4.5 Development Priorities and Justification

Priority Axis 1: Innovation, ICT and the Knowledge Economy

Priority Objective

To enhance the research, innovation and ICT infrastructure and capacity of the Border, Midland and Western region, to promote entrepreneurship and enterprise development and to support collaboration and technology transfer between research institutions and the business sector that responds to the economic development needs of the region.

Interventions supported include:

• Applied Research Enhancement, Incubation Facilities and related Collaboration initiatives

• Building Research Capacity

• Micro-Enterprise Innovation and Entrepreneurship

• Broadband Provision and Demand Stimulation

• Experimental Innovative Actions

Rationale and Justification

The analysis of the strengths and weaknesses of the BMW Region in the previous chapter highlights the challenges facing the region in terms of raising its research and innovation capacity, increasing entrepreneurship and making broadband more widely available. The Report of the BMW Regional Foresight exercise identified the low levels of innovation activity as a major challenge. The relatively low level of research activity in the IoT sector derives historically from their genesis as teaching institutions with a focus on technical disciplines linked with regional industrial activities. The establishment of research departments in the IoTs is a relatively recent phenomenon and institutes generally have to compete openly with universities for basic research funding. To address this requires an emphasis on improved regional capacity to generate and absorb new products, processes and services, particularly among SMEs and increased opportunities for collaboration between firms and with institutions. This is consistent with the focus on improving the research capacity of the Higher Education Institutions, raising investment in RTD and ICT, and creating an innovation and entrepreneurship culture, as set out in the NSRF.

The region’s third level institutions already provide poles of research, innovation and business incubation activity that can be built upon, linked with existing and emerging sectoral specialisations within the region. However, the limited absorption capacity of the Institutes of Technology particularly impacts on the BMW Region with its high proportion of institutes of technology. There is a need therefore for the Higher Education Institutes to have access to funding mechanisms that enhances capabilities in the institutes in specified niche areas and which recognises the track record of the Institutes of Technology and NUI Galway in the more applied areas of research and in the conduct of problem solving research in partnership with local businesses.

The National Strategy for Science, Technology and Innovation acknowledges the concentration of scientific and technological resources in major cities, and the fact that companies in regional locations can find it more difficult to access support for innovation. As part of the Government’s ongoing support for regional economic development, the framework set out by the Strategy will enhance the importance of regional innovation. The Higher Education Institutions (HEIs), including the Institutes of Technology (IoTs) and the Marine Institute, based in the BMW region, in particular, represent major resources in this context. The multi-regional location and openness to working with industry provides a platform upon which real industrial impact can be built. The Strategy further acknowledges that the higher education institutions can develop into effective technology resources, focused on collaboration with local industry on the basis of strategic and/or applied research and technology development directed at the challenges facing companies.

Focus on building up problem solving capabilities is in itself of course not sufficient to achieve these objectives. Underpinning strength must also exist which can act as a ‘pull’ factor for businesses in the region. Underpinning capabilities and infrastructure is required to enable the investments proposed by Enterprise Ireland and other development agencies - in essence an initiative under this priority which would provide the bedrock for research and development in the regions and which complements the proposed EI initiatives. This provides the rationale for support for a number of specific investments as set out in this Priority.

The low level of business start-ups provides a rationale for an intervention, to be delivered through the County Enterprise Boards, to increase the rates of business start-up and expansion and increase competitiveness, innovation and technological adaptation in micro-enterprises. A suite of support services will be provided by the County Enterprise Boards to enable existing and start-up micro-enterprises to increase their capability to raise productivity, adopt ICT applications, and increase employment.

Regional centres without choices of keenly priced ICT infrastructures (local and backhaul) find it difficult to attract high value investment. As outlined in chapter 3, Ireland currently ranks quite low on EU and OECD broadband access and availability tables. This low ranking of Ireland reflects the late launch of competitive, affordable broadband by private broadband service providers. Lack of competition among service providers and local access infrastructure deficits in regional centres remain a feature of Ireland’s broadband market and are keeping access prices high. Also, the problems associated with poor backhaul infrastructure, which is needed to link regional towns to national backbone networks, which in turn link to the Internet via Dublin, are also becoming more acute. The rate of broadband uptake is dependent on a number of factors. These include access by the private sector service providers to suitable infrastructure, as well as competition between broadband service providers and demand conditions for broadband in the economy. Accordingly, there is a strong rationale to support the completion of broadband provision in rural areas in the BMW region in order to attain universal broadband availability.

