Attracting investment to Regional Locations An IDA Perspective

1. Association of Geography Teachers of Ireland Annual Conference Cork 3rd October Attracting investment to Regional LocationsAn IDA Perspective Ray O’Connor Regional Manager South-West

2. Agenda • Overview of IDA Ireland - The Business of IDA • Regional Development • Challenges/Opportunities for Gateways & Hubs

3. The Business of IDA Ireland

4. IDA - overview • A state agency with its own board • Attracts FDI to develop economy • Supports existing clients to develop additional functions • Builds relationships with inward investors • Quantity & Quality of investments • Regional spread • New business areas • Employs 295 people

5. FÁS National Training Agency

6. UK Ireland Germany Chicago France Korea California New York Japan China Atlanta Taiwan Australia IDA Offices Worldwide

7. Paths to Winning Projects www. ‘Business Ireland’ Conferences Call to IDA Industry Groups Cold Calls Consultants LEADS Market Research Referrals Presentations/Visits to Ireland /Win Project

8. Established in 1985 - World’s largest biotechnology company After reviewing 25 countries, they chose Cork for their $1 billion+ investment in 2006. Key to this win was how Ireland got it together – land, infrastructure, utilities and facilities, professional services, skills and expertise A Team Ireland response with speed and agility: Cork County Council National Roads Authority, ESB, Bord Gais, etc UCC, CIT and other educational institutions Professional engineering and construction firms Existing companies – their experience as reference Case Study – Lessons learned • 20+ yrs to win investment….. 1 yr. for postponement. • Intense int. competition – building relationships • Investor Criteria must be exceeded • Investor Decisions are made for commercial reasons

9. Work needed to generate a project 1000 Calls 100 meetings 10 Site Visits 2 to 3 projects

10. National IDA Job Gains and Losses 1997 - 2006 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Source: Forfas Annual Employment Surveys

11. Source: IDA Annual Report , 2006 / Forfas Employment Survey

12. Business Mega-Trends Future Business in Ireland • Globalisation, technology and digital media. • Growth of Asia and integration with West • Growth of Eastern Europe • Demographic constraints in Europe • Growth of services – now 50% of world trade • Higher value, more knowledge-intensive and capital-intensive • Business transformation & new business models - ‘virtual’ • Increasing speed and shorter life cycles e.g. Dell • High value manufacturing still critically important • Investment will be more mobile than ever & ‘weightless’ – less rooted and potentially footloose • More ‘open’ and overseas R&D by multinationals

13. Life Sciences: Pharma & biopharma Medical technologies ICT: Software Semiconductors Systems Financial services International services: Digital media and many others New Areas Manufacturing Technical & customer support Business processes e-procurement Sales & Marketing Supply chain management Research & Development Brand & IP management Headquarters Business Areas … and Activities

14. Ireland of the Future- the ‘KnowledgeEconomy’ • Higher value activities & higher skills • More sophisticated and complex jobs • New patterns of investment • More continuous learning and re-learning • Technology and science more pervasive • Premium on flexibility and responsiveness

15. Niche Markets High Margin High Skills Low Labour Content Knowledge Intensive Customised Specialised Skills Emerging/Growth After sales service Intensive

16. Regional DevelopmentAttracting FDI to Ireland’s Regions

17. Regional Development • Growing recognition in Europe that major city-regions play a central role in developing modern knowledge based economies • Knowledge based sectors are heavily concentrated in or near the centres of major cities • We compete with city-regions elsewhere with populations of 1 million or more • Ireland’s regions are small in comparison • We must think and act regionally, not locally • Critical mass is essential and gateways are key • IDA Ireland is aligned to the NSS with an embedded regional Structure

18. High income, Technology leaders Low cost manufacturing and services - and more! Mid Cost Manufacturing The oil rich

21. What FDI Investors Seek in a location • The right people and skills – in abundance • The right infrastructure: • access, energy, telecoms • environment and waste • property solutions • business services • attractive lifestyle and amenities • clusters of similar businesses • frequently an urban environment • The right attitude DOES THE LOCATION GIVE ME CONFIDENCE THAT I WILL BE SUCCESSFUL ?

22. Where would you choose to holiday in Ireland ?

23. Where would you choose to holiday in Ireland ?Components of a strong tourism centre VISITOR ATTRACTIONS FESTIVALS & EVENTS EVENING ENTERTAINMENT ACCOMMODATION RESTAURANTS & PUBS VISITOR SERVICES INFRASTRUCTURE

24. Regional Challenges • Companies will select those locations that enable their business to succeed in international markets • Delivering the right infrastructure is critical in attracting FDI to the regions: • access, energy, telecoms • environment and waste • property solutions and business services • attractive lifestyle and amenities • clusters of similar businesses • RPG’s • As is • The right skills • The right attitude

