The Global Economy a role for Dublin

1
The Global Economy a role for Dublin

• 
  
  Martin Cronin
• 24 May 2005

2
Role of City-Regions

• Growing recognition in Europe that major
  city-regions play a central role in a modern
  knowledge based economy.
• e.g. UK study found that knowledge based sectors
  are heavily concentrated in or near the centres
  of major cities
• Research evidence suggests that the reputation
  and attractiveness of major cities has a
  determining influence on the competitiveness of
  the economy as a whole.
• Dublin is Irelands only global centre and has a
  pivotal role to play in Irelands continued
  economic performance and development.

3
Big fleas have little fleas upon their backs to
bite them- And little fleas have littler fleas
and so on ad infinitum
Dublin Cork, Limerick, Galway Waterford, Sligo,
Athlone, Dundalk
4
Big fleas have little fleas upon their backs to
bite them- And little fleas have littler fleas
and so on ad infinitum

• Global nodes London, Paris, New York, Tokyo,
• European engines Munich, Frankfurt,
• Brussels, Rome, Madrid
• Potential Metropolitan Growth Areas (MGAs)
  Helsinki, Manchester, Dublin, Turin, Oslo
• Potential MGAs Warsaw, Budapest, Lyon, Antwerp
• Weak MGAs Bordeaux, Porto, Krakow, Riga, Cork

5
GDP per capita 2001 EU cities ()
1 Frankfurt 74,465 2 Karlsruhe 70,097 3 Pari
s 67,200 4 Munich 61,360 5 Dusseldorf 54,053
6 Stuttgart 53,570 7 Brussels 51,106 8 Copen
hagen 50,775 ......................... 15 Ams
terdam 38,203 16 Munster 38,149 17 Wiesbaden 3
7,454 18 Dublin 36,591 19 Vienna 36,572 20
Stockholm 35,733
Source Office of Deputy Prime Minister,
Competitive European Cities, Jan 2004
6
Ratio of GDP per Capita City vs. National
Frankfurt/Germany 3.8 Paris/France 3.5 Brusse
ls/Belgium 2.6 Copenhagen/Denmark 1.9 Amsterdam/N
etherlands 1.8 Vienna/Austria
1.8 Helsinki/Finland 1.7 Stockholm/Sweden 1.7 Lo
ndon/UK 1.7 Dublin/Ireland
1.5 Rome/Italy 1.5 Berlin/Germany 1.2
7
Dublins Ranking as Business Location (Source
Cushman Wakefield Healey Baker, European Cities
Monitor 2004)

• OVERALL 12th
• Access to Markets (key factor) 23rd
• Availability of Qualified Staff - 15th
• Cost of Staff 7th
• Quality of Life 13th
• Climate Government Creates 1st
• When asked which cities were doing the most to
  improve themselves, only 5
• percent of those surveyed cited Dublin compared
  to 22 percent for Barcelona
• and 17 percent for Madrid.

8
Critical Success Factors

• Access/connectivity
• Highly Skilled Workforce
• Innovation
• Diversity of Enterprise Base
• Quality of Life

9
Access / Connectivity

• Dublin ranked 23rd, performing poorly on both
  external and
• internal transport facilities
• Public transport improvement was the single most
  demanded improvement by companies surveyed
• Lengthy delays in making decisions on key
  infrastructure
• priorities
• Rail link to airport first feasibility study
  commissioned in 1996
• Integrated city centre rail network
• Second airport terminal
• Eastern by-pass
• Outer orbital route
• Also delays in delivering major infrastructure
  projects once they have been approved

10
Access/Connectivity - Key Developments

• Luas
• QBCs on key radial routes
• Dublin Port Tunnel to open early 2006
• 810m M50 upgrade approved by An Bord Pleanála
  earlier this month
• Many additional air routes from Dublin airport
  providing direct connectivity to growing number
  of international destinations
• Unrivalled international telecoms connectivity
• Introduction of 10 year multi-annual capital
  envelope for transport a welcome development
• Proposals for new fast-track planning procedures
  for major infrastructural projects due this week

11
Skilled Workforce

• Overall stock of secondary graduates in Ireland
  is poor
• Low level of staff training
• Increased emphasis on ICT required
• But
• Ireland has the youngest population in Europe
  with over 40 under 25
• Irelands total investment in knowledge increased
  by an average annual rate of 10 over the past
  decade compared with averages of around 3 by the
  EU and the OECD.
•  

7.2 in Dublin have MA/PhD compared with 4.6
nationally
Source Census 2002
12
European Innovation Index
13
Innovation CSETs

• Three of the six awarded to date are in Dublin.
• Centre for Human Proteomics (RCSI)
• Centre for Research on Adaptive Nanostructures
  and Nanodevices (UCD/TCD)
• Centre for Telecommunications Value-Chain-Driven
  Research (TCD)

14
Diversity of Enterprise Base

• The cities which are most successful in
  responding to economic change are those least
  dependent on a single sector
• Dublin is host to a cluster of leading companies
  across a range of sectors including Financial
  Services, Life Sciences, International Services
  and ICT. Their activities include RD,
  manufacturing and services.
• ICT Bell Labs IBM Microsoft Iona
• Financial Services Citigroup Merrill Lynch
  AIB
• Life Sciences Wyeth Biotrin Megazyme
• Other Services eBay Google Riverdeep

15
Quality of Life

• Culture, environment, architectural and housing
  quality and city centre facilities
• 11th most expensive city in the world (6th in
  Europe)
• - 22nd in the world (14th in Europe) on
  the QOL indicator
• House prices in Ireland grew by 179 from
  1997-2004
• (147 in Britain, 131 in Spain)
• Increased congestion and longer journey times
• Need to implement integrated land use and
  transport policies

16
Quality of Life Positives

• Vibrant and cosmopolitan city
• Wide range of sport and leisure pursuits
• Active theatre scene Gate, Abbey, Andrews Lane
• Rich cultural heritage Joyce, Beckett, Wilde

17
Trajectory of the Global Economy

• Uncertainties
• Exchange rates
• Geopolitical issues
• EU Accession countries
• Oil Prices
• Property prices

• 2. Certainties
• Globalisation
• China, India
• Technological progress
• Accelerating pace of change
• .

18
The Case for Change..Ireland in Transition
Domestic Cost
Role of Knowledge
Shift to Services
Globalisation
2005

• Intense Competition for both
• Low Ground
• High Ground

?

19
ServicesExamples of sectors and activities that
offer significant opportunities for exploitation
by indigenous enterprises and for increased
inward investment
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
20
High Value ManufacturingExamples
of sectors and activities that offer
significant opportunities for exploitation by
indigenous enterprises and for increased inward
investment
x
x
x
x
x
21
Ahead of the Curve - Enterprise Strategy Group

Comparative Advantage
Competitiveness
22
For regular updates on Forfás
subscribe to email alerts. Email
alerts_at_forfas.ie with subscribe in the
subject or body of the email. Forfás, Wilton
Park House, Wilton Place, Dublin 2,
Ireland www.forfas.ie Tel [phone]
Fax [phone]