Looking at why Ireland needs a strong Dublin. These slides demonstrate the importance of cities in the global economy, looks at where Dublin sits in this context and the importance of Dublin in relation to talent and attracting FDI. The recommendations are based on research developed with UCD: "Dublin's role in the National and Global economy" See www.dra.ie for access to the full reports.

1. Making the case for a strong Dublin
November 2013
jamie.cudden@dublincity.ie
Activating Dublin

2. Presentation Overview
• Discuss the international perspective on
cities & global trends
• What this means for Dublin and Ireland
• Conclusions / Discussion
Jamie Cudden – Activating Dublin. Twitter: @jcudden

3. Why do Cities Matter?
 Many observers talk about the 21st century being
the century of cities. The world is not flat .
 For the first time in 2010 over half the world's
population now live in cities. 3.8 billion by 2015
(53%)
 They drive global GDP. Generating more than 80
per cent of global GDP today.
 Cities occupy just 2% of the world’s land surface
yet they house more than 50% of the world’s
population
Jamie Cudden – Activating Dublin. Twitter: @jcudden

4. Importance of Cities
“ Most OECD metro-regions have a higher GDP per
capita than their national average (66 out of 78
metro-regions), a higher labour productivity level
(65 out of 78 metro-regions) and many of them
tended to have faster growth rates than their
countries”
“Cities such as Budapest, Seoul,
Copenhagen, Dublin, Helsinki, RandstadHolland and Brussels that concentrate nearly
half of their national GDP whilst Oslo,
Auckland, Prague, London, Stockholm,
Tokyo, and Paris account for around one
third”
Source: OECD, competitive cities in the
Global economy
"Successful cities attract talented young
highly-skilled workers, are centres of
innovation and entrepreneurship and are
competitive locations for global and
regional headquarters. The proximity of
universities to research and production
facilities means cities are where new
products are developed and
commercialised. More than 80% of patents
are filed in cities.“
OECD
Jamie Cudden – Activating Dublin Twitter: @jcudden

5. We live in a spiky world
Source: Atlantic, The World is Spiky, 2005

6. Leading global cities are New York, London, Singapore and Hong Kong
“ Well over half of the world’s population
now lives in cities, generating more than
80% of global GDP.
Already, global business is beginning to
plan strategy from a city, rather than a
country, perspective.
Given the rapid growth and development
of many cities, particularly in emerging
markets such as China and India,
competition between them for business,
investment and talent will only get fiercer”
Source: Economist Intelligence Unit 2011 /
Citi Bank
Jamie Cudden – Activating Dublin Twitter: @jcudden

7. “ While $8.1 billion was
spent on smart city
technologies in 2010, by
2016 that number is
projected to reach $39.5
billion”
Source: ABI Research
2011

8. Dublin
http://www.citigroup.com/citi/citiforcities/pdfs/hotspots202
5.pdf
Dublin projected to be 22nd most
competitive global city in the Overall 2025
City Competitiveness rankings table
120 cities ranked
Jamie Cudden – Activating Dublin Twitter: @jcudden

9. The Top 600 Global Cities
Top 600 cities account for 60% of global GDP yet hold about 20% of the population
Jamie Cudden – Activating Dublin Twitter: @jcudden

10. City GDP 2005
Source: McKinsey CityScope
Jamie Cudden – Activating Dublin Twitter: @jcudden

11. City GDP 2025
• Over 100 new Chinese cities to enter the top 600 by 2025
• Not just megacities…

12. Jamie Cudden – Activating Dublin Twitter: @jcudden

13. Cities represent the Biggest Commercial
Opportunity in the coming decades
• One-third of the world’s population—2.6 billion
people—live in emerging-market cities, and by
2030, that number will increase by an additional
1.3 billion.
• Middle-class population expected to rise 70
percent between 2010 and 2015. Effecting
everything from where these individuals live to
how they consume.
Source: Boston Consulting Group

