The IDA recently launched a new five-year strategy titled ‘Adapt Intelligently: A Strategy for Sustainable Growth and Innovation, 2025-29’. This comprehensive framework outlines IDA’s ambitions for sustained growth through four key strategic objectives:
- Strengthen long-term investment: sector-specific opportunities, opportunities associated with supply chain diversification and regionalisation.
- Scale cutting-edge innovation: Enhance the Disruptive Technologies Fund, and partner with RD&I opportunities internationally – Projects of Common European Interest.
- Encourage sustainable change: Support the ‘Powering Prosperity’ national strategy.
- Maximise regional opportunities:
The strategy will look to build on and maintain long-term investment with existing and new clients, secure 1,000 new investments to bring €250bn to the Irish economy, bring RD&I investment to €7bn, fund the upskilling of 40,000 employees within the IDA client base, bolster 75,000 new jobs across priority sectors, work towards a 35 per cent reduction of carbon emissions by IDA clients and attract new green investment.
Acknowledging the challenges facing FDI investment, such as increased competition, geopolitical uncertainty and rapid technological advancements, IDA has identified four essential drivers of growth:
- Digitalisation & AI: Cross-sectoral opportunities – cloud computing, cybersecurity, AI-enabled services, regulation and compliance, fintech and ethical AI.
- Semiconductors.
- Health: Capitalise on Ireland’s existing life sciences ecosystem – next-generation therapies, smart medical technologies, digital health, drug development, and advanced manufacturing.
- Sustainability: Green hydrogen production, offshore wind.
FDI ambitions can only be achieved if Ireland has the necessary infrastructure, capacity and policies to remain competitive. Securing ongoing investment depends on five key enabling conditions.
- Maintaining relative cost competitiveness.
- An efficient planning system.
- Consistent infrastructure delivery.
- Talent development and innovation.
- Incentive offering – grants and tax.
Speaking at the launch of the strategy, Michael Lohan cautioned that substantial U.S tariffs on Ireland’s pharma trade would be “disruptive”. However, he suggested that as the majority of the exports were intermediate products they may not be subject to tariffs.
Finally, the agency has identified the development of industrial sites across the country as a key driver for attracting FDI-strategic forward planning, sites that offer property, utility, and sustainable infrastructure. Achieving this will demand a “whole-of-government commitment” and a “new funding and operating model.”
