AIM Centre Highlights Crucial Regional Disparities in Irish Innovative Industry Employment
A study led by Elena Bezborodova, Programme Manager at the AIM Centre, has unveiled significant disparities in employment within Ireland's innovative industries, particularly between the Northern and Western Region (NWR) and the rest of the country. The research, spanning from 2000 to 2021, emphasises the urgent need for tailored regional policies to bridge these gaps.
According to the study, while most Irish regions are thriving as hubs of innovation and technological advancement, the NWR lags notably behind. The region, which was recently downgraded from "More Developed" to "Region in Transition" by the European Commission, shows a persistent employment gap in innovative sectors compared to other areas. This could be indicative of fewer modern manufacturing and ICT companies in the NWR, as well as a slower adoption of new technologies and innovative practices within existing companies in these sectors.
"The disparity in innovative sector employment between NWR and the rest of Ireland not only highlights a significant regional imbalance but also poses a risk to the overall economic health of the country," said Bezborodova. "Our findings support the need for immediate and targeted interventions to elevate NWR’s position as a competitive player in the national innovation landscape."
The AIM Centre study utilised employment data from the Central Statistics Office (CSO), focusing on sectors identified as innovative, such as Information and Communication Services and Modern Manufacturing. The analysis revealed that the gap in innovative employment between the NWR and other regions has been substantial and consistent over the past two decades, with minimal signs of narrowing.
Key findings from the study include:
A persistent employment gap in the innovative sector, with a peak disparity of 20.79% in 2019.
Validation of the European Commission's decision to reclassify NWR as a "Region in Transition."
A positive correlation between overall employment growth in Ireland and the regional employment gap from 2000 to 2008, turning negligible afterwards.
A near-zero probability that NWR will achieve employment parity in the innovative sector with the rest of Ireland under current conditions.
These insights prompt questions about the effectiveness of past regional policies and the potential for new strategies to make more substantial impacts.
“This study not only brings to light the challenges faced by NWR but also opens a dialogue about how we, as a nation, can implement effective strategies that foster equitable growth across all regions”. Bezborodova added.
The AIM Centre is committed to continuing its research into this critical area, with plans to explore the effectiveness of specific policy measures and to engage with key stakeholders to drive forward a more integrated and innovative approach to regional development in Ireland.
A copy of the paper can be found here.