EdwardWalsh

Ireland’s growth strategy: research the key: 

Ireland’s growth strategy: research the key Edward M Walsh Microsoft Research Academic Days Dublin 14 April 2004

GDP Ireland 1871: 

GDP Ireland 1871 US$ Per capita Source: Geary & Stark, Economic Journal, Economic Journal Oct 2002

GDP per capita as a % of EU average (in PPS): 

GDP per capita as a % of EU average (in PPS) UK IRELAND EU Average Source: Eurostat Publications GDP per Capita Report 2003 %

Slide4: 

GDP Source: CSO, Catalogue for Economic Reports of the President, 1999, Department of Finance, UK, 2000, EU Commission, 2002. Ireland USA UK dec02

Growth rates: 

Source:OECD Economic Outlook & Central Bank of Ireland, ECB dec 03, Economist 15 nov 03 Growth rates 5 10 % Republic of Ireland EU15

Key to past success: 

Key to past success Return on US investment Skills Environment for FDI

Return on Investment…US manufacturing overseas: 

Return on Investment… US manufacturing overseas % Source: US Department of Commerce,2000

IRELAND’S DEVELOPMENT: 

IRELAND’S DEVELOPMENT Phase 1 Unskilled labour + Tax incentives Phase 2 Skills + Tax incentives Phase 3 Skills + environment for enterprise + research

Slide9: 

CORPORATION TAX RATES % Source: Deloitte & Touche 2002. Manufacturing & Qualifying Services jan03

Business Taxes %GDP: 

Business Taxes %GDP Source: Economist 15 Nov 03, CBI

Slide11: 

ICT MANUFACTURING Intel Dell IBM Nortel Motorola Hewlett-Packard Xerox Analog Devices Lucent Ericsson NEC Siemens Source: Dept of Public Enterprise, March 2000

PharmaChem: 

Eli Lilly Merck Novartis Pfizer Schering Plough Bausch & Lomb Baxter Abbott Metronic Procter & Gamble SmithKline Beecham Coca Cola Braun Johnson & Johnson Organon Source: Dept of Public Enterprise, March 2000 PharmaChem 120 plants including 9 of the top 10

World’s largest new pharma plant: 

World’s largest new pharma plant Wyeth €1 billion Operational 2005 Significant R/D capability 1300 jobs 14 other investments announced in 2003

New pharma projects 2003: 

New pharma projects 2003 Merc Abbott Pfizer Medtronic Dow Corning Inamed Altana Taro Harmac Recordati Amersham Servier Takeda Source: Sunday Business Post 11 May 03

What the multinationals bring: 

What the multinationals bring Jobs Wealth Best practice know-how Technology Business

Productivity Growth 1993-2002: 

Productivity Growth 1993-2002 % pa Source: Economist/OECD NOV02

Output per Employee per annum: 

Output per Employee per annum US$ 000 Source: Forfas 2003, IMD 2003

Ireland’s strategy …..90s: 

Ireland’s strategy …..90s Strengthen multinational manufacturing New …….attract more sophisticated Existing…help up the value chain Introduce knowledge-driven enterprise Software Finance

Software leaders in Ireland : 

Software leaders in Ireland 5 of world’s top 10 Microsoft IBM Ericsson Novell Oracle Corel Iona Trintech

Software production in Ireland: 

Software production in Ireland Europe’s software produced in Ireland 40% of all PC packaged software 60% of all business application software

International Financial Services Centre: 

International Financial Services Centre Rapid growth since establishment in 1987 2334 funds €375 billion domiciled funds €560 billion total managed Funds domiciled exceed those in Britain in terms of assets and number Dublin funds 62% the size of those in Luxembourg Source: Irish Times, 14 Oct 03, Fitzrovia International

Service Exports: 

Service Exports Source: Forfas, OECD 2001 jan04

Slide23: 

EXPORTS % GDP Source: IMD World Competitiveness Report 2001 %

Labour Market Regulation: 

Labour Market Regulation FLEXIBLE NOT FLEXIBLE Source: IMD 2003

Slide25: 

NATIONAL DEBT - % GDP Sources: International Monetary Fund; Dept of Finance, CSO 2003. nov03

Slide26: 

UNEMPLOYMENT - Ireland Sources: CSO oct03 ( )

Slide27: 

MIGRATION Source: CSO PECA – Annual Migration

Socio-Economic Change 1996-2002: 

Socio-Economic Change 1996-2002 Source: Garret FitzGerald, Irish Times, 25 Oct 03

Slide29: 

INFLATION Sources: Dept. of Finace, ECB dec 03 IRELAND EU AVERAGE jan04 ( ) ( )

Growth rates: 

Source:OECD Economic Outlook & Central Bank of Ireland, ECB dec 03, Economist 15 nov 03 Growth rates 5 10 % Republic of Ireland EU15

Slide31: 

