China, India and Russia are together producing 14 million university graduates a year, a fact which underlines the need for Irish academia, business and Government to work towards safeguarding the Republic's competitiveness.

The Republic is no longer a low-cost economy and is unable to compete with the emerging economic powerhouses in the east. In China and India, salaries are not just significantly lower, but there is an endless supply of resources.

Clearly the Republic's future can only be as a skills-based, services-led economy, where the focus is on intellectual property and innovation as the means of generating and using new knowledge for economic and social progress.

Accenture has developed a knowledge index which assesses countries' performances both in terms of "inputs" (such as government investment and adult education) and "outputs" (such as the number of engineering and science graduates and the number of world-class universities).

It shows the Republic ranking 11th in terms of inputs, but with a below-average score. It ranks a more acceptable seventh in output terms, lifted by the relatively higher proportion of science and engineering graduates here compared to other European economies.

Germany, France and the UK top the output league table mainly by virtue of the reputation of their universities.

The Nordic countries head the input index, reflecting the higher level of government investment in education in those countries.

In the face of stiff competition from emerging economies, the future success of western countries as knowledge-based economies rests on their openness and the international reputation of their academic institutions.

However, that reputation will only remain strong if investment in education and other input measures keeps pace with those in the emerging economies.

For the Republic, the challenge also includes greater co-operation between business, academia, Government and, perhaps more importantly, the workforce.

If the Republic is to take advantage of the shift away from producing tangible goods to cognitive, knowledge-based work, the starting point is establishing the right base of foundation skills. This must include an increased emphasis on creativity, increased use of technology and improved language skills.

Beyond this, it will be essential for individuals to update their skills, with more emphasis on lifelong learning as the population ages. The Republic's participation rate in lifelong learning, at about 50 per cent, is below the EU15 average.

Through wider partnership with policymakers and academia, business can help ensure that investment in education is timely and relevant to industry needs.

Ireland needs to be able to compete effectively in the "war for talent". However, our success will be determined by factors such as the international reputation of our universities and the opportunities afforded by the research environment, which, in turn, depend on the quality and funding of universities and their connection to industry.

Irish universities still have some way to go to catch up with universities in France, Germany and the UK, which are more successful in attracting foreign students. In the Republic, we need to attract the world's most talented graduates if we are to improve our competitiveness and access to skills.

Ultimately, Ireland's success depends on our greatest asset: our people. Our successful businesses can work together with the policymakers to provide the opportunities for people to upskill and develop their capabilities.

However, the workforce must also take on a higher level of personal responsibility to make the most of these opportunities and recognise this as an imperative to safeguard Ireland's future prosperity.

Mark Ryan is managing director of Accenture in Ireland.