Invest Northern Ireland, the North's new economic development body, has presented ambitious plans to boost GDP by developing the small business sector and attracting high-quality inward investment.

Prof Fabian Monds, chairman of Invest Northern Ireland, has told political leaders in the North the body would also merge the six economic development agencies into two key divisions.

The global business division will focus on foreign direct investment and an enterprise and entrepreneurship division will concentrate on locally-owned firms and new business start-ups. Overall, Invest Northern Ireland will be responsible for formulating and implementing economic development strategy and will bring existing economic development agencies, such as the Industrial Development Board and the Northern Ireland Tourist Board, under one roof for the first time.

It will have a staff of over 600 and a budget exceeding £200 million sterling (€320 million) per annum.

Prof Monds told the Northern Ireland Assembly yesterday that the board had identified nine strategic principles to drive economic development forward in the North.

At the core of these principles will be a focus on innovation, he said. "Rapid growth in value added per employee by business is essential if Northern Ireland GDP is to approach the UK average. Invest Northern Ireland must work particularly with the universities and industrial centres of excellence to improve the economic benefits flowing from local research & development capabilities," he added.

Prof Monds said the other principles revolved around small businesses, business birth rates, inward investment, delivery of support services, service standards, educational interfaces, economic infrastructure and equality. However, he wants innovation to be central to economic initiatives.

"This commitment to innovation will also be carried into the initiatives that Invest Northern Ireland will develop to attract further investment and to assist established companies to compete successfully in international markets.

"This is especially important in relation to the smaller enterprises which will have a central role in driving growth." Prof Monds told the North's politicians that Invest Northern Ireland recognised that small firms played a crucial role in the economy and that its efforts would concentrate on helping the sector win an increasing share of international business.

He added that Northern Ireland also needed to win new inward investment.