Innovation ‘necessary for success’

FUTURE economic success will depend on innovative products produced to the highest standard geared to meeting exacting global demands.

That’s the conclusion of Forfás in its 2004 annual report. To stay at the leading edge, companies in Ireland will have to create product with high added value content. However, that will not be sufficient to guarantee success.

Forfás is the national board responsible for providing policy advice to Government on enterprise, trade, science, technology and innovation in Ireland.

To compete effectively firms will also have to adopt best management practices and create a culture that puts the customer first in everything it does.

“Firms with an eye to long-term growth in international markets will ensure that they have clear plans to introduce higher value products and services,” said Forfás chief executive Martin Cronin at the launch of the national policy and advisory board’s annual report. They will also need to improve operating efficiencies and build and leverage international sales and marketing capability if they are to have a future on global markets, said Mr Cronin.

Last year was a watershed in a number of instances, he said. It saw the publication of the Enterprise Strategy Group Report and the action plan for promoting further investment in research and development.

Mr Cronin noted that the Enterprise Strategy Group warned that, if Ireland is to have competitive advantage in the future, Irish firms will have to be led by innovation and by our ability to deliver goods on time and at competitive prices.

This will not be achieved however without innovative responses to the changing market place and the focus must be on “driving innovation in every aspect of how firms in Ireland do business”, he said.

Mr Cronin said the lesson’s are there to be learned. Last year traditional manufacturing saw a further fall in employment but the more modern sectors with strong export bases increased both jobs and their level of output, he said.

This has been a period of great economic success for Ireland and, to ensure that we keep it going, we have to move up the value-added chain and become better at what we do, said Mr Cronin.

In 2003 firms supported by Irish state bodies spent almost €34 billion in the economy including pay of €10.7bn and €14.2bn on Irish raw materials and services.

They paid €5.2bn in corporation profits tax, but suffered a modest 1,000 dip in the numbers in full-time employment to 298,000.