It’s hard to believe we already completed our final presentations yesterday. Time has gone by so incredibly fast during this program probably because we’ve been on the go the entire trip.
I enjoyed researching FoodCloud, the social enterprise we visited last week, for the group presentation. We delivered a PESTLE analysis of the company to see how political, economic, social, technological, legal and environmental forces impact the Dublin business environment.
After our presentation, Raymond Bowe manager of skills energy and water policy at IDA Ireland came to present to us. IDA Ireland is He told us all about IDA Ireland and explained the many benefits and some of the difficulties of foreign direct investment (FDI) in Ireland.
Some of the many pros of FDI in Ireland for high tech sectors that he mentioned was great education, young workforce, growing economy and low corporate tax. First, he was proud to tell us about their education system. The 3rd level attainment is 53.5% compared to the EU average of 39.9%. Also, the early leavers from education and training (people that are leaving high school) is only 5.1% where the average in the EU is 10.6%. Ireland’s education system is highly ranked and emphasis on STEM in their programs. The people in Ireland are well educated and a third of the population is under 25. They have a well-educated population and the youngest in Europe. Ireland is also expected to grow to 5 million in just 40 years. Right now they are the fastest growing economy in the Eurozone. Ireland is underpopulated and there is a lot of room for growth. Their corporate tax rate is 12.5% which is obviously a great benefit for FDI. Many of these reasons are why huge tech companies like Google, Microsoft, Facebook and Eaton choose to have headquarters in Ireland. Having the “Silicon Docks” in Ireland would be greatly beneficial for another tech company to join business in Ireland.
Raymond Bowe also mentioned how IDA Ireland is not just trying to create jobs and infrastructure but also their trying to make Ireland an overall nicer place to live in the future. They strategically invest and their priorities include better education, housing, public transportation and care for the environment. They have plans set to keep Ireland growing while also making it an even better place to live. IDA said they are invested in the companies they bring in and they develop relationships with the companies and help make sure they’re successful in Ireland.
There are some negatives for FDI including that Brexit could have a detrimental effect on the Irish economy. Housing is a problem, Ireland is growing fast and they cant keep up with enough infrastructure. Ireland is an island, so shipping costs are a problem. Tech companies are able to sell online but for other companies this can be expensive. Especially with Brexit it could become difficult for companies that are for example, in the food industry because of more complicated shipping and longer routes. Overall, I believe Ireland is a great country to invest in if you are in the tech, financial or pharma industries but other industries could have problems with taxes and shipping.