Indigenous Industry in Ireland
Assess the possibility of developing a strong indigenous export capability in manufacturing and services in Ireland
Ireland is a small Island and therefore a small economy. The population of Ireland was most recently measured as 4.6 million which is negligible compared to a country such as the UK where the single city of London has a population of 8.3 million (Ons.gov.uk, 2013). Due to Ireland’s small domestic base it has had to focus itself on the export market. Currently the majority of exports are coming from the following industrial sectors– chemical/pharmaceutical, information communication technology (ICT) and agri-food/drink (Irishexporters.ie, 2013). While both the Chemical/pharmaceutical and communication technology sectors are dominantly foreign owned companies this is not the case for the agricultural sector with the majority of the companies being indigenous firms.
Irelands policies have been reviewed and altered quite drastically over the years, from the protectionist regime implemented in the 1930’s by Finna Fail to the outward looking approach adopted in the 1950’s and supported by the IDA to today’s single market of the European Union (O 'Hagen, J Newman. C 2011). The single market of the EU operates under four main acts which are:
1. Free Movement of People
2. Free Movement of Goods
3. Free Movement of Services
4. Free Movement of Capital (Ec.europa.eu, 2012).
The introduction of the Single European Act (SEA) in 1987 gave a major boost to the Irish economy at a time when any help was appreciated, It is now important that we continue to use this act our advantage and grow our economy once again (Ec.europa.eu, 2012).
Ireland’s economic base currently consists mainly of large foreign owned firms along with small to medium sized indigenous companies. As an outsider looking into the Irish economy one may be fooled into believing that that Ireland is one of the richest countries in the EU. With a GDP of 159 billion which ranks us as the
Ireland is a small Island and therefore a small economy. The population of Ireland was most recently measured as 4.6 million which is negligible compared to a country such as the UK where the single city of London has a population of 8.3 million (Ons.gov.uk, 2013). Due to Ireland’s small domestic base it has had to focus itself on the export market. Currently the majority of exports are coming from the following industrial sectors– chemical/pharmaceutical, information communication technology (ICT) and agri-food/drink (Irishexporters.ie, 2013). While both the Chemical/pharmaceutical and communication technology sectors are dominantly foreign owned companies this is not the case for the agricultural sector with the majority of the companies being indigenous firms.
Irelands policies have been reviewed and altered quite drastically over the years, from the protectionist regime implemented in the 1930’s by Finna Fail to the outward looking approach adopted in the 1950’s and supported by the IDA to today’s single market of the European Union (O 'Hagen, J Newman. C 2011). The single market of the EU operates under four main acts which are:
1. Free Movement of People
2. Free Movement of Goods
3. Free Movement of Services
4. Free Movement of Capital (Ec.europa.eu, 2012).
The introduction of the Single European Act (SEA) in 1987 gave a major boost to the Irish economy at a time when any help was appreciated, It is now important that we continue to use this act our advantage and grow our economy once again (Ec.europa.eu, 2012).
Ireland’s economic base currently consists mainly of large foreign owned firms along with small to medium sized indigenous companies. As an outsider looking into the Irish economy one may be fooled into believing that that Ireland is one of the richest countries in the EU. With a GDP of 159 billion which ranks us as the
References: Badenhausen, K. 2013. Ireland Heads Forbes ' List Of The Best Countries For Business. [online] Available at: http://www.forbes.com/sites/kurtbadenhausen/2013/12/04/ireland-heads-forbes-list-of-the-best-countries-for-business/ [Accessed: 10 Dec 2013]. Created Fuel CMS, D. 2013. Dylan Hannah Recruitment Partners | Ireland Ranks First for Availability of Skilled Labour. [online] Available at: http://www.dhrp.ie/news/ireland-ranks-1st-for-availability-of-skilled-labour-imd-2012/ [Accessed: 10 Dec 2013]. CSO. 2011. Quarterly National Household Survey Educational Attainment Thematic Report 2011. [report] Dublin: Central Statistics Office, Ireland, p. 5. Ec.europa.eu. 2012. Ireland and the Single Market. [online] Available at: http://ec.europa.eu/ireland/ireland_in_the_eu/ireland_and_the_single_market/index_en.htm [Accessed: 17 Dec 2013]. Enterprise-ireland.com. 2013. Examples of High Potential Start-Ups (HPSUs) - Enterprise Ireland. [online] Available at: http://www.enterprise-ireland.com/en/Start-a-Business-in-Ireland/HPSU-Showcase/ [Accessed: 10 Dec 2013]. Enterprise Ireland. 2013. Annual report & Accounts 2012. [report] Dublin: Enterprise Ireland, p. 4. Forfas. 2010. Annual Business Survey of Economic Impact 2010. [report] Dublin: Forfas, pp. 7-20. Forfas. 2012. Key skills for an enterprise to trade internationally. [report] Dublin: Forfas, pp. 9-23. Forfas. 2010. Making it happen Growing enterprise for Ireland. [report] Dublin: Forfas, pp. 79-82. Government of Ireland. 2012. Measuring Ireland 's progress 2011. [report] Dublin: Stationery Office, Dublin, Ireland., p. 17. Iodireland.ie. 2013. Challenges facing SMEs in the current climate | Institute of Directors. [online] Available at: https://www.iodireland.ie/news-events/blog/iod-blog/challenges-facing-smes-in-the-current-climate [Accessed: 10 Dec 2013]. Irishexaminer.com. 2012. 12.5% corporate tax rate under pressure. [online] Available at: http://www.irishexaminer.com/business/125-corporate-tax-rate-under-pressure-216827.html [Accessed: 18 Dec 2013]. Irishexporters.ie. 2013. IEA Reveal Irelands Top 250 Exporters | Irish Exporters Association. [online] Available at: http://www.irishexporters.ie/section/IEARevealIrelandsTop250Exporters [Accessed: 17 Dec 2013]. O 'Hagen, J Newman. C (2011). The Economy of Ireland . 11th ed. Dublin: Gill and Macmillan. p7-28. RTE.ie. 2009. 1,900 jobs lost at Dell in Limerick. [online] Available at: http://www.rte.ie/news/2009/0108/112419-dell/ [Accessed: 10 Dec 2013]. The Department of Finance. 2013. State Financial Support for SMEs in Ireland. [report] Dublin: The Department of Finance, p. 2.