Irish companies supported by State agency Enterprise Ireland generated €1 billion in new export sales this year.

Enterprise Ireland, which supports home-grown, export-oriented companies, said this was in line with ambitious targets set for the year. "2006 has been a very positive year for Enterprise Ireland client companies," said chief executive Frank Ryan. "The performance reflects a very solid year of progress on the implementation of our three-year strategy, Transforming Irish Industry 2005-2007."

The agency reported that the total number of people employed by client companies had risen to 141,000, representing a net annual gain of 1,200 jobs.

A total of 70 new companies with high export growth potential were set up in 2006, and 84 "key reference sales" were secured by Enterprise Ireland's start-up clients.

"These key sales contracts provide strong endorsement for start-up clients as they seek to grow their customer base in global markets," Mr Ryan said.

In addition, companies supported by the agency won new export contract sales worth €125 million.

In terms of research and development (R&D) activity, the agency reported that more than 550 companies spent at least €100,000 on R&D projects this year, with 40 companies incurring R&D expenditure in excess of €2 million.

The total invested by the agency's client companies on projects such as R&D, expansions and training increased this year by €40 million to more than €113 million. "The investment pipeline for 2007 remains strong," Mr Ryan added.

Enterprise Ireland's venture capital strategy received a boost this year from the Department of Enterprise, Trade and Employment, which contributed €175 million to the fund.

Mr Ryan also reported that five major global corporations invested €9.5 million in venture capital in its client companies during the year.

"With the strength of our investment pipeline into next year, the export and R&D strategies being implemented by our clients and the robust state of current customer order projections, I am confident we will achieve our three-year targets by the end of 2007," said Mr Ryan.

However, he warned that 2007 would present a more challenging environment for Irish companies operating in international markets.

Enterprise Ireland is currently planning a trade mission to Saudi Arabia and United Arab Emirates for January.