the global economy – a role for dublin
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The Global Economy – a role for Dublin. Martin Cronin 24 May 2005. Role of City-Regions. - PowerPoint PPT PresentationTRANSCRIPT
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
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‘Ahead of the Curve’- Enterprise Strategy Group
Comparative Advantage
Competitiveness
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