Ireland a favoured location for science foreign investment – report

September 21st 2011

Report - PCI Location of choice for scientific investment - PDF 

Ireland is ranked third in the EU by the World Bank in terms of ease of doing business and fourth in the world for the availability of skilled labour and openness to new ideas, according to a report by IBEC group PharmaChemical Ireland out today.

PharmaChemical Ireland, the IBEC group that represents the Irish pharmaceutical and chemical industry, today launched Ireland: The location of choice for science investment, a major new report which sets out the country's enduring strength as a location for foreign direct investment.

The report, which is aimed at key investment decision makers, especially those overseas, details the significant progress Irish companies are making, including first-hand accounts from the heads of their Irish operations. These testimonials highlight the Irish “can do” attitude, a commitment to excellence and teamwork, along with the agility and productivity of the labour market. Other key points in the report are:

• Ireland is ranked third in the EU by the World Bank in terms of ease of doing business.
• Ireland is ranked fourth in the world for the availability of skilled labour and openness to new ideas; sixth for labour productivity; seventh for the availability of financial skills; and seventh for the flexibility and adaptability of people.
• The European Commission forecasts that the cumulative fall in Irish unit labour costs will be over 8 percent in the period 2008-2012, this is making Ireland more competitive and more attractive for foreign direct investment.

Launching the report at the group's Quality Conference, co-sponsored by the Parenteral Drug Association and the International Society for Pharmaceutical Engineering, in the Radisson Hotel, Little Island, Cork, PharmaChemical Ireland director Matt Moran said: "Despite the economic challenges we face, Ireland once again is becoming a favoured location for foreign investment. In fact, there has never been a better time to invest in Ireland.

"In 2010 our exports grew by 9.5%. This positive trend has continued in 2011, where exports have grown 6% in the first six months of the year. The pharmaceutical and biopharma industry is playing a vital role in this export-led growth recovery. The sector accounts for over 50% of the total Irish exports and employs over 50,000 directly and indirectly, 50% of these hold a third-level qualification.

"Eight of the top 10 pharmaceuticals companies in the world have major operations in Ireland, benefiting from a favourable tax regime, a highly-skilled workforce, strong compliance record and easy access to European markets. The extraordinary flexibility of the Irish economy and labour market has been recognised by international investors. Investment into Ireland grew strongly in 2010.

"Leading international countries are grappling with the challenge of stimulating genuine collaborative initiatives between industry and research centres to develop and commercialise new products and services. Ireland’s small size and flexibility is a definite advantage in this regard as it is an ideal development test bed for the global industry to experiment and scale up new product and services. The sector has a bright future in Ireland,” concluded Mr Moran.

Also speaking at the conference Minister for Research and Innovation Sean Sherlock said: “Ireland is globally recognised as a major centre of excellence in the pharmaceutical industry and is now emerging as a leading location for biopharmaceuticals with a strong mix of start-ups, high growth SMEs and large multinationals located here. The industry is of key importance to the Irish economy and has continued to grow despite the global economic recession. Indeed, chemicals and pharmaceuticals are dominating exports, according to most recent trade data, with growth in the sector strong and consistent.

“The sector employs 25,000 people upwards directly in Ireland with an equivalent number employed in service provision to the industry and it has been a key contributor to the Irish economy in recent years contributing corporation tax and total tax receipts of approximately €1 billion annually. The Government is strongly committed to supporting the continued growth of this key sector in the economy,” concluded the Minister.