Information Age Ireland: The Attraction, the Reality and Never Ending Geography

Abstract

This paper is an attempt to probe deeper behind the well-documented success story of the Irish economy over the 1990s. Over the decade, the country experienced unparalleled levels of economic growth that saw unemployment levels plummet, inflation levels stabilize and inward investment rise at a substantial rate. Growth rates of gross national product (GNP) best surmise the Irish case, the tigerish performance brought the country from one with a per capita GNP twothirds of the European Union (EU) average in 1987, to one which exceeded the average 10 years later. An exposition of Ireland's pursuit of a foreign direct investment (FDI) development model forms a major part of this work. Recognizing the importance of FDI in Ireland, and FDI in the software sector in particular, this paper shows how and why investors flocked into the country over the golden era of the 1990s. Exogenously, Ireland's place on the outskirts of one of the world's biggest markets made it an alluring option for outside investors. Endogenously, the rationale behind the pursuit of high-tech FDI policy, beyond employment creation was the expected spill-over effects of multinational companies (MNCs) on the local economy. Questions are asked about the nature of positive externalities both in terms of the growth of an indigenous sector alongside a foreignowned one as well as the sustainability of this type of investment. Changes in the organizational structures of MNCs over the 1990s, through decentralization of activities and outsourcing are integral to the Irish success story. Organizational transformation resulting in networks of global production have helped Ireland, as a peripheral region, to reposition itself as an access point to the lucrative European market. The geographic alteration on the national level however, has not been recreated on the sub-national scale. Contrary to the writings of many technology determinists, Ireland's pursuit of an information economy has had a very real impact in terms of regional economic divergence within the country. The lack of coherent regional or spatial planning is to blame along with a telecommunications infrastructure that has exacerbated the regional woes of an economy with an explicit focus on high-technology industries.

Culture and creativity: A case study from the West of Ireland

“…The formation of this station can be interpreted as a more traditional cultural policy associated with the principles of citizenship, participation and nationalism ii (see Miller and Yudice, 2002). The fact that the station was located outside of Dublin is interesting with regard to the Irish tendency towards centralization (see Collins, 2007) and the choice of Galway is more interesting still, lending credence to the region's ability to deliver on a national agenda. The spatial culture associated with performance has come to re-define the lived urban experience in Galway.…”

“…On a national scale, however, the dominance of Dublin was hard to refute (see O'Leary 2001;Collins 2007). Yet as one of Ireland's second-tier cities Galway managed to reap the rewards of the national economic turnaround.…”

A Critical Reflection on Irish Industrial Policy: A Strategic Choice Approach

“…It is also widely acknowledged that the development agency (namely, the IDA) played a key role in encouraging, welcoming and providing an after-care service for firms locating in Ireland. 6 As outlined by Collins (2007), the Irish government also ensured that its education policies were cognisant of the needs of TNCs. In effect, of key importance was how the Irish government managed (via the support of their agencies) "to attract and keep huge FDI through all manner of incentives packages" (Ibid, 60).…”

The Development and Growth of the Software Industry in Ireland: An Institutionalized Relationship Approach

“…Given its importance to the development of the industry, this paper argues that it should be classified as such. Collins (2007) argues that the rise of a vibrant indigenous sector, linked directly or indirectly to the expansion of foreign firm activity, is a vital indicator that Ireland had reached a turning point in the 1990s. Because firms in the indigenous software industry are involved in a large range of activities, from product orientation to service provision, salient differences between foreign and indigenous firms are highlighted in this paper.…”

“…Israel and India). In addition, state investment in education (courses related to software) can arguably be viewed as central to Ireland's software story (Collins, 2007;Begley et al, 2005). Considering this investment in conjunction with the further training provided by foreign software MNEs and the labour mobility spin-off channel helps to explain why Ireland has excelled in this industry, both domestically and internationally.…”