Transforming Regions: From Convergence to Competitiveness Open Days 2005 Gerry Finn Director BMW Regional Assembly.

Transforming Regions:From Convergence to

Competitiveness

Open Days 2005

Gerry FinnDirector

BMW Regional Assembly

Presentation Overview

• Profile of the Border, Midland and Western Region

• Processes Undertaken – Audit of Innovation

– Regional Foresight

• Challenges Identified

• Lessons for next round of Structural Funding

Regional Context

BMW Region has 47% of land area, 27% of population & 19% of national GDP

Growing Regional Divide in terms of GDP, unemployment, “brain drain” & infrastructure

Significant underspend in BMW Region at Mid-Term stage of NDP – particular underspend in roads, public transport, broadband and R&D

Infrastructure deficit - roads, electricity, gas, ICT etc.

NSS sets a new framework for regional development

The Economy of the BMW Region

• Traditional sectors (agriculture/food processing/tourism) in decline

• Low level of high value added activities• Low R&D - most research funds allocated to

S&E Region• Relatively low levels of innovation• Commitment of Industrial Development

Authority to provide 50% of greenfield sites in the region

Audit of Innovation: WHY DID WE DO IT?

• To establish baseline situation in the region• Identify enablors and barriers to innovation• Assess the causes of low innovation activity• Develop concrete proposals to improve performance

• Comprehensive process involving:

- Desk research - Company Surveys - Focus group discussion - Industry case studies - One to one interviews - Interim seminar

Scope of the Audit

• Profiling of the BMW Region’s economy, Industry structure & employment trends

• Review of entrepreneurial system, company start ups and growth rates.

• Survey of 215 firms in the BMW region on innovation performance, supports & barriers.

• Review of Development support system. • Assessment of role of 3rd level sector & impact of

infrastructure & entrepreneurial culture on innovation.

• Recommendations & Pilot Actions

ICT Companies in Ireland

AccentureAgilent TechnologyAgtel LtdAIM CaratAmdahl IrelandAMT/Sybex GroupAOL Technologies IrelandApple Centre TypetecBaltimore TechnologiesBowne Global SolutionsClientLogicCodecHewlett Packard IrelandCable & Wireless/ ALLnetCommergy Ltd.Creative Labs IrelandCritical PathData Electronics Group Ltd.DatalexDatapac LtdEDS (Ireland)Eicon NetworksEontecErgoFineos CorporationFISC IrelandFujitsu ConsultingFujitsu ServicesGoogleHorizon Technology GroupIona TechnologiesLionbridge TechnologiesMicrosoft European OperationsMisys International BankingMemorex Telex IrelandMicrowarehouseModus Media InternationalNovell Ireland SoftwareOracle EuropePricewaterhouseCoopersRiverdeep Interactive LearningSage IrelandSAP Service & Support CtreSaturn Fulfilment ServicesSilicon & Software SystemsSkillsoftSpectel Multi Link GroupSun Microsystems IrelandTranswareTrintech GroupVision ConsultingSiemens (I) LtdXerox EuropeXilinx

Apple Computer Banta Global Turnkey EMC Ireland Motorola Ireland SDL Ireland Alps Electric (Ireland) Apple Computer Flextronics International Cork

ADC Hewlett Packard Siebel Systems Nortel Networks American Power Conversion

Chorus Communications Analog Devices Dell

Dell Avaya Ireland

Infoscore

Computer Software Development / Services Computer Hardware / Related Products Communications

Computer Software Development / Services Computer Hardware / Related Products Communications

Enterasys Networks Avocent

3Com IrelandAPW EnclosureAvid TechnologyBenchmark Electronics Irl.Cara GroupEriccsonEurologic SystemsFujitsu-Siemens ComputersHitachi Printing Sol. EuropeIBM IrelandLake CommunicationsMentecMTI Technology IrelandOsmosis IrelandParthusCevaSercom SolutionsStratus TechnologiesSymantecZomax Ireland

Hewlett Packard Intel Ireland

CMS Peripherals Ireland

Quantum Ireland Xerox Technology

Prumerica Systems Ireland

Ericcson

20:20 Logistics IrelandAlphyraConduitEircomLM Ericsson HoldingsEsat BTiTouchLucent TechnologiesMCI IrelandETel Group

© CIRCA Group

Border Regional Authority Midland Regional Authority West Regional Authority

Border Regional Authority Midland Regional Authority West Regional Authority

Results of Firm survey

Survey of 215 firms found that in BMW region:

Levels of innovation lower than national average (53% versus 79%)

Lower rate of product development & patenting Lower rate of linkages with research/3rd level institutions Absorbtive capacity for new development generally

weak. Lower rate of employment of graduates and

Postgraduates

Development Support system

• Low access to and uptake of venture capital

• Low expenditure in the region on industrial RTDI

• Level of participation in company based R & D schemes is low

• Need for continued focus on Foreign Direct investment

• Many schemes not sufficiently geared to the needs of companies in the region.