The Border, Midland and Western region has developed and implemented two Regional Programmes of Innovative Actions to date. These programmes have enabled experimentation with pilot initiatives, some of which have become part of mainstream delivery; the analysis of innovation capacity, through innovation auditing; identification of long-term strategic objectives through the use of foresight techniques; and, have pilot tested initiatives to build academic and SME links. As such experimental actions will no longer have a separate Cohesion Policy budget line, and given the benefits of continuing to experiment with innovative strategies and applying these to mainstream interventions, it is considered appropriate to include provision for experimental actions in this Operational Programme under priority one. Ultimately, the inclusion of this intervention will facilitate an ongoing process of experimentation with new tools and approaches relevant to the current situation in the BMW region. This intervention has the potential to effect positive improvements in the regional innovation system within the framework of this Operational Programme and thus contribute to the achievement of regional, national and EU objectives.

Priority Axis 2 – Environment and Risk Prevention

Priority Objective

The objective of this priority is to contribute to the sustainable development of rural areas and the protection and enhancement of the rural environment by protecting surface and groundwater from pollution. The priority will also stimulate energy efficiency, renewable energy deployment and the integration of sustainable energy practices into public policies.

Interventions supported will include:

• Rural Water Source Protection

• Pilot Village Sewerage Scheme

• Energy Efficiency and Renewable Energy

Rationale/Justification

The quality of the environment and diversity and sustainability of energy supply are important determinants of the quality of life for the inhabitants of a Region. This in turn increases the attractiveness of a region for people to invest in, visit and locate. There is an increasing emphasis at EU and national level on environmental protection, and the promotion of the use of sustainable sources of energy supply.

The Lisbon Agenda: Integrated Guidelines for Growth and Jobs encourage the sustainable use of resources and the strengthening of the synergies between environmental protection and economic growth. The Community Strategic Guidelines recommend that in order to maximise economic benefits and minimise costs, priority should be given to tackling environmental pollution at its sources. The provision of environmental services such as waste water management systems, management of natural resources and protection against certain environmental risks, will all have priority in this context. This is also reflected in the Drinking Water Directive (98/83/EC) on the quality of water. The NSRF provides for a focus on niche interventions complementary to mainstream investments designed to protect drinking water quality in the regions.

The Community Strategic Guidelines highlight the need to reduce traditional energy dependence through improvements in energy efficiency and deployment of renewable energies. Investments in these fields contribute to security of energy supply for long-term growth, while acting as a source of innovation and providing opportunities for exports. It is recommended that support be provided to improve energy efficiency and the dissemination of low energy intensity development models. This will help in meeting Ireland commitments under the Kyoto Protocol. The National Strategic Reference Framework also recognises that development of Ireland’s regions requires an adequate, reliable and competitively priced energy provision and that opportunities exist to develop and exploit Ireland’s significant renewable energy resources.

This provides a rationale for niche interventions that will provide funding towards pilot renewable energy deployment, stimulation of energy efficiency and the integration of sustainable energy practices into public policies.

Priority Axis 3: Urban Development and Secondary Transport Networks

Priority Objective

To strengthen the spatial structuring of the BMW Region by investing in integrated sustainable initiatives in order to enhance the competitiveness, accessibility and social cohesion of the region’s growth centres and to modernise the region’s transport infrastructure.

Interventions will include:

• Urban Regeneration

• Key Linking Routes

• Public Transport

Rationale and Justification

The BMW Region covers a large area with a relatively low population density. This results in a lack of ‘critical mass’ with sub-optimal impacts when resources are spread too thinly across the region. This weak urban structure was identified as a critical issue in chapter 3. There is recognition of the need for a strategic focus, concentrating the use of investment resources effectively and building on existing concentrations of economic activity. This was set out in the National Spatial Strategy and has the potential to maximise impacts on the region.

The Community Strategic Guidelines emphasise the contribution of urban centres to growth and jobs and recommends that supports should focus on the development of integrated participatory strategies to address environmental, economic and social issues. The National Strategic Reference Framework recognises that considerable potential for sustainable growth exists and that the focus for intervention should be on integrated urban development initiatives including physical and social regeneration.

