There are many new threats which we now face. The less favourable external environment will test our competitiveness. Other pressures are arising from changes to the ways in which industry operates. We have seen a strong trend towards the movement of manufacturing towards lower cost economies. This reflects the fact that Ireland is no longer a low wage economy and must make that transition to higher added value products and services that allow us to sustain and grow incomes. A key part of this process is to recognise the importance of knowledge creation and innovation in sustaining and enhancing competitiveness.