THE knowledge economy in Northern Ireland is growing at the second fastest rate of any region in the UK and currently makes up nearly a third of all exports from the region, a new report says.
The sector - which includes software and high-tech companies - is already halfway towards hitting its target of creating 80,000 high-salaried jobs by 2030, with 39,499 posts already in place
And it propels the north in a unique club of the most innovative regions in Europe and will help not only attract international recruits for future key jobs, but also contribute to reversing the brain drain.
The annual Knowledge Economy Report, supported by Bank of Ireland UK, says those working in the sector receive a wage premium of one-and-a-half times the average local salary.
It also points to Northern Ireland becoming an international leader in cyber security research and technology, expertise that has led to the creation of more than 1,000 jobs in the last three years, with more in the pipeline.
Other key points in the report compiled by the Ulster University Economic Policy Centre include:
:: One in 11 people in Northern Ireland are currently employed in the knowledge economy;
:: The sector accounts for £5 billion in sales (£2.9bn in exports, £1.2bn to Britain and £0.9bn in Northern Ireland);
:: 70 per cent of exports are outside the EU - seen as a positive post-Brexit;
:: Northern Ireland’s knowledge economy is the second fastest growing out of 12 UK regions (just behind Scotland);
:: The sector creates nearly two new-starts every working day of the year (435 in the last 12 months).
"This latest study recorded our highest knowledge economy numbers ever," said Steve Orr, director of Connect at Catalyst Inc (the new name for the former Science Park, where most of the jobs are based).
"Currently knowledge economy companies here contribute 30 per cent of our total exports, with 70 per cent of their sales outside the EU bringing us a largely Brexit-proof opportunity to expand our economy."
He revealed that the findings from the report have contributed to three key recommendations from the Connect Leadership Board, which is made up of members from business and academia.
“Our priority recommendations are to focus on firstly becoming world-class in research and development in specialist clusters of healthcare, cyber security and data analytics as well as advanced engineering.
"Secondly, education modernisation and investment up to PhD level, and thirdly immediate implementation of existing venture capital recommendations from the Economic Advisory Group," he added.
“This will lead to the development of people who create companies, commercialise products and develop world class sales and marketing skills specific to supporting these exports.
“We are an acknowledged international leader in cyber security research, expertise that has led to the creation locally of more than 1,000 jobs in the last three years, with more in the pipeline, in effect leading to the creation of a new business cluster in Northern Ireland, involving more than 30 companies.
“We believe our recommendations are wholly supportive of the outcomes stated in the Programme for Government Strategy as it relates to innovation, education, entrepreneurship and advanced manufacturing."
For the first time this year's report measures the impact of the knowledge economy on a council by council basis, and while the high-populous areas of Belfast and Derry are centres of excellence, Newry and Larne have also registered strongly.
Ian Sheppard, Northern Ireland regional director for report sponsor Bank of Ireland UK, said: “This report highlights that every type of business is impacted by technology, software and knowledge development,and Northern Ireland continues to see great examples of value creation through innovation.”
Richard Johnston, associate director of the Ulster University Economic Policy Centre, said: “The good news is that half of the knowledge economy indicators are at record highs, impacting positively upon the local economy.
"But the challenge going forward is to translate these record levels of activity into more jobs, better wages and higher profits, and that will require Northern Ireland to broaden the R&D and innovation enterprise base and additional investment in the education system to produce the skills that are required for the future so that we can give our young people a strong future in this new economic world order.”