Infrastructure & Role of Third Level Sector

• Infrastructure deficits add costs to doing business & acts as a disincentive to inward investment

• Continued investment needed in roads, rail, air, telecommunications & energy infrastructure

• New strategies required in 3rd level sector • Additional resources for industry relevant research

activities. • Knowledge drain of graduates out of the region evident • Need for greater technology transfer between

research/3rd level institutions & companies throughout the region

Framework for Regional Innovation

Overview of the Foresight Process

• 18 month process involving wide consultation within & outside the region

• Co-ordinated by BMW Regional Assembly secretariat

• Facilitated by consultants CM International

• Steering Committee & 4 expert panels

• Wide consultation nationally & within region

• Submissions invited from interested parties

• Local/regional/national endorsement obtained

Challenges to the BMW Region as a Competitive Region

• Transport and Communications Infrastructure• Supporting Business Clusters and Centres of

Excellence• Increase in Knowledge-Intensive Activities• Competitive use of Natural Resources• Increasing Entrepreneurship• Industry-Relevant Support Programmes

Challenges to the BMW Region as an Innovating Region

• Greater Flexibility and Adaptive Attitudes to Respond to Change

• Education and Skills Levels to Increase• Inter-Agency Colloboration and Academic-

Industrial Linkages• Technology Transfer and Company Spin-Outs• Clustering and Spatial Specialisation• Building a Regional Research Base

Challenges to the BMW Region as a Knowledge Region

• Identifying and Responding to Future Skills Needs• Increasing the Knowledge Capacity of the Region• Increasing Life-Long Learning in the Region• Appropriate Delivery Mechanisms for Further

Education• Flexibility and Adaptability of Skills• Graduate Retention and Attraction• Resources for all Education Levels

Challenges to the BMW Region as a Quality of Life Region

• A Desirable Place in which to Live, Work, Visit, Invest

• Social Infrastructure• Sustainability – Improved Living Environment• Spatial Development Strategies• Diversity, Access and Equality• Cultural and Social Environment

4 Themes & 4 Panels

4 expert panels selected to explore themesof:

• A Knowledge Region

• A Competitive Region

• A Quality of Life Region

• An Innovative Region

A Vision for the BMW Region in 2025

An innovative, knowledge-based and competitive region, with a high quality environment, first class infrastructure, visionary leadership and a quality of life for its citizens that is among the highest in the world

Vision, 5 Components & 2 Cross-cutting Themes

````

VISION

High quality environment for

sustainable communities

21st CenturyInfrastructure

Networks

Effective regionalmanagement & visionary leaders

Entreneurshipand knowledge as

cornerstonesof prosperity

Internationallycompetitive

business environment

Equality of Opportunity

Sustainability

The Strategic Objectives

• Place 3rd level institutions at the heart of the region’s future prosperity

• Create an innovation & entrepreneurial culture

• Build on existing clusters & concentrate investment

• Invest in infrastructure that builds on the NSS

• Strengthen regional leadership

The Strategic Objectives (cntd.)

• Invest in attracting and retaining skills

• Invest in leading edge business support

• Invest to make the region’s high quality environment sustainable

• Invest in community & social capital to ensure sustainability

• Invest in physical infrastructure to maximise knowledge capital

Lessons for Next Round of Structural Funds

• New approaches to research and innovation activities required and new partnership arrangements

• Greater regional differentiation in national strategies

• Innovative delivery mechanisms e.g. County and Group Broadband Scheme

• Greater focus on Ireland’s National Spatial Strategy as a framework for investment

Lessons for Next Round of Structural Funds

• Need for greater added value for community funds

• Better co-ordination with national expenditure plans and with agriculture, fisheries, rural, research programmes and human resources

• Frontloading in phasing-in regions requires a pipeline of “spend-ready” measures

• Infrastructure deficiencies still prevalent – a key determinent of competitiveness