Northern Ireland's main job-creating agency, Invest NI, has had its most successful year since it was established in 2002, according to results released yesterday.

The agency last year secured nearly 3,500 new jobs from overseas companies in 28 new projects, which received supports valued at £37 million (€54 million).

With less than two weeks to go before the creation of a devolved government at Stormont, agency chairman Stephen Kingon said the North was facing "some of the greatest challenges we have seen in two generations".

"Northern Ireland's future prosperity hangs on our ability to create and sustain a high value-added, internationally competitive, export-led economy," he said. "Economic generation on that scale demands a new vision of a better future and bold and determined strategies to win it."

Mr Kingon agreed that a cut in North's corporation tax in line with the Republic's 12.5 per cent would transform the economy. But he added: "Talking to clients on a one-to-one basis, they don't start with tax at the top of the agenda; they start with the talent pool of people.

"We need to repackage about a third of graduates with the right technical skills . . . The demand from the client is 'x', but we haven't got the skill base."

Invest NI is working with the North's department of employment and learning and department of education to address these issues.

The agency is also keen to entice graduates who have emigrated from Northern Ireland to return. "I believe we have an untapped potential there. That talent pool is a very important selling point to investors."

Both Mr Kingon and Leslie Morrison, the agency's chief executive, said they hoped more resources would be put into economic development. The budget is currently 2 per cent of overall government spending.

Mr Morrison said the biggest tangible benefit of the devolved government was that "North America is much happier that we're running our own affairs".

"A number of prospective ministers, including Martin McGuinness [ deputy first minister in waiting], have said we need to get out there on trade and investment missions. You can tell there's enthusiasm for all of that and we need to harness that."

He added: "It's always in the past been quite difficult to be promotional about Northern Ireland for obvious reasons and now that the world is different, it's easier."

But he warned that, alongside promotion, the Northern Ireland "product" needed to be improved.

The agency did not publish figures for job losses, but Mr Morrison said he did not believe it would be a major issue moving forward. "I think we're on the upside of the curve there," he said.