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Information Technology and Economic Development: Ireland's Coming of Age with Lessons for Developing Countries

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  • Paul P. Tallon
  • Kenneth L. Kraemer

Abstract

The contribution of information technology (IT) to economic growth and development is seen as an important factor underlying the pace of development in many countries. While Asia's tiger economies are often portrayed as models for economic growth, Ireland's recent economic performance has attracted considerable attention, earning it the label, Europe's Celtic Tiger.We adopt a framework of IT-led development to show how, despite having a weak indigenous IT sector, Ireland succeeded in creating a world-class industry in computer hardware, software and services. Behind this success lies a policy of "industrialization by invitation" through which Ireland selectively targeted foreign investment in high-tech industries using a menu of financial and tax-based incentives. Despite Ireland's success, intense competition from regions such as Eastern Europe and Southeast Asia has forced Irish policy makers to question whether this policy can produce sustained economic benefits.Ireland's response to these challenges contributes to the literature on IT-led development, providing valuable lessons for developing countries as they strive for greater economic growth.

Suggested Citation

  • Paul P. Tallon & Kenneth L. Kraemer, 2000. "Information Technology and Economic Development: Ireland's Coming of Age with Lessons for Developing Countries," Journal of Global Information Technology Management, Taylor & Francis Journals, vol. 3(2), pages 4-23, April.
    • Handle: RePEc:taf:ugitxx:v:3:y:2000:i:2:p:4-23
    DOI: 10.1080/1097198X.2000.10856275
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    Cited by:

    1. Dedrick, Jason & Kraemer, Kenneth L. & Palacios, Juan J. & Tigre, Paulo Bastos & Botelho, Antonio Jose Junqueira, 2001. "Economic Liberalization and the Computer Industry: Comparing Outcomes in Brazil and Mexico," World Development, Elsevier, vol. 29(7), pages 1199-1214, July.
    2. Mounir Belloumi & Kamel Touati, 2022. "Do FDI Inflows and ICT Affect Economic Growth? An Evidence from Arab Countries," Sustainability, MDPI, vol. 14(10), pages 1-21, May.

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