INDUSTRIAL DEVELOPMENT

• QUESTION OF SUSTAINABLE
DEVELOPMENT
• IRISH BASED INDUSTRY
• FDI
• INDIGENOUS INDUSTRY
• SUSTAINABILITY
1
 IRISH BASED INDUSTRY

• IDA 1949, CAPITAL GRANTS FOR MANUFACTURING EXPORTS 1970S

STRATEGY TO ATTRACT HIGH VALUE ADDED SECTORS. ELECTRONICS,
CHEMICALS, PHARMA AND HEALTHCARE. NOW HIGH TECH AND SERVICE.
• 1958 ECONOMIC DEVELOPMENT
• FDI DEVELOPMENT: EXPORT ORIENTATION: ZERO TAX PHASED OUT IN ’78
REPLACED BY 10% FOR ALL MANUFACTURE, FROM 2003 12.5% FOR ALL
SECTORS.
• INTERNATIONAL SERVICES INDUSTRY 1980S
• ENTERPRISE IRELAND AND FORFAS SET UP 1994 TO ADVISE ON SCIENCE
AND TECHNOLOGY
• PERFORMANCE
• PRODCOM - IRISH INDUSTRIAL PRODUCTION BY SECTOR - CS
O - CENTRAL STATISTICS OFFICE
• GOODS EXPORTS AND IMPORTS - CSO - CENTRAL STATISTICS
2
OFFICE
• 1997 MANUFACTURE 34%GDP TO 27%GDP 120BN TURNOVER
• MANUFACTURE DECLINE AND RESTRUCTURE
EMPLOYED 200,000
• DECLINE IN 2000S DUE TO COST COMPETITIVENESS, STERLING EXCHANGE RATE AND
MANUFACTURE TRENDS. RECOVERY FROM 2009 EXPORTS FOOD AND PHARMA, WEAK DOMESTIC
DEMAND
• BUSINESS IN IRELAND - CSO - CENTRAL STATISTICS OFFICE
• MANUFACTURING SECTOR 2022 INSIGHTS AND 2023 OUTLOOK | THINKBUSINESS
• BOI-FOOD-DRINK-INSIGHTS-OUTLOOK-JULY-2023.PDF (THINKBUSINESS.IE)
• INDUSTRIAL PRODUCTION AND TURNOVER NOVEMBER 2023 - CSO - CENTRAL STATI
STICS OFFICE
• LFS DETAILED EMPLOYMENT SERIES - CSO - CENTRAL STATISTICS OFFICE
• IRELAND OUTLOOK - OCTOBER 2023 - BANK OF IRELAND CORPORATE
• MANUFACTURING SECTOR 2022 INSIGHTS AND 2023 OUTLOOK | THINKBUSINESS
• ONTRIBUTION TO THE IRISH ECONOMY – IPHA
• IRELAND - CEFIC.ORG
• EXPLORE THE LATEST NEWS & VIEWS | IDA IRELAND
• IRELAND'S FOREIGN DIRECT INVESTMENT (FDI) AGENCY | IDA IRELAND
• QUARTERLY ECONOMIC COMMENTARY, WINTER 2023 | ESRI
• SERVICES EXPORTS AND EXPORTERS OF SERVICES | ESRI
• 3
EXPANDING AND DIVERSIFYING THE MANUFACTURED EXPORTS OF IRISH-OWNED E
NTERPRISES | ESRI
 OUTWARD DIRECT INVESTMENT
• LARGE INCREASE IN ODI IN 90S HELPING TO INSULATE SOME
AGAINST IRISH BUSINESS CYCLE.
• INCREASES HIGH-VALUE INTERMEDIATE GOODS EXPORTS AND
SERVICE S BY HEAD OFFICE.
• HIGH LEVEL ODI IS ALSO ASSOCIATED WITH HIGH LEVELS OF R&D
• ODI 60% OF GDP COMPARED TO UK 65% AND EU AVE 45%. ODI
FLOWS ARE NOW SIMILAR TO FDI.
• 2000S BULK OF ODI FROM OLDER TRADITIONAL MANUFACTURE
CRH, GREENCORE BUT CONCENTRATED ON THE US. IN 2009 SWITCH
TO SERVICE BASED OFFSHORE CENTRE ODI
• OUTWARD FOREIGN AFFILIATES STATISTICS (OFATS) - CSO
- CENTRAL STATISTICS OFFICE
• IRISH COMPANIES IN THE US EMPLOY OVER 400,000 WITH OVER
370,000 IN BOTH EU AND ASIA AND 1.7M WORLDWIDE, WHILE
FOREIGN MNCS EMPLOY 440,000 IN IRELAND, 263,000 BY US FIRMS.
• 4
MULTINATIONALS: AN IRISH PERSPECTIVE BUSINESS IN IR
ELAND 2021 – DETAILED RESULTS - CENTRAL STATISTICS O
 MANUFACTURE
• MODERN SECTOR 59% VALUE ADDED AND 37% EMPLOYMENT
• EXPORTS 96% OF OUTPUT, 10% TO UK, 20% TO US AND 60% TO
EU, 10% ELSEWHERE.

