IDA Annual Report 2008

In exceeding its 2008 FDI targets, IDA has demonstrated that Ireland continues to attract and secure FDI investment across a broad range of sectors including Information and Communications Technology, Life Sciences, Globally Traded Business, Financial Services and the emerging sectors of Clean/Green Technologies, Convergence and Services Innovation.

Tánaiste and Minister for Enterprise, Trade and Employment, Mary Coughlan TD

IDA continued to win significant Foreign Direct Investment for Ireland in 2008 despite global economic challenges

IDA Annual Report 2008 - PDF

Tánaiste and Minister for Enterprise, Trade and Employment, Mary Coughlan TD, today (July 8th 2009) welcomed the launch of IDA Ireland’s Annual Report 2008 which showed the number of Foreign Direct Investments (FDI) in Ireland increased by 14% with a total of 130 new investments. IDA client companies created 8,837 new jobs in 2008.

Commenting on the launch of the 2008 Annual Report, the Tánaiste said, ‘In exceeding its 2008 FDI targets, IDA has demonstrated that Ireland continues to attract and secure FDI investment across a broad range of sectors including Information and Communications Technology, Life Sciences, Globally Traded Business, Financial Services and the emerging sectors of Clean/Green Technologies, Convergence and Services Innovation.’

‘Key investments in 2008 included Coca Cola’s €220 million investment in a new flavour manufacturing facility in Co. Wexford; Microsemi’s expansion at its manufacturing facility in Co. Clare with the creation of 315 jobs; Zimmer’s €50 million investment in the establishment of an advanced orthopaedic manufacturing facility in Shannon with the creation of 250 high-end jobs while Facebook, the world’s leading social networking site announced the establishment of its International Headquarters in Dublin.’

‘Other high-value investments included three significant Research and Development announcements by global IT giant IBM; the world’s leading provider of business software, SAP Business Objects chose Ireland as the location for a new R&D centre, investing €30 million with the creation of 100 jobs; AON, a provider of risk management services, insurance and reinsurance brokerage chose Dublin as the location for a global Innovation Centre with the creation of 100 jobs and PPD, a leading contract research organisation for the Life Sciences sector, announced the establishment of a significant operation in Athlone, investing €14 million and planning to create 250 high value-added jobs.’

‘2008 showed an impressive 22% increase in the number of Research, Development and Innovation (RD&I) projects on the previous year with a total of fifty-five RD&I projects approved, eighteen of which were in collaboration with researchers part funded by Science Foundation Ireland. There was also a 16% increase in the number of new companies setting up operations in Ireland. The level and calibre of investments demonstrates clearly that Ireland retains its reputation as a leading location for FDI and this confidence in Ireland by foreign investors has continued through 2009 with a good flow of investments to date and a positive outlook for further investments in the coming months,’ An Tánaiste concluded.

The importance of FDI to Ireland’s economy is highlighted by the following;
•    Exports from IDA client companies at €92 billion account for over 80% of all exports from Enterprise Agency assisted companies.
•    IDA supported companies contributed €16 billion in direct expenditure to the Irish economy.
•    Over 70% of business spend on RD&I originates from FDI companies.
•    Total payroll costs by IDA supported companies in 2007 amounted to €6.7 billion
•    IDA assisted companies employed over 136,000 people in permanent employment in 2008
•    IDA clients paid, an estimated, €3 billion in corporation tax in 2007, approximately 47% of the total corporate tax take.

The Annual Report 2008 outlined the following Investment Highlights:

Of the 130 new investments in 2008;

•    35 investments from new clients – up 16% on 2007
•    95 investments from existing clients
•    14% increase in the number of FDI investments in 2008 on the previous year.
•    55 new Research and Development Investments – up 22% on 2007
•    8,837 – Total number of new jobs created through FDI
•    €2 billion - Total investment secured

IDA CEO Barry O’Leary said, ‘A 14% increase in the number of FDI investments in 2008, many of them from the world’s leading corporations, shows that despite the current economic situation, Ireland is more than capable of securing high value, knowledge-led investments. IDA achieved this level of investment in 2008 by focusing on transformation within Ireland’s existing FDI client base together with a drive to secure increased investment in both strong established sectors and new emerging sectors and markets.’

‘Competitiveness is a key factor in attracting FDI. Positive improvements in cost competitiveness have taken place in many areas including land, building, rent, energy and labour costs. A strong focus on further improvements in overall competitiveness will position Ireland to take advantage of the eventual global economic recovery.’

‘Ireland continues in 2009 to win high-level FDI and the outlook for future FDI investments remains positive. In the first six months of the year the level of FDI investments in Ireland remained high with announcements from a number of world-leading companies including an €18 million investment by HP with the creation of 500 new jobs, the establishment by Big Fish Games of their European Headquarters in Cork with the creation of up to 100 new jobs, IT Giant IBM announced a €25 million R&D investment with the expansion of its Ireland Software Lab creating 100 new jobs and Boston Scientific announced a €91 million RD&I investment in Galway with the creation of 45 new high-quality jobs. The investment by Boston Scientific, which employs 3,000 people at its Galway facility, is one of the largest ever investments by an FDI client in RD&I.

Such investments in RD&I not only create employment but also underpin existing employment while paving the way for further investment and job creation in the future. These investments help position Ireland as an international innovation hub and assist greatly in the development of the Smart Economy.

For further information please contact 

IDA Ireland Press Office
Trevor Holmes, Head of Corporate Communication, Tel: 01 603 4023, Mob: 087 242 5560
Antoinette Tyrrell, Press Officer, Tel: 01 603 4256, Mob: 087 7572053

Department of Enterprise, Trade and Employment
Roisin McCann, Tel: 01 631 2222 Mob: 087 259 4144