IRELAND has overtaken the US as the largest exporter of software in the world, according to a new report from the OECD. During 1998, companies...

IRELAND has overtaken the US as the largest exporter of software in the world, according to a new report from the OECD.

During 1998, companies based in Ireland exported software worth $3.29bn, compared to US exports which were worth $2.96bn.

Between them, Ireland and the US now account for 65pc of world trade in software.

The OECD report paid tribute to the development of the industry here, noting: ``The Irish software sector is often cited as an example of the success of national policies aimed at developing a world class high-tech industry.''

The OECD report said the success stemmed from a combination of government policies aimed at attracting investment, the existence of skilled young and relatively inexpensive labour and a widespread infrastructure aimed at supporting the computer software industry.

Only yesterday, members of the Oireachtas Committee on Finance and the Public Service criticised the make-up of jobs in the high-tech sector here, with Deputy Michael Noonan saying a large number of jobs in the sector were simply ``light assembly work'' which was highly mobile and could be easily relocated elsewhere.

However, the OECD report suggests that in the software sector at least, the IDA has hit on a winner.

Seven of the world's top software companies have set up bases here as a springboard to sell into the rest of Europe and it is unlikely these will be relocated in the short or medium term.

Foreign companies account for 88pc of software exports from Ireland.