The contribution of the overseas ICT sector to expanding R&D investment in Ireland

Abstract

Abstract This paper traces the evolution of R&D investment by overseas companies in the Information and Communication Technology (ICT) sector in Ireland in recent years. This investment is seen as a further stage in the evolution of ICT subsidiaries from an earlier focus on manufacturing to an increasing involvement in higher value-added activities such as internationally traded services. The recent targeting of R&D foreign direct investment coincides with a major increase of investment by the state in research and innovation, primarily through Science Foundation Ireland and the creation of research links between third level institutes. In addition to tracing Ireland's aggregate R&D trends, the paper examines some case studies of R&D investments by foreign-owned ICT companies, and suggests some policy implications.