The number of jobs supported by the State's industrial development agencies in 2006 increased by 5,927 to 305,062 - which includes 2,913 jobs in foreign-owned companies, and 3,014 in Irish companies.
In an end of year review Forfás, the industrial and development advisory board, said expenditure in the Irish economy by firms supported by the enterprise agencies, excluding corporation tax receipts, was €34.2 billion in 2005. The State agencies in question are Enterprise Ireland, IDA Ireland, Údarás na Gaeltachta and Shannon Development.
Forfás said both indigenous and foreign-owned sectors recorded growth in exports and employment in 2006, with the outlook for continued growth in 2007.
Exports of goods by indigenous manufacturers continued to grow in 2006. Though, overall since 2000, the growth in goods exports has lagged behind the growth in world trade volume, resulting in a fall in Ireland's global market share, the report said. Exports of services are estimated to have increased by over 15% in 2006, and now account for almost two-fifths of total foreign earnings. The body said the digital media sector was especially strong, with multinationals such as Amazon, Google, eBay and Yahoo! locating their European headquarters and a range of business support activities in Ireland in the year.
But the report warns that although manufacturing continued to contribute, it was essential to examine ways of supporting the sector in the face of the challenges of globalisation.
The report said that R&D expenditure in the enterprise sector was up 10% in 2005 and is forecast to continue growing at the same rate into 2006, though weaknesses remain in the higher education and national research infrastructure. The report says Inward direct investment in Ireland was $211 billion in 2005, which is triple the EU average in terms of its proportion of GDP.
Forfas said its aims for this year would include developing a 'pro-competitive' energy policy and ensuring that the next National Development Plan would address infrastructure issues in the areas of waste management, transport and telecommunications.
