The global economy of today is characterised by multiple – and sometimes, interrelated – challenges but in seeking to formulate coherent and effective public policy responses, it is first necessary to understand what works (and why). The typology of pro-productivity policies proposed by van Ark, de Vries and Pilat (2023) is highly instructive in this regard setting out as it distinguishes four categories of pro-productivity policies (both direct and indirect).
In this paper, we have endeavoured to use this typology to present a clear picture of Ireland’s experience over close to seven decades in developing and deploying pro-productivity public policies – and sometimes inadvertently doing the inverse – with a view to sharing some examples of good practice whilst also contributing to a process of learning from across multiple jurisdictions.
One of the principal findings emerging from this analysis is that although the pro-productivity policies pursued by Ireland have varied, two common themes still dominate: the use of the tax system to underpin Ireland’s FDI proposition and the use of fiscal incentives to drive investment in technology, innovation and R&D.
A third important finding presented here relates to the importance of human capital and how public investment in the educational profile of the population has underpinned the positioning of the country as a platform for high-technology and knowledge-intensive FDI.
Authors Dermot P. Coates and Martina Lawless