Dáil Éireann Debate, Tuesday - 2 October 2012
77. Deputy Michael Colreavy asked the Minister for Jobs; Enterprise and Innovation if he will outline the way in which the proposed industry-led clustering proposals will address or exasperate existing regional employment disparities. [41609/12]
View answerCollaboration and clustering is a proven strategy that provides potential for economies of scale and access to opportunities that would be outside the capability or scope of a business working on its own. A number of sectors have potential to progress clustering, particularly in the guise of collaborative industry-led networks which seek to identify mutual objectives which if tackled collaboratively, can have a positive impact on the capability of companies to grow and create employment, wherever they are located. Clustering can be geographically focused, but with advanced technologies and communications, it can be sectorally focussed and operate across regions. Collaboration between companies is a proven method of enhancing economic performance. Benefits of collaboration include: enhanced productivity and income; increased market share; increased innovation and knowledge transfer; and enhanced capability.
One of the Action Points (2.4) in the Plan is to support industry-led clustering in key areas of opportunity, based on new models, industry proposals, and newly developed niche market strategies and in July last, I announced a new €2m pilot Clustering Programme designed to promote cooperation between businesses and create more jobs. The Programme is a joint agency initiative, involving Enterprise Ireland, IDA Ireland and Forfás. The goal of this Programme is to support time limited collaborative projects that will achieve measurable benefits to members of the group by addressing the needs of participant companies e.g. sectoral/sub-sectoral development initiatives, supply-chain optimisation, realising economies of scale, exploring export market opportunities and potential convergence opportunities.
Projects must involve a minimum of five companies. The initiative is aimed at a broad range of businesses serviced by the Enterprise Development Agencies. Clusters will also be encouraged to seek to find members from other jurisdictions, including Northern Ireland.
Clusters are proven catalysts of change and companies engaging in collaborative activities can improve their productivity and compete more effectively in domestic and overseas markets, thereby sustaining and creating much needed jobs across the economy.
This pilot programme offers two phases of funding support: Phase 1 Feasibility and Phase 2 Facilitation. 29 applications were received in the first call, which closed on 18 September, of which 22 were for Phase 1 support and 7 were for Phase 2 support. The applications received represent a broad range of companies from across different regions, industry sectors and State Agencies. Applications are currently being reviewed, by a committee comprising of officials from EI, IDA and Forfás, and funding will be awarded to successful applicants in October/November.
