According to Enterprise Ireland(2023), Ireland is the second biggest exporter
of IT services, home to 16 of the top 20 global tech companies,
employing over 106,000 employees (IDA Ireland, 2023).There is an abundance of
reasons for Irelands success in this industry, examples of which I will briefly
describe below.
Broad Talent Bank
The population of Ireland is extremely well educated and talenedt,
ranking 14th in the IMD World Talent Ranking. 62.3% of Irish citizens aged
23-34 have a college degree, making young Irish adults extremely attractive.
Low Tax
Low tax in Ireland is extremely attractive to tech companies.
Corporation Tax throughout the OECD is an average of 21.5% according to the Tax
Foundation, however Ireland have just 12.5%, giving the country a
competitive advantage over fellow EU countries.
EU Membership
Ireland's location is ideal for multinationals. Ireland's EU membership gives
companies ree trade throughout EU countries. It also gives companies protection
from external competition from foreign markets.
Access to the United Kingdom
Multinationals who choose Ireland gain easier access to the UK market
compared to other EU countries thanks to the Northern Ireland Agreement.
Language
Since the exit of the United Kingdom from the EU, Ireland is now the
only English-Speaking country in the EU. As a result, Ireland has become
extremely attractive to companies from English speaking countries, particularly
the US, now homing American tech companies such as Google, Apple, Microsoft and
Amazon.
Irelands Economy
Ireland’s economy is stable, with the CSO reporting a 12.2% GDP growth aiding
in it's high number of exports. Multinationals in industries such as tech are
very successful in Ireland, with IDA Ireland reporting that 72% of the national
exports in 2020 in Ireland came from multinationals.
Funding for Start-ups
Ireland provides a great start-up environment for businesses. Some
attractive examples of this include the local enterprise offices offering
direct financial support and training to businesses, and Enterprise Ireland who
invest in over 70 high potential companies ever year, providing training,
development support and funding.
Government R&D Investment
The Irish government invests heavily in research and development, with
the government allocating €869m in 2020 to it. This investment is made to test
new technologies and create more jobs. R&D programmes such as the Small
Business Innovation Programme is definitely attracting to businesses looking to
set up in a new country.
Working Culture
There is a very attractive work culture in Ireland. The Irish workforce
are extremely educated and thrive to rise in their workplace. Businesses tend
to be quite efficient due to a positive work life balance. An average week in
Ireland consists of a maximum of 48 hours work, with 4 weeks paid annual leave.
Informal workplaces ensure that employees are in the perfect environment to
feel comfortable and thrive.
Infrastructure
Ireland's commitment to the growth of it's infrastructure is a vital
reason why multinationals choose here. The National Development plan commit to
€165m spending in infrastructure projects. Sustainable energy is of huge
importance to the Irish Economy, with hopes to have a 50% reduction in
emissions by 2030 according to IDA Ireland.
As you can see above, Ireland has many reasons for being a great country
for multinationals to set up in, with companies such as Dell, Salesforce,
Microsoft and Intel proving this.
I really hope you enjoyed this weeks post and if you have any questions
for me please leave a comment below!
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