Action Plan for Jobs: Transformative Enterprises Building Futures
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- Maurice Tobias Horton
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1 Action Plan for Jobs: Transformative Enterprises Building Futures Presentation by Declan Hughes, Head, Enterprise and Trade Policy at the Southern and Eastern Regional Assembly Annual Conference 24 th May 2012
2 Action Plan for Jobs - Ambition To be the best small country in which to do business Implication for regions of Ireland to be internationally competitive What are the key requirements to improve that performance? Top-5 international competitiveness ranking Build world-class clusters in key sectors of opportunity Grow export market share of Irish companies No silver bullet rebuilding economy innovation by innovation, reform by reform Increase employment by 100,000 by million to 1.9 million - and reach 2 million people by February 2012
3 New Approach to Ensuring Delivery First of rolling annual process All Government Departments and Agencies aligned on Enterprise Growth and Jobs objective Taking forward key recommendations of Advisory Group on Small Business Over 270 actions across all Government Departments and 30 Agencies Subject to quarterly review by monitoring group D/Taoiseach, D/JEI, D/PER and Forfás. Quarter 1 report published in April 2012
4 Competitiveness Location Attractiveness Factors Factors Enterprise Dynamic Economic Infrastructures Knowledge and Innovation Quality of Life Factors Location of Competitiveness Attractiveness Factors Leadership and Strategic Capacity Skills and Education
5 The Critical Success Factors Driving Export Led Growth Innovation Productivity Sustainable Competitive Enterprise Costs Enterprise Mix Supporting an efficient market for locally trading activities
6 Southern & Eastern Regional Competitiveness Performance Rank (1-4) Stage of Development/GDP per capita Tier 1 Primary and Secondary Education Tier 1 Higher Education and Training Tier 2 Innovation Pillars Tier 2 Technological readiness Tier 2 Business Sophistication Tier 2 Labour Market Efficiency Tier 2 Infrastructure Tier 3 Competitiveness index Overall Tier 1 Source: European Union, A New Regional Competitiveness Index, No 2/2011
7 London Luxembourg Bruxelles Groningen Hamburg Prague Paris/IdF Stockholm Bratislava US: California Vienna Oberbayern Bremen Utrecht NE Scotland Darmstadt US: Maryland Noord-Holland Hovedstaden Irl: South & East United States Åland Salzburg New Hamp. Stuttgart País Vasco Zuid-Holland Antwerp Etelä-Suomi Mittelfranken Madrid Lombardia Ireland Irl: BMW EU27 Berlin Merseyside Source: Forfás/NCC Ireland s Productivity performance, Productivity Performance Output per person, 2008 ( 000,PPP)
8 Southern & Eastern Employment in Indigenous Agency-assisted Enterprises, , , , ,000 80,000 60,000 South West South East Mid West Mid East Dublin 40,000 20, Source: Forfás/ Annual Employment Survey, 2011
9 Southern & Eastern Agency-assisted Foreign Subsidiary Employment, , , , ,000 80,000 60,000 South West South East Mid West Mid East Dublin 40,000 20, Source: Forfás/ Annual Employment Survey, 2011
10 Regional Context Potential Strong capacity building over last decade Infrastructure enhancements and strengthened gateway connectivity: roads, energy, water, zoned land Continued improvement in educational attainment Transitioning enterprise base: growth of international services and advanced manufacturing (pharma & med tech), agri-food International services, manufacturing, engineering and agri-food, pharma and medtech core strengths Positive entrepreneurship dynamic Unemployment Rates, 2007 & 2011 Research strengths Unemployment is the key challenge 20% 15% 10% 5% 0% Source : CSO
11 Objectives of the Action Plan for Jobs Building competitive advantage Innovation, Costs, Skills & Infrastructure 1. Supporting indigenous start-ups 2. Assisting indigenous business to grow 3. Attracting inward entrepreneurial start-ups 4. Developing and deepening the impact of FDI 5. Developing employment initiatives within the community 6. Exploiting Sectoral opportunities
12 Building Competitive Advantage Competitiveness and productivity improving, but structural issues remain to be addressed Ambition is to be among the top 5 competitive economies by 2016 Aligned to Europe 2020 strategy of a new growth path leading to a smart, sustainable and inclusive economy
13 Building Competitive Advantage Research and Innovation Prioritise research to future market potential Applied research mandate for SFI New Technology Centres New IP Protocol New R&D industry participation targets Improved R&D tax credit
14 Building Competitive Advantage Research and Innovation Cost Competitiveness Prioritise research to future market potential Applied research mandate for SFI New Technology Centres New IP Protocol New R&D industry participation targets Improved R&D tax credit Sectoral wage reform Simplified and extended PRSI exemption Energy costs (cost effective infrastructure; efficiencies) Reduce/freeze amenable Government charges Sensible Regulation Audit of licences reform for waste and water Enhanced competition Reduced property costs
15 Building Competitive Advantage contd. Aligning Skills and Enterprise Needs New Education & Training Fund New Springboard call ICT Skills Action Plan New STEM activity New employer/hei linkages VEC / Apprenticeship evaluations and action
16 Building Competitive Advantage contd. Aligning Skills and Enterprise Needs New Education & Training Fund New Springboard call ICT Skills Action Plan New STEM activity New employer/hei linkages VEC / Apprenticeship evaluations and action Infrastructure Investment 3.9 billion of exchequer capital NewERA programme Strategic Investment Fund of 250mn to leverage 1bn for infrastructure New Broadband Plan (milestones to address deficit) 100Mbit/s broadband to schools
17 Indigenous Enterprise Growth Collapse in domestic demand major impact on indigenous firms Resilience on international markets indigenous exports above pre-recession levels in 2011 Agencies working at local and regional level with partners to realise growth potential Key issues of access to investment capital, competitiveness and productivity, attracting talent and implementing growth strategies
