Plenty of foreign investment on the horizon makes for a welcome playing field
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Thursday August 21 2008
THE lion's share of total foreign direct investment (FDI) -- some €83bn -- originates from US multinationals and many have promising plans for their interests in the pharma, biotech, technology, finance and engineering sectors, according to the American Chamber of Commerce.
Ivax, one of Ireland's leading pharmaceutical companies, is investing €50m and bringing 165 new jobs to Waterford. Also in Waterford, Massachusetts biotechnology company Genzyme Biotech is expanding its operation, investing more than €130m and increasing its workforce total to 600 and total investment to €400m. In Cork, Pfizer is investing €100m in a new biologics centre.
US companies accounted for 40pc of investment in R&D in Ireland in 2007, and it's a commitment that looks set to continue, as American Chamber figures indicate that 75pc of new US investment in the Irish economy, which was worth €2.3bn over 114 projects last year, came from the existing base of companies here suggesting that they continue to like what they've found in Ireland.
"When you look at the results from the Leaving Certificate last week, it's difficult to envisage how we're going to become a research-led economy. We need graduates with skills that will drive innovation," said American Chamber CEO Joanne Richardson. "There has to be a reasonable level of supply."
As well as attracting the current graduate population, Ms Richardson maintains that upskilling the existing workforce must continue. "Up to 60pc of the workforce today will still be working in 2020. How do you keep these people upskilled as the fourth level becomes the education norm? There's a big need to do that -- it's something which US companies are particularly good at, but the state needs to help compensate for the displaced income it involves with tax rebates."
Many of the multinationals based here have outreach programmes attached to educational institutions, including HP, Intel, Microsoft, Abbott and Pfizer, with a particular trend towards liaising with third level colleges to ensure that courses include content which produces the skill base needed for industry.
At schools level, Ms Richardson noted that scientific literacy standards here lagged behind other OECD countries and are falling, and that the ratio of computers to students is the lowest of the OECD countries.
