The Republic must address a range of issues to remain a key location for inward investment and to attract people with key talents to work here, according to one of the author's of the World Competitiveness Yearbook.
Ireland can no longer compete on cost alone in attracting investment, according to Prof Stephane Garelli, who teaches at the International Institute for Management Development in Lausanne, but must also offer a "value-added attractiveness".
The State must lead the provision of key infrastructure, he told a conference on all-Ireland competitiveness, organised by InterTrade Ireland, the all-Ireland trade development body.
These included traditional physical infrastructure, technological infrastructure and social services such as healthcare and education, as well as efficiency and social cohesion in the provision of services at a local level.
In doing so it was vital to realise that "attracting talent is as important for a country as attracting foreign investment" in building competitiveness in knowledge-based industries.
Other requirements for competitiveness were a growth culture, he said, and transparency in business and regulation.
Adaptability was also crucial, and a key challenge was to build a diversified industrial base that gives capabilities in different areas,since predicting particular growth areas was difficult, he added.
The other keynote speak, Ms Deborah Wince-Smith, president of the US Council of Competitiveness, said the importance of diversification was also highlighted in her council's research on successful US regions.
Some key regional competitive factors were the adoption of technology in all firms and collaboration between key stakeholders in firms, government, unions and official agencies.
There was evidence of the rapid spread of technology in the Irish economy, she said, but the price and availability of broadband access appeared to be a problem.
Other building blocks were a workforce with a wide skills base, appropriate tax and fiscal policies, a flexible business environment and active competition policy.
Ms Wince-Smith highlighted research into securely conducting business as key for US firms after September 11th and said there was scope for Irish business to collaborate in these efforts.
Ireland had strong support among US business leaders, many of whom had an Irish ancestry, she said, and this gave Ireland the option of working closely with US firms in areas such as software and developing an innovative group of collaborating countries which could include the UK and Canada.