14. • Metros drive economic growth, action shifts to Asia,
Latin America, & Eastern Europe:
• 90% of the fastest-growing metropolitan economies
among the 200 largest worldwide were located
outside North America and Western Europe.
• By contrast, 95% of the slowest-growing metro
economies were in the United States, Western
Europe, and earthquake-damaged Japan.
Source: Brookings Metro Monitor, 2011

15. Source: Dublin Chamber of Commerce 2010, Making the Case for Dublin

16. What does this mean for Dublin?
“Dublin operates in an intensely
competitive world where increasingly
it is cities (and not states) competing
for investment, talent, tourism,
international students”
Jamie Cudden – Activating Dublin Twitter: @jcudden

17. What does this mean for Dublin?
Global trends:
• Increasing levels of human mobility and demand for skills
(expected to double by 2020)
• Growth projections for international students (to triple by
2020) and transnational tourism (+75% by 2020)
• About taking these opportunities
• Markets and cities that have never heard of Dublin
Sources:
•
•
•
Dirks. S., Keeling, M and Gurdgiev, C., 2010, Smarter Cities for Smarter Growth, IBM Institute for Business
Value.
UN World Tourism Organisation (2009)
Young-Chul Kim (2009): The Asia-Pacific education market and modes of supply. In: The Asia-Pacific
education market, eds. William Tierney and Christopher Findlay, quoted in Hawthorne 2008.
Jamie Cudden – Activating Dublin Twitter: @jcudden

18. Dublin: A magnet for FDI
PwC’s Global 100
Software Leaders
1
2
3
4
5
6
7
8
9
10
Microsoft
IBM
Oracle
SAP
Ericsson
Symantec
HP
EMC (excl. VMware)
CA Technologies
Adobe
Source: Data was compiled by the Global Software
Business Strategies Group at IDC.
1
2
3
4
5
6
7
8
9
10
Fortune 500
US Companies 2013
Apple
AT&T
HP
Verizon
IBM
Microsoft
Amazon.com
Dell
Intel
Google
in Ireland
In Dublin
•9 of the top 10 Global Software Leaders are in Dublin and 8 of the top 10 US companies
are here
•Dublin has one of the best track records for FDI in Europe. Voted the ‘Best to Invest’
European Metro in 2012 and third best in 2013.
Jamie Cudden – Activating Dublin Twitter: @jcudden

19. IDA investment locations – concentrated in Dublin
Investment Locations by key (Gateway) areas
Williams, B., Foley, W., Cudden, J. & Shahumyan, H.

20. Example of the tech / Internet investment in Dublin
Jamie Cudden – Activating Dublin Twitter: @jcudden

21. Example of the tech / Internet investment in Dublin
Jamie Cudden – Activating Dublin Twitter: @jcudden

22. Example of the tech / Internet investment in Dublin
Source: Frontline Ventures
Ireland Tech Start Up Guide

23. IDA investments and jobs
IDA Annual Report, 2013
- Dublin continues to dominate, grabbing 6,389 or 54% of the jobs.
- Dublin was far ahead of the second-best performing centre, Cork — where 1,979 or
17% of the overall FDI jobs were located.
- Galway secured 859 jobs, Limerick 400, and Louth 386.
Jamie Cudden – Activating Dublin Twitter: @jcudden

24. • “The Greater Dublin Region in Ireland is the best European
region of the future for economic potential, on account of
the large amount of FDI per capita it has attracted, especially
greenfield FDI projects in R&D. The banking crisis in Ireland
does not seem to have affected FDI into the Dublin region;
project numbers were up 15% year on year in 2011, following
the banking bailout at the end of 2010. Investors in Ireland
benefit from a favourable corporation tax regime; 20% of FDI
projects in the Greater Dublin Region in 2011 were classified
as headquarters”
•
http://www.fdiintelligence.com/Rankings/European-Cities-and-Regions-of-the-Future-2012-13

25. Talent and Education
Dublin and a few key Gateways are
the centres for talent and
opportunity
The Economist Intelligence Unit
ranked Dublin number one in having
the best “human capital” in the
world
Dublin is the only Gateway with
more graduates than it produces
Dublin region is the leading
education location in Ireland, with
50 percent of all students in the
university sector based there, and
63 percent of all PhD students
Williams, B., Foley, W., Cudden, J. & Shahumyan, H.

