The FDI long view

ROI’s track record of success in FDI is the envy of many. That success is not just in attracting new FDI, it’s also in retaining and transforming the installed base. The inclination of existing companies is to do more here, also to entrust the ROI entity with greater levels of responsibility. Regardless of the sector, the major factor that will drive investment in the future is access to talent. That talent, both homegrown and international is increasingly mobile. For them to choose ROI as their long-term base will be driven largely by lifestyle factors — quality of housing, transport infrastructure, healthcare and education. In addressing these challenges, the AmCham's view is that speed of execution, not quality of vision, will drive our future success.

Four steps towards the future

1/ Know your neighbours

Whether it’s pharma in Cork, IT in Dublin or ‘med tech’ in Galway, FDI companies have tended to form clusters. And there’s a great deal that’s positive to be said about the power of a critical mass of like-minded ventures. For existing companies there are opportunities to be found by partnering with start-ups or academic research groups that are prominent on the scene. For incoming investors, you know you’ll have a ready-made community and support network. While AmCham has traditionally been seen as the voice of the large FDI companies, it is actually the emerging FDI sector that is the fastest growing part of our membership.

2/ Love change

It’s true of all business, but especially true of FDI — you always need to adapt to survive. Transformation is the route to absorbing change, adapting and then forging ahead. US FDI in ROI is remarkably resilient. That can be largely attributed to its ability to anticipate and adapt to change.

3/ Invest for growth

This is a message to FDI companies, infrastructure providers and particularly to government. Economic success and growth are inextricably linked to infrastructure. These range from reliable and affordable water and power to better broadband, roads and public transportation. ROI has made great progress in many of these areas, but there is a lot more to do. We have many of the right things mapped out in the Project Ireland 2040 plan, but we need to execute.

4/ Improve quality of life

In the past five years we have seen a significant change in the priorities  for FDI companies.  Their attention has shifted towards attracting and retaining the best talent.  To retain this talent we need to look to our cities to invest in improving quality of life — and that’s everything from new homes and better office buildings to leisure and cultural amenities. At present around 17 per cent of the total population was not born in ROI, in US multinationals that proportion rises to 27 per cent. Given the diversity of the workforce, we also need to put inclusion at  the centre of our agenda — it will be a major differentiator for attracting FDI in the future.