Last year was the most successful for IDA Ireland since 2000 as permanent jobs in IDA-backed firms grew by 4,296, the body's end-of-year statement has claimed.
According to the chief executive of IDA Ireland, Sean Dorgan, 2005 stood out in job creation, the range and quality of new investments and the development of research capability and capacity.
More than 12,000 new jobs were filled in 2005, bringing the number of permanent full-time workers in IDA-supported firms to 133,362.
The body also gave its support to some 50 research and development investment projects, which involved a record total investment by business of more than €260 million - an 85 per cent increase in value from 2004.
Sean Dorgan, IDA chief executive
Several multinational companies also chose to make investments here, including Microsoft, Xilinx, Bristol-Myers Squibb, Pfizer, Citigroup and Genzyme.
Seventy-one new projects were fully agreed in 2005, 41 of which were greenfield projects.
Mr Dorgan said; "2005 was notable for the spread of investment by multinational companies throughout the regions, and for the depth and quality of R&D investments now being won.
"We are also confident about the prospects for 2006 as the volume and quality of new business in our pipeline is as strong as it has been at any stage in recent years."
In recent years, the emphasis has shifted from a manufacturing economy in Ireland to developing a knowledge-based one. More than half of the new jobs created in 2005 required a third-level qualification, covering sectors such as IT, financial services, web design, biotechnology and software engineers.
However, employment in manufacturing is still on the rise, gaining 1,500 jobs in 2005.