Two Cabinet meetings a year should be dedicated exclusively to the enterprise agenda, according to the report of the Enterprise Strategy Group, carried out by Forfas, on Future Industrial Policy.
The report's 52 recommendations include proposals to develop domestic industry, to improve infrastructure and to shift economic strategy towards developing a knowledge based economy.
It emphasises the need to improve education at all levels, including a one-step up programme to encourage training in the existing workforce.
It calls for better co-ordination between key government departments, including Finance, Education and Enterprise, Trade and Employment. The enterprise strategy group also recommends an increased focus on applied research and development in home grown industries.
The report, commissioned by the Tanaiste and Minister for Enterprise, Trade and Employment, Mary Harney, warns against complacency about the economic upturn.
Eoin O'Driscoll, chairman of the Enterprise Strategy Group, said: 'The whole of society ultimately depends on the enterprise sector for employment, wealth and quality of life. Ireland's future depends on an enterprise sector that is knowledge-based and market-led, operating in a distinctive, competitive business environment.'
O'Driscoll said: 'Ireland has had great economic success, significantly based on manufacturing. Subsidiaries of foreign owned companies have contributed greatly in this regard. However, in the more competitive global environment, manufacturing is vulnerable. In our view, enterprise in Ireland is not close enough to its customers: in the main, we produce products or services designed elsewhere, and sold by and to other people in other countries.'
He said: 'We need to greatly improve our sales and marketing and our research and development capabilities to get closer to the customer. This will enable Ireland to develop products and services in exciting new areas of high value manufacturing and internationally traded services.'
'Ireland's future competitive advantage lies in a unique combination of factors that will see us remain "ahead of the curve",' he added.
Enterprise Ireland (EI) welcomed the report, saying it explicitly recognises the potential of the indigenous business sector to increase substantially its value to the economy.
EI also said it emphasises the crucial importance of exports and technology in delivering a strong vibrant indigenous base.
In a statement EI said: 'It comes at an appropriate time as businesses endeavour to meet the significant challenges of an evolving and increasingly sophisticated and competitive global market. This requires a change in business model from cost plus to value add. Enterprise Ireland will take fully on board the clear direction set out in the Enterprise Strategy Group's report in the development of its new strategy which will be published in the Autumn.'
**** ISME says that while there are many positive aspects contained in the report, overall it is a bit of a 'curate's egg' in that while it recognises the role of the SME indigenous sector, there are very few specific initiatives recommended to specifically tackle areas of concern to the sector.
ISME chairman Robert Berney said, 'The overall tenet of the document is a 'one fits all approach', which is very much at variance with the requirements of smaller businesses whose needs are different with those of big business. This is the singularly most disappointing aspect of the report.'
