The Development of Knowledge-Based Assets in Ireland
For many countries, a change in the structure of manufacturing production and manufactured exports toward high-tech industries and products reflects a substantial advancement of the country’s knowledge-based assets. Such an inference is, however, not warranted for an SLC like Ireland. The structural change in Irish manufacturing, which we saw in the previous chapter, has been driven primarily by foreign investors and not by Irish companies. If foreign companies in the high-tech sectors were to leave tomorrow, as some have been doing in the electronics industry, how would Irish manufacturing look like? The answer depends critically on how knowledge-based assets in Ireland developed during the 1990s, on whether the linkages that were formed with indigenous companies generated learning processes that will allow indigenous producers to compete globally and to move increasingly up the value chain, into the more R&D intensive parts of the value chain.
KeywordsForeign Investment Electronic Industry Transfer Price Irish Company Contract Manufacturer
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