Large-scale 'digital hub' investment could 'transform' regional economy, report says

The establishment of a so-called 'digital hub' in every county could significantly benefit the country by helping to create more than 1,000 companies, nearly 9,000 jobs and generating more than €300m for the regional economy, according to a report.

Digital hubs - typically shared workplaces for high-tech startups - are already significantly contributing to local economies, according to Vodafone Ireland, which commissioned the study.

Six such facilities, it said - including the Ludgate Hub in Skibbereen and HQ Tralee - are close to full capacity, employing a combined 462 people and hosting nearly 180 companies, and all want to expand to satisfy demand.

Between them the six 'hubs' are contributing more than €27m to the economy.

Cork's Ludgate hub, alone, has generated more than €4.2m for the local economy since its inception.

"The creation of viable smart working opportunities - in a hub, home-working, or a hybrid model - in Ireland's regions could prove transformative for people, businesses and local communities," according to Vodafone Ireland's director of enterprise Regina Moran.

The report's author, economist Jim Power, called the idea of investment in smart working spaces "an unambiguous win-win situation".

In a world where issues such as climate change, congestion, more balanced regional economic growth and development, and quality of life are becoming increasingly important and topical, the contribution that remote working will make to addressing these problems is very significant.

"This will benefit local economies, the environment and the wellbeing of employees and business owners," he said.

The report also suggested that building work hubs in every county in the country could generate €52m for the exchequer, with €1.56m in commercial rates.

One new facility - backed by Fexco, IT Tralee and Kerry County Council - has launched an application process to recruit companies in Killorglin.

The RDI Hub - which is targeting fintech and R&D entrepreneurs - is anticipating at least ten companies signing up as members in its first year, with space to accommodate 80 people in its building.