22 September 2015
- 10% of NI Economy is now driven by Knowledge Economy
- KE salaries 50% higher than average
- 85% of Knowledge Economy sales are outside NI
- 410 Knowledge Economy Start-up businesses created
- NI second fastest growing UK KE Region – second year running
For the first time we have the statistical evidence to support the view that focusing on a knowledge based economy is critical to the future rebalancing of the wider economy.
Northern Ireland’s Knowledge Economy (KE) is confirmed as a significant wealth generator with salaries 50% higher than average and for every job created in the KE one more is created in the wider economy.
4,260 direct KE jobs have actually been created from 2009-13 meaning that 42,000 direct KE jobs could be created from 2009-30 if Northern Ireland hits the NISP CONNECT aspirational target. In effect this could result in more than 80,000 indirect, indirect and induced jobs by 2030.
As the only one of its kind in the UK the 2015 Knowledge Economy Report, commissioned by NISP CONNECT and sponsored by Bank of Ireland UK, also reveals that the number of KE start-up businesses has increased significantly and that the sector now drives 10% of Northern Ireland’s economy.
The report shows that we are out-performing stretching targets in job creation, high value salaries, new business start-ups and strong external sales with 11 out of 18 key indicators either above or on target.
However there are some warning signs, some indicators are not performing. We need to re-energise and focus our activities in these areas if we are to achieve the growth targets necessary to develop a sustainable economy.
Produced by the Ulster University Economic Policy Centre, the report analyses the published data on 21 indicators including employment, salaries, venture capital investment, research and development; start-ups, PhDs and patent registrations.
At the publication of the Knowledge Economy Report today Steve Orr, Director of NISP CONNECT said “It is now clear that the knowledge economy is the most important investment that Northern Ireland can make long term by creating the most high-value sustainable jobs and great opportunities for our people.
“Our public and private sectors have gone a long way to achieve this with government policy on R&D investment and venture capital paying real dividends while the private sector is investing more and more valuable volunteer time and resources to help our young entrepreneurs,” he revealed.
Yet Orr sounded a warning that the increasing wealth generated for the Northern Ireland economy could potentially slow down as some indicators show a significant drop, for example in the number of PhD’s awarded.
“A knowledge economy that is set up to grow, needs really smart people working at the forefront of discovery, solving mankind’s biggest problems supported by lots of technical people who can help to develop or support products and services, people who can sell the products and people who can run the business.
“Government must re-commit to the DEL Higher Education Strategy for Northern Ireland and ring fence funding for postgraduate research students with the aim of securing at least 1000 funded PhD places per year. This must be coupled with a long term ambition, with sustained commitment until 2030.
“There is more that the private sector can do too. Our Innovation into Action project this year highlighted the need for a new call to purpose for Northern Ireland’s experienced business people to get involved in a new era of innovation volunteering where time is given free to share hard won experience with the next generation.
“We cannot afford to be complacent and if we do not increase investment in STEM education, support more PhDs and challenge businesses to step up and invest more in vital research and development, the gains of the past will slip away,” he warns.
Ian Sheppard, Bank of Ireland UK Regional Director of Business & Corporate Banking NI welcomed the findings on the Knowledge Economy’s contribution to growth, high wage employment and wealth generation through exports.
“As Northern Ireland looks towards building a sustainable economy led by a robust private sector, we have to remember that the Knowledge Economy spearheaded by our most innovative indigenous companies in technology; life science; advanced manufacturing; creative industries and software development will be a key driver of the future of employment and wealth creation in Northern Ireland.
“The KE Report is very encouraging in highlighting the impressive growth and contribution to productivity, external sales and new start-ups. However the real challenge is in the ability to scale up NI businesses at all levels. We need to learn the lessons of our highly successful KE businesses, share best practices and encourage those businesses with ambition and potential to invest in growth sooner rather than later,” he advises.
“Northern Ireland may have been starting from a very low base but a strong focus on innovation and growth has produced more than four thousand new Knowledge Economy jobs across the whole of Northern Ireland since 2009. This kind of monitoring over a long time period is essential to guiding political and corporate policies but we must acknowledge the evidence and act on it for long term gain.”
Looking to the future Steve Orr remains robustly optimistic for the competitiveness of Northern Ireland and the impact of the growth of the Knowledge Economy.
For further information contact Sheila Davidson 07785793672 or Claire Burgoyne 07557815365.
