The value of investments by Irish companies overseas rose from €191 million in 1985 to €14.1 billion in 1999, according to Forfás.
In a statement on outward direct investment published today, the State advisory board said the dramatic rise reflects the emergence of a growing cohort of Irish multinational enterprises.
It said: "The higher levels of outward direct investment in the 1990s are likely the result of the fast pace of Irish economic development over this period, and the increasing sophistication of Irish companies."
Forfás Chief Executive Officer, Mr John Travers, said: "Outward direct investment by Irish companies is a natural evolution in their development as strong international players."
He noted that studies of countries with longer experiences of high levels of outward direct investment all indicate that overseas investment by companies is positive for the "home" economy and that fears that outward direct investment by companies may lead to a "hollowing out" of industry and loss of exports are misplaced.
The report reveals that overseas investment by Irish companies has created new high skilled jobs at their respective head offices in Ireland, including for accountants, managers and marketing specialists.
The report also shows that to date, Irish outward direct investment flows have been mainly concentrated in the UK and the United States.
