Presentation to the BMW Regional Assembly

Mary BuckleyManager, Regional Development & Property Division

“Winning Investment and Innovation in the BMW Region”

Format• Highlights of FDI

• FDI in the BMW Region

• FDI Competitive Changes

• Strategy for the BMW Region

• Property Solutions

• Challenges for the Future

• Vision for Ireland

Highlights of FDI

• 1,054 companies employing 129,000 people

• Top pharmaceutical companies

• Exports of €72 billion and Irish economy expenditures -

over €18 billion

• 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)

FDI in the BMW Region• There are 197 IDA client firms

employing 26,467 people

• Target of 50% Greenfield jobs into the BMW.

• Target Sectors:-ICT-Pharmaceuticals-International and Financial Services-Engineering

• BMW is winning investments at the high end of the quality spectrum

IDA Client Companies

FDI Competitive Changes

• 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

FDI Competitive Changes

IDA’s Response to change in the FDI marketplace:

• Win new ‘greenfield’ investment with a good regional spread. 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

FDI Competitive Changes

IDA’s response to change in the FDI marketplace:

• Property development and regional infrastructure

• Education, skills & research initiatives to strengthen companies

• Networking, partnerships and cluster initiatives

What Today’s Investor Seeks

• Human Resources

• World Class Infrastructure:

– access, energy, telecoms

– environment and waste

– property solutions

– business services

– attractive lifestyle and amenities

– clusters of similar and supporting businesses

• The Right Attitude

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

IDA Regional Strategy

NSS - Gateways & Hubs Aim – BALANCED REGIONAL DEVELOPMENT

• Address the unevenness of distribution of overseas companies across the country

• Based on

-Critical Mass

-Infrastructure

-Regional Planning Guidelines

• Stimulate resources “Regionally” towards a national goal

• IDA regional structure embedded

Strategy for the BMW Region

IDA’s approach to promoting and developing the BMW region

• Influencing / Partnership role, ensuring the local environment is right for FDI

• Promoting the BMW region as the location of choice for overseas companies

• Researching and attracting new areas of business to build on the regions capabilities

• Finding appropriate replacement investments for the region

Research and Innovation

• Build academic research capability

• Substantially grow MNC R&D

• Develop “connectedness” between the two

Strategy for the BMW Region

IDA doing this in two ways:

• Working in partnership with SFI, HEA and 3rd level colleges to bring business partners to CSET’s, research clusters and groups

• Working with MNC’s to bring academic groups together to develop industry focused research initiatives

Strategy for BMW Region

Property Solutions

• IDA is making the necessary long-term provision for the region in terms of property

• Investment over €50 million in high quality business parks in the period 2000-2003

• Top quality buildings from the private sector

• Choice of available space and serviced sites

• 17 Flagship IDA Business & Technology Parks

IDA Business & Technology Parks in the BMW Region

• Galway• Loughrea• Tuam• Ballinasloe• Cavan• Mullingar• Roscommon• Athlone• Tullamore• Portlaoise• Drogheda• Dundalk• Sligo• Letterkenny• Castlebar• Westport• Monaghan

Drogheda

Dundalk

Galway Athlone

Sligo

Ballinasloe

Castlebar Westport

Letterkenny

Tullamore Portlaoise

Mullingar

Monaghan

Roscommon

Cavan

Tuam

Challenges

• Companies will select those locations that enable their

business to succeed in international markets.

• The Region must compete internationally

• Resources must be mobilised regionally, not locally

• The Region must prioritise and act cohesively

• Academic and business collaboration for innovation

and research. Constant upskilling

• Partnerships are essential

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

THANK YOU