26. Talent Attraction
High skill work permits issued to Non EU persons
Dublin accounted for over 60% of the total..
http://www.siliconrepublic.com/careers/item/34899-number-of-irish-work-permit
“75% of Google staff have relocated from overseas to work in Dublin” - John Herlihy, VP
of Online Sales and Operations, Google Ireland
“Competition for Foreign Direct Investment is significantly increasing and the availability
of skilled labour is, amongst other things, one of the main deciding factors when
companies are choosing a location for their overseas investments. The fact that Ireland
continues to lead the way in availability of skilled labour adds significantly to our
reputation as a host for FDI” – Barry O'Leary, CEO, IDA Ireland
Jamie Cudden – Activating Dublin Twitter: @jcudden

27. Start up ecosystem rankings –
cities not countries
- Dublin not in the top 20

28. Start up phenomenon....
Two major global trends in tech start ups is the urban shift in the
underlying model as well as the globalization of start-ups which creates
great opportunities for Dublin
-Dublin is the
centre of the
start up scene in
Ireland
-Needs
attention to
make it a world
leader
Source: Martin Prosperity Institute, 2013

29. Spatial Representations of Population Change
2002-2011 and Job Density
Job Density in Ireland based on 2006 Census data
(Morgenroth, 2011)
Williams, B., Foley, W., Cudden, J. & Shahumyan, H.

30. Property Market – Dublin v Rest
CSO, 2013
- Pressure is building on the Dublin region.....
Jamie Cudden – Activating Dublin Twitter: @jcudden

31. Latest Labour Force Stats
*unadjusted figures
Source: CSO, 2013
Unemployment 10.5% in Dublin versus 13%
Jamie Cudden – Activating Dublin Twitter: @jcudden

32. Business Locations
• Mapping of business
locations across two
High value sectors
• Hot Spots in a few
Key Gateways – Galway,
Cork, Dublin and
Limerick
ICT
Financial
and Insurance Activities
•Mapping of Geo Directory Businesses (2012)
Williams, B., Foley, W., Cudden, J. & Shahumyan, H.

33. Agriculture, Forestry and Fishing
Accommodation and Food Services
•Mapping of Geo Directory Businesses (2012)
Different Strengths in Different Areas.....need to play to the strengths
of the regions...
Williams, B., Foley, W., Cudden, J. & Shahumyan, H.

34. Tax contribution
Data on tax contribution for the year 2008 delivered in response to a
Parliamentary Question in 2010 found that citizens or companies located in
Dublin[1]
– contributed 55.6% of all VAT in 2008, followed by Cork at 8.8% and Kildare 3.4
– paid 62.4% of all Corporation Tax yielding €3.2bn out of a total tax of €5.1bn in
2008.
– paid 50.6% of state PAYE in 2008 producing an estimated exchequer revenue
of €5 billion for the Government.
– paid 38.8% of non-PAYE income tax followed by Cork at 11%, Galway 4.5%,
Kildare 4%, Limerick 3.9%, Meath 3.5%, Wicklow 3.4% and Tipperary 3.0%.
– contributed 41% of all Capital Gains Tax intakes
– Figures taken from response to parliamentary question July 2010 [2]
•
[1] A number of caveats are attached to these figures due to reporting discrepancies such as Corporation Tax being collated based on the county
address of company HQ or the relevant branch for tax purposes.
[2] http://www.leovaradkar.ie/?p=1076
Williams, B., Foley, W., Cudden, J. & Shahumyan, H.

