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Cluster GenesisTechnology-Based Industrial Development$
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Pontus Braunerhjelm and Maryann P. Feldman

Print publication date: 2006

Print ISBN-13: 9780199207183

Published to Oxford Scholarship Online: September 2007

DOI: 10.1093/acprof:oso/9780199207183.001.0001

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The Emergence of Ireland's ICT Clusters: The Role of Foreign Direct Investment

The Emergence of Ireland's ICT Clusters: The Role of Foreign Direct Investment

Chapter:
(p.148) 8 The Emergence of Ireland's ICT Clusters: The Role of Foreign Direct Investment
Source:
Cluster Genesis
Author(s):

Frank Barry

Publisher:
Oxford University Press
DOI:10.1093/acprof:oso/9780199207183.003.0008

The emergence of the Irish ICT-cluster is claimed to be driven by the presence of foreign anchor firms, for example Intel. These firms also acted as incubators for domestic entrepreneurs. Half of the Irish manufacturing labour force is now employed in foreign-owned firms, with the bulk in ICT. The ICT cluster (both hardware and software) is agglomerated around Dublin. Already in the mid-1990s Ireland had become host to the most important ICT-cluster in Europe. Equally transformative was institutional reform and fiscal policy that also paved the way for future tax reductions, a newly developed ‘social partnership model’ of wage determination and Ireland's EU-membership in 1973 which guaranteed access to the European markets.

Keywords:   Intel, FDI, taxes, human capital, institutions

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