25. IDA Projects 2007 - Trend towards urban locations Pramerica • Successful delivery of projects in Gateways and hubs. • Some Gateways and hubs are more attractive to investors for investment. • Scale & Critical mass are important distinguishing factors. • There are considerable challenges for hubs and smaller locations Daiwa Securities System Label Teleflex Merrill Lynch KTI Paragon Fidelity Intel Gala Inc. IBM Integra Wyeth Gilead Nortel Gateway Hub AR Europe ACI Worldwide Rovsing A/S Genzyme Sanmina SCI Equifax Inc. Int Fin Services ICT Pharma Med Tech Globally Traded Business Apex DeCare Gilead VMware Blizzard Allen Vanguard IBM GSK Solarwinds Source: IDA Website

26. Marketing Gateways & Hubs

27. Cork’s Development – reaching critical mass Clustersof similar and supporting businesses Professional Business Services (accountants, engineers, lawyers and others) • 27 Airlines • 850 flights weekly • 50+ international destinations and .…Quality of Life

28. Population : 10,241 Workforce: 4,624 3rd level colleges: 0 Airports: 0 Reference Companies: Kostal; ITW Hi-Cone; TR Southern Fastners, etc.. Sell the region – not the town • Population: 689,012 within 60km. • Workforce: 307,426 within 60km. • 3rd level colleges: 5 colleges with access to 49,000 students. • Airports: 3 international airports Reference Companies: approx 200 including Dell, Apple, EMC, Pfizer, GSK; Bank of New York, Kostal, McAfee, Kerry Group, Fexco, etc..

29. Innovative Property SolutionsKerry Technology Park, Tralee • Vision for Seamless Integration of Education and Enterprise • Shares 113 acre campus with ITT (Park area 52 acres) • Joint KTP/ITT Physical Masterplan and Development Guidelines • 26,000 sq ft InnovationWorks Building • 24,000 InnovationWorks 2 building • 16 companies on-site • Over 300 people employed • Active local Management • Shannon Development Investment to date: €10m • Kerry Innovation Centre/ Campus Enterprise

30. Determination ! West Cork Technology Park, Clonakilty • 300,000 sq. ft. facility • Custom built office space from 2000 sq. ft. to 80,000 sq. ft.

34. Ireland’s Gateways & Hubs • Look at your offering in the context of Investors’ Criteria / Requirements. • Look at the type of investment projects Ireland is attracting / targeting. • Take a regional approach - not a local town/hub focus. • Some Gateways have greater opportunities to attract FDI over Hubs. • Hubs can feed into and out of Gateways. • Are there other economic opportunities – tourism, indigenous companies, retail, decentralisation, green initiatives, food & agriculture, commuter towns, etc.. • Always focus on positive – no matter what. e.g. Digital, Motorola • It is a team effort to develop & market a location – investors can Google ! • There are exceptions to everything ! – Commitment or Connection

35. Ireland continues to win investment in 2008

36. Thank You Ray O’Connor Regional Manager South-West IDA Ireland

37. Support slides

38. Challenges/Opportunities for Mallow • Companies will select those locations that enable their business to succeed in international markets • How does Mallow link into the successful Gateway of Cork? • Creating the distinctive pull factor for Mallow • ….what does it offer over other locations. • ….what does it offer to different sectors, sub sectors • Regional Aid Guidelines phasing out for South Area • Branding and identity

39. Access to Skills: Mallow Hub N 0 20 40 60 80 100 Kilometres LIT: 4,800 UL: 13,000 Tralee IT: 3,200 WIT: 10,700 Mallow UCC: 16,100 CIT: 12,000 Total 3rd level enrolment: 59,800 *approx enrolment for 2006

40. Mallow Key Selling Points:Infrastructure and Connectivity Local Commitment to Business: -Mallow Chamber / Mallow Town Council Hub location linking two Gateway towns of Limerick and Cork with access to People, Graduates and reference companies Road & Rail Infrastructure Investment: Located on Atlantic Corridor - access to the primary route between Cork and Limerick/Shannon Continued Investment in Road & Rail Broadband Connectivity: -fibre duct on rail line adjacent to town Broadband capability provides the necessary connectivity for potential investors in Mallow Air Access: -Three airports within 1hr 40 min of Mallow -Cork International Airport only 40 min from Mallow, servicing 850 weekly flights to 50 destinations by 27 airlines Property Solutions Mallow West - €500m worth of development on the 400-acre site.

41. N Kerry Airport Waterford Airport Regional Airport 0 20 40 60 80 100 Kilometres Mallow Connectivity: Access to Airports Dublin Airport Shannon Airport Mallow Cork Airport 40 min / 40 km International Airport

42. Mallow: The need to createand communicate Mallow’s offering as an investment location with the best of both worlds: Well-located business area, has access to the critical mass of: The advantages of NOT being a city location: More Cost Competitive (lower property costs, lower cost of living: house prices, childcare) Less Traffic Congestion Arguably Better Quality of Life (better work life balance) Greater Staff Retention Rates The Opportunity to be one of the Employers of Choice in a locality Skills Availability (,UCC,CIT, ITT, LIT. UL.. etc) Access (40 min from Cork Int. Airport) Infrastructure (Road Network, Rail connection, Broadband Connectivity) Experience ofExisting Companies (Regional focus) PLUS