Cork is now a blueprint for second cities around the globe

A second-tier city is defined as the largest city in a country outside of the capital and whose economic and social performances are sufficiently important to affect the national economy. Cork is a good example.

Pharma and ICT

These cities are often overshadowed and, historically, overlooked, yet they present untapped opportunities for fostering sustainable growth and innovation, the paper said.

Noting the growth of Cork’s pharmaceutical and information, communications and technology (ICT) sectors, the UCC paper said that the city’s success offers lessons for other second-tier cities that are navigating similar economic transitions.

Cork City highlights the importance of embracing technological advancement and fostering environments that are supportive of innovation.

Pivotal role of education

Educational investment and attainment were highlighted as key elements that demonstrate Cork’s success as a second-tier city, with key institutions, such as UCC, the Munster Technological University (MTU), and several colleges of further education playing a “pivotal role” in Cork’s economic transformation.

In addition, the paper noted the city’s success in integrating educational policies with labour-market demands, “providing a roadmap for creating a skilled, adaptable workforce”. It continued: 

Investing in education and training that align with the pharmaceutical and ICT sectors’ demands ensures a consistent supply of skilled workers. 

Also highlighting its attractiveness as a destination for foreign direct investment (FDI), the paper reported that open markets and free trade catalysed a period of “unprecedented industrial growth and diversification” in Cork.

“Cork’s strategic approach to attracting foreign direct investment (FDI) emphasises the necessity for second-tier cities to align their economic policies with global trends,” the paper said.

The study reported that the number of those working as a result of foreign investment has surged by more than 80% since 2010, rising to over 43,800 by 2020.

This upward trend not only highlights Cork’s capacity to attract and retain foreign investments, but also signifies the broader economic contributions of second-tier cities to national development through FDI.

“Cork demonstrates how second-tier cities can capitalise on their unique advantages, such as favourable geographical locations, created assets, and existing industrial bases, to attract global investments and foster economic growth.”

Despite its success, Cork’s attractiveness to FDI still faces several challenges, namely, the need to bolster human capital, ensuring a steady supply of skilled labour, and the need for enhanced transport infrastructure.

Transport plays crucial role 

Cork’s transport facilities were also highlighted in the paper, with the city’s efforts to enhance services demonstrating the “critical role of infrastructure in attracting investment and talent”. 

“Availability of critical infrastructure, such as Cork Airport and Cork Port, is indicative of the central role of both physical and digital connectivity in making a city more attractive to foreign investors,” the paper said.

“Second-tier cities must prioritise investments in infrastructures to enhance connectivity, thereby improving their appeal to potential investors and paving the way for sustainable economic growth and development.”

The study also emphasises the city’s commitment to addressing demographic challenges and promoting inclusive economic participation. 

Demographic challenges 

However, it noted that Cork faces demographic challenges that mirror broader trends affecting second-tier cities globally, particularly in terms of fertility patterns.

“A declining fertility rate signals potential labour-supply issues, highlighting the need for strategic policy interventions to sustain economic growth and support an ageing population,” the paper added.

Speaking on the study, Marie Ryan, economics lecturer in UCC and first author of the paper, told the Irish Examiner: “In an era of rapid urbanisation, the experiences of cities like Cork offer valuable lessons for urban planners, policymakers, and business leaders worldwide.

“This work provides a comprehensive look at how second-tier cities can punch above their weight in the global economy, while prioritising sustainability and quality of life for residents,” Ms Ryan added.

“As cities worldwide look to ‘build back better’ post-pandemic, Cork’s story provides inspiration and practical strategies for sustainable, inclusive urban growth.”