Inward investment changing substantially: IDA

Investment in the Irish economy is changing substantially in relation to local and global economic circumstances according to the Industrial Development Authority’s annual report published today.

Despite a reduction in jobs in IDA-backed companies the report stated that inward investment had moved up the value chain and become more skills-based and innovation-led in 2003.

Total employment in the 1,094 IDA-supported companies in Ireland is now 133,246 after 14,900 jobs were lost in 2002 with just 11,740 new jobs being created.

Of the 20 new projects already announced for 2003, two-thirds of the jobs created will be filled by graduates. 40% of the jobs will be in salary scales above the IDA high skills' guideline of €37,000 per annum.

“The evidence is now there that this move is underway in the types of new investments announced so far this year, “said IDA Chief Executive, Sean Dorgan.

He cited Google and Overture in the Internet search business, Pfizer, Schlumberger, SAP, Accenture and others in high skilled support services as proof of the higher value added and quality jobs that the IDA was now trying to attract.

However, concern was expressed that inward investors are again focusing on the city areas as their preferred locations as the persistent issues of infrastructure and scale were making it increasingly difficult for some regions to be sufficiently competitive.

According to IDA Chairman, John Dunne, there was a fundamental need to deliver improved competitiveness and growth in productivity.

"Competitiveness, in its broadest sense, is critical to winning new inward investment. It is essential that there is full commitment to new investments in areas such as education, support services and infrastructure to enable regions in Ireland to grow," Dunne said.