Ministers in Northern Ireland need to push money into promoting the creation of new firms with a focus on innovation rather than supporting traditional industries, according to a report published today.
Professor Richard Harris, one of a group of academics asked to report on the programme of financial assistance to industry, said: "Our final conclusions are that policy changes need to reflect a switch to support for enterprise, a greater focus on innovation and a rationalisation of assistance being offered."
In a look back at the use of Selective Financial Assistance offered from the early 1980s through to the late 1990s by economic development agencies, the report said it had helped stabilise employment and improve productivity.
During that difficult period for Northern Ireland aid to industry helped increase both employment and productivity in the manufacturing sector by between 7 per cent and 10 per cent, it said.
However Professor Harris said the report showed "this was achieved as a result of high levels of assistance, and repeat offers of assistance, with too much support being directed to traditional sectors, and not enough directed towards the encouragement of entrepreneurship or the formation of new firms".
Speaking at a business breakfast in Belfast organised by the Ulster Society of Chartered Accountants, Sir Reg Empey, Minister for Enterprise Trade and Investment, welcomed the report.
The minister said: "In the current economic context of relatively low unemployment, with more buoyant employment growth, it is significant that the results of this evaluation support the key challenges identified in our corporate plans - to continue to rationalise forms of support and to promote an enterprise culture and focus much more strongly on innovation."
PA