ICT Ireland is calling on the Minister for Finance to introduce measures in the upcoming Budget to support the drive by Irish firms to increase their investment on research and development (R&D).
According to ICT Ireland, the IBEC body representing the information and communications technology (ICT) sector, the future of the €31 billion sector, which employs almost 100,000 people in Ireland, will be dependent on the development of Ireland as a "best in class" location for undertaking Research and Development.
It is also calling on the Government to resist moves at European level and some Irish trade unions to abandon our low corporate tax regime.
Mr Brendan Butler, ICT Ireland director, said: "It is vital that Ireland acts now to ensure we have in place a competitive environment in which to benefit from the global recovery".
ICT Ireland argues in its budget submission that investment in R&D is an essential requirement for Ireland as many of our traditional IT companies move their activities to low-cost locations.
Current investment in R&D is below what is required and Irish business invests about 50 per cent less in R&D than other OECD countries, the submission said.
It also says any change in stated Government policy to introduce a 12.5 per cent corporate tax rate would be detrimental to Ireland's chances of retaining and attracting foreign direct investment to Ireland.
ICT Ireland says Ireland attracted 25 per cent of all US investment in Europe over the past 10 years. Mr Butler said this is a direct result of the corporate tax regime.