assets
and enterprise potential are optimised regardless of location It is important that governance and leadership structures at the regional level are efficient and
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 ï§Not all regions can (or necessarily should) be the same
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 how better collaboration could deliver greater impact, given the structures that are in place today.
Historically, 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.
opportunities for cross-boundary collaboration Actions Accelerated Development of the Gateways-Governance Gateways have a critical role in driving regional economic development.
particular to harness services and/or leverage key †national†infrastructures as appropriate (e g. airports
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
ï§Sectoral focus ï§Entrepreneurship ï§Rising unemployment and reskilling ï§The †new†unemployed
ï§Innovation ï§Supports for SMES A Sectoral Focus The RCAS are premised on the fact that a main platform for the realisation of regional
advantage of new opportunities. It acknowledges that regional boundaries are'fluid'in this context, and that often sectoral'clusters'can grow scale and capabilities through wider
It is important that specialist sectoral knowledge within the enterprise development agencies is employed where necessary to support regionally based sector development initiatives
ï§Prioritise and target investments (national, regional and local) in a coordinated and complementary way that accelerates the development of the gateways
ï§Reinstate the GIF at the earliest opportunity. A number of plans are already in place
Entrepreneurship Our analysis has been based on an assessment of competitiveness factors which are critical influencers of businesses†location decisions.
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 Historically, many of Ireland†s HPSUS have emerged in Dublin and the East region
important to leverage the investments made in the regions to date17, and to harness the
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 fast
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. Many identified the need for a more in depth understanding of the regional skills
between key stakeholders; reactionary rather than strategic collaborations; challenges in achieving buy in from stakeholders; the requirement for effective leadership and
management of expectations; and the need for a regional rather than county level approach to skills development.
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,
interest in entrepreneurship has increased significantly and EI/CEB/FÃ S workshops are well attended. The agencies are considering how best to harness these available skilled
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.
customers, suppliers, partners, joint ventures, licensing etc), and the broad nature of innovation (ranging from incremental to disruptive.
Entrepreneurship /Intrapreneurship Customer Demand & Feedback New Market Formation Competence Building Skills and Education Provision of
Consultancy Services Financing & Commercialisation Institutional Supports & Regulation FORFÃ S REGIONAL COMPETITIVENESS AGENDAS: OVERVIEW, FINDINGS & ACTIONS
11 †push†factors. 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. In some cases the emphasis needs to be on increasing productivity
The establishment of a CEB Coordination Unit in Enterprise Ireland in 2007 is beginning to have impact, particularly in terms of consistency in approach
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, many regionally based initiatives rely on individuals whose †day job†may be elsewhere
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.
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, Western
Development Commission and the CEBS (Report of the Special Group on Public service Numbers and Expenditure Programmes
regions and stimulating enterprise development. Duplication of efforts would also be minimised and impact optimised
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
also play a vital role in influencing investments in infrastructures specific to enterprise (and in some cases sectoral) needs.
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 ï§Establish a Regional Economic Forum23 in each region to meet quarterly that brings
together the appropriate expertise and competences, with responsibility to drive the Regional Competitiveness Agenda and to deliver on a cohesive and coordinated
enterprise focused agenda, to include ï¿the enterprise development agencies ï¿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, not
enterprise development today within the regions. The changing nature of sectors, high data volumes and information intensity, the increased use of graphics and video, interactive web
From a regional perspective broadband is an enabler for enterprise to establish in locations outside of the main gateway centres and to create significant employment and regional
In order for adequate broadband25 services to reach businesses and homes across the country two things are required ï§Existing backhaul assets need to be managed in a coordinated way to optimise usage, and
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, and the issues above are not new
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
ï§Augmenting gaps which exist at different points of the existing network/backhaul ï§Delivering the †last mile†and addressing local area access needs
ï A coordinated approach to driving the enterprise agenda at regional levels, and ï An awareness of the factors that influence enterprise investment decisions and
prioritisation of infrastructure investments and actions that address the needs of enterprise The development of the RCAS, the interaction with the RPGS, proactive engagement with the
Doehlg, and the extensive consultation nationally and regionally has gone some way to defining the issues
and to stimulating debate and ensuring that the enterprise agenda is firmly embedded in regional policy
It is important that we continue to build on this momentum to develop a more coordinated
enterprise and planning agendas FORFÃ S REGIONAL COMPETITIVENESS AGENDAS: OVERVIEW, FINDINGS & ACTIONS 15 5. Regional Competitiveness 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 ï§The region benefits from its ability to access EU and cross border development funds for
investment ï§There has been a reduction in the number of †unskilled†within the labour force over 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 Key Data and Statistics †Border Border State Average Dublin
%31 GVA †Gross Value Added †the value of the region†s output less intermediate materials and services
marketing the region for enterprise development and tourism ï§Proactively market the Forfã¡s Productivity Guide and engage with firms-either on a
environment for enterprise investment, for tourism development and from a lifestyle choice perspective. The region has had strong economic performance,
established entrepreneurs, 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
and in ICT with the Digital Enterprise Research Institute (DERI ï§Comprising 13%of the total workforce,
economy of the West. Manufacturing employment declined however over the 1998-2008 period in line with the decrease nationally
short term potential to harness opportunities in wind and wood energy and related technologies, and longer term potential in wave energy
%Entrepreneurship (Early Stage as a %of the Population 10%8%8 %FORFÃ S REGIONAL COMPETITIVENESS AGENDAS:
potential opportunities and to further develop innovative and entrepreneurial capacity e g. IP negotiations, developing business plans, identification of sources of finance
mentoring)( Fà S, EI ï§Harness the design and creative skills in the region through the establishment of skills
ï§Stimulate interactions between sectors-particularly where there are opportunities for convergence (e g. medical devices and ICT), working with the relevant industry
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, and has a good
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 FORFÃ S REGIONAL COMPETITIVENESS AGENDAS: OVERVIEW, FINDINGS & ACTIONS
21 Ireland represents a potentially important strategic resource for the Midlands region and in the national context
understanding and'maturity'across a wide range of stakeholders of the importance of innovation to the future growth of the region,
ï§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? ft=/publications/2009/Title, 4556, en. php
significant potential in tourism, medical devices, other internationally traded services and maritime ï§The Southwest derives a higher proportion of its Gross Value Added (GVA) from
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 ï§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
Figure (ii) Convergence Opportunities Key Actions (Extract ï§Consider how best to enable companies (particularly small companies) to access
Enterprise Connection Point) as currently, a †push†approach is more often required to garner interest from firms to engage with research institutes
environment could provide opportunity to take a proactive, regionally based and creative approach in the short term.
