4.3 IDA Ireland

4.3 IDA Ireland

Figure from page 36

IDA Ireland (IDA) is the principal agency of the Department of Enterprise, Trade and Employment charged with attracting foreign direct investment (FDI) to Ireland. IDA’s mission is to partner with multinational companies to win and develop foreign direct investment, providing jobs, economic impact and opportunity for the people of Ireland.

IDA Ireland was formed in 1949 as part of the Department of Industry and Commerce at the time, with a brief to ‘stimulate, support and develop export-led business and enterprise in Ireland’. Foreign investment, industrialisation and exports were key to re-energising the country’s fortunes. The distinct strategies employed in pursuit of this goal were often radical, and usually successful, bringing a host of international business to put down roots in Ireland. The protectionism of old was swept aside as government strategy shifted to maximise foreign investment, removing restrictions on foreign capital and introducing competitiveness corporation taxation.

Irish Economy Expenditure 2019

Figure from page 36

71% Corporate Tax Take

€25.2bnin 2019

€68% of national exports

Capital Expenditure €15.1bn

Irish Materials

Irish Services

Payroll

€7.4bn

€2.7bn

€7.4bn

Source: IDA Ireland 2020

Exports of IDA Clients (€m)

Total Employment in IDA client companies throughout Ireland in 2020

Exports up by 10.7% in 2019 to €255.3bn €230.7bn €255.3bn €196.6bn €65.9bn €84.4bn €98.7bn	Exports up by 10.7% in 2019 to €255.3bn
€196.6bn		€230.7bn
				€98.7bn
€65.9bn		€84.4bn

Figure from page 37

257,394

IDA Client exports as share of national total 68%

Total Employment

€176.9bn

€134.6bn

€159.6bn

West 27,695 ↑2.5%

Midlands 6,308 ↑1.8%

Border 8,651 ↑0.8%

Dublin 112,705 ↑4.5%

€116.3bn

€123.8bn

€124.2bn

€105.4bn

€43.6bn

€48.8bn

€50.2bn

€45.6bn

€46.4bn

€55.3bn

€61.8bn

2010

2011

2012

2013

2014

2015

2016

2017 2018

2018

2019

Mid-West 24,169 ↑0.6%

South-West 46,009 ↑2.5%

South-East 13,461 ↑2.8%

Mid-East 18,396 ↑3.5%

Exports Net Exports (Exports – Imports)

Following the economic recession of the late 2000’s, the number of jobs in FDI companies has risen steadily. Today, there are over 1,600 IDA client operations employing 257,394 people in Ireland, with 56% of these jobs outside Dublin. Foreign Direct Investment (FDI) accounts directly for 12.4% of COVID-adjusted national employment, up from 10.9% in 2019.

Figure from page 37

IDA client companies are concentrated in the sectors which drive the modern global economy: Technology, Content, Consumer and Business Services; International Financial Services; Biopharmaceuticals & Food; Medical Technologies; and Engineering & Industrial Technologies.

IDA reacted rapidly to COVID-19 early in 2020 to ensure the organisation was positioned to provide a continuity of service to clients and to ensure the safety and wellbeing of the IDA team.

January 2020. Special recognition award to Apple for 40 years in Ireland. Martin Shanahan CEO IDA Ireland, Tim Cooke CEO of Apple, Tánaiste Leo Varadkar and Frank Ryan Chairman of IDA Ireland. Apple employ 6,000 people across a range of functions in Cork.

Total Employment in IDA client companies by sector - 2020

Figure from page 38

			TOTAL 257,394
34,187 Pharmaceuticals & Food ↑5.9%		29,419 Financial Services ↑0.9%				16,378 Business & Other Services ↑4.7%
36,304 Medical Devices ↑1.0%	20,699 Other Manufacturing ↓-3.3%			21,050 Computer, electronic & optical products ↓-3.3%			99,357 Information & Communication ↑5.6%

The strength of multinational companies (MNCs) in Ireland has been vital in supporting economic activity, employment, exports and the public finances at a time of severe challenge in many domestic facing sectors. Ireland’s economic outperformance in GDP and export terms relative to other advanced economies, and relative to expectations at the outset of the crisis, is in significant part due to the resilience of IDA clients.

At the launch of IDA Ireland mid-year results July 2020, Frank Ryan Chairman of IDA Ireland, Martin Shanahan, Chief Executive at IDA Ireland and An Tánaiste Leo Varadkar, TD.

Working closely with colleagues based in Dublin, IDA Ireland’s network of overseas offices continues to play a key role in attracting FDI to Ireland. The agency operates across four main geographies – North America (8 offices), Europe (2 offices), UK (1 office) and Asia/Growth markets (12 offices). IDA Ireland has made significant progress in diversifying FDI source markets and increasing investments from non- US markets. The agency actively reviews its overseas presence to determine which markets could prove the most valuable sources of FDI in the medium term.

IDA Ireland sees opportunities in Growth Market regions which include Turkey, the Middle East, South America and South Africa. IDA Ireland has accordingly appointed Pathfinders in these territories. IDA has over recent years expanded its presence in Sydney and has grown its office footprint in Singapore, China, South Korea and Japan.

Investment Delivery by Territory 2020

Figure from page 39

In 2020, North America delivered 67% of investments, Europe 23% and Growth Markets 10%.

Figure from page 39

164

57

Investments from

Investments from

North America

Europe

November 2020, Government buildings, announcement of €300m Pfizer Capital Investment for their Irish facilities at Grangecastle Co. Dublin, Newbridge Co. Kildare, and Ringaskiddy Co. Cork. This investment will create an additional 300 jobs to the 4,000 people employed by Pfizer in Ireland. L to R Martin Shanahan CEO of IDA Ireland, Karen O’Keeffe, Corp Affairs Director Pfizer, Paul Reid MD Pfizer Healthcare, An Taoiseach Micheal Martin T.D. , Paul Duffy Global Supply Vice President of small molecule operations, Pfizer.

Chapter 5

Expanding the Global Footprint of the Department of Enterprise, Trade and Employment

The Department of Enterprise, Trade and Employment, working closely with its enterprise agencies has sought to navigate the economic impact of Brexit and COVID 19 on Irish trade and investment.