Companies in Ireland must invest more in marketing and research to complement their expertise in manufacturing if Ireland's recent prosperity is to be sustained, according to a high level group commissioned to review Irish industrial policy.
In the most comprehensive report on the Irish industrial policy since the Culliton report 12 years ago, the Enterprise Strategy Group recommends fostering an enterprise friendly economy with a workforce as highly skilled as any in an increasingly competitive global marketplace.
The group's chairman, Mr Eoin O'Driscoll, said Ireland must build on the policies which have proven to be successful such as low corporate tax, investment in education and light regulation and add expertise in sales and technology to sustain competitive advantage.
Though acknowledged as a world leader in manufacturing, Ireland lags behind its competitors in R&D and marketing, the areas where the wealthiest countries hold an advantage. Indigenous companies have struggled most in these value adding functions and the report recommends action to redress the imbalance, the report said.
The group recommends placing up to 1,000 marketing graduates with firms to develop their skills. Firms seen as world leaders in marketing should be targeted to set up their European headquarters in Ireland to improve marketing expertise.
Education is seen as a vital pillar of industrial policy in the new economy with life-long learning becoming the norm. Ireland must increase the number and quality of graduates with qualifications while a "One Step Up" education initiative should target people with few qualifications to improve their CVs.
The group calls for the introduction of a common chairperson for the boards of Forfás, IDA Ireland and Enterprise Ireland to drive what it calls "the enterprise agenda."
The group also proposes an expert group comprising top civil servants and businessmen to meet at least four times a year to promote co-ordination between the public and private sectors.
Presenting the group's report to the Tánaiste, Ms Harney, today Mr O'Driscoll said he was confident Ireland can build the skills, capabilities and resources for sustainable growth.
The group also recommends that the current corporate tax rate of 12.5 per cent should remain untouched as it believes the current level generates the optimum level of revenue without discouraging investment.
The Enterprise Strategy Group was appointed by the Tánaiste in 2003 to prepare an enterprise strategy for growth and employment in Ireland up to 2015.