Nortel Networks is the jewel in Belfast's multinational investment crown. One of the world's fastest growing network technology companies, it has been located in the Monkstown area of Belfast's Newtownabbey district for the past 10 years, and employs 1,650 at its 34-acre site.

In the last nine months, the Nortel board approved a $90 million (€94 million) expansion of its systems house manufacturing facility, expanding its optical Internet products workforce from 1,200 to 1,600 by September.

A separate research and development facility has grown from 400 to 450 people since the start of the year.

According to Mr Pat Hobbert, vice-president of optical and carrier networks operations for Europe, Nortel has always operated successfully in the North, but devolution has brought an air of greater optimism.

"The general city environment is more relaxed and vibrant. There is evidence of a lot more commercial activity, and most noticeable is the amount of construction work. These kinds of revival signs are everywhere."

Nortel's presence in Belfast has also had the effect of attracting complementary industries, including C-Mac and Solectron. Both companies were attracted to Belfast to take advantage of Nortel's sell-off of two business functions.

He added that Nortel had always been extremely happy with the quality of graduates from Queen's University and the University of Ulster but, while skills were more readily available in the North, he was finding it a little more competitive to hire people recently.

"A benefit of the improved climate here is it is encouraging people with good experience abroad to come home.

"In the last four to five months we've succeeded in attracting around 45 engineers and technicians home."

Mr Hobbert believes it is now the intention of the North's Industrial Development Board to use the skills shortage in the South to its own advantage.