Cross-border cooperation in key areas identified by the Good Friday Agreement has not met its full potential, according to a report.
The latest ESRI-Shared Island report also identifies a number of areas around employment, childcare and education.
The Good Friday Agreement established a framework for formal cross-border cooperation on the island, creating six bodies under the North South Ministerial Council.
The report states: "Despite successes in a co-operative approach to tourism, progress in other strategic areas such as education, health, agriculture, and the environment has not met its full potential."
It argues there are advantages to "substantially upscaling North-South co-operation" in these existing strategic areas and expanding the remit of collaboration to skills provision, foreign direct investment, labour market access and energy security.
The report identifies areas with policy implications, including much higher rates of early school leaving in Northern Ireland, having consequences for access and quality of employment, as well as productivity.
There are also differences in take-up of post-secondary qualifications, showing the "potential to develop further education and training in Northern Ireland as a route to employment".
The report says there is potential for mutual policy learning around the targeting of local areas or schools as a basis for addressing educational disadvantage, as inequality in this area has knock-on consequences for adult life changes including employment and health.
There is a need for workforce development in healthcare and housing supply in both jurisdictions, the authors state.
There are similar challenges in the "gendered nature of care" and impacts on employment, with a need for continuing expansion of early years and after-school care on both sides of the border.
"Lone mothers face particular challenges in accessing high-quality employment in both Ireland and Northern Ireland, suggesting the need for appropriate education and training supports as well as childcare."
The latest ESRI report is a synthesis of 15 previous publications under the four-year work programme conducted for the Irish Government's Shared Island Unit.
Taoiseach Micheál Martin published the report in Dublin.
In his speech, he said: "We need data to inform all-island investment and cooperation priorities, as we build a shared future together on this island.
"The huge untapped potential of all-island co-operation is a major takeaway from the ESRI’s overarching report.
"This reflects the Government’s commitments to expand our Shared Island Initiative, so that we bring cooperation to a new level."
Other key findings include a widening gap in disposable household income which was 18.3% higher in the Republic in 2018.
Education participation rates are higher across nearly all age groups, while early school leaving is more common in Northern Ireland.
Life expectancy at birth is two years higher in the Republic than in Northern Ireland, reflecting overall differences in welfare and living standards.
Women with children are less likely to be in paid employment than men in both jurisdictions, with higher rates of part-time work and low pay among women.
Market income inequality before taxes and benefits is lower in Northern Ireland.
In the Republic, the tax system is more important in reducing inequality while in Northern Ireland, means-tested benefits play a stronger role.
Overall, inequality in disposable income after tax and transfers is very similar in both jurisdictions.
Child income poverty rates are higher in Northern Ireland, while child material deprivation is somewhat higher in the Republic.
Both have similar GP supply and primary healthcare utilisation, with long waits being a common issue.
The Republic has higher levels of unmet needs due to costs.
Housing costs represent around 20% of disposable income in both jurisdictions, with more extreme boom and bust cycles in the Republic.
Satisfaction with the political system and trust in institutions are generally higher in the Republic, though attitudes have been volatile.
There is some evidence that younger generations are becoming more disillusioned, particularly in Northern Ireland.