18 Supporting Indigenous Start Ups New one stop shop for micro enterprise Corporation Tax exemption Micro Finance Fund and Competitive Start Fund New Community Enterprise Development Programme New HPSU/Inward entrepreneur/spin out targets Pilot Innovation Graduates Programme New Women-In-Business Starts drive Improved legal environment Examine options for extending benefit to the self-employed
19 Assisting Indigenous Business to Grow Stronger Enterprise Ireland/IDA collaboration New Potential Exporters Division within Enterprise Ireland Global Irish Economic Forum initiatives New sector clustering initiative Productivity programmes Support businesses to get online New Management Development Networks Foreign Earnings Deduction Sector specific trade missions New trade & investment country-market plans Source Ireland portal and Going Global Fund
20 Assisting Indigenous Business to Grow contd. Launch a new Development Capital Scheme Partial Loan Guarantee Second Innovation Fund Ireland call Improved banking expertise and local relationships Focus on new money element of bank lending targets New stakeholder engagement on credit supply / surveys of demand Examination of childcare support programmes New Innovation Voucher call, focussed on design and branding New SME-Procurer engagement process Assign mentors to assist SMEs to win contracts New Procuring Innovation Programme / Flagship Opportunities
21 Deepening the Impact of FDI Continued flow of new ideas, knowledge and foreign investment important to growing innovation, productivity and jobs and to developing new sectors Ambition is to be the go-to place to start a business Intense competition for investment - agile and united Team Ireland is critical Sustaining top ranking as a destination for FDI - recent successes with expansions by existing multinationals in Ireland and high growth start-ups illustrates opportunities Strengthening linkages between MNCs and SMEs
22 Attracting Inward Entrepreneurial Start Ups 10m Fund for investor-ready projects New International Start Up Ambassadors New Diaspora Campaign Targeted marketing campaign New immigration arrangements to facilitate entrepreneurs The Start-up Entrepreneurship Programme Good business idea in the innovation economy and funding of 75k Residency for purposes of developing business
23 Developing /Deepening Impact of FDI Target > 140 company investments Target > 12,000 new jobs Target 1,000 jobs from new-market investments Achieve 500m in R&D investment approvals 50% of investments outside Dublin and Cork Diaspora job finder s fee scheme Finance Bill Sectoral measures Special Assignee Relief Programme New Official Advocates Programme
24 Employment Initiatives within the Community Small firms make valuable contribution to job creation in local communities Many successful models around the country that can be built on to build communities, develop sense of place and enhance Ireland s attractiveness to live and work Social enterprise sector has potential for further job growth
25 Developing Employment Initiatives within the Community Workshops / Jobs Fairs Work with firms dedicated to good corporate social responsibility to provide employment opportunities Private sector Prompt Payments Charter Sector strategy to promote employment and support local enterprise by local government Local and Community Development Programme Rural Development Programme National Community Investment Fund
26 Exploiting Sectoral Opportunities Range of areas where Ireland can create and sustain a competitive edge Targeted sector-specific actions required to unlock full jobs potential Potential for jobs growth in manufacturing sector and international services Achieving potential requires policy co-ordination and collaboration between public and private sectors in delivery at national and local level Strength of sectoral clusters and networks key to competitive advantage
27 Sector development a Cohesive approach Tourism National target of 8m visitors by Marketing and Capital Funds. Quality of the natural environment/landscape and cultural focal points Regional product and brand development, cohesive approach, cross-selling Agri-food and Bio-Energy Co-opetition, competitiveness and investment to deliver Harvest 2020 Focus on value-add and new opportunities. Region specific Harvest 2020 Plan. Win more investment from multinationals. Licensing for aquaculture Lifesciences & healthcare Pharma and med tech reference base Synergies and convergence with food sector, tourism, digital media Health Innovation Hub to drive collaboration between the health system and the life sciences industry International Services, Finance Importance of attractiveness of cities of scale and of linked gateways ICT, Cloud Computing & Digital Media
28 Sector development a Cohesive approach Manufacturing Support transformation and investment in growth areas New Forum. Long Term Strategy and Skills Review (Forfás) EU State Aid negotiations Green Economy Green Public Procurement Action Plan. Retrofitting Clustering of offshore energy, green tourism and food Construction Sector Support for internationalisation A new national strategy (Forfás) Business Process Outsourcing/Shared Services Support for new investment and transformational change External delivery of Government services Digital Games Cluster development team Education Services Implement International Education Strategy Arts, Culture and Creative Enterprises Heritage, arts, festivals Digitalisation and audio-visual
29 Delivery in Q National Research Prioritisation Exercise Potential Exporters Division Succeed in Ireland Development Capital Scheme Partial Credit Scheme and Microfinance Fund Innovation Fund Ireland Extension of PRSI Incentive Scheme Aquaculture Licence Application and marketplace International 2012
30 National, regional and local development requires a cohesive approach Regional Gateways Enhancing Employability Developing an attractive environment Enterprise Mix Priority Infrastructure Cohesive Regional Marketing/Promotion National and International Enterprise Development Source: South East Employment Action Plan, Forfás, December 2012
31 Thank you
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