Indigenous companies should use the favourable economic climate to invest in the future and target new export markets, Enterprise Ireland said yesterday.

Releasing its figures for 1998, the agency's chief executive, Mr Dan Flinter, said the main thrust of its efforts was shifting from direct employment subsidy to "soft investment" such as support for training or research and development.

Enterprise Ireland said sales of its 3,000 or more companies rose almost 8.5 per cent in 1998, to £17 billion (#22 billion). Exports climbed more than 6 per cent to almost £7 million.

Enterprise Ireland said it had helped to create 12,000 jobs last year, with a net employment growth of 4,000; this brought the number of those working in the agency's client companies to 130,000.

Commenting on the results, Mr Pat Molloy, Enterprise Ireland's chairman, said a strong, locally-controlled business sector that "harnessed the flair, innovation and abilities of Ireland's entrepreneurial talent" was an essential ingredient in the Republic's economic success.

Mr Flinter said 1998 had seen the emergence of a new phenomenon, "the serial Irish entrepreneur". A number of Irish business people who had led their companies to success were now reinvesting the rewards of their efforts, he said, replicating their achievements by creating new high-potential start-up firms.

Enterprise Ireland was now focusing more and more on "soft investment" such as research and development, or training, Mr Flinter said, but would also continue with direct support for firms: "All of our competitor countries support their companies, so we can't take what we have for granted."

Half of all exports by indigenous companies go to Britain, Mr Flinter said. While this proportion had been dropping steadily, it still represented a significant level of dependence on one market, he added, and firms should consider channelling the benefits of the current economic boom into investments in other export areas.

Enterprise Ireland said it would continue its drive for more industrial development outside of the urban areas. Mr Flinter said top-notch telecommunications and transport infrastructure were essential to attract companies and staff to these parts of the State.

He was critical of the length of time it took to complete roads and other infrastructure: "These prolonged delays in the planning procedure for large projects are just incredible."

Mr Flinter said negotiations with staff organisations on the merger of Forbairt, An Bord Trachtala and part of FAS - which created Enterprise Ireland last year - were continuing. He would not comment on whether a new, more efficient, organisation would result in a reduction in staff numbers.

Enterprise Ireland was working towards being a highly efficient organisation, he said, which would use its staff to maximise results. This could involve opening more offices overseas to help drive exports by indigenous companies, he added.