• TRADITIONAL SECTOR EXPORTS 75%, 25% TO UK, 10% US, 55%

EU AND 10% ELSEWHERE
• SHARE TO US INCREASING WHILE UK AND ELSEWHERE
DECLINING
• SECTOR - CSO - CENTRAL STATISTICS OFFICE
• EXPORTS AND IMPORTS 2022 IRELAND'S TRADE IN GOO
DS 2022 - CENTRAL STATISTICS OFFICE

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 FOREIGN MULTINATIONALS IN IRELAND

• INCREASED SHARE, MOST INTENSIVE IN EU WITH 87% OF

MANUFACTURING STOCK COMPARED TO 54% EU AVE.
• PROFIT OUTFLOW 36% GNP.1997, CURRENTLY 40% GNI*
• FDI TO EU DOWN 30% GLOBAL DOWN 40% IN 2009
• IRELAND ONE OF SIX EU TO INCREASE FDI 2009
• 10% OF FDI IN NEW COMPANY
• STOCK OF FDI IN IRELAND CLOSE TO $1TN HALF OF WHICH IS US.
TOTAL IRISH INVESTMENT IS $150BN
• DECLINE IN IMPORTANCE OF MANUFACTURING
• POWERPOINT PRESENTATION (IDAIRELAND.COM)
• ENHANCING THE ATTRACTIVENESS OF THE ISLAND OF
IRELAND TO HIGH-VALUE FOREIGN DIRECT INVESTME
NT | ESRI
6
 DECLINE IN IMPORTANCE OF
MANUFACTURING
• IN 2000 COMPUTER HARDWARE EXPORTS 5% OF GLOBAL EXPORTS. 33% OF
ALL EU SALES. IN 2005 THIS WAS 4% WHILE CHINA SHARE ROSE FROM 6% TO
28% OF GLOBAL EXPORTS. NOW COMPUTER HARDWARE EXPORTS ARE 1%
WHILE CHINAS IS 40% THEN MEXICO 8%THE NETHERLANDS 8%.
• IN 2000 ELECTRONIC COMPONENTS WERE 6% OF GLOBAL EXPORTS NOW 1%
OR $7BN. IN HK 19%, CHINA 14%, TAIWAN 14%, SINGAPORE10% MALAYASIA
6%, US 6%.

RISE IN THE IMPORTANCE OF SERVICES

• IRELAND IS THE LARGEST EXPORTER OF COMPUTER SERVICES
EXPORTS $122BN OR 24.34% OF GOBAL EXPORTS. THE TOP 5
COUNTRIES (OTHERS ARE INDIA, CHINA, THE UNITED STATES OF
AMERICA, AND GERMANY) ACCOUNT FOR 61.53% OF IT. THE
WORLD'S TOTAL COMPUTER SERVICES EXPORTS WAS ESTIMATED
AT $501BN.
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 BLURRING THE LINES
• APPLE AND DELL SWITCH TO CONCENTRATE ON HIGH
VALUE ADDED SERVICE FUNCTIONS WITH EMERGENCE
OF SSC PROVIDING ALL THE SUBSIDIARIES BUSINESS
SERVICE NEEDS.
• TREND IN MANUFACTURE TO MOVE TO HIGH END
SERVICES EG IBM IS NO LONGER A MANUFACTURER BUT
PROVIDES CONSULTANCY BUSINESS SOLUTIONS
• 70% SERVICE JOBS 2008 CURRENTLY JUST UNDER 80%.
HIGH JOB LOSSES IN FOREIGN MANU.
• SHIFT TO MORE SERVICE BASED AND KEY TECHNOLOGIES.
• EMPLOYMENT - CSO - CENTRAL STATISTICS OFFI
CE
• HTTPS://DATA.CSO.IE/TABLE/QLF03
• DATA - CSO - CENTRAL STATISTICS OFFICE
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 FDI AND R&D
• 73% OF ALL BERD FROM MULTINATIONALS
• JOB SHED 7-8% AVE
• DOUBLED R&D IN 1990S
• ANALOG DEVICES ACCOUNTED FOR ¼ ALL
IRISH PATENTS IN LATE 90S ALTHOUGH A
GREATER NUMBER OF COMPANIES
PATENTING NOW THAN PREVIOUSLY.
• HALF OF MNC EXPENDIUTRE IEE AT 20BN
• BUSINESS EXPENDITURE ON RESEAR
CH AND DEVELOPMENT - CSO - CENT
RAL STATISTICS OFFICE
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 INDIGENOUS INDUSTRY
• OUTPUT, EMPLOYMENT RETURN TO GROWTH STRONGER FOR III THAN
MNCS IN EARLY 90S WITH AN UPSURGE IN JOB LOSSES IN LATE 1990S
2000S
• BUSINESS IN IRELAND 2021 – DETAILED RESULTS - CENTRAL STA
TISTICS OFFICE
• RAPID EXPANSION OF DOMESTIC ECONOMY, CYCLICAL MAINLY 10%
EMPLOYMENT IN HIGH TECH WITH ANOTHER 16% IN MEDIUM
• MANUFACTURING EXPORTS LESS THAN A THIRD OF ITS OUTPUT, UK TAKES
40% OF THIS BUT THIS IS DOWN FROM 60%. EXPORTS OF FOOD AND DRINK
ABOVE 16BNANNUAL REPORTS - BORD BIA | IRISH FOOD BOARD
• OVERVIEW – IBEC

