Ireland is entering a new era in its industrial development where harnessing brainpower will be more important than low-cost manufacturing, Enterprise Ireland said today.
Speaking at the publication of Enterprise Ireland's annual report, the agency's chief executive, Mr Dan Flinter, said gaining and maintaining competitiveness in international markets is now top of the agenda for Irish businesses.
Mr Flinter said Ireland was witnessing a "sea change" in its industrial development. "We no longer have a low cost, low wage economy and the days of securing sales for 'me too but cost less' products and services are well and truly consigned to history," he said.
Mr Flinter said the new focus should be on innovation and the rapid commercialisation of state- and industry-funded research in universities.
"The future lies in becoming smarter and faster at the commercialisation process to generate new waves of products and solutions that will quickly meet market driven demands," he said.
Mr Flinter said that so far 2003 has not been good for the export sector. The strong euro and weak international economy allied with rising input costs in Ireland provide a "significant challenge" to exporters. But there is evidence to suggest that Irish firms are "holding their own" in overseas markets.
Enterprise Ireland noted that the flow of new high potential start-ups is running ahead of the 2002 level and that increasing levels of investment in R&D is encouraging.
According to the agency's annual report, exports sales were €10.7 billion in 2002, an increase of 0.7 per cent on the previous year.
A number of sectors put in exceptionally good export performances during the year. Internet and communications technology companies increased their overseas sales by 18 per cent, and the life sciences & chemicals sector was up by 10 per cent.