The importance of FDI to Ireland and the importance of education to FDI

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The importance of FDI to Ireland and the
importance of education to FDI
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Irelands Economic History

• 1922 to 1958
• A basic agricultural economy
• Self-sufficiency and protectionism
• 1958 to 1973
• Opening up and joining Europe (EEC)
• 1973 to 1987
• Some success, adjustments, but crises also
• 1987 to date
• Stunning development and growth

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Success in the 90s WHY?

• US boom, IT growth, EU Single Market
• People, skills, costs
• Corporate tax
• Public policy e.g. Education
• Performance of Irish managers
• Flexibility, agility, creativity

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Importance of FDI to Ireland

• STATUS
• IDA Clients 1,200
• Total employment 130,000
• Total annual sales 90bn
• IMPACT
• gt 80 of Manufactured exports
• Massive inflow of taxes
• gt 25 of gross domestic product
• Technology and management skills
• Global orientation

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Key Sectors

• Information Technology
• Pharmaceuticals / Healthcare
• International Services
• Software
• Shared services and customer support
• International Financial Service Centre
• Knowledge Economy

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Information Technology

• Europes leading Information Technology location
• Over 300 companies exporting 28 billion
• Intel completed their most advanced wafer
  fabrication costing 2 billion

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Financial Services

• Established in l987 to avail of world-wide
  expansion of financial services
• 450 stand alone IFSC operations approved
• a further 700 entities under out-sourced
  management
• Over 12,000 people are directly employed in the
  IFSC sector
• Contributes 15 of total corporate tax take

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The Pharmaceutical Industry in Ireland

• No. 1 location in Europe for international
  pharmaceutical investment
• 13 of the Worlds top 15 companies
• 83 Companies employing 17,000 people
• Worlds largest biopharma plant (Wyeth)
• Exports of 34 billion
• Blockbuster products
• Lipitor, Viagra, Botox , Zyprexa, Zocor

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Medical Devices

• Europes leading location for the medical device
  industry
• 80 companies exporting over 3bn
• Employing 18,000 people
• 13 of the Worlds top 20 companies present in
  Ireland
• Integrated manufacturing, RD, customer support
  and value added services

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International Services

• Strong clusters built
• Software Development
• Shared Services
• Financial Services
• Customer Support Centres

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• One common feature in all these sectors is the
  requirement for well educated graduates with
  specific skills and knowledge

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Survey of Irelands qualities

• Decided to review the reasons why companies were
  selecting Ireland
• Old message was Irelandthe most profitable
  location in Europe
• Asked Bank to carry out survey
• Results were surprising.

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The results.

• 1. The skills of the Irish workforce
• 2. The adaptability and flexibility of Irish
  workers
• 3. The pro business environment created by the
  Government
• 4. The 10 tax rate
• 5. The capital grants

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Microsoft Conference

• Microsoft World Leaders conference in Cartegena
  agreed
• 1. The lack of adequate education is the single
  most important feature in holding back a
  countries development
• 2. Education will become the most important
  feature in the future decision process for
  companies seeking new investment locations

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IDA Vision For Ireland

• Leading World Economy
• Knowledge Based Technological Innovation
• World Class Infrastructure
• Highly Competitive
• Socially Inclusive
• Highest Environmental Standards

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IDA Vision For Ireland

• All these require new skill sets which are being
  put in place now in anticipation of the new
  technologies