Developing an infrastructure that can support the skills and service requirements of the new economy will be a key aspect of how well we progress to the next stage of economic development, according to the IDA annual report.
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Mr Sean Dorgan, Chief Executive of IDA Ireland
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Speaking at the launch of the report this morning, Mr John Dunne, Chairman of IDA, said keeping up a good pace of economic growth will depend a great deal on how quickly we can deliver on these.
"Having practically full employment does not diminish the need to continue pushing for further development in the economy, but that development needs to be pursued from a new agenda, Mr Dunne said.
"Many regions need to make better progress, if only from an equity point of view; many individuals need more challenging and higher value work to best use their skills."
According to Mr Dunne, Irish people now expect not just to have a job, but expect a well paid and satisfying one, preferably in their own region. They also expected a higher standard of living, in a clean environment, with services that worked efficiently.
"Simply counting job numbers is no longer the best measure of success in the economy, as Ireland moves to a new era of development. That was fine when unemployment was the key issue," Mr Dunne continued.
"We've got to recognise that things are very different now, both domestically and in international investment markets, and begin a sharp focus on the real issues of sustainable, high value development in a world class arena."
The report also estimates that jobs from foreign investors in Ireland in 2001 will be substantially less than last year's figures due to the slowdown in the US economy wih only 50 per cent of last years figure of 25,000.
In response, he said, the IDA has developed a new approach to development
The key elements of the new IDA approach are:
- To continue to attract inward investment but to switch the emphasis from individual projects to developing strategic business areas, clusters of excellence, in which groups of companies, corporate and academic research facilities, venture capitalists and others would congregate together to create an ambience conducive to innovation and entrepreneurship.
- To build on the current IDA strategy of attracting projects in defined sectors to specific regions, with an initial special focus on three regional economic centres - Sligo, Athlone and Waterford.
- The IDA will also become more actively involved in building links between international businesses and third level education, and other research-based centres across the country to ensure that the necessary skills and research capabilities are in place.
Mr Sean Dorgan, Chief Executive of IDA Ireland, speaking at the launch said that IDA had set in motion a process of change to bring the impact of foreign direct investment to a new plane in the decade ahead.
"The first step in this process was to achieve better regional distribution of investment projects and we have begun to deliver this, with 50% of all jobs approved in greenfield projects going to the Objective One regions during 2000. This will continue to be a priority objective for the coming years," he said.
Mr Dorgan added that IDA had also placed great emphasis on the quality and value of jobs and in 2000 had negotiated nearly 40 per cent of all new jobs in salary ranges above €31,700. He said that IDA aimed to increase the proportion of jobs in the higher paid categories in the years ahead.