Factors Affecting the Sustainability of the Medical Technology FDI Company Base in Ireland

Abstract

This research study is a timely exploration into the factors affecting the sustainability of the Medical Technology FDI Company base in Ireland, delving into the reasons why FDI chooses to locate and remain in a location. The Medical Technology sector was specifically chosen as it is an important sector for Ireland both in terms of employment and exports and is of primary interest to the authors. Primary and secondary research has been undertaken in executing this investigation with the authors following a qualitative methodology. Following a review of the available literature examining the context of FDI and the issues surrounding sustainability, the authors undertook a series of semi-structured depth interviews with existing FDI Medical Technology based companies. These were further complemented by additional interviews with industry stakeholders and a focus group consisting of Medical Technology team members from the FDI investment promotion agency, IDA Ireland. The results of the research proved interesting in demonstrating that whilst Ireland remains a good place for Medical Technology investment, especially in the higher value areas of manufacturing and R&D for example, there are at least nine potential factors that could affect the sustainability of the FDI base in the country’s Medical Technology sector. Of these factors, cost competitiveness and corporate tax retention proved to be of prime importance. The research has also shown that the sector is looking to Government and the IDA to assist in retention strategies, primarily through broader incentive programmes and support.