TY - JOUR
T1 - A Critical Reflection on Irish Industrial Policy
T2 - A Strategic Choice Approach
AU - Bailey, David
AU - Lenihan, Helena
N1 - Publisher Copyright:
© 2015, © 2015 International Journal of the Economics of Business.
PY - 2015/1/2
Y1 - 2015/1/2
N2 - Abstract: This paper offers a critical evaluation of recent Irish industrial policy (IP) experience. It argues that whilst Ireland managed to get some things “right” through its IP, substantial tensions arose through making foreign direct investment (FDI) attraction the centrepiece of policy, without at the same time adopting a more holistic approach in IP which inter alia also placed an emphasis on indigenous firms and entrepreneurship more generally. In particular, greater efforts should have been made much earlier in attempting to embed transnational corporation (TNC)-led activity better into the wider economy, in fostering domestic small firms and entrepreneurship, in promoting clusters, and more generally in evaluating IP more fully – notwithstanding the context which mitigated against such actions. As a result, Ireland as an economy remained vulnerable to strategic decisions made elsewhere by TNC decision makers, with IP effectively contributing to a situation that can be characterised as institutional and strategic failure. Overall, the paper suggests that wholesale emulation of the Irish IP approach is problematic.
AB - Abstract: This paper offers a critical evaluation of recent Irish industrial policy (IP) experience. It argues that whilst Ireland managed to get some things “right” through its IP, substantial tensions arose through making foreign direct investment (FDI) attraction the centrepiece of policy, without at the same time adopting a more holistic approach in IP which inter alia also placed an emphasis on indigenous firms and entrepreneurship more generally. In particular, greater efforts should have been made much earlier in attempting to embed transnational corporation (TNC)-led activity better into the wider economy, in fostering domestic small firms and entrepreneurship, in promoting clusters, and more generally in evaluating IP more fully – notwithstanding the context which mitigated against such actions. As a result, Ireland as an economy remained vulnerable to strategic decisions made elsewhere by TNC decision makers, with IP effectively contributing to a situation that can be characterised as institutional and strategic failure. Overall, the paper suggests that wholesale emulation of the Irish IP approach is problematic.
KW - Foreign Direct Investment (FDI)
KW - Industrial Policy
KW - Ireland
KW - Policy Evaluation
KW - Strategic Choice
KW - Transnational Corporations (TNCs)
UR - http://www.scopus.com/inward/record.url?scp=84927574235&partnerID=8YFLogxK
U2 - 10.1080/13571516.2014.993218
DO - 10.1080/13571516.2014.993218
M3 - Article
AN - SCOPUS:84927574235
SN - 1357-1516
VL - 22
SP - 47
EP - 71
JO - International Journal of the Economics of Business
JF - International Journal of the Economics of Business
IS - 1
ER -