Whatever the doubts in some quarters about the sustainability of an Irish economy heavily dependent on the decade-long property boom, IDA Ireland remains bullish about future prospects from a job creation perspective. Publishing its end-year review yesterday, the State agency which is charged with attracting foreign direct investment said it was "well set for 2007".
Chief executive Seán Dorgan was speaking particularly about the high-value, knowledge-based investments that are its primary target, such as the arrival of biopharmaceuticals giant Amgen and the steady expansion of digital media leaders like Amazon and Google. In an upbeat review, the IDA spoke of "an outstanding year of growth and new investments" in 2006. A total of 125 new investments, worth in excess of €3 billion, were announced during the last 12 months.
Ireland Inc now chases quality, not quantity. Nonetheless, companies sponsored by the IDA last year turned in their best performance in net job creation since 2000 - adding almost 3,800 new jobs. And those jobs are well-paid too with more than half carrying salaries in excess of €40,000.
The Government will take heart from the significant increase in R&D investment by multinational companies at Irish sites. In the year the Minister for Enterprise, Trade and Employment unveiled a new R&D strategy, investment by IDA clients in Ireland jumped 80 per cent to €469 million. And the agency continues to underpin regional development with more than 70 per cent of all new investment projects going to locations outside Dublin, including six out of every seven R&D projects announced last year.
The IDA has capitalised on the recent strong growth in the economy and has successfully adjusted its focus to continue to operate effectively in an environment where Ireland can no longer stress its low cost status. The key investments in 2006 reflect that, with a concentration in financial services, pharmaceuticals, communications technology and digital media.
However, that focus demands a parallel investment by the State in infrastructure. The new National Development Plan promises investment in public economic and social infrastructure - including transport, education and R&D. Delivery on these, together with competitive, reliable energy supplies and communications, are the necessary building blocks for continued success in attracting high value added business to our shores. Without them, the IDA will struggle in an increasingly competitive global market for foreign direct investment.