The National Spatial Strategy and the Regional Planning Guidelines provide an important framework for the BMW region and identify the investment needed to secure a sustainable future for the region. The establishment of a fund to complement infrastructure investment was recommended in the recently published report on implementing the NSS: Gateway Investment Priorities Study.

The Community Strategic Guidelines also identify modern infrastructure as an important factor in the performance of enterprises and the economic and social attractiveness of regions. The Guidelines also recognise that the provision of an efficient, flexible and safe transport infrastructure can be regarded as a necessary pre-condition for economic development as it boosts productivity, and thus the development prospects of the regions concerned, by facilitating the movement of people and goods.

The infrastructure deficits in the BMW Region are well recognised and were set out in detail in chapter 3. Given these weaknesses the economic return on investment in infrastructure can be high if the correct projects are chosen. The development of regional transport infrastructure with economically vital road links and enhanced access to public transport are therefore considered to be economically vital for the region.

This provides a clear rationale for investment in a limited number of key linking routes, particularly aimed at improving accessibility to and between designated gateways and hubs. The rationale for investment in key linkages is clear from the analysis of the Region’s investment needs. It is also proposed to support investment in sustainable transport networks, through targeted investments in rail service improvements, park and ride infrastructure, Quality Bus Corridors, signalling, automation of level crossings and station and track upgrades.

The investment proposed in this OP will support the enhancement of the potential of each of the gateways and hubs and in addition will upgrade strategic national secondary routes and public transport services, consistent with the NSS, RPGs and Gateways investment priorities. European added value will derive from the provision of additional resources to strengthen the urban structure and improve the transport linkages within the region and from a reinforcement of effective spatial planning policies as a means of achieving balanced territorial development (as specified in the European Spatial Development Perspective ). This added value will be made visible to the general population through the Information and Publicity actions described in section 8.8 of this OP and those envisaged in the Communications Action Plan.

Priority Axis 4: Technical Assistance

Priority Objective

Under this priority, funds will be used to finance the preparatory, management, monitoring, evaluation, information and control activities of the Operational Programme together with activities to reinforce the administrative capacity for implementing the Funds, subject to an overall limit of 4% of the total funds allocation to the OP.

The Technical Assistance Priority will also cover the cost of recoupment of approved costs of the EU Operational Committees of the Regional Authorities (at NUTS III Level). The Priority will be administered by the Border, Midland and Western Regional Assembly under the general control of the Operational Programme Monitoring Committee. Details of the proposed technical assistance and the arrangements for managing the Programme will be approved by the Monitoring Committee.

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Note 48 Government of Ireland (2006) Strategy for Science, Technology and Innovation 2006-13 http://www.entemp.ie/publications/science/2006/sciencestrategy.pdf

Note 49 Innovative Strategies and Actions: Results from 15 years of Regional Experimentation. European Commission Working Document http://ec.europa.eu/regional_policy/funds/2007/innovation/guide_innovation_en.pdf

Note 50 Council Directive 98/83/EC concerning the quality of water intended for human consumption http://europa.eu.int/eur-lex/pri/en/oj/dat/1998/l_330/l_33019981205en00320054.pdf

Note 51 Commission of the European Communities (2005) Cohesion Policy in Support of Growth and Jobs: Community Strategic Guidelines 2007-2103 - http://ec.europa.eu/regional_policy/sources/docoffic/2007/osc/050706osc_en.pdf

Note 52 Government of Ireland (2007) Sustaining Dynamic Regions: The National Strategic Reference Framework

Note 53 Department of the Environment and Local Government (2002) The National Spatial Strategy 2002-2020: People, Places and Potential http://www.irishspatialstrategy.ie/

Note 54 Department of Environment, Heritage and Local Government, Forfás, International Centre for Local and Regional Development, Brady Shipman Martin, Fitzpatrick Associates (2005) Implementing the NSS: Gateway Investment Priorities Study http://www.forfas.ie/publications/forfas061020/webopt/forfas061020_gateways_study_report_webopt.pdf

Note 55 European Commission (1999) European Spatial Development Perspective

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