Winning Innovation and Investment in the Regions

Transcription

1 Winning Innovation and Investment in the Regions November 9 th, Kinnity Castle, Birr Co.Offaly Mary Buckley Manager, Regional Development & Property Division

2 Format Success of FDI in Ireland Global Challenges IDA s response to these Challenges Strategy for Irelands Regions IDA Property Solutions Vision for Ireland

3 Success of FDI in Ireland 1,054 companies employing 129,000 people Top 11 pharmaceutical companies in Ireland Exports of 72 billion and Irish economy expenditure of over 18bn World s largest exporter of software New digital businesses e.g. Google, ebay Some of most advanced technology in the world e.g. Intel, Wyeth and many more Ireland the most globalised economy (AT Kearney / Foreign Policy magazine) -

4 FDI Competitive Challenges Fast paced globally networked economy Significant growth in global location options for investors Mobile manufacturing investments into Europe are declining Services investments of growing importance Irish costs and expectations have changed

5 Ireland faces stiff competition for FDI For Example: Singapore: Population 4.2 million 7th place in the Global Competitiveness Report, (World Economic Forum) 1st place in the Global Information Technology Report, (World Economic Forum) 1st in Asia for Ease of Doing Business, 3rd in the world (World Bank report Doing Business in 2005) 1st in Asia for the Quality of Government Policies (PERC, February 2005) Effective Tax Rate 0f 6.2% R&D spending in the city-state has increased and is now 2.2% of GDP There are 90 research scientist and engineers per 1000 people.

6 IDA s Response to change in the FDI marketplace Win new greenfield investment. Ireland is competing for more complex, higher value, knowledge-based activities in both manufacturing and services Upgrade and deepen the existing base of companies by winning additional functions or greater competencies e.g. R&D, sales and marketing and supply chain management

7 FDI Competitve Challenges IDA s response to change in the FDI marketplace: Property development and infrastructure Education, skills & research initiatives to strengthen companies Networking, partnerships and cluster initiatives

8 Ireland s Market Share of FDI 2001/2003 Share Top Location Software 28% Ireland Shared Services Centres 61% Ireland Pharma & Med Tech* 63% Ireland ICT * 9% C. Europe 55% Contact Centres 21% UK 33% R&D projects 9% UK 25% * Manufacturing Source: Buck Consultants (BCI), 2004

9 The importance of Manufacturing Manufacturing is still the engine driving our economy. IT represents the majority of FDI exports of 68bn and local economy expenditure of 15bn by overseas companies in Ireland Now common for manufacturing facilities in Ireland to involve investment of the order of 1m per worker e.g. Intel Type of manufacturing investment being secured for Ireland has changed, new areas such as technical support, supply chain management headquarters functions

10 IDA Strategy for Innovation Move Ireland up value chain ESR / SBG -research- and innovation-driven economy Attract, grow R&D activities within Ireland Broaden the activities of MNCs within Ireland IDA is a key component in this strategy Build research excellence and human capital Foster academic-industry collaboration

11 Enterprise Strategy Group Report Aderra International marketing for Irish based MNC s: World-class research and innovation capability: Education and re-training: Headquarter functions in Ireland: IVCA Oct 14 th 2004

12 Regional Challenges Companies will select those locations that enable their business to succeed in international markets Delivering the right infrastructure is critical in attracting FDI to the regions: access, energy, telecoms environment and waste property solutions and business services attractive lifestyle and amenities clusters of similar businesses RPG s As is The right skills The right attitude

13 Education, Skills and Research Are essential to renew our existing businesses and win new investments Can be our most sustainable unique competitive advantage Investments especially in third and fourth levels and connect them with business Investments by Science Foundation Ireland and PRTLI Institutes of Technology and Universities are key to achievement of regional success e.g. Abbott in Longford and Sligo Education and retraining to enable people to work and participate in the knowledge economy is important to the future prosperity of Regions

14 IDA Regional Strategy IDA Ireland s regional footprint: Over 80 staff across the regions including four IDA Divisions ICT Division HQ - Waterford Medical Technologies Division HQ - Athlone Engineering Division HQ - Sligo Regional Dev. and Property Division HQ - Athlone

15 The NSS and the NDP NSS is a 20 year strategy which plans to enhance the competitiveness of the Regions so that they can perform at an international level as a driver of National Development (NSS ) The Regions must prioritise infra-structure and act cohesively in its delivery Much NDP investment is catch-up e.g. national roads network, broadband, public transport

16 IDA Regional Strategy IDA s approach to promoting and developing the regions: Influencing and partnership role, ensuring the local environment is right for FDI Promoting the regions as the location of choice for overseas companies Researching and attracting new areas of business to build on the region s capabilities 50% Greenfield Target for the BMW

17 IDA Regional Strategy Magnets of Attraction Letterkenny Sligo Cork Dundalk Dublin Waterford NIBRT Tyndall Inst. Cross Border Virtual Business Park International Sales & Marketing Centre - Drogheda Dundalk Technology Park Sligo/ School of Financial Services TSSG Waterford

18 IDA Regional Strategy / Property Solutions Waterford Business and Technology Park Dundalk Business & Technology Park Heinz Proposed Creche Facility ABB PP received for: AOB x 2 ATB x 3 Horseware Ltd. Nat. Penn Iqon IDA Offices ATB (80K sq.ft.) EPC Ltd. Quantum IDA Finnabair Business & Technology Park Cork Business and Technology Park Ballinasloe Business and Technology Park

19 IDA Regional Strategy Heavy Utility Sites Galway / Oranmore Mullagharlin Waterford / Belview Galway Cork / Ringaskiddy / Carrigtwohill Belview Ringaskiddy/Carrigtohill Louth / Mullagharlin

20 Oranmore Building Design

21 IDA Flagship Parks N Arklow Athlone Ballina Ballinasloe Blanchardstown Carlow Cavan Castlebar/Westport Drogheda Dundalk Fermoy Galway Greystones Letterkenny Monaghan Mullingar Navan Portlaoise Silgo Waterford Wexford

22 Some Recent Announcements Letterkenny -Zeus Industrial Products Inc Medical Devices Company Athlone AXA Assistance Customer Support Centre Waterford BISYS Hedge Fund Services Wexford PFPC International Fund Administration Services Cork Alcon Laboratories Medical Devices Naas & Drogheda IFS Hedge Fund Services Letterkenny SITA Inc Software Development Galway Labcoat Ltd HQ / Manufacturing and R&D Operation Limerick Cook European Shared Services Centre Gort Ulbrich European Operations Centre Galway Respironics Global Centre of Excellence Sligo Toucan Customer Telecoms Centre Clonakilty Ellison European HQ

23 Regional Challenges Key issue going forward shaping investment post NDP 2006 that delivers benefits for Regions Compensating for infrastructure weaknesses with grant incentives will not yield results Regions must prioritise & act cohesively on infrastructure needs

24 Challenges for Ireland Companies will select those locations that enable their business to succeed in international markets Education and retraining to enable people to work and participate in the knowledge economy is important to the future prosperity of Ireland Academic and business collaboration for innovation and research is critical

25 A Vision for Ireland To be a world-leading society as reflected by: A knowledge-based economy with world class infrastructure and services At the forefront of technological innovation In top three competitive economies in world People committed to lifetime learning Socially inclusive and cohesive nation The highest environmental standards

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