35. Opinion on Dublin - SWOT
STRENGTHS
Ability to attract, produce and retain
talent- critical mass of talent
Good business environment – cluster
effect
A city of global scale and/or
importance
Relatively good quality of living
Much improved transport
infrastructure
WEAKNESSES
High unemployment/Youth
Unemployment
Interregional competition
Outdated planning and governance
structures
Inadequate Connectivity
Economic crisis
OPPORTUNITIES
Attracting new investment/entrants
Increased collaboration across public
and private
Growing new creative industry
Enhancing the tourism potential
Enhancing the built fabric and
unlocking underdeveloped areas
Connecting to emerging cities
THREATS
Lack of investment in critical
infrastructure (water, rail)
Skill shortages
Competition from emerging markets
Factors undermining competitivenessCongestion
Antisocial behaviour
* Based on interviews with over 40 key stakeholders across the Dublin Region
Williams, B., Foley, W., Cudden, J. & Shahumyan, H.

36. Conclusions
• By international standards Dublin is a medium sized or
small city, ranked 77th out of 78 cities in terms of
population by the OECD.
• Dublin accounts for almost half of national GDP and its
effective management and continued success is critical
for the performance of the entire economy
• Dublin and its commuter counties face increased
pressures as urbanisation and migration towards the east
coast continues
• The Dublin region is expected to take a projected
population increase of over 200,000 persons from 2010
to 2022 the Mid East has been apportioned 100,000 in
the same period.
Williams, B., Foley, W., Cudden, J. & Shahumyan, H.

37. Conclusions
• Dublin has the critical mass of skills and workforce to
attract international investment
• Evidence base shows that Dublin has been resilient in
certain sectors such as ICT and Finance, actually
growing the numbers of enterprises notably in ICT.
• Key areas such as transport, water and broadband
infrastructure require future proofing to maintain the
competitiveness of Dublin.
• International benchmarks indicate a need to improve
our performance in these areas to maintain
competitiveness
Williams, B., Foley, W., Cudden, J. & Shahumyan, H.

38. National Competitiveness Council
"As Ireland’s only city of international scale,
continued investment in Dublin is necessary to
maintain and improve its position as an
internationally competitive location. A
competitive Dublin can serve to strengthen the
performance and attractiveness of other Irish
cities and provide them with opportunities that
may not be accessible otherwise“
NCC competitiveness council 2010

39. Recommendations
• A succession of ignored policy recommendations from
the 1960’s on the form, funding and financing of local
government....
• These reports generally support the interview opinion
that local government should have greater levels of
autonomy with the assigning of revenue generation
powers to local government linked with expenditure
responsibilities.
• Common messages included continued potential of the
city region, inadequate broadband, need for greater
levels of collaboration, threat of congestion, brownfield
regeneration, skill and language deficiencies and the
challenge of maintaining competitiveness......
Williams, B., Foley, W., Cudden, J. & Shahumyan, H.

40. Recommendations
• All the national and international evidence
demonstrates that:
• It should be clearly recognised that Dublin is a unique
case and national asset.
• No room for complacency in this regards – the
international competition is intense....
• If we maximise the capacity of Dublin we maximise the
potential of the entire country. Targeted investment in
key infrastructure is necessitated e.g. Water
Williams, B., Foley, W., Cudden, J. & Shahumyan, H.

41. The Metropolitan Revolution
The book argues that metro areas — or, cities
and suburbs together — are powerful economic
engines with considerable political influence,
and that local leaders are more likely to take on
the nation's big challenges than politicians in
Washington.
“The country’s 388 metropolitan areas are home
to 84% of its population and generate 91% of
national GDP”
" ... Cities and metropolitan areas are really
networks of leaders and institutions. They're
very powerful on their own, but when they
come together and they collaborate to compete,
they can do grand things together.“
Video links: http://metrorevolution.org/videos/
Jamie Cudden – Activating Dublin Twitter: @jcudden

