1 The Celtic Tiger’s Tale: Ireland’s Information and Communication Technology Cluster

This paper charts the roots, rise, and symbiotic struggle of the Irish economy and its most prominent sector. The first part of the paper explores the causes and consequences of Ireland’s economic miracle. It looks at how the coordinated efforts of society and government, European economic integration, a young and well educated population, favorable tax structure and macroeconomic stability underpinned an uninterrupted boom for decades only to stall in recent years. The section then outlines our thesis that Ireland’s current challenges requires refocusing its competitiveness agenda in innovation, improving coordination between actors in charge of R&D and its commercialization and moving into new activities of the value chain according to a redefined value proposition. The second part of the paper focuses on the ICT cluster itself, outlining the global sector and players, tracing the roots of Ireland’s rise and looking at how the effects of the Celtic tech boom and current microeconomic challenges are undermining Ireland’s competitive position today. The section finishes with a series of recommendations on how the cluster itself can play a leading role in Ireland’s transition to an innovation-driven economy. B. Ireland – Country Analysis Ireland is the third largest island in Europe with a population of approximately 6 million people. I