These days, Ireland is one of the countries that has been attracting attention in the international business and economy in the world. Ireland has achieved steady economic growth since the 21st century. What is the background of the big leap? Let’s take a look at Ireland’s economic features and attractiveness from a business perspective.
Feature of the Irish economy
Ireland is an island country located next to the United Kingdom. The country has been positioned as a poor country in EU, however it has seen significant growth in recent years. As of 2021, GDP per capita is $100,172, making it the fourth largest in the world. In recent years, Ireland has attracted attention from all over the world, mainly in the life science industry such as the pharmaceutical industry and medical equipment, and IT industry such as semiconductors, and financial industry.
Background of Irish Economic Growth
There are several reasons why Ireland has achieved economic growth, but one of the attractions is that it has the lowest corporate tax rate in the EU (12.5%; however, this may change in the future). In addition, it is an English-speaking country. This is attracting attention as a relocated destination in Europe area to replace the United Kingdom, which has left the EU.
Ireland was originally an agricultural country, but started attracting foreign companies in the 1990s. Since 2017, it has achieved economic growth surpassing that of China and India, and has reached the present. Over the past centuries, large numbers of Irish people have fled the country, suffering from domination and oppression from neighboring England, suffering from food famine, and scattered around the world. However, they overcame the difficulty and suceeded. In addition to the excellent policies of the nation, it is said that their personal connections and tenacity became the foundation that led to the economic growth of their homeland, Ireland.
Why life science industry draw attention to Ireland?
One of the reasons is human resources. Ireland is one of the few countries in the world to have a Center of Excellence (COE) in the pharmaceutical industry and has a large pool of professionally trained personnel.
The second is the existence of practical research institutes. Ireland established NIBRT (The National Institute for Bioprocessing Research and Training) in Dublin in 2011. This is the National Institute of Bioprocess Research and is said to be home to some of the industry’s leading brains. It is an organization that makes what is called industry-academia-government collaboration more efficient. The point is that they cooperate with each other beyond the walls of each company.
Ireland has such an open system to develop the economy while enhancing drug development technology on both sides. Of the 165.2 billion euros in product exports in 2021, 38% (62.6 billion euros) will be centered on pharmaceuticals. products, making it one of the world’s leading pharmaceutical exporters.
Many countries are focusing on the pharmaceutical industry, and it is expected that the pressure on investors will continue to be fierce, but they will continue to maintain the current positive trend. The question for Ireland is whether it can do so. As interest in cell and gene therapy, which is expected to be a next-generation treatment, is growing in the pharmaceutical industry, the point will be how to attract overseas investors and how to concentrate funds.
Summary
- Ireland is attracting attention as an economic base in Europe, taking advantage of an English-speaking country with low corporate taxes.
- Ireland has a rich of human resources with knowledge and skills in the pharmaceutical industry.
- There is an organization (NIBRT) that brings together the strengths of the country, universities, and companies.
During the COVID-19 crisis, the pharmaceutical industry has been exposed to supply chain problems and unstable elements from procurement of raw materials to commercialization. Ireland has taken the initiative to strengthen the system. In addition to the low corporate tax rate and favorable English-speaking conditions, it is also excellent in creating the environment necessary for economic circulation such as human resource development, policies, and funding, which may be the reason why it is attracting the attention of global companies that lead the world.
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