Future economic growth will come from exports - NCC

In a new report entitled ‘Driving Export Growth: Statement on Sectoral Competitiveness’, the NCC says future economic growth and job creation will not be driven by the construction and retail sectors as in the past. 

Instead it says generating export-led growth is the only sustainable strategy to secure long-term growth and prosperity in the Irish economy.

According to the NCC, it is vital that Ireland understands the specific needs of its exporting sectors and enables them to compete successfully in international markets.

Strength due to just two export sectors
“While overall Ireland's export performance is holding up relatively well in spite of a very challenging global trading environment, this is primarily due to strong growth in two sectors, medical and pharmaceutical products and chemicals,” explained National Competitiveness Council (NCC) Chairman Dr Don Thornhill.

“Many other exporting sectors are facing significant challenges, particularly traditional manufacturing sectors such as food and computer equipment. Urgent action is required to address the critical competiveness issues for individual exporting sectors,” he added.

“It is clear that despite the challenging conditions which they currently face, there is a bright future for our exporters, provided employers, employees, policymakers and other stakeholders respond quickly and effectively to develop a more competitive operating environment for firms," said Dr Thornhill.

The eight sectors included in the NCC study accounted for approximately 80pc of total Irish exports of goods and services in 2008. They are: food and drink, medical technologies, chemicals and pharmaceuticals, ICT manufacturing and services, international financial services, tourism, environmental goods and services, and other internationally traded services.

Sector-specific challenges
The NCC study identifies sector-specific challenges that need to be addressed, which include the provision of specialised courses for particular sectors such as ICT, financial services and environmental goods and services, and the strategic implementation of impending EU environmental legislation to develop markets for indigenous green companies and to create first-mover advantage for Irish companies.

It also recommends that Ireland enhance the clinical trials process, which it says is key to increasing the size of the pharmaceutical and medical technologies sectors. The NCC says Ireland in particular needs to consolidate and streamline approval processes for new products and technologies.

The NCC also suggests upgrading the road infrastructure in and to the west, which it says is critical for the medical technologies sector to enable easier access to international markets.

The organisation is also calling for various government departments and agencies to work together to implement coherent strategies for their sector, for example food or tourism.