The latest Knowledge Economy Index (KEI) shows that 40,000 people are now employed in Northern Ireland's Knowledge Economy, with average salaries of £28,000.
The annual publication, drawn up by Catalyst Inc and supported by Bank of Ireland UK, also reveals Northern Ireland's knowledge economy is the 2nd fastest growing out of 12 UK regions, with only Scotland displaying greater levels of rapid growth, driven by its business starts, R&D activity and a higher number of PhD's awarded. The report demonstrates Northern Ireland's growth is fuelled by a significant number of new startups, strong investment activity and patent applications.
In defining the business types that fall under the umbrella phrase 'knowledge economy', Catalyst Inc points to those sectors that are both knowledge intensive and export orientated. These include: pharmaceuticals and biotechnology, software and digital content, IT services, creative content and digital media, high-tech financial services, aerospace, telecommunications and computing and advanced electronics.
Although the Northern Ireland knowledge economy is export-intensive and contributes largely to the creation of highly-skilled jobs, the report highlights deterioration in a number of other critical performance factors, including a reduction in direct GVA and a drop in PhD numbers.
The challenges now will be to boost knowledge economy activity at a pace that exceeds other regions and then to translate this activity into economic outcomes in terms of employment and wage growth.
Steve Orr, director of Connect at Catalyst Inc, said: “"Our priority recommendations are focused on 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."
