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Fri 02 Feb 2008Innovate or stagnate

ECONOMICS: As we lose competitiveness internationally, we need to up our game on innovation or face serious problems with future growth, writes Paul Tansey.

The need to innovate is dictated by two developments.First, Irish goods and services are losing competitiveness on international markets for both internal and external reasons. Internally, Irish costs and prices are higher and have risen faster than in competitor countries. Externally, the country's trade-weighted exchange rate has strengthened continuously as the dollar has dived and sterling has slipped.

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