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The Global Economy – a role for Dublin
Martin Cronin
24 May 2005
Martin Cronin
Chief Executive
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
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and development.
Big fleas have little fleas
upon their backs to bite them
- And little fleas have littler fleas
and so on ad infinitum
Dublin
Cork, Limerick, Galway
Waterford, Sligo, Athlone, Dundalk
……
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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
2 Karlsruhe
3 Paris
4 Munich
5 Dusseldorf
6 Stuttgart
7 Brussels
8 Copenhagen
.........................
74,465
70,097
67,200
61,360
54,053
53,570
51,106
50,775
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16
17
18
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38,203
38,149
37,454
36,591
36,572
35,733
Amsterdam
Munster
Wiesbaden
Dublin
Vienna
Stockholm
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
Paris/France
Brussels/Belgium
Copenhagen/Denmark
Amsterdam/Netherlands
Vienna/Austria
Helsinki/Finland
Stockholm/Sweden
London/UK
Dublin/Ireland
Rome/Italy
Berlin/Germany
3.8
3.5
2.6
1.9
1.8
1.8
1.7
1.7
1.7
1.5
1.5
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
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have been approved
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
Overall stock of secondary graduates in
Ireland is poor
Low level of staff training
Increased emphasis on ICT required
7.2 % in Dublin have MA/PhD
compared with 4.6% nationally
But…
37.2
37.7
44.9
25.2
37.8
29.1
33.5
26.0
28.7
No Formal Upper Secondary
Primary/Lower
Sec
Dublin
Ireland
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.
Third Level
15-30 Ireland
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Source: Census 2002
European Innovation Index
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Innovation: CSETs
Three 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 Economy
Uncertainties
2.
Certainties
•
Exchange rates
•
Globalisation
•
Geopolitical issues
•
China, India
•
EU Accession countries
•
Technological progress
•
Oil Prices
•
Accelerating pace of change
•
Property prices…
•
…….
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The Case for Change…..Ireland in Transition
Shift
to
Services
Globalisation
Role of
Knowledge
Domestic
Cost
2005
?
+
 Intense Competition
for both
 Low Ground
 High Ground
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Services
Examples of sectors and activities that offer significant opportunities
for exploitation by indigenous enterprises and for increased inward
investment
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
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High Value Manufacturing
Examples of sectors and activities that offer significant opportunities for
exploitation by indigenous enterprises and for increased inward investment
x
x
x
x
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x
‘Ahead of the Curve’
- Enterprise Strategy Group
Comparative
Advantage
Competitiveness
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