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The Irish Pharmaceutical Industry over the Boom Period and Beyond

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  • Chris van Egeraat and Frank Barry
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    Abstract

    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.

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    Bibliographic Info

    Paper provided by IIIS in its series The Institute for International Integration Studies Discussion Paper Series with number iiisdp271.

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    Date of creation: 02 Dec 2008
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    Handle: RePEc:iis:dispap:iiisdp271

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    1. Desai, Mihir A. & Foley, C. Fritz & Hines, James Jr., 2006. "The demand for tax haven operations," Journal of Public Economics, Elsevier, vol. 90(3), pages 513-531, February.
    2. Ray Hudson, 1997. "Regional Futures: Industrial Restructuring, New High Volume Production Concepts and Spatial Development Strategies in the New Europe," Regional Studies, Taylor & Francis Journals, vol. 31(5), pages 467-478.
    3. N A Phelps, 1993. "Contemporary industrial restructuring and linkage change in an older industrial region: examples from the northeast of England," Environment and Planning A, Pion Ltd, London, vol. 25(6), pages 863-882, June.
    4. Chiesa, Vittorio, 1996. "Separating research from development: Evidence from the pharmaceutical industry," European Management Journal, Elsevier, vol. 14(6), pages 638-647, December.
    5. S. Baranzoni & P. Bianchi & L. Lambertini, 2000. "Market Structure," Working Papers 368, Dipartimento Scienze Economiche, Universita' di Bologna.
    6. A Pike, 1998. "Making performance plants from branch plants? In situ restructuring in the automobile industry in the United Kingdom," Environment and Planning A, Pion Ltd, London, vol. 30(5), pages 881-900, May.
    7. Chris van Egeraat & David Jacobson, 2004. "The rise and demise of the Irish and Scottish computer hardware industry," European Planning Studies, Taylor & Francis Journals, vol. 12(6), pages 809-834, September.
    8. Barry, Frank & Van Egeraat, Chris, 2008. "The Decline of the Computer Hardware Sector: How Ireland Adjusted," Quarterly Economic Commentary: Special Articles, Economic and Social Research Institute (ESRI), vol. 2008(1-Spring), pages 38-57.
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