Director of Programmes & Services “Supporting Cross - Border Trade & Business Development” Margaret Hearty Director of Programmes & Services 20 June 2017

Economics and Peacemaking Sir George Quigley (March 2007) “Unless you achieve economic transformation, you can’t have a stable society” Sir George Quigley (March 2007) “Economic progress is crucial to the political forces that favour peace” Portland Trust (May 2007)

InterTradeIreland The Belfast Agreement, 1998. Six Cross-Border Bodies “A Body to exchange information and co-ordinate work on trade, business development and related matters, in areas where the two administrations specifically agree it would be in their mutual interest.”

Institutional Arrangements Northern Ireland Assembly & Executive North-South Ministerial Council Irish Government InterTradeIreland Department of Enterprise, Trade & Investment Department of Jobs, Enterprise and Innovation

InterTradeIreland Political Economic Cross Border All Island NOW 1998 Political Economic Cross Border All Island Trade Competitiveness 5

The Vision “A globally competitive all-island economy characterised by the optimal utilisation of the island’s economic resources for mutual benefit.” 6

North South Economic Co-operation Funded by Both Governments Supporting SME’s Focus on Trade and Innovation 32,000 Companies assisted 6,000 Companies in programmes 6,002 Jobs created I hope that given we are based in Newry most of you will know who we are. Just in case. All Island 99% of our money goes directly to supporting business.

Discover What’s Possible Intelligence Research Reports, Trade Statistics, Business Monitor, Market Knowledge, Academic & Graduate Knowledge and Expertise Funding Sales Growth, Innovation, Research, Specialist Expertise Contacts Conferences, Workshops, Seminars, Masterclasses

The Cross-border market is the first export market for 74% of business Importance of Cross Border Trade €3.1 billion manuafactured goods Circa €6 billion including services Export Destination Importance of cross border Trade: Currently valued at €6 BN. Each month 177k lorries, 205k vans and 1.85 million cars cross the border carrying goods and people. Businesses on the island are highly integrated with many products crossing the border several times for processing. Cross border market is the first export market for 74% of business. Crucially important as a stepping stone to entering new markets. The Cross-border market is the first export market for 74% of business

Range of Services

BREXIT - A New Lexicon 6. Tariffs Brexit Article 50 The Four Freedoms Trade Models World Trade Organisation 6. Tariffs

For Firms: Uncertainty Now? 98% have no plan 87% have no experience dealing with tariffs 91% of cross-border traders have no experience dealing with tariffs 80% of businesses still say TV news is their only source of info on Brexit

Sectoral shares of cross-border trade in manufactured goods in 2014 North – South Trade

Co-Innovate Programme Aim: To increase the proportion of SME’s engaged in collaborative R&I collaboration in the region from 22% to 33%. Objectives: To promote the benefits of innovation to SMEs within the eligible region. To strengthen SME innovation capabilities in the eligible region tailored to each companies needs. To increase business expenditure on R&I and the number of companies innovating. To enhance cross-border linkages. To complement existing R&I resources in the target area. To leave a legacy.......benefits will continue after the lifetime of the project.

3. Overview of Objective 1.2 To increase the number and capacity of SMEs engaged in cross-border research and innovation activity in the region aimed at the development of new products, processes and tradable services. The objective of Measure 1.2 is all about increasing the number of companies engaged in cross border research and innovation activity to develop new products, processes and services. We know from our own research that innovative companies are more successful, more likely to grow and more likely to export. We need more of these companies. We know that this programme has never been more important in terms of the current economic environment. However we know from our research that up to 50% of businesses in the eligible region are not innovation active and 80% are not involved in cross border R&I or collaboration. Uncertainly around Brexit, alot of companies in the region are small agri food companies. In order to survive these companies need to have higher value add products that command a better price and can be exported to new countries. Co Innovate can help these companies to do that. The project has been supported by the European Union's INTERREG VA Programme, managed by the Special EU Programmes Body

Co-Innovate Programme 8. Co-Innovate Programme Aim To increase the proportion of SMEs engaged in cross-border Research and Innovation (R&I) collaboration in the region from 22% to 33%. objectives To promote the benefits of innovation to SMEs within the eligible region. To strengthen SME innovation capabilities in the eligible region tailored to each companies needs. To increase business expenditure on R&I and the number of companies innovating. To enhance cross-border linkages. To complement existing R&I resources in the target area. To leave a legacy.......benefits will continue after the lifetime of the project. The aim of the measure and the programme is to increase the proportion of SME’s engaged in cross border research and innovation from 22% to 33%. We believe that our proposition is the most effective way to do this. The key focus of Co-Innovate is to build the capability of companies to innovate and grow. Co-Innovate will ensure equality of access to R&I supports across the region bringing together the innovation eco systems of each region. Co-Innovate will mobilize R&I resources throughout the region using open frameworks and partners existing networks Co-Innovate will work with and complement existing R&I support structures. Co-Innovate will tailor its supports to the individual needs of the companies that participate. It is only by leaving a capability in the business that this can of aim can be achieved. The benefits of Co-Innovate will continue to accrue long after the life time of the programme. The project has been supported by the European Union's INTERREG VA Programme, managed by the Special EU Programmes Body

Co-Innovate Partnership 2. Co-Innovate Partnership InterTradeIreland (Lead Partner) Scottish Enterprise Highlands and Islands Enterprise Enterprise Northern Ireland/Local Enterprise Organisations (CBLEP) East Border Region. We believe that we have formed the most effective partnership to deliver this programme. This partnership brings together for the first time the key development agencies of Scotland Ireland and NI to deliver this comprehensive SME cross border R&I capability building programme. ITI as a cross border body has extensive experience in the delivery of cross border R&I programmes as have our scottish partners. The involvement of ENI and the local enterprise offices gives us the local perspective and the East Border Region play a key role in compliance with EU legislation and the programme requirements. A PMC which is representative of all partners will meet monthly in the set up phase and quarterly thereafter when the team are on board. The project has been supported by the European Union's INTERREG VA Programme, managed by the Special EU Programmes Body

8. Target Audience SMEs from the manufacturing and tradable services sectors. Priority Sectors: Renewables Life and Health Sciences Agri Tech/Food We will target all SME’ s in the eligible region from the manufacturing and tradable services sector. Priority sectors include Renewables and Life & Health Sciences as outlined in the call we have added in Agri Tech and Food as we believe these are crucial sectors and potentially vulnerable sectors. The project has been supported by the European Union's INTERREG VA Programme, managed by the Special EU Programmes Body

5 Strands of Co-Innovate 4. 5 Strands of Co-Innovate We very much see Co-Innovate as an Innovation Road map where companies can progress through each stage where relevant. However we were very concious that we wanted companies to have a take away at each stage. Companies will be hand held and facilitated through this process and we know that this is the difference between success and failure. The project has been supported by the European Union's INTERREG VA Programme, managed by the Special EU Programmes Body