Written answers

Thursday, 7 June 2012

Department of Enterprise, Trade and Innovation

Industrial Development

8:00 pm

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 45: To ask the Minister for Jobs, Enterprise and Innovation the degree to which initiatives to date have been successful in attracting new enterprises here; if innovation technology has played a part in this process; if he expects this country to maximise the potential in this regard; if he intends to take further initiatives to encourage more enterprise to locate here; and if he will make a statement on the matter. [27513/12]

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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A range of initiatives have been put in place over the last thirty years to enhance Ireland's competitive strengths in attracting foreign direct investment (FDI). These include competitive tax offerings, a commitment to increase levels of R&D activity, investment in higher education to produce a suitably skilled workforce and the provision of high quality, tailored property solutions for inward investors. This policy has been successfully implemented with the result that the FDI sector that is supported by IDA Ireland accounts for around 250,000 jobs (1 in every 7 jobs) in the economy. FDI is a key stimulator and driver of the economy through its contribution to exchequer finances, exports and R&D, generating over 70% of corporation tax, €110bn in exports and expenditure of €19bn in the Irish economy.

Historically, manufacturing has been a significant segment of IDA's investment portfolio and it will continue to remain so into the future. Higher technological investment and higher value products are the hallmark of future manufacturing operations in Ireland. These operations are knowledge, capital and skills intensive, typified by a participative innovative culture where management and staff continuously collaborate to drive innovation, productivity, agility, learning and adaptability. The Government's Action Plan for Jobs recognises the potential offered by high valued added manufacturing and, in accordance with the Plan, IDA Ireland will continue to attract new investment into high value added activities manufacturing.

Innovation Technology will continue to be a key driver of economic recovery. IDA Ireland is working with Enterprise Ireland to support an industry consortium approach on a range of applied research initiatives through the Technology Centres Programme. Nine Technology Centres have been established where research is being conducted in the following areas:

· Food for Health

· International Energy Research Centre

· Biorefining and Bioenergy

· IT Innovation

· Applied Nanotechnology

· Composite Materials

· Microelectronics

· Manufacturing Research

· Energy Efficiency

Three further Technology Centres are due to be established shortly to focus on Learning Technologies, Financial Services and Cloud Computing. In addition, four centres, addressing the themes of Medical Device Technologies, Drug Production Technologies, Connected Health and Data Analytics are under active exploration with industry partners with a view to establishing what an effective and desirable research collaboration agenda would consist of. Services activities are now the prime drivers of growth in the developed and developing economies of the world creating over 60% of global employment. Ireland is now a successful services economy with two-thirds of the workforce engaged in services and ranks as the 10th highest exporter of services in the world. Ireland provides a low-risk, quick start-up, high-performance, knowledge economy for service companies. Services companies in Ireland have delivered better customer service, provided innovative business solutions and reduced costs enabling increased shareholder value.

Ireland has earned the reputation as one of Europe's leading locations for shared service centres. With its abundant, high quality IT, financial and HR skills, Ireland continues to attract shared services operations to serve European and global markets. Companies operating in the internationally traded services sector have located and expanded here because of Ireland's knowledgeable/innovative workforce, low risk environment, excellent infrastructure and favourable corporate tax rate.

The Government's Action Plan for Jobs has set a target of supporting the creation of 100,000 net new jobs over the period 2012 to 2016, with the longer term objective of having 2 million people at work by 2020. Our ability to attract new FDI will play a key role in this regard. For that reason, the Government has tasked IDA Ireland with the target of winning another 144 new FDI investment projects in 2012, which will create 12,500 new jobs with an associated 8,750 in the wider economy, giving a total impact of 21,250. Good progress is being made as, at end of May 2012, there had been 44 IDA announcements to date in 2012 with in excess of 5,000 jobs.

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