IDA Ireland has again stressed the importance of creating an attractive environment to encourage multinationals to establish key research and development functions in Ireland. Meanwhile, the State's job creation agency is continuing to focus on expanding its existing multinational base, but is facing strong competition from other EU states. IDA Ireland chief executive Mr Kieran McGowan said British regions, such as Wales, were now aggressively seeking to attract Irish-based multinationals to set up any additional operations there.

Addressing a seminar organised as part of Science Awareness Week, Mr McGowan said there were no grounds for complacency when it came to persuading multinationals to establish research and development activities in Ireland.

Currently less than 25 per cent of all Irish-based multinationals undertake research and development in the Republic, with companies such as C.R. Bard, L.M. Ericsson and Nortel falling into that category.

Economic research undertaken on behalf of Forfas has shown that the addition of research and development arms to the manufacturing process not only improves the rate of job creation, but also provides greater job security in the long term.

"One company told us: `If you are doing development, you get board level attention that you would never achieve with a manufacturing operation, no matter how large,' " he said. Corporate thinking on research and development functions is changing, with the focus now on shorter life cycles for products and on the time it takes to bring them to the market. According to Mr McGowan, this presents opportunities for Ireland.