IDA Ireland has defended itself against accusations that it is not delivering enough jobs to poorer counties in the Border, midland, and western (BMW) region.
It has insisted that multinational investment in such areas has improved markedly over the past five years.
Forty-four per cent of jobs in new projects were located in the BMW region in 2002, compared with 25 per cent in 1999, Mr Dermot Clohessy, IDA head of regional development and property, told the BMW Regional Assembly conference in Donegal.
Although the level of investment was not keeping pace with demand, disadvantaged areas were winning their share of employment, he said.
Competition for multinational projects is increasingly fierce and the Republic must work hard to woo investors, said Mr Clohessy.
"IDA's policy is delivering a significant investment increase into the BMW region, but we cannot expect all investors to locate there," he said.
The seriousness of the challenge facing the agency in its attempt to lure multinationals away from the more prosperous east and south was underscored recently when internet company eBay opted to locate in Dublin, although it would have received more grants had it plumped for Athlone.
However, Mr Clohessy cautioned against being overly gloomy.
"Ireland remains one of the top European locations for inward investment and has a 9 per cent market share of manufacturing projects locating in Europe, with a leading position also being held in internationally traded services activities," according to Mr Clohessy.
It was imperative that towns in the BMW region embrace the Government's national spatial strategy, which has earmarked "gateway" areas to be developed into commercial and educational hubs, he told the conference.
Meanwhile, Enterprise Ireland announced it had distributed €15 million in investment grants to 11 domestic companies in the second quarter.
Some 200 jobs are expected to created over the next three years as a result.
Commenting, the Tánaiste, Ms Harney, said the small business sector had a crucial role to play in the development of the economy.
"As these firms develop new products, services and markets, they create high-quality jobs in all part of the country," Ms Harney said.
