The Government's resolve to secure the next phase of economic development is about to be tested, says Intel Ireland general manager Jim O'Hara.
The favourable international business environment which supported Ireland's remarkable economic transformation has started to turn hostile. We are unlikely to experience in the next 10 years such fortunate circumstances that occurred in the last decade.
The next phase of our enterprise development will require single-minded focus on planning, exceptional partnership across multiple groups, and excellence in execution.
The recently published report of the Enterprise Strategy Group, chaired by Eoin O'Driscoll, does not linger on the past.
It presents a realistic assessment of the profile and competitive positioning of Irish enterprise today - a picture immediately recognisable to people doing business here.
Ireland has changed dramatically in every way since 1992, the year of the Culliton report on enterprise strategy. Yet the analysis and important recommendations of the Enterprise Strategy Group are eerily similar.
The focus must move to implementation.
The common concerns of business then and now include infrastructure development, handling of hazardous waste, calls to review the planning process, training those already in the workplace, upgrading Ireland's technological capabilities, and a generally recognised imperative to boost the scale of indigenous firms while retaining a vibrant multinational sector.
The principal conclusion is that the capability profile of enterprise in Ireland is unbalanced. Ireland is strong on manufacturing and production activities, but less developed in research and development and marketing and sales functions.
The contrast between large-scale foreign multinationals and generally small indigenous firms has remained worryingly static, notwithstanding a number of notable Irish success stories.
What is needed is a concerted effort from both State and private enterprise to tackle this imbalance. The O'Driscoll group recommends bolstering research and development activity, reinforcing international sales and marketing development and supporting the upscaling of indigenous firms.
It has been seen worldwide that research and development promotion delivers enhanced levels of innovation and new product development. International marketing and sales activity fosters direct relationships with end customers, giving insights into customer demands and expectations.Most business people in Ireland, whether active in the multinational or indigenous sphere, would agree with this assessment and see sense in the emphasis on developing a broader capability profile in Irish enterprise.
We have all witnessed the spectacular globalisation-related growth in manufacturing outsourcing or offshoring to low-cost locations; the difficulties experienced by Irish firms seeking to expand into international markets from a small indigenous base have been well documented; and many already feel the pressure to invest in innovation to enhance our manufacturing base or to maintain relevance in our product portfolio.
The analysis in the Culliton report appears sound in light of its reinforcement over a decade later by the O'Driscoll group.
What steps can be taken to ensure that the key issues identified give rise to on-the-ground activities that have real a impact on enterprise development in Ireland? How do we make sure that the 2016 enterprise strategy report is saying something different?
A twice-yearly Cabinet meeting dedicated to enterprise is critical. While governments have been business-friendly, they need to be more business-focused.
The related recommendation that these should be supported by an expert group on enterprise, consisting of the secretaries-general from six Government Departments and four senior figures from the enterprise sector, is also crucial.
These linked proposals will be the acid test for the Government in demonstrating its resolve and commitment to the implementation of the plan.
The report is also very clear in its recommendations to concentrate on education both for entrepreneurship and the progressive upskilling of the general workforce, to provide the skilled resources essential to a new phase of national enterprise development.
Companies like Intel that have invested in a serious way in the ongoing development of their employees are testament to the benefits that accrue to individuals, firms and, ultimately, to society.
I understand the Cabinet is set to discuss the report and its response to it over the coming weeks. The Government is sending very positive signals indicating a commitment to acting now to define a strategic approach to the management of enterprise development for the decade to come.
Individual departments and agencies like Enterprise Ireland and IDA also have enormous responsibility.
No state can deliver single-handedly the required conditions for growth. With the co-operation of enterprise, and through a focused commitment to the creation of appropriate enterprise conditions, we have the opportunity to secure the basis of future sustainable competitive advantage for enterprise in Ireland.
It is an opportunity none of us can afford to let slip by.