The primary challenge for the Government and IDA Ireland in the future will be to achieve a better distribution of overseas investment projects throughout the Republic, according to outgoing IDA Ireland chief executive, Mr Kieran McGowan.

But this will only be achieved through investment in infrastructure, he warned.

Mr McGowan said that despite the strong emphasis the agency has placed on bringing new projects outside the main cities, still much remains to be done. This year, the agency enjoyed some success in attracting investment to locations such as Dundalk, Waterford, Tralee, Clonmel, Killarney and Tullamore.

"It takes time for this impact to be fully reflected in the total figures but it is clear that the South-West, West and North East regions are beginning to show the results of this approach. There is much work still to be done."

Mr McGowan believes that some of the monies contributed by the multinational sector in corporation taxes to the economy should be ultimately deployed into improving infrastructure to support its long-term survival here.

"We need to take a more planned approach to regional development instead of having a crisis response as can be seen in Buncrana. IDA Ireland needs to work more closely with the local authorities and to possibly classify certain areas as being suitable locations for specific types of projects."

Mr McGowan also suggests that the emphasis for the agency will also move away from having to deliver large numbers of jobs with each project due to the continuing downward trend in unemployment in Ireland.

Jobs in sectors such as textiles and apparel and in some segments of the electronics and engineering sectors will remain vulnerable, with annual job losses likely to stabilise at around 7,000 for the foreseeable future.

He said: "The electronics and engineering manufacturing sector continues to provide most of the new jobs created. Because of its dynamism and rapid pace of change it also accounts for most of the job losses. This forms part and parcel of participating in this high growth technology-led sector and involves accepting a slightly higher level of turnover in jobs than in more mature product sectors."

Companies in the software, telecommunications and pharmaceutical sectors are the most resilient. With significant re-investment and expansion each year it can continue to be a major source of employment for graduates.