Comments on: We think like Europeans, but spend like Americans

By: Niall

Niall — Sun, 05 Aug 2007 00:06:38 +0000

This is a tough one to clarify, but in relation to John’s wishes for our Food Industry, he has inadvertently hit on a good example of our indigenous industry … We have become a major player in the beef market, not because of our high quality, but because we have always sold high quality beef as a “commodity product” on the world market which, basically means we’re actually selling our beef at below its real value in order to compete in world markets. That’s what gives us our competitive advantage in beef. It is the same for our so-called knowledge economy, where in Germany a Masters degree will get you by, here in Ireland a PhD will be required.

By: okaycuckoo

okaycuckoo — Thu, 26 Jul 2007 22:55:39 +0000

All that planning is beside the point – the original Silicon Valley was just west of Boston, but events shifted it to Calif. There’s nuffink government policy can do about that.

Ireland’s economic future depends upon the Euro, and Ireland’s relation to the Euro. As the fella says, “It’s beyond my control.” You can whip your sword out and all that, but there are bigger forces at play.

The US is not fucked, because they chose this course for themselves and will adapt – but the American way is about to change, and freedom of speech will become a danger.

By: Ciarán Mc

Ciarán Mc — Tue, 24 Jul 2007 18:12:22 +0000

How much of Ireland’s IT industry could be called “indigenous, innovative, and global”? Ireland has indeed a substantial – nay huge – base of IT (comparatively speaking). But take away the Multinationals, localisation and service-based companies and what is left? I suspect not very much. But perhaps I’m too negative. The real answer is : I don’t know.

But what are the IT areas in which Ireland can build “indigenous, innovative, and global” companies?

How can we dig out a niche? Or are we even attempting to? Are we just going at it ad hoc? Each Irish company for itself but no ‘national’ strategy? Is that the right way?

How on earth can we compete with the vast heritage and culture of Silicon Valley where an enormous IT-Industrial-Research ecosystem has evolved?

On this side of the Atlantic, I know that the indigenous IT industries in places like France and the UK, though not on a par with SV, are vast nonetheless. And they can survive the shock provided by the rapid entry on the scene of lower cost locations like India and China. Let’s not forget, France and the UK have big R&D budgets in defence – and these always sustain a reasonable IT base. (aerospace, aerbus, etc). They also have automotive industries – though in Britain’s case that has shrunk to almost nothing.

So we don’t have
1) SV’s deep heritage and deep pockets (US)
2) Indigenous Feed-in industries to sustain IT(France/UK)
3) Low Cost (India / China)

So what is to be our comparative advantage?
What is the glue that will stick our Multinationals in place as the global scene changes?

To be frank, I’m not so sure. But I’d love to hear an upside that I haven’t seen.

By: Johnd

Johnd — Tue, 24 Jul 2007 15:55:37 +0000

I agree completely Steve,its just not in our culture to innovate ,create or invent,so the question is how to change our culture,have cultures ever changed?
We need to dig really deep on this and do what ever it takes, but I have a funny feeling that the coming recession could help create a serious about change of attitude.

By: Steve

Steve — Tue, 24 Jul 2007 11:07:22 +0000

I have serious doubts that Ireland can become some sort of Silicon Valley of Europe just because we think research
and development might be a good thing for us.

These things can take a very long time to develop. Silicon Valley in the U.S. got it’s start around 1909 when it started as
a site of U.S. Navy research. It also had 10 world class universites feeding it research and graduates.

It also takes a certain mindset, culture and leadership and that I don’t see much evidence of in the
“get rich quick by indebting others” financial buccaneering of new Ireland.

The bad news I think is that Ireland is heading for some very difficult times.
The silver lining (if there is one) is that we will likely have plenty of low-cost houses/apartments at some point in the near future.

By: Damien

Damien — Tue, 24 Jul 2007 02:33:46 +0000

Thanks for that David!!

Great to have you back after your break, how is the new book coming along?
I’ve just caught up on your articles and i’m delighted to report that i’m lookimng forward to returning to Ireland in 4 weeks time!! God you paint a great picture of it!!
When we get back would it make more sense to take out a long term lease on a property??

Keep up the good work,

Regards,

Damien

By: John

John — Tue, 24 Jul 2007 02:20:57 +0000

I thoroughly agree with Aidan’s comment. I think in alot of ways we may have to go back to basics. Ireland has the capacity to produce top quality food, not just beef but also vegetables. I believe we have to return to developing our agriculture and food industry. There is now an ideal opportunity for this as the era of food surpluses are over so producing quality food is going to be profitable again for the first time in 30 years. Also tourism now needs a kick up the behind to get some value back into it. The professional bodies have to be taken on and allow proper competition in their ranks. Of course all these are not easy measures and require alot more effort than simply lowering corporation taxes and the watching the flood of inward investment which in many ways was too large for ireland to deal with adequately, i have always thought 12.5% was too low, 18% would still have attracted investment and would have been more sustainable in the long run

By: okaycuckoo

okaycuckoo — Mon, 23 Jul 2007 16:33:03 +0000

Would Ireland outside the euro – with or without peg – be comparable to Iceland, Latvia, New Zealand?

This Economist article addresses all three:
http://tinyurl.com/yusym8

The world is about to pay the price of the credit orgy. But going forward, which is better: hang on to a stable currency, or float in the hurricane winds?

Is it europhobe or europhile to want something more like the German experience than the UK experience? Or does it just make sense?

By: blindjustice

blindjustice — Mon, 23 Jul 2007 15:23:32 +0000

Do we not need to first develope a strong export based economy before we move onto research?

By: Aidan

Aidan — Mon, 23 Jul 2007 11:53:48 +0000

I agree that investing in brainpower and trying to develop new export-based industries is the way for Ireland to go. However, there needs to be some kind of vision behind this. Political and industrial leaders need to work together to come up with a roadmap for the future. Unfortunately people in influential positions in Ireland are currently far too caught up in short-term measures designed to enrich themselves politically and economically.
From my current vantage point in The Netherlands I can see some major opportunities for Ireland. Despite the boom years Ireland has had most people on continental Europe still think of Ireland as a predominantly rural place. When I look in Dutch shops I rarely seen any Irish produce for sale even in places with food from all over the world. With a bit of marketing nouse, Irish produce could do very well on the continent. The Irish Independent is always so gushing about the success of Magners cider in the UK but why should that be so exceptional?
Education is another big opportunity. The University of Liverpool has positioned itself very strongly in the on-line distance education market. Where are the Irish universities? Any time I look for courses American, British and Australian universities seem to offer things I want. I have an MBA from an American university (Webster University) that has campuses all over the USA, Europe and Asia. I took modules in classrooms and on-line. Does any Irish university try to market itself to the world? If Trinity is such a brand university ho come it is not up there competing with the world top?
Ireland needs to do what it is good at better and learn some new tricks at the same time. The country may be the richest in Europe but it is very poor by other measures. I remember a letter from a German penpal in the 1980s where she asked “is it because your town is so isolated and far away that it does not have a post code?”. It is now 2007 and Ireland must be the only country in the developed or developing world without a national post code system.