Chris Van Egeraat

Industry Clusters in Ireland: An Application of Porter's Model of National Competitive Advantage to Three Sectors

This paper examines the importance of industrial clusters, and the relevance of Porters diamond model, in the context of the small open economy of Ireland. It analyses the experience of three relatively successful Irish indigenous sectors and it considers to what extent have clusters of related or connected industries been important in accounting for the degree of success attained in Ireland. We do not find evidence of well-developed clusters of the type described by Porter, and our study provides support for some previous critiques of Porters model. It is concluded that Irish industrial policy does not need to be focused strongly on developing the type of industry clusters described in Porters model. At the same time, different elements of Porters model do prove to be relevant and we find that companies in Ireland benefit from being part of some form of wider grouping of connected or related companies and industries, although these groupings can differ from Porters clusters in significant respects.

Geography of Production Linkages in the Irish and Scottish Microcomputer Industry: The Role of Logistics

Abstract The economic crisis of the mid-1970s marked the transition from the traditional Fordist mode of industrial organization to one of time-based competition (TBC). It has been postulated that the rise of TBC will lead to an increase in local and regional production linkages. Part of the argument is that the associated search for logistical efficiency and the adoption of the just-in-time (JIT) principles will lead to closer buyer-supplier proximity. In this article, we test the relevance of this idea in a case study of the microcomputer hardware industry in Ireland and Scotland. Most of the data were collected during multiple interviews with subsidiaries of all global microcomputer assemblers with operations in one of the two countries. The study shows that rather than sourcing locally or regionally, the assemblers import the vast majority of their material inputs from regions outside Ireland and Britain, notably from the Far East, and that the inbound logistics pipelines of most components involve inventories, often hubbed in local warehouses. Such supply systems have been interpreted as pseudo-JIT, suboptimal inbound logistics systems that are organized on traditional Fordist principles. We argue that the logistics systems and the geography of the supply linkages should not be interpreted this way. Inbound inventories were tightly managed, leading to modest target buffer levels and high shipment frequencies. Even under JIT supply, the geographic configuration of production linkages and the details of logistics systems remain highly dependent on a range of contextual conditions and component characteristics. The findings of this study suggest that a strategy of building integrated vertical production clusters around subsidiaries of multinational enterprises is no longer suitable for Ireland and Scotland, at least not in the context of the microcomputer industry.

The Irish pharmaceutical industry over the boom period and beyond

The pharmaceutical industry has been one of the strongest performing sectors of the Celtic Tiger era. During the past two decades, employment growth in the sector has been strong and continuous, even when, in recent years, employment in other manufacturing sectors has been contracting. Although positive in itself, from a dynamic regional development perspective it is important to explore the qualitative changes in the types of activities that are conducted in Ireland. Adopting a global production network approach, the paper examines Ireland’s changing role in global production networks within the pharmaceutical industry, focussing on the different components of manufacturing and R&D. The analysis shows that Ireland’s involvement in manufacturing has shifted in the direction of relatively higher value generating activities. Within R&D, although the level of value creation has increased substantially, Ireland’s involvement remains concentrated in the (relatively) lower value generating activities of the global R&D network. In addition, the sector remains strongly dominated by foreign direct investment so that a large share of the created value is not captured within Ireland.

The rise and demise of the Irish and Scottish computer hardware industry

This paper examines the dynamics of the computer hardware industry in Ireland and Scotland in a global context, from its inception in the late 1950s to the present. It provides a detailed account of plant openings and closures in both the system assembly and the component manufacturing segment. It describes the development of the computer hardware industry from mainframe assembly, through minicomputer assembly to microcomputer assembly and the shift of system assembly and component production activity to the Far East and Eastern Europe since the mid-1990s. The developments are analysed in terms of Schoenbergers (1997) model of concentrated deconcentration in the context of time-based-competition. It is shown that the model, with substantial qualification, fits the developments since the 1980s.

The scale and scope of process R&D in the Irish pharmaceutical industry

Manufacturing Process R&D activities are one of the target areas of Irish industrial development agencies in their quest towards embedding pharmaceutical companies in Ireland. This paper analyses the changing role of Ireland in the global process R&D networks of the pharmaceutical companies. The paper is based on data collected in an email survey of all pharmaceutical establishments in Ireland and face-to-face interviews with 13 companies. The article outlines the various stages of the process R&D cycle and assesses the involvement of the Irish establishments at each stage. Far from a uniform undifferentiated activity, process R&D comprises a range of activities. The results show that although Irish plants are increasing their involvement in process R&D, this involvement tends to be concentrated in the last stages of the cycle.

Business research as an educational problem‐solving heuristic – the case of Porter’s diamond

Explores the link between research practice and business education. The work of Michael Porter has a long association with the field of marketing. Focuses on the Porter’s diamond model of national competitive advantage (1990). Draws on recent experiences from an empirical investigation into sources of competitive advantage and suggests that the model is useful as a conceptual framework for practitioner‐orientated discourse concerning developmental issues. Outlines the process of review that led to a set of specific action outcomes. Doing so highlights the reflective nature of the research process and provides insights into the usage of theory in a pragmatic manner. In particular, suggests that for those “less steeped in the management life‐world” such an account may facilitate a reflective turn in their appreciation of the relationship between marketing management theory and practice.

Achievements of the industrial ‘high‐road’ and clustering strategies in Singapore and their relevance to European peripheral economies

Abstract This article examines the high‐road and clustering strategies in Singapore. The focus will be on the circumstances and factors governing the feasibility of a high‐road strategy and on the implications for cluster development within national borders. While substantial results have been achieved as far as upgrading of the industrial structure is concerned, this appears to hold much less with regard to the aim of localized cluster development. Upgrading has been accompanied by the partial disintegration of the local production structure and regionalization of the production system. In relation to the relevance of the analysis for European peripheral economies it is important to account for the set of specific local and regional conditions that inspired the industrial development path of Singapore.

Social and Spatial Structures of Innovation in the Irish Animation Industry

This paper assesses the relevance of the knowledge base conceptualization and the relationship between the symbolic knowledge base and the spatiality of knowledge flow in the context of the animation industry in Ireland. The paper draws on findings from a study of four innovation case studies. In broad terms, the findings provide further support for the applicability of the knowledge base approach and the association of the animation industry with the symbolic knowledge base. However, in relation to the spatiality of knowledge flows, the findings contradict the theoretically deduced postulations. Nearly all of the knowledge sources are located overseas. In addition, the study finds little support for the role of local buzz in knowledge flow. The local animation community “buzzes globally” at international events.

Global and Regional Dynamics in Knowledge Flows and Innovation Networks

Knowledge, learning and innovation are key elements in theories concerning economic development and growth. Since Schumpeter (1942) it has been recognized that the displacement of old goods or tech...

Regional economic resilience in Ireland: the roles of industrial structure and foreign inward investment

This paper examines the resilience of Irish regions during the course of the post-2007 economic crisis, focusing specifically on employment change in firms in receipt of assistance from the Irish government’s enterprise development agencies. The paper classifies both regions and sectors in terms of their employment performance both before and during the recession and employs a number of techniques to assess the roles of sectoral composition, firm nationality and other factors in shaping the recession’s regional impact. While nationality mix is significant, sectoral composition is seen as having a more important impact on regional employment performance. Other factors also have an important role in some regions, but their precise nature remains unknown.