The 111 international services companies backed by Enterprise Ireland announced total investments of £86 million (€109 million) last year, which should lead to the creation of 2,100 new jobs over the next three years.

The projects involved included 44 new enterprise start-ups and 16 expansions and were mainly in sectors such as e-business, financial services, telecommunications and new media.

Enterprise Ireland supported research and development investments of £8.5 million in 51 companies.

Among the companies receiving support to expand were educational software group SmartForce and airline software company Datalex, which is planning a Nasdaq listing this summer. Companies in receipt of aid for research and development included firms such as Nua, Orbis and Peregrine Systems.

The 111 companies supported by Enterprise Ireland are forecasting sales of £273 million over the next three years with exports accounting for £213 million or 78 per cent of turnover.

Announcing the figures, the Tanaiste and Minister for Enterprise, Trade and Employment, Ms Harney, welcomed the regional spread of the projects in particular.

"In the past there was an over-concentration of activity in the Dublin and east regions," she said. "However, this Government is determined to encourage a more even spread throughout the country. Indeed, there is growing evidence that companies are prepared to locate part of their operations outside Dublin."

Ms Harney warned Irish firms of the need to invest more in human capital.

She defended State supports for indigenous Irish firms at a time when the economy was buoyant and skills shortages were emerging in many sectors.

The issue had been considered by the Government and "on balance it was felt that the State should continue to support companies but in a different way than we did in the past", she said.