Ireland as a Digital Economy

Why Ireland is Such a Good Place to do Business

Hey Guys, Welcome back!!!! Thank you so much for joining last week and I hope you enjoyed and learned something new😁. As I mentioned last week in my intro I am from Ireland so I thought this week could be focused on the country. In particular, the reasons why so many Multinational corporations (MNCs) find the small country such an attractive place to do business.

Ireland is home to some of the world's largest companies with many of them even having their European headquarters set up here. The majority of these MNCs are from the Pharmaceutical and Tech industries and are vital for the Irish economy. But why set up here?🤔

Corporation Tax

A corporation tax (CT) is a tax charged on a company's profits, and unlike many of the developed European countries Ireland's corporation tax is incredibly low sitting at 12.5%. Other European countries such as the UK and France have a CT of 25%. This makes it extremely attractive to large tech companies with huge profits like Facebook, Google and Apple to set up here.

Educated Workforce

Ireland's workforce is also young and highly educated with IDA Ireland stating 62.3% of 23-34-year-olds have completed some form of third-level education. The workforce is also highly tech-savvy and possesses the skills necessary for tech companies to successfully conduct their operations.

English Speaking Workforce

Ireland has an English-speaking workforce which is incredibly beneficial as the majority of MNCs of the tech and pharma industries are American. This is attractive and convenient for American companies as they can conduct business efficiently without a language barrier.

Access to EU

Ireland is a member of the EU and has been since 1973. This gives MNCs from non-EU countries free trade access to one of the world's largest markets. Brexit has also led many multinationals to move their operations from Britain to Ireland.

International Leader

According to IDA Ireland, Ireland is the chosen location for 16 out of the top 20 global tech companies. When giants like Apple, Facebook, and Intel have already established themselves in Ireland, it attracts other multinationals and smaller tech firms to do the same. 

Thriving Economy

Ireland is known to have a very competitive and stable economy. Ireland's economy recovered very quickly after COVID-19 growing quicker than countries such as the UK. According to the IMD World Competitiveness Ranking, Ireland ranked 2nd worldwide only to Denmark. This sustained economic growth makes the country an attractive destination for MNCs to establish their presence.

Research and Development

The Irish Government invests heavily in Research and Development (R&D) allocating 869 million euro to R&D in 2021 alone (according to CSO). This funding went to programmes such as the Disruptive Technologies Innovation Fund and Small Business Innovation Research Programme. Ireland's ongoing commitment to funding research programs in IT and enterprise positions it as a global frontrunner in innovation. 

Tech and Pharmaceutical Hub

Due to the long-standing presence of MNCs in Ireland such as Intel, Apple and Phizer cities such as Dublin and Cork have become tech and pharmaceutical hubs. Constant networking further expands the talent pool, driving innovation creation and competitiveness between companies and the workforce. 

Infrastructure

Ireland boasts an extensive network of motorways that connect all major cities, coupled with substantial investments in high-speed telecommunications. The Irish government has also allocated 165 billion euros for future significant infrastructure projects, with a primary focus on transportation and climate action. These investments are aimed at enhancing Ireland's competitive advantage as a tech leader.

Quality of Life

Irish quality of life ranks among some of the best in the world, ranking 2nd on the Human Development Index. With a low crime rate and welcoming people Ireland is an ideal location for relocating tech professionals.

Thank You so much for coming again this week and reading guys. I hope to see you again next week.😀