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Promoting Industrial Clusters: Evidence from Ireland

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  • Frances Ruane
  • Anne Marie Gleeson
  • Julie Sutherland

Abstract

This paper analyses the spatial concentration and sectoral specialisation of local enterprises (LEs) and multinational enterprises (MNEs) in Ireland. Entropy indices are used as indicators of spatial and sectoral clustering in Irish manufacturing. Correlation coefficients are calculated to estimate the co-location patterns of LEs and MNEs, allowing an investigation of the overall impact of stated industrial and regional policy goals on the Irish manufacturing sector. The pattern of spatial changes found suggests that market forces were already driving enterprises out of more concentrated locations prior to the introduction of policies to promote greater spatial dispersion in the late 1990s. MNEs have become more sectorally specialised over the period, which is not surprising as policy is deliberately selective in attracting MNEs to key high tech manufacturing sectors. The less concentrated sectoral pattern amongst LEs enterprises is consistent with general restructuring in Irish manufacturing from lower- to higher-tech sectors, and the high sectoral correlation for high-tech MNEs and LEs suggests that LEs are following MNEs into the same sectors.

Suggested Citation

  • Frances Ruane & Anne Marie Gleeson & Julie Sutherland, 2005. "Promoting Industrial Clusters: Evidence from Ireland," The Institute for International Integration Studies Discussion Paper Series iiisdp89, IIIS.
    • Handle: RePEc:iis:dispap:iiisdp89
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    References listed on IDEAS

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    Cited by:

    1. David Bailey & Helena Lenihan & Ajit Singh, 2009. "Lessons for African Economies from Irish and East Asian Industrial Policy," Journal of Industry, Competition and Trade, Springer, vol. 9(4), pages 357-382, December.
    2. Żmuda Małgorzata, 2017. "Towards a Taxonomy of International Competitiveness," Journal of Management and Business Administration. Central Europe, Sciendo, vol. 25(3), pages 97-116, September.
    3. David Bailey & Alex De Ruyter & Noel Kavanagh, 2007. "Lisbon, Sapir and Industrial Policy: Evaluating the 'Irish Success Story'," International Review of Applied Economics, Taylor & Francis Journals, vol. 21(3), pages 453-467.

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    More about this item

    Keywords

    geographic concentration; sectoral specialisation; entropy indices; MNEs; LEs; public policy;
    All these keywords.

    JEL classification:

    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

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