• MULTINATIONALS: AN IRISH PERSPECTIVE BUSINESS IN IRELAN

D 2021 – DETAILED RESULTS - CENTRAL STATISTICS OFFICE
• FOOD&DRINK PRODUCTS EXPORTS 50%, UK TAKES 40%
• MODERN HIGH TECH EMPLOYMENT OUTPUT AND EXPORT GROWTH 1990S
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PHARMA, ELECTRONIC, INSTRUMENT, EQUIPMENT, MACHINERY
 III R&D
• R&D .6% OF GNP ’93, 1.1% ’95, 1.56 IN 2006.
• ELECTRONICS 3.6% OF OUTPUT IN 1991, 7% 2000
WHICH IS 30% OF ALL III MANU R&D .
• MOST PATENTING IN THE MEDIUM SECTOR WITH
STRONG GROWTH IN PATENT ACTIVITY. III REQUIRES
MORE GROWTH IN HIGH PATENTING SECTORS.
• SOFTWARE: EMPLOYMENT, OUTPUT, EXPORTS, R&D
SHOWS STRIKING GROWTH GIVING RISE TO A NUMBER
OF MEDIUM SIZE GLOBALLY COMPETITIVE FIRMS
• PUBLICATIONS | ENTERPRISE IRELAND (ENTER
PRISE-IRELAND.COM)
• AN-ANALYSIS-OF-INTELLECTUAL-PROPERTY-A11
CTIVITY-IN-IRELAND-BASED-ON-EXISTING-DAT
 R&D
• EU LISBON AGENDA AVE 3% GNP ON R&D BY 2010 IRELAND’S TARGET 2.5% BY 2013
• IRELAND 1.56% 2.3BN, EU 1.77%, OECD 2.26%, US 2.7%, JAPAN 3.1%, SWEDEN 3.9%,
FINLAND 3.5% , DENMARK 2.5% IN 2006.
• CURRENT TOTAL SPEND (GERD) OF 5BN OR NEARLY 2% OF GNI*
• GOV - MINISTER HARRIS WELCOMES THE PUBLICATION OF TWO SURVEY
S WHICH REVEAL RECORD INVESTMENT IN RESEARCH AND DEVELOPME
NT IN IRELAND (WWW.GOV.IE)
• R&D EXPENR&D
EXPENDITURE IN THE EU AT 2.3% OF GDP IN 2020 - PRODUCTS EUROSTAT
NEWS - EUROSTAT (EUROPA.EU)
DITURE
IN THE EU AT 2.3% OF GDP IN 2020 - PRODUCTS EUROSTAT NEWS - EUROS
TAT (EUROPA.EU)
• ¼ OF SPEND IN THIRD LEVEL, 10% BY GOVT, 65% BY INDUSTRY
• GOV SPEND AS % GNP: FINLAND, US, FRANCE AND SWEDEN 1%, IRELAND .5% 15TH IN
EU
• RESEARCH AND DEVELOPMENT (R&D) - GROSS DOMESTIC SPENDING
12 ON
R&D - OECD DATA
R&D EXPENDITURE AS A % OF OUTPUT
SECTOR III MNC
• ELECTRONIC 7% 2%
• INSTRUMENT 7% 2.5%
• EQUIPMENT 2.5% 1.2%
• PHARMA 4%
5%

• ANNUAL REPORTS - IPOI

• BUSINESS EXPENDITURE ON RESEARCH AN
D DEVELOPMENT - CSO - CENTRAL STATISTI
CS OFFICE
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 SUSTAINABLE DEVELOPMENT

• R&D INNOVATION AND

PATENTING
• LEARNING CURVES AND
ORGANISATION
• LINKAGES AND CAPABILITIES
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