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Different paths to success—the growth of the electronics sector in Ireland and Israel

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  • Stephen Roper
  • Amnon Frenkel

Abstract

Both Ireland and Israel have, over the last three decades, established internationally competitive electronics industries. Israeli electronics has its origins in locally initiated R&D, is dominated by indigenously owned firms, and has its main export-market strengths in the research-intensive leading-edge markets for telecommunications and medical diagnostic equipment. In contrast, large-scale, US-owned plants producing computer equipment and components dominate the Irish electronics sector. The authors explore the factors that have contributed to these very different development paths. Social and political factors are examined, along with differences in technology and industrial policy, and the availability and cost of suitably skilled labour. The suggestion is that Ireland retains some cost advantages for large-scale manufacturing operations whereas Israel provides a more attractive location for research-intensive activities or niche manufacturing. The experience of the two nations suggests important policy lessons for Israel if it is to capture more of the value added generated by the products it develops and for Ireland if it is to move towards more research-intensive electronics activities.

Suggested Citation

  • Stephen Roper & Amnon Frenkel, 2000. "Different paths to success—the growth of the electronics sector in Ireland and Israel," Environment and Planning C: Government and Policy, Pion Ltd, London, vol. 18(6), pages 651-665, December.
  • Handle: RePEc:pio:envirc:v:18:y:2000:i:6:p:651-665
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    References listed on IDEAS

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    1. McAleese, Dermot & McDonald, Donogh, 1978. "Employment Growth and the Development of Linkages in Foreign-Owned and Domestic Manufacturing Enterprises," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 40(4), pages 321-339, November.
    2. Holger Görg & Frances Ruane, 1998. "Linkages between Multinationals and Indigenous Firms: Evidence for the Electronics Sector in Ireland," Economics Technical Papers 9813, Trinity College Dublin, Department of Economics.
    3. Holger Görg & Frances Ruane, 1997. "Reflections on Irish Industrial Policy towards Foreign Direct Investment," Economics Policy Papers 973, Trinity College Dublin, Department of Economics.
    4. Frenkel, Amnon & Reiss, Thomas & Maital, Shlomo & Koschatzky, Knut & Grupp, Hariolf, 1994. "Technometric evaluation and technology policy: the case of biodiagnostic kits in Israel," Research Policy, Elsevier, vol. 23(3), pages 281-292, May.
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    Cited by:

    1. repec:spr:scient:v:58:y:2003:i:2:d:10.1023_a:1026280409195 is not listed on IDEAS
    2. Stephen Roper & Seamus Grimes, 2003. "Wireless Valley, Silicon Wadi and Digital Island - Helsinki, Tel Aviv and Dublin in the ICT Boom," ERSA conference papers ersa03p62, European Regional Science Association.
    3. Amnon Frenkel, 2001. "Barriers and Limitations in the Development of Industrial Innovation in the Region," ERSA conference papers ersa01p38, European Regional Science Association.
    4. Amnon Frenkel & Eran Leck, 2006. "Investments in Higher Education and the Economic Performance of OECD Member Countries," ERSA conference papers ersa06p153, European Regional Science Association.
    5. Stephen Roper & Nola Hewitt-Dundas & James H Love, 2003. "An Ex Ante Evaluation Framework for the Regional Impact of Publicly Supported R&D Projects," ERSA conference papers ersa03p100, European Regional Science Association.

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