Ireland Seeing Shift in Inward Investment

According to a recent report on inward investment in Ireland, global economic changes are having a major impact on the nature of business investments occurring in the country. For one, they are becoming more skill-intensive, and for now, the number of new jobs being created is fewer.

The report says that competitiveness, in its broadest sense, is critical to winning new inward investment. In the past Ireland's competitive advantages relied on a low cost base for wages and services and on skills availability and incentives. These advantages have been eroded and Ireland's future competitiveness can only be based on knowledge, innovation, skills, education and research, on the quality of infrastructure and services in the economy and, clearly, on continuing the low tax regime.

In 2002, 11,700 new jobs were created by IDA-supported projects, compared to 13,300 in 2001, 23,000 in 2000, and 17,600 in 1999. The number of new investing companies numbered 1,094 in 2002 compared to 1,158 in 2001, 1,262 in 2000 and 1,261 in 1999.

How much is IDA spending to land the jobs it attracts? The average investment per job in the 1996-2002 period was $15,897, compared to $25,417 in the 1987-1993 period.

Download the full report and summary here.