Ireland is now the leading European location for manufacturing medical devices, with prospects for further growth internationally, according to Enterprise Ireland's executive director, Mr Gerry Murphy.

Speaking at an international conference and exhibition in Galway yesterday, Mr Murphy said that three decades of continuous investment by most of the world's major technology companies had stimulated the emergence of a €27 million indigenous cluster.

Such has been the pace of development that representatives of 90 medical device manufacturers from 16 countries travelled to Galway to attend the Med in Ireland conference. More than 30 Irish-based companies were showcasing products.

Speaking to The Irish Times, Mr Murphy said the target was to generate €10 million in extra business and so earn a "toehold" among European suppliers.

"The medical and healthcare sector is a high-skills area, with more emphasis on expertise and reliability than on cost, so this is an area of the economy that we can defend against competition from abroad," he said.

The Republic's sub-suppliers had established a solid reputation in the medical supply sector at an early stage, according to Mr Murphy.

Companies such as Creganna Medical Devices, based in Parkmore in Galway, had diversified from electronics into medical devices. The 20-year-old company, headed by Mr Ian Quinn, moved into the sector three years ago and now employs 200 staff and has a turnover of €17 million this year.