Irish Industrial Exports by Country of Firm Ownership Source: CSO, 2000 77% 9%

Slide32: 

Source: Forfás, Annual Business Survey of Economic Impact 2002 Indigenous vs. Multinational Service Exports Indigenous 12% Foreign 88%

Ireland’s strategy……now: 

Ireland’s strategy……now Embed the multinationals Go up the value chain Grow indigenous high-tech Grow the knowledge-based service sector Build leading edge research reputation in niches of ICT and BIOTECH

Slide34: 

SCIENCE: School Leavers Physics Chemistry Source: Dept. of Education/Stats 2003

Science & Engineering Graduates Per 1000 Population Aged 20-34: 

Science & Engineering Graduates Per 1000 Population Aged 20-34 Source: European Commission Science and Technology Report 2003

Literacy of 15yr olds PISA literacy scale : 

Literacy of 15yr olds PISA literacy scale Source: Forfas 2003, OECD

Entrepreneurial Activity: 

Entrepreneurial Activity Source: Global Entrepreneurship Monitor, 2002

Slide38: 

Employment Associated with Irish Outward and Inward Investment Source: Görg, Holger. School of Economics, U. Nottingham. Nov 2000 US in Ireland Ireland in US

Researchers per 1000 employed: 

Researchers per 1000 employed Source: Forfas 2003, OECD Science and Technology Indicators

Slide40: 

NOBEL PRIZES IN SCIENCE / ECONOMICS Since 1950 Source: World Competitiveness Report 1999

New Science PhDs per 000 population aged 25-34: 

New Science PhDs per 000 population aged 25-34 Source: Forfas 2003, EC European Research Area Scoreboard

Slide42: 

R&D as a % of GDP Sources: European Commission Key Figures: Toward a European Research Area(02) %

NDP Direct public funding of research in higher education: 

Source: Forfas 2000 TOTAL PRTLI SFI OTHER NDP Direct public funding of research in higher education

Direct public funding of research in higher education: 

Source: Forfas 26 jun 2003, SFI, Book of Estimates TOTAL PRTLI SFI OTHER Direct public funding of research in higher education jan04

Slide45: 

% Growth in R&D Expenditure Sources: European Commission Key Figures: Toward a European Research Area.(02)

Slide46: 

Source: Forfás. Estimated Number Of Post-graduate Researchers To Be Supported Under New Schemes 1998 - 2006

Slide47: 

Source: Forfás. Number Of Post-doctoral Researchers for Which Funding is to be Made Available 1998 - 2006

Science Foundation Ireland: 

Science Foundation Ireland Budget… NDP … €600m Budget… 2004... €114m US…..NSF model Individuals not institutions supported International head-hunt State salary stuctures by-passed

Research Global AchievementStrategy : 

Research Global Achievement Strategy Global Achievement SFI University research capability HEA ICT BIO

Intellectual Property: 

Intellectual Property US…………Bayh Dole Ireland…..National Code of Practice

Knowledge-age Infrastructure: 

Knowledge-age Infrastructure Legal E-business legislation IP infrastructure Physical Broadband Public Research Policy Overarching national framework

Slide52: 

BROADBAND LINKS

Slide53: 

Global Crossing Cable

Slide54: 

SDH Fibre 2.5 Gbit/s PDH Fibre 565 Mbit/s DWDM (15 to 80 Gbit/s) Highest capacity link shown for each route Regional Broadband Network June 2002 goal Many sections have several links of given capacity SDH Fibre 10 Gbit/s

Slide55: 

National Digital Park, Citywest

National Digital Park, Citywest: 

National Digital Park, Citywest

New research campus at Citywest: 

New research campus at Citywest

Lisbon Goal: 

Lisbon Goal 2010 “Europe the world’s most competitive knowledge economy”

R/D investment: 

R/D investment %GDP Source: A&L Goodbody, R&D report 2002

Nobel Prize Winners per decade: 

Nobel Prize Winners per decade Source: EU Commission, COM(2004)9 US EU-15

US University Leadership: 

US University Leadership Top 20 universities all private Berkeley fails to make the top 20 8 Nobel prize winners on the faculty

EU Universtiy Challenge: 

EU Universtiy Challenge Create performance-driven institutions Incentivise the faculty Displace mediocrity in favour of excellence Push back the State…stimulate the market OECD review…IRELAND prepares to give a lead in Europe

Summary: 

Summary Ireland has achieved remarkable growth in the past decades and is now one of Europe's most successful economies Achieving excellence in high-tech manufacturing and services has been the key to past success Achieving excellence in research and development is seen as the key to future success Public investment in strategic niches is the first step in making Ireland a most attractive European location for researchers and for mobile research investment

Ireland’s growth strategy: research the key: 

Ireland’s growth strategy: research the key Edward M Walsh Microsoft Research Academic Days Dublin 14 April 2004