1. Transforming Regions: From Convergence to Competitiveness Open Days 2005 Gerry Finn Director BMW Regional Assembly

2. Presentation Overview Profile of the Border, Midland and Western Region Processes Undertaken – Audit of Innovation –Regional Foresight Challenges Identified Lessons for next round of Structural Funding

4. Regional Context BMW Region has 47% of land area, 27% of population & 19% of national GDP Growing Regional Divide in terms of GDP, unemployment, brain drain & infrastructure Significant underspend in BMW Region at Mid-Term stage of NDP – particular underspend in roads, public transport, broadband and R&D Infrastructure deficit - roads, electricity, gas, ICT etc. NSS sets a new framework for regional development

5. The Economy of the BMW Region Traditional sectors (agriculture/food processing/tourism) in decline Low level of high value added activities Low R&D - most research funds allocated to S&E Region Relatively low levels of innovation Commitment of Industrial Development Authority to provide 50% of greenfield sites in the region

6. Audit of Innovation: WHY DID WE DO IT? To establish baseline situation in the region Identify enablors and barriers to innovation Assess the causes of low innovation activity Develop concrete proposals to improve performance Comprehensive process involving: - Desk research - Company Surveys - Focus group discussion- Industry case studies - One to one interviews- Interim seminar

7. Scope of the Audit Profiling of the BMW Regions economy, Industry structure & employment trends Review of entrepreneurial system, company start ups and growth rates. Survey of 215 firms in the BMW region on innovation performance, supports & barriers. Review of Development support system. Assessment of role of 3 rd level sector & impact of infrastructure & entrepreneurial culture on innovation. Recommendations & Pilot Actions

8. ICT Companies in Ireland

9. Results of Firm survey Survey of 215 firms found that in BMW region: Levels of innovation lower than national average (53% versus 79%) Lower rate of product development & patenting Lower rate of linkages with research/3 rd level institutions Absorbtive capacity for new development generally weak. Lower rate of employment of graduates and Postgraduates

10. Development Support system Low access to and uptake of venture capital Low expenditure in the region on industrial RTDI Level of participation in company based R & D schemes is low Need for continued focus on Foreign Direct investment Many schemes not sufficiently geared to the needs of companies in the region.

11. Infrastructure & Role of Third Level Sector Infrastructure deficits add costs to doing business & acts as a disincentive to inward investment Continued investment needed in roads, rail, air, telecommunications & energy infrastructure New strategies required in 3 rd level sector Additional resources for industry relevant research activities. Knowledge drain of graduates out of the region evident Need for greater technology transfer between research/3 rd level institutions & companies throughout the region

12. Framework for Regional Innovation

13. Overview of the Foresight Process 18 month process involving wide consultation within & outside the region Co-ordinated by BMW Regional Assembly secretariat Facilitated by consultants CM International Steering Committee & 4 expert panels Wide consultation nationally & within region Submissions invited from interested parties Local/regional/national endorsement obtained

14. Challenges to the BMW Region as a Competitive Region Transport and Communications Infrastructure Supporting Business Clusters and Centres of Excellence Increase in Knowledge-Intensive Activities Competitive use of Natural Resources Increasing Entrepreneurship Industry-Relevant Support Programmes

15. Challenges to the BMW Region as an Innovating Region Greater Flexibility and Adaptive Attitudes to Respond to Change Education and Skills Levels to Increase Inter-Agency Colloboration and Academic- Industrial Linkages Technology Transfer and Company Spin-Outs Clustering and Spatial Specialisation Building a Regional Research Base

16. Challenges to the BMW Region as a Knowledge Region Identifying and Responding to Future Skills Needs Increasing the Knowledge Capacity of the Region Increasing Life-Long Learning in the Region Appropriate Delivery Mechanisms for Further Education Flexibility and Adaptability of Skills Graduate Retention and Attraction Resources for all Education Levels

17. Challenges to the BMW Region as a Quality of Life Region A Desirable Place in which to Live, Work, Visit, Invest Social Infrastructure Sustainability – Improved Living Environment Spatial Development Strategies Diversity, Access and Equality Cultural and Social Environment

18. 4 Themes & 4 Panels 4 expert panels selected to explore themes of: A Knowledge Region A Competitive Region A Quality of Life Region An Innovative Region

19. A Vision for the BMW Region in 2025 An innovative, knowledge-based and competitive region, with a high quality environment, first class infrastructure, visionary leadership and a quality of life for its citizens that is among the highest in the world

20. Vision, 5 Components & 2 Cross-cutting Themes ```` VISION High quality environment for sustainable communities 21 st Century Infrastructure Networks Effective regional management & visionary leaders Entreneurship and knowledge as cornerstones of prosperity Internationally competitive business environment Equality of Opportunity Sustainability

21. The Strategic Objectives Place 3 rd level institutions at the heart of the regions future prosperity Create an innovation & entrepreneurial culture Build on existing clusters & concentrate investment Invest in infrastructure that builds on the NSS Strengthen regional leadership

22. The Strategic Objectives (cntd.) Invest in attracting and retaining skills Invest in leading edge business support Invest to make the regions high quality environment sustainable Invest in community & social capital to ensure sustainability Invest in physical infrastructure to maximise knowledge capital

23. Lessons for Next Round of Structural Funds New approaches to research and innovation activities required and new partnership arrangements Greater regional differentiation in national strategies Innovative delivery mechanisms e.g. County and Group Broadband Scheme Greater focus on Irelands National Spatial Strategy as a framework for investment

24. Lessons for Next Round of Structural Funds Need for greater added value for community funds Better co-ordination with national expenditure plans and with agriculture, fisheries, rural, research programmes and human resources Frontloading in phasing-in regions requires a pipeline of spend-ready measures Infrastructure deficiencies still prevalent – a key determinent of competitiveness