Information Technology and Economic Development: Ireland's Coming of Age with Lessons for Developing Countries

Paul P. Tallon and Kenneth L. Kraemer

Journal of Global Information Technology Management, 2000, vol. 3, issue 2, 4-23

Abstract: The contribution of information technology (IT) to economic growth and development is seen as an important factor underlying the pace of development in many countries. While Asia's tiger economies are often portrayed as models for economic growth, Ireland's recent economic performance has attracted considerable attention, earning it the label, Europe's Celtic Tiger.We adopt a framework of IT-led development to show how, despite having a weak indigenous IT sector, Ireland succeeded in creating a world-class industry in computer hardware, software and services. Behind this success lies a policy of "industrialization by invitation" through which Ireland selectively targeted foreign investment in high-tech industries using a menu of financial and tax-based incentives. Despite Ireland's success, intense competition from regions such as Eastern Europe and Southeast Asia has forced Irish policy makers to question whether this policy can produce sustained economic benefits.Ireland's response to these challenges contributes to the literature on IT-led development, providing valuable lessons for developing countries as they strive for greater economic growth.

Date: 2000
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DOI: 10.1080/1097198X.2000.10856275

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