Martin CroninChief Executive

The Global Economy – a role for Dublin

Martin Cronin

24 May 2005

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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 Ireland’s only global centre and has a pivotal role to play in Ireland’s continued economic performance and development.

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Dublin

Cork, Limerick, Galway

Waterford, Sligo, Athlone, Dundalk

……

Big fleas have little fleas upon their backs to bite them- And little fleas have littler fleas and so on ad infinitum

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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 (MGA’s) : Helsinki, Manchester, Dublin, Turin, Oslo

Potential MGA’s : Warsaw, Budapest, Lyon, Antwerp

Weak MGA’s : Bordeaux, Porto, Krakow, Riga, Cork

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GDP per capita 2001– EU cities (€)1 Frankfurt 74,4652 Karlsruhe 70,0973 Paris 67,2004 Munich 61,3605 Dusseldorf 54,0536 Stuttgart 53,5707 Brussels 51,1068 Copenhagen 50,775.........................

15 Amsterdam 38,20316 Munster 38,14917 Wiesbaden 37,45418 Dublin 36,59119 Vienna 36,57220 Stockholm 35,733

Source: Office of Deputy Prime Minister, Competitive European Cities, Jan 2004

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Ratio of GDP per Capita: City vs. National

Frankfurt/Germany 3.8 Paris/France 3.5Brussels/Belgium 2.6Copenhagen/Denmark 1.9Amsterdam/Netherlands 1.8Vienna/Austria 1.8Helsinki/Finland 1.7Stockholm/Sweden 1.7London/UK 1.7Dublin/Ireland 1.5Rome/Italy 1.5Berlin/Germany 1.2

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Dublin’s 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.

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Critical Success Factors

Access/connectivity

Highly Skilled Workforce

Innovation

Diversity of Enterprise Base

Quality of Life

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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

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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

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Skilled Workforce

37.8

44.925.2

28.7

29.1

37.7

33.5

26.0

37.2

No FormalPrimary/Lower

Sec

Upper Secondary Third Level

Dublin Ireland 15-30 Ireland

Overall stock of secondary graduates in Ireland is poor

Low level of staff trainingIncreased emphasis on ICT required

But…

Ireland has the youngest population in Europe with over 40% under 25

Ireland’s 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

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European Innovation Index

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Innovation: CSETsThree 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)

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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 R&D, 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

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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

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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

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Trajectory of the Global EconomyUncertainties

• Exchange rates

• Geopolitical issues

• EU Accession countries

• Oil Prices

• Property prices…

2. Certainties

• Globalisation

• China, India

• Technological progress

• Accelerating pace of change

• …….

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2005

DomesticCost

Shift to

Services

??

Role ofKnowledge

The Case for Change…..Ireland in Transition

+ Intense Competition

for both Low Ground High Ground

Globalisation

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ServicesExamples of sectors and activities that offer significant opportunities for exploitation by indigenous enterprises and for increased inward

investment

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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

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‘Ahead of the Curve’- Enterprise Strategy Group

Comparative Advantage

Competitiveness

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