42. Role of government....
• The point of the metropolitan revolution is not that
these so-called higher levels of government do not
matter. Rather, the point is that they must act in
service of their metropolitan engines.
• Every metropolitan leader – and every national leader
– must ask how national governments, local
governments and other actors should interact to
coproduce the economy. Waves of economic change
have put cities and metros at the forefront.
• Will national governments ignore these changes, or
will they recognise that supporting metropolitan areas
is the new imperative?
• This is very relevant to Ireland…..so how does we
respond to this to ensure that we maximise Dublin’s
potential....(Activating Dublin model?)
Jamie Cudden – Activating Dublin Twitter: @jcudden

43. Extra Material
• Selection of useful international indicators

44. Some Recent Coverage and
indicators.....
“Emerging Tech: Dublin one of 9
International Startup Hubs to Watch”
“New Silicon Valley on the emerald isle”
“Ireland best country to invest in
Western Europe. Dublin third best
metro”
“Dublin is the Great Bike Hope among
emerging bicycle cities... Dublin is an
inspiration and a city to watch”
Jamie Cudden – Activating Dublin Twitter: @jcudden

45. Dublin ranked
overall the fourth
most prosperous
city in the
2012/13 UN
prosperity index
Report:
http://www.unhabitat.org/pmss/listItemDetails.aspx?publicationI
D=3387
News Article: http://www.irishtimes.com/news/dublin-rankedfourth-most-prosperous-city-in-un-index-1.1313782

46. International examples of cities
• Germany’s top four metropolitan economies –
Cologne-Dusseldorf, Hamburg, Frankfurt and Stuttgart
– contain just over a quarter of the country’s
population but generate more than 30% of national
GDP.
• Barcelona, Madrid, Valencia and Seville represent 35%
of Spain’s population, but nearly 40% of its GDP.
• The top 10 metro economies in the UK house just over
the half its population, but produce nearly two-thirds
of the country’s output, with more than one-third
coming from Greater London alone.
Jamie Cudden – Activating Dublin Twitter: @jcudden

47. Quality and Cost of Living
Quality of Living
• Dublin 35th city in the world for quality of living (Mercer, 2012)
• Dublin 16th top city in the world for personal safety (Mercer, 2011)
• Top 5 global cities are: Vienna, Zurich, Auckland, Munich,
Düsseldorf
Costs of Living
• Dublin is now outside of the top global 50 cities for costs of living
(58th) from 42nd in 2010. Now 74th in 2013.
• 6 years ago Dublin was 10th
• Top 5 global cities are Luanda (Angola), Tokoyo, N’djamena (Chad),
Moscow, Geneva
Jamie Cudden – Activating Dublin Twitter: @jcudden

48. The biggest web summit outside of the US
Jamie Cudden – Activating Dublin Twitter: @jcudden

49. • Dublin 13th friendliest place in world (Cork 20th and
Kilkenny 9th , Conde Nast traveler survey, 2013
“Ireland’s most famous metropolis is also among its kindliest.
This “big, bustling city with great museums” is “full of history
and likeable people.” “The friendliest natives I have ever
encountered,” gushed one visitor, “the gift of Irish gab lives!”
Another Dublin enthusiast noted that every local they came
across had “a smile in their voice and a joke at the ready.”
With “so much to see and do” and, of course, “wonderful
pubs,” “inviting” Dublin “should be on everyone’s bucket list.”
http://www.cntraveler.com/daily-traveler/2013/07/worldtravel-dublin-auckland-cork-friendly-unfriendlycities_slideshow_item7_8
Jamie Cudden – Activating Dublin Twitter: @jcudden

50. Tourism and Cities – Nov 2013
Tourism Intelligence International launches its
brand new study entitled, "Cities on the Rise -Competitive Strategies for City Tourism
City tourism is growing faster and is more resilient
than global tourism. It also explains that city
tourism drives the development of the
destination's tourism sector as a whole and is a
vital force for economic growth
http://www.youtube.com/watch?v=pN9IX7titoY