Recent developments in Irish industrial policy

Abstract

This paper reviews recent developments in Irish policy and the debates and controversies that have surrounded these developments. While Irish industrialization has been dependent since the 1950s on the attraction of foreign direct investment (FDI), since the beginning of the 1980s analyses and policies have tended to emphasize the importance of promoting the indigenous sector. While there is some evidence that this shift in emphasis was associated with an improvement in Irish industrial performance, the most recent review of industrial policy called for a further shift in the direction of support for indigenous enterprise. Some implications of these recommendations are discussed, especially as they pertain to debates surrounding the achievement of cohesion in the European Union.