In the past number of weeks Ireland has been hit by a number of companies announcing closures or redundancy programmes.

These high-profile job losses, many announced within days of each other, have caused many to question whether we can do anything to stem this loss of investment.

We need to look at the changing nature of Ireland's competitive position and the global economy in which we all live and work.

Ireland's strategic policy of attracting inward investment goes back almost half a century to a time when it offered would-be investors a low-cost location and a package of generous grants along with a zero rate of corporation tax.

The operations attracted back then tended to be quite low-level assembly facilities. The emphasis was firmly on quantity of jobs rather than quality. But by the 1970s Ireland had already begun its move up the value (and indeed cost) chain and a number of very high-profile facilities such as Dunlop in Cork closed with the loss of thousands of jobs.

In addition, the textile industry virtually disappeared and was quickly followed by the car assembly sector once it had lost its protections following EU accession in 1973.

The response to these losses was a positive one. Instead of trying to turn back the clock and stem the inexorable tide of change successive governments chose to invest in its people through education and to create the right environment for enterprise to thrive.

It took some time for this policy to bear fruit but when it did it was in spectacular abundance with the birth of the Celtic Tiger economy, a key factor of which was inward investment. But this time Ireland was not attracting low-cost assembly-style operations; it was attracting much higher-quality operations with a far greater knowledge component. And with this came much higher-quality jobs.

Unfortunately, over the past 10 years Ireland's relative cost advantages have been eroded at quite a dramatic rate. Successive reports from the National Competitiveness Council (NCC) have pointed to this and rising costs in the high street are evident for all to see.

The report also highlights some long-standing, and newer, weaknesses in Ireland's "competitiveness balance sheet". These include infrastructural deficits, relatively poor levels of science and mathematical literacy at second level, low levels of business expenditure on research and development, and a deteriorating cost environment.

Many of our key strengths are no longer key differentiators as we compete on the global stage and once again Ireland finds itself in a transition period as it seeks to reposition in order to attract inward investment. While it is clear that Ireland cannot compete on cost alone, it is imperative we urgently address some fundamental drivers of the rapid increase in our cost base.

Also impacting on recent job losses is the fact that many multinational companies operate in a global environment. Decisions can be made, not because of events happening in Ireland, but because of wider global issues.

In a global environment, if the corporation is not performing globally and rationalisation is called for, only the most profitable and cost-efficient will survive. Unfortunately, we also see rationalisation programmes implemented "pro rata" across the entire organisation with each facility expected to make job cuts, regardless of local market conditions.

But US multinational companies in Ireland have done a superb job in responding to the global challenge, driving dramatic improvements in productivity, seeking and making investment in higher value add processes and R&D and, where appropriate, divesting elements of the business that are no longer profitable to lower-cost countries.

Facilities located in Ireland, often competing with other facilities within their own corporation for investment, have been very successful in winning R&D and value add projects.

But there are times when, regardless of the steps taken, events at global level will decide the future of an operation regardless of the success of local management.

This is the issue which faces Ireland at the moment, and we have seen many multinational companies announce closures or redundancies because of a need within the global corporation to improve profitability or react to changing market conditions.

But, just as in the 1970s, it would be wrong to attempt to resolve it by attempting to turn the clock back and seek to attract volume jobs rather than high-quality jobs. Our response must be measured and focused on developing our strengths.

It is the view of the American Chamber of Commerce that the Government is getting it right in this regard, taking very positive steps to chart our way towards a knowledge-based economy.

Its Strategy for Science, Technology and Innovation and its associated €2.5 billion in funding is a strategic, integrated approach across Government which is a very welcome and positive step. The new National Development Plan and the Transport 21 programme are addressing many infrastructural deficits.

The commitment to retain the 12.5 per cent rate of corporation tax and its resolute opposition to tax harmonisation at EU level is also very welcome.

Another positive development is the publication of the Government White Paper on energy which has some innovative proposals for encouraging competition in the energy market as well as controlling costs.

However, it is now down to executing all of these plans on time and within budget.

The American Chamber of Commerce Ireland believes the time is right for a new type of partnership between "Ireland Inc", the Government, and the US multinational companies which have together enjoyed such successful working relationships to date here in Ireland.

This week will see the publication of Retuning the Growth Engine, which sets out the American Chamber's blueprint for this future success. The aim is to create a "virtuous circle" built on positive action in five key areas: education, research, convergence, commercialisation and fiscal policy.

This will not only help us retain the existing base of overseas companies located here but assist in attracting the next wave. US companies here are ready and willing to play their part with Government and all other stakeholders in meeting the challenges which face us and helping to create the conditions which will maintain Ireland's economic success into the future.

Jim O'Hara is president of the American Chamber of Commerce