Despite the US economic slowdown, the dot.com disasters and the hammering tech stocks are taking on the Nasdaq, there is surprisingly little sense of panic in Silicon Valley. "There is little indication of companies closing down," said Mr Patrick Howlin, head of the Industrial Development Authority (IDA) office in San Jose, which targets investment from US companies all along the east coast. "At the same time, the knock-on effect must be considered. It would be unwise to say it is not going to have an impact on existing companies. "
Home of the US high-tech industry, the valley curling round the southern tip of San Francisco Bay has more than 6,200 technology and pharmaceutical firms, employing 250,000 workers, and has the greatest concentration of venture capitalists in the world. The headquarters of companies such as Advanced Micro Systems, Apple Computer, Cisco Systems, Compaq, Hewlett-Packard, IBM, Netscape, Silicon Graphics and Sun Microsystems line Highway 101, which forms the spine of Silicon Valley.
The Republic is facing competition from Italy, Holland, Singapore and Puerto Rico for investment in the pharmaceutical industry; from Holland, Belgium and Switzerland for investment in medical devices; and from the UK, Holland, eastern European countries and India for technology investment, said Mr Howlin.
"Speed and reliability" of high-tech communications was one of the keys to maintaining the Republic's high level of investment, he emphasised. This was why the "big pipe" was so important - the Global Crossing fibre-optic cable from North America to the Republic - which, along with the similar 360Network system and the one million square feet of data storage space being provided in Dublin, was designed to ensure continued interest in the Republic from Silicon Valley and other US tech centres.
Mr Howlin underlined the importance of what he called the "Brendan Tuohy Strategy", named after the Government official who devised the infrastructure development policy. "This is very important for future expansion and embedding of existing companies," he said. A higher level of investment from the United States was important for the Republic to maintain its growth, said the IDA director for North America, Mr Enda Connolly, in New York. "With our current success, the country is moving progressively to a different strategy, away from simple job creation to positioning Ireland as the high-tech, high-skilled and high-quality business location for US businesses in Europe."
The IDA mission is to help make the Republic into Europe's "leading knowledge-based society through high-value foreign direct investment activities, strengthening education, skills and research capabilities, and balanced regional development". Last year, more than 40 per cent of new jobs negotiated were in salary ranges above £25,000 (#31,800) per annum, compared with a quarter a year ago, and half of all jobs in new greenfield investment projects were in the Border region, the Midlands and the West, he said.
Two years ago Microsoft cited the Republic's poor telecoms infrastructure and lack of Internet connectivity when it shunned the Republic for a major Internet project called Mirror, locating it in the UK instead. The company has since chosen Dublin as its worldwide Microsoft.net base, saying progress has been "nothing short of extraordinary".
The Republic's advantages for inward investment remain strong, said Mr Connolly. "So long as we continue to build on our strengths in the areas of technology and skills, and address our infrastructural needs, we can continue to prosper."
