IDA IRELAND hopes to create 105,000 jobs between now and 2014, its chief executive Barry O’Leary said yesterday at the launch of its strategy for the period to 2020.
Mr O’Leary said the agency had never published its strategy before, for competition reasons, but was doing so because its plans for the coming decade required a greater level of engagement from a broader range of parties.
The strategy was launched by Tánaiste and Minister for Enterprise, Trade and Employment Mary Coughlan, and attended by members of the diplomatic corps, multinational executives, academics and representatives of IDA sister agencies.
Mr O’Leary emphasised the global level of competition for foreign direct investment (FDI), and said a focus on “transformation” had to be added to Ireland’s track record, tax regime and embrace of technology.
He said the agency had conducted a detailed analysis of the “megatrends, economic geopolitical changes and technology roadmaps” for the period, from which it has devised Ireland’s strategy. He said he was not divulging detailed aspects, as he did not want “to hand our strategy on a plate to our competition”.
In the period to 2014, the agency envisages 62,000 new jobs being created through FDI, a development which would, at a conservative estimate, create 105,000 jobs in the economy overall. In the period to 2020 it envisaged creating 140,000 direct jobs, or 240,000 jobs overall.
Mr O’Leary said that in the period 2004 to 2008, 53,000 jobs had been created by FDI. “That was a period when competitiveness was a problem for Ireland.” He said 2009 should not be counted as it was “disastrous altogether”.
Ireland’s competitiveness had been improving since the downturn, with hotel prices, land prices, salaries and energy costs coming down, he added, citing a recent report in The Irish Times that credit information providers Dun Bradstreet had rented office space in Sandyford, Dublin, for €16 per square foot. “That would have been €42 per square foot two years ago.”
The availability of so much property in Ireland would add to its competitiveness, he said, though rent levels were a difficulty for existing businesses.
“The most important thing that IDA will do is serve as a catalyst for change,” Mr O’Leary said. “Change in how our client companies operate. Change in how IDA works with multinationals serving the Irish market, and change in how multinational firms partner with indigenous firms.”
He said new opportunities existed in high end manufacturing and delivery of services and solutions. There will be increased “convergence”, with financial companies working with IT firms, and medical devices businesses working with chemistry concerns, he said.
The IDA intends to focus on emerging markets and emerging and small technology companies. There would also be an emphasis on supporting research, development and innovation.
He said the agency was hopeful there would be a breakthrough in coming months involving two global leaders in clean technology.
The various parties involved – such as agencies, Government, multinational and indigenous firms – will have to co-operate. “It has to be Team Ireland, because the competition is really, really strong out there,” he said.
Ireland had suffered reputational damage from the collapse of its banking sector and the associated scandals, but “world leaders” were still investing in Ireland. It was also important that Ireland continued to have high educational standards.
