Business and academic leaders in Waterford have warmly welcomed an independent report which has found that granting Waterford Institute of Technology (WIT) full university status would generate almost €100 million a year for the southeast economy.
According to the report by Goodbody Economic Consultants, commissioned by Waterford Chamber of Commerce, some 2,000 jobs would be generated from the upgrading of WIT to a full university.
The study shows the southeast suffering from a lack of investment, particularly in education. The region has fallen behind the rest of Ireland in terms of economic development and the number of graduates it produces.
The report uses data from the Central Statistics Office and says the southeast's per capita income is 89.5 per cent of the national average, with an over reliance on poorly paid self-employment.
The report found the region suffers from a lack of multi-national investment despite its position on the eastern seaboard and improving infrastructure. It found there was a relatively low proportion of the labour force with third-level qualifications.
Economists Bernard Feeney and Candy Murphy found the region suffers from a "brain drain", as those taking up university courses must live outside the region, further impacting on economic life as many of these graduates will not return to live.
"The Government should recognise that the region should receive the same priority that is accorded the BMW regions and allocate additional resources to the development of economic and social infrastructure, while the quality of the labour force should be improved," they said.
The report said a university would fulfil Government policy of developing a knowledge economy in line with a recent OECD report calling for a focus on universities to develop research capacity and the number of postgraduate students.
"If the Waterford Institute of Technology were to become a university, it would generate some 2,215 jobs, either directly or indirectly, equivalent to around 2.4 per cent of existing regional services employment and an increase of 50 per cent on current levels," said the report.
"The new university would also generate €96.7 million in the economy, equivalent to 0.87 per cent of current total regional gross value added, an increase of just fewer than 50 per cent on current figures."
President of Waterford Chamber of Commerce Dr Frank Dolphin said the development of a university in the southeast is crucial, as universities in Ireland are becoming an integral part of the economic and social development of their regions.
"Universities provide locally available knowledge, creative workforces, research capability and access to global expertise. They provide strategic analysis and leadership, assist in attracting critical foreign direct investment and help to create 'clusters' of economic activity."
WIT director Prof Kieran R Byrne commended the Chamber of Commerce for its initiative in commissioning the study and said its findings would be studied closely by senior management.
