The state and industrial policy in Ireland: a case study of the Irish pharmaceutical sector

Abstract

There is renewed interest in the state's role in the economic sphere but a lack of research on the viability and employment effects of alternative economic models, in particular from a ‘liberal market economy’ perspective. This article addresses this gap in the human resource management literature by undertaking a detailed case study of industrial policy in the Irish pharmaceutical sector. The proactive and resource-intensive industrial policy adopted by the Irish government and development agencies is found to have underpinned a significant strategic upgrading in this sector of the Irish economy. In turn this has facilitated the growth of high-wage, high-skill jobs. The findings highlight the potential for an active industrial policy to promote employment upgrading in liberal market economies.

Keywords:

• employment upgrading
• industrial policy
• Ireland
• liberal market economies
• pharmaceutical sector
• state economic policies

Acknowledgements

The authors thank the editors and two anonymous reviewers for very helpful comments on earlier drafts of this article. This article is based on a research project funded by the Economic and Social Research Council (RES-062-23-1183) and the Irish Research Council for the Humanities and Social Sciences. The financial support of these institutions is gratefully acknowledged.