Industrial development body Forfas says the country is facing an unprecedented challenge to grow knowledge intensive jobs and investment.
In its latest Review and Outlook, Forfas says that companies here are facing competitive challenges more comprehensive and unremitting than at any point in the country's recent economic history. It adds that competition is set to be as intense at the high end of the production chain as it is at the lower end.
It warns that the likes of China, India, South East Asia and Central Europe are now targetting the kinds of high-tech manufacturing and services activities that have driven Ireland's growth over the last 15 years.
'Ireland's goal must be to sustain levels of competitive performance in line with the world's best,' commented Martin Cronin, CEO of Forfas, at the launch of today's document. 'We must focus squarely on our core strengths and on high value niche areas to achieve success in this increasingly competitive environment,' he added.
Forfas says the economy continued to perform very well last year, with GNP estimated to have grown by around 5% compared with an OECD average of about 2.7%. Total employment reached 1.99 million in the third quarter, and by the end of the year is likely to have passed the two million mark.
Despite the strong upward trend in Research and Development here, the Forfas report urges the further promotion of investment in R&D. It says that all the indicators confirm that Ireland still faces a major challenge in bringing domestic research and innovation capabilities to the levels that will be required to sustain the country's economic performance.
Forfas says it believes the country's next phase of development requires a partnership approach to innovation oriented growth. It said its aims for 2006 include advancing 'dynamic enterprise development policies' in connection with IDA Ireland, FAS and the Department of Enterprise, Trade and Employment.
It says it will work with the National Competitiveness Council and other partners to identify areas for improvement in the next National Development Plan as well as assessing the country's reliance on oil as a key part of the Irish economy.
It also plans to work closely with the Department of the Environment, Heritage and Local Goverment on the National Spatial Strategy and a study on the key role of the gateway towns towards balanced regional development will be published early this year.
It will also work with the Expert Group on Future Skills Needs on how education and training systems can best prepare people for the economy of the future.
