Further innovation could make Cork the Boston of Europe, conference told

CORK needs to be more like Boston, according to the chief executive of the Irish Management Institute, Dr Tom McCarthy.

Dr McCarthy said Cork City should follow the Boston model and develop as a large commercial centre with a reputation for innovation.

He was speaking at the Cork Chamber of Commerce conference yesterday and said Ireland’s second city had been a major commercial centre in the past.

“During the 18th century, Cork was almost half the size of Dublin and was a major Atlantic trading port. The city had continued as a major commercial centre and at one stage had its own stock exchange and was the base for many publicly- quoted companies.

“Cork no longer has these attributes and now is not developing as quickly as Dublin,” he added.

Dr McCarthy said Cork could be to Dublin as Boston is to New York.

“New York has strong financial services, professional services and tourism, as Dublin does. Boston has very strong life sciences, internationally traded services and venture capital capacities,” he said.

“Boston has also developed a reputation for innovation through its wide range of universities and academic institutions.

Higher education institutions spur innovation. Cork already has the nucleus to develop in this regard and needs to grab the opportunity,” he added.

Dr McCarthy said that if Cork wants to be the Boston of Europe, it needs to go beyond the national system of innovation.

“It should seek to develop a global partnership in the innovation space and leapfrog rather than follow other global innovation centres such as Bangalore and San Diego. It should also look to having its own internationally regarded business school.

“While Ireland has several, including a new Graduate School of Business involving the IMI and Trinity College Dublin, competition in this space has worked well for cities such as Boston and London and would act as magnets to draw talent and develop management capabilities,” he added.

Meanwhile, Cork and Dublin fall behind the European average in terms of research, development and innovation and more needs to be done if Ireland is to stay competitive.

The results of a survey which was carried out by the office of the deputy prime minister in Britain, positioned Cork and Dublin against other European cities, such as Nottingham and Newcastle.

The percentage of people employed in research and development in Cork is 1.21% and 1.37% in Dublin, falling behind the EU average of 1.98%. On a European index Southern and Eastern Ireland is ranked in 29th position.

Innovation was measured in terms of patent applications and Cork and Dublin are again at the lower end of the scale.

Cork made 80 patent applications in 2002 and Dublin made just 18. This compares with the EU average of 161.

These statistics were presented to delegates at the annual Cork Chamber of Commerce conference yesterday.

Pat Ledwidge, director of services at Cork City Council, said the main drivers in terms of competitiveness include innovation in firms, a skilled workforce and economic diversity.

“If we are to stay competitive in the future we need to build a knowledge-based economy,” said Mr Ledwidge.

Cork and Dublin score highly in terms of productivity but Mr Ledwidge said that much of Cork’s productivity is dependant on foreign/direct investment which may make it vulnerable.