Services Maritime Green Tech Food Lifesciences Functional Foods Aquaculture -Fishing Marine Tourism and Leisure Key Enabler
HEIS to consider work placement where students would take up opportunities in a flexible and cost effective way42
ï§Consider the benefit of extending/replicating the Young Entrepreneurship programme Tralee Institute) in other institutes/colleges in County Cork, harnessing the commitment
ï§Taking into account the business environment requirements for entrepreneurship undertake an assessment of existing infrastructures (both physical and soft) and identify
the potential in collaborative approaches between industry and the enterprise agencies in this area 43 CSO Population & Migration Estimates, April 2009
third party services to the company44. The regionally based TÃ snua initiative is focused on providing advice and supports to those impacted
ï§There has been a notable growth in ICT and other internationally traded services as well as the Medical Technologies sector,
ï§Informed by employment trends and the existing enterprise base, the regionally based workshop highlighted potential in the areas of Medical Technologies, taking advantage of
Environmental products and Services, Software and other Services, Food and Tourism Key Data and Statistics †Midwest
ï§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 ï¿Provide clarity on the availability of business supports and the role of each
for ongoing and proactive communications with the HEIS (in terms of innovation 45 This work has contributed to the deliberations of the Midwest Task force appointed by the Tá
but also presents an opportunity to work with this distinctive diversity through a more coordinated regional approach.
developments in recent years the transition to a more knowledge intensive enterprise profile has been relatively slow
ï§The absence of a university within the region has been cited by regional stakeholders as a significant deficit and a formal application by WIT for upgrade to university status is
the last decade included pharmachem, medical technologies and ICT services industries These growth sectors are owned dominated by foreign firms
of the Southeast economy. Strong international players in the food processing industry provide a solid platform for future growth
ï§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
ï§The small portion of the total R&d spend in the higher education sector (HERD underlines the importance of establishing linkages
ï§The enterprise development focussed Spirit of Enterprise Forum is an initiative that has brought together the relevant stakeholders over the past 3 years,
and has had some success in developing a regional rather than county focus48. This forum has the potential
to provide leadership and a cohesive approach to enterprise development throughout the region †although the role and engagement of the agencies in this context should be
of enterprise potential, infrastructures and the built environment ï§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
In terms of economic activity, the most prominent sectors in employment terms are the public sector, the financial services sector, and the retail trade sector.
rapid economic growth Points of Interest ï§With well over a third of Ireland†s population, the East region is the most populous and
ï§ICT services accounts for over a third of agency supported employment, and has seen the
Enterprise Ireland, IDA, the VECS and the City and County Development Board. It aims to
opportunities across the Midwest. TÃ snua 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
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 South
-East 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 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 FORFÃ S REGIONAL COMPETITIVENESS AGENDAS:
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 /The Young Entrepreneur Programme The Young Entrepreneur Programme is the brainchild of businessman,
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.
Throughout the year, they receive mentoring from dozens of companies in the Kerry region and hear from some of
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
for the local economy and encourage and promote a strategic response from existing local FORFÃ S REGIONAL COMPETITIVENESS AGENDAS:
-border engagement that involved the enterprise development agencies in the Republic The initiative has had varying degrees of success across NI, with particular challenges in
Waterford City Development Board along with the enterprise development agencies has developed a website to provide a †one-stop†information portal for businesses.
indigenous enterprise development agencies FORFÃ S REGIONAL COMPETITIVENESS AGENDAS: OVERVIEW, FINDINGS & ACTIONS 35 Roll out of Broadband in Dundalk
%100%O†Q Otherâ Services L, M, N Publicâ Sector J†K Financialâ andâ Otherâ
Businessâ Services IÂ Transport, Â Storageâ andâ Communication HÂ Hotelsâ andâ Restaurants GÂ Wholesaleâ andâ Retailâ Trade
F Construction C†E Otherâ Productionâ Industries A†B Agriculture,  Forestryâ andâ Fishing FORFà S REGIONAL COMPETITIVENESS AGENDAS:
Employment in Enterprise Agency Supported Companies, Selected Sectors 2008 Source: Forfã¡s Annual Employment Survey, 2008
%ICTÂ Services 20%Financialâ Services 7 %Otherâ Services 5 %Otherâ Manufacturing 31 %FORFÃ S REGIONAL COMPETITIVENESS AGENDAS:
OVERVIEW, FINDINGS & ACTIONS 40 Figure A2. 4: GVA per capita and per person at work, 2006 (State=1
Source: CSO National Accounts, Database Direct Figure A2. 5: GVA per capita and per person at work, 2006 (â
Investment Activity %of Adults Border 12.8 5 3. 1 7. 9 2 Dublin 10.5 3. 8 3. 6 7. 2 2. 3
Fitzsimons & O†Gorman (2008) Entrepreneurship in Ireland (Global Entrepreneurship Monitor †Report for Ireland
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