Transcript Dr Thomas M. Cooney Dublin Institute of Technology

Dr Thomas M. Cooney
Dublin Institute of Technology
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4.2 million people
92% Catholic
Changing demographics over the past decade (now 11.5%
non-Irish)
Governed by British Empire for over 800 years (legacy of
Northern Ireland still exists)
Suffered serious famine in 1840s (lost 2 million people)
Became independent in 1921
Suffered Civil War immediately until 1922
Stayed neutral in World War 2
Mass emigration in the 1950s
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Colonial dependency
Introduction of tariffs on imports (self-sufficiency)
Foreign investment in 1960s
Telesis Report (1982)
Culliton Report (1993)
Task Force on Small Business (1994)
Economic Strategy Group Report (2004)
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Membership of the European Union afforded Ireland
significant regional aid, combined with ease of access to
substantial markets
Consistent, long-term partnership and policies delivered a
favourable corporate tax, fiscal and wage setting regime and
a well-qualified workforce
Global trade expanded at an unprecedented pace. In
particular, advanced sectors such as information and
communications technology (ICT) and life sciences, with
which Irish economic growth has been closely tied, boomed
through the mid and late 1990s
Ireland’s demographic profile facilitated the swift pace of
economic growth.
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Early stage entrepreneurial activity is 8.2%
OECD / EU comparisons
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Nascent entrepreneurs - 6th
New firm entrepreneurs – 3rd
Early stage entrepreneurs – 4th
Established entrepreneurs – 2nd
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Ireland mixes above average and below average performance in many indicator
groups,
Its good performance is due to high-tech export shares that are 68% above the
EU average.
Ireland performs well on the innovation drivers, ranking in 8th place. This is due
to excellent performance on the supply of new S&E graduates and above
average results for tertiary education.
Business R&D shows both an absolute and relative decline over time, falling
from 0.90% of GDP in 1998 to 0.77% in 2004.
Public R&D has grown only modestly from 0.35% of GDP in 1998 to 0.40% in
2004.
Ireland must make the transition from an economy where foreign investment
played a large role, particularly in the ICT sector in order to serve the EU market,
to an economy based on innovation.
These developments suggest that Ireland could be entering a difficult transition
phase towards developing domestic R&D and innovation capabilities.
(OECD Report, 2008)
Forfas Report (2008)
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Irish exports 2007 - €11.8bn (9.25%)
Foreign exports 2007 - €97.4bn (90.75%)
The main points in the IEA review of 2008 were:
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Total exports (goods and services) in 2008 fell by €6 billion or 4%.
Exports of goods in 2008 down 5%.
Exports of services in 2008 down 2%.
Market performances for 2008: UK down 6%; Euro-zone down 7%;USA up 1%;
Japan down 6% and China up 79%
First fall in Services Exports in over two decades.
Further declines for 2009 in export sales and jobs.
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Collapse of the property industry (reward system was wrong)
Entrepreneurial activity needs to be maintained
Export activity by indigenous industry needs to be improved
Innovation activity by indigenous firms needs to be improved
FDI market has become very competitive
Other countries such as India and China offering low cost economies, an ample supply
of skilled labour, and mobile investment
– The Irish cost base has increased substantially (2nd highest minimum wage in EU –
recent research highlighted problem for SMEs)
– Ireland’s low rate of corporation tax being emulated by other countries
– Changes in EU state aid limits place new restrictions on state aid for enterprise
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Current global economic crisis is different
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Recession world wide
Cross border migration muddies the water
Recession is more evenly distributed across space and sector
Information more widely available
Doing nothing is not an option, need to have a coherent plan
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Department of Enterprise Statement of Strategy 2005-2007
Programme for Government 2007-2010
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Keeping taxes on employment low.
Investing in research and development.
Significantly up-skilling the Irish workforce at all levels.
Developing a growing focus on the dynamic SME sector.
Where possible reducing the regulatory burden faced by business.
Ensuring that employment standards are met throughout the economy.
National Development Plan 2007-2013
Social Partnership Agreement 2006-2015
Building Ireland’s Smart Economy (2008)
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Enterprise Strategy Group Report (2004)
Small Business Forum Report (2006)
Strategy for Science, Technology and Innovation 2006-2013
Towards an Entrepreneurship Policy (2007)
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Came from recommendation in Small Business Forum report
Has a Vision
Has a primary goal to optimise the number of start-ups
Has suggested that a National Entrepreneurship Forum be established
Has advocated an Annual Entrepreneurship Review
Has not been adopted
Entrepreneurship
Education and
Awareness
New
Venture
Creation
Small
Business
Management
Growth
Firms
Vision
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No Entrepreneurship Education Policy
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Many initiatives, highly fragmented
Numerous EU reports have highlighted the benefits of integrated
policy
Norway, Finland and Scotland have policies that reach across
primary, secondary and 3rd level, plus across government
departments
No New Venture Creation Policy
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Good activity
Advisory Group report published September 2007
Some want to stay top of the 2nd Division
No central champion
Frequent duplication of initiatives
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Small Business Management
Arguable that the standard of Irish management is very
poor
– Many have no monthly accounts
– Following the Small Business Forum report?
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Growth Policy
Low number of ‘gazelles’
– Urgent need to grow Irish businesses
– How do we persuade people to grow their business (also
EU problem)?
– Following the Small Business Forum report?
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Clear Innovation Policy
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Significant funding being allocated
Low take-up of R&D and Innovation initiatives
Low performers on international tables
Links between entrepreneurship and innovation policy implied in
government strategies
No Policy for Target Communities
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Limited availability of tailored support
12.6% immigrants have their own business
97% of ethnic businesses are small locally traded services
Other target groups include female entrepreneurs
Need to take proactive approach
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Deep economic crisis
High cost base and over-dependent on FDI
No co-ordinated entrepreneurship policy but lots of
publications
Too many agencies (!!!)
What plan are we following?
It is a time for courage, a time for our public servants to be
visionary and brave (e.g. free 2ndlevel education in 1960s)
We need to engender a spirit of self-help
This is a time to be truly entrepreneurial