UCD_BC_FDI_16-19.qxd 25/8/08 17:12 Page 21
INDUSTRY CLOSE-UP
Prof Eamonn Walsh, PwC professor Kieran McGowan, chairman, Jim O’Hara, general manager, Aidan Brady, country officer,
of accounting, UCD School of UCD’s Governing Authority Intel Ireland Citibank Ireland
Business
‘The critical thing [Ireland] offered in the beginning was a low-cost
entry into the EU. It is no longer a low-cost entry into the EU’
generation’), maintains that while Ireland has lost advantage in experience of the multinationals that are here already. So, if those
terms of cost competitiveness, it is still well placed to hold onto companies don’t feel competitive based in Ireland, that’s going to
existing investment. come across to new, potential investors very, very quickly.”
“Ireland created its fairly spectacular modernisation by offering a It’s vital that IDA Ireland continually engages with existing Irish-
reasonably educated workforce and standard tax incentives and based multinationals to identify what needs to be done for Ireland
infrastructure conditions,” he says. “But the critical thing it offered to remain relevant and attractive, he says. One outcome of such
in the beginning of this period was a low-cost entry into the EU. It discourse has been the creation of NIBERT, the National Institute
is no longer a low-cost entry into the EU. It has one advantage over for Bio-processing Research and Training, an IDA-supported,
those who are trying to compete for this position, and that is UCD-based centre where multinationals can carry out early-stage
the language.” R&D, training and pilot manufacturing. “It’s a backup for the
However, increasing competition from emerging economies does requirements that multinationals have today,” says McGowan.
not pose a major threat to existing US investment here, in Shapiro’s “Universities have an even more important role in the panoply of
view. “Ireland has the advantage that these [US] companies are IDA Ireland offerings than before,” he adds.
well established in Ireland. There are significant exit costs to The fact that Ireland already has clusters of companies in sectors
moving to the Czech Republic or Romania so I would not be such as pharmaceuticals, IT and medical devices is a clear advantage
concerned about that particularly.” for both retaining and attracting investment, says Robert Shapiro,
The Irish FDI model is not under pressure, according to Kieran as the critical mass creates efficiencies and attracts an educated
McGowan, chairman of UCD’s Governing Authority and former workforce.”
chief executive of IDA Ireland, who points out that the IDA is still To become more attractive to new investment opportunities, Jim
attracting significant investment and is currently signing up around O’Hara, general manager of Intel Ireland, which has invested a total
the same number of companies it was 10 years ago. “What is differ- of US$7bn in this country, maintains that Ireland now needs to
ent is that what they’re pitching has been completely reinvented. have a unique value proposition based on a combination of spe-
Instead of emphasising an abundance of labour and a low-cost envi- cialised skills and location-specific advantages. “For example, we
ronment, they now have an emphasis on things like inventiveness, need to accelerate our research and development capability and turn
agility, productivity gains and innovation. The model has changed that into wealth creation. We are a very small country in global
towards a new direction, which suits the kind of place we are now.” terms but that presents an opportunity if we can make it a virtue by
While he concedes that there are challenges, he stresses the effectively partnering with all the institutions to become fast and
importance of focusing more on new areas where Ireland has built nimble and seize opportunities. The huge base of existing high-tech
up some expertise, including biotech, R&D and convergent tech- companies here presents many opportunities to add further value
nologies. “Even in the new areas, of course, it’s hugely important to and to do cross-industry collaborations.”
stay competitive. In the context of IDA Ireland marketing to over- Being clear about exactly what Ireland is competing against is
seas multinationals, the biggest single selling factor it has is the imperative, says Aidan Brady, country officer of Citibank Ireland,
UCD BUSINESS CONNECTIONS 17
Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58  |  Page 59  |  Page 60