Governance of Innovation and Regions Ireland: the Shannon Experience

1. Governance of Innovation and RegionsIreland: the Shannon Experience Dr. Brid Quinn Department of Politics & Public Administration University of Limerick e-mail: Brid.Quinn@ul.ie BQ 07

2. Conceptual Framework • Regional development is framed by governance structures and mechanisms • Innovation is circumscribed by the principles, practices and processes which underpin collective action in the region • the governance approach increases the salience of the local and regional levels as the site of intersection of horizontal and vertical networks • analyses of governance identify • changes in the controlling and co-ordination roles of the state • the augmentation of hierarchical and market mechanisms of governing with the networking approach. BQ 07

3. Ireland • strong central government with subordinate local authorities answerable to and financially dependent on the centre • persistent lack of effective regional structures • EU induced changes including creation of regional structures • NOW a more regionalised focus in Irish policies and provision • Only 2 dedicated regional development agencies currently existUdaras na Gaeltachta & Shannon Development BQ 07

4. Ireland - context • Late industrialisation • Uneven development * • Significant development policies - economic, education, industry • Partnership as a modus operandi at national and sub-national levels • National Innovation Strategy evolved differently and later in Ireland • Governance of innovation in Ireland involves policy-makers, advisors and implementing organisations • Total R&D spending in 2006 was up 14% on 2005 BQ 07

5. Ireland’s uneven development GDP per capita (PPS) 2000 2004 EU 27 = 100 Ireland 132.3 141.4 BMW region 91.5 101.1 S&E region 147.0 156.5 EU-15 115.2 113.2 BQ 07

6. The Shannon region • 10,000 square kilometres spanning counties Clare, Limerick, North Tipperary, South Offaly and North Kerry, • which collectively have a population of over 450,000 people. BQ 07

7. Shannon Development • Shannon Airport - a location for entrpreneurial innovation since 1939 • 1959 Shannon Free Airport Development Company (SFADCO) incorporated as a legal liability company • 1960s - SD • identified the economic sectors which had the greatest potential for growth, • harnessed the resources of the region • attracted investors and employers to the zone • 1968 the remit of SFADCO was broadened to include regional industrial development BQ 07

8. Changing focus • late 1970s - debate about the impact of the Shannon zone’s continuing growth on the rest of the region and the Shannon zone’s dependence on foreign industry • reallocation of tasks between SFADCO and the Industrial Development Authority (IDA) • 2007 restructuring - S D’s enterprise support functions were re-allocated to the national agencies Enterprise Ireland (indigenous industry) and IDA (exogenous industry). BQ 07

9. Current Goals of Shannon Development • To enable the more developed areas of the Shannon Region achieve their full development potential. • To ensure that the potential of the less developed areas of the Shannon Region is realised. • To create demand for the Shannon Airport Gateway (Annual Report 2006). BQ 07

10. Shannon Development’s multi-faceted role • two-strand approach, • enhancing the region’s economic environmen • nurturing innovation • RIS and RIS+ programmes • prepared the Mid-West Regional Authority’s Development Plan • leader in the Southern and Eastern Regional Innovative Action Programme during the NDP 2000-2006 BQ 07

11. Recent activities • co-directing the Atlantic Gateways initiative with the Department of the Environment, Heritage and Local Government • continuing expansion of the Shannon Development Knowledge Network • collaborating with local authorities to improve connectivity • implementing the E-towns concept • property initiatives, tourism development operations and ongoing employment creation • At the end of 2006 - 20,530 people in S D assisted companies BQ 07

12. Significant factors in SD success • SD not only a regional economic development body, but also plays a role in policy development and innovation strategies • SD places emphasis on learning, innovation and supporting experimentation • SD adjusted its approach to reflect changing international, national and regional trends and priorities and to respond to technological change BQ 07

13. Shannon Development’s contribution to the region Vision LEADERSHIP Action People Reflection • Formal/informal • Sectoral • LINKAGES • Regional/local/national/ • international Capacity LEARNING Application Adaptation BQ 07

14. Issues • Role • complexity of linkages • potential for duplication & overlap • remoteness from people • transparency • SD vis a vis formal democratic institutions • Threats - Shannon Airport routes & loss of industrial function BQ 07

15. Conclusions • Shannon Development has atypical status in Ireland’s governing structures • both a part of and apart from formal governance structures • freedom to do things differently • Shannon Development has served as a responsive laboratory for industrialisation and innovation adapting to changes in the development paradigm • Its impact has been both tangible and intangible • Continuity, Adaptability, innovation , networking BQ 07