Globalisation: Must the Globalisation: Must the Irish Government choose Irish Government choose between Irish firms and between Irish firms and

MNEs?MNEs?

Prof. David JacobsonProf. David Jacobson

DCU Business SchoolDCU Business School

Can we choose?

Irish Industrial PolicyIrish Industrial Policy 1932-1958 1932-1958 ISIISI 1958-1980/901958-1980/90 ELI through FDIELI through FDI, and EU , and EU

membershipmembership 1980/90-20071980/90-2007 ELI through FDIELI through FDI & &

indigenous firmsindigenous firms Linkage PolicyLinkage Policy (1985) (1985) Pilot Pilot Network ProgrammeNetwork Programme (1996) (1996) Enterprise Ireland (1998)Enterprise Ireland (1998) Ahead of the Curve (2005)Ahead of the Curve (2005)

Global TrendsGlobal Trends

FordismFordism

Post-FordismPost-Fordism

Global, local and glocalGlobal, local and glocal

Sub-Sector StoriesSub-Sector Stories

Furniture industry Furniture industry

Software manual printing industry Software manual printing industry

Fish processingFish processing

BakeriesBakeries

PrintingPrinting

FurnitureFurniture

Alternative modes of embedded Alternative modes of embedded networking: networking: Monaghan Industrial District – spatial Monaghan Industrial District – spatial

proximityproximity Torc – organisational proximityTorc – organisational proximity

““Stretched” embeddedness:Stretched” embeddedness: Recent developments: Monaghan firms’ Recent developments: Monaghan firms’

links abroad links abroad

James O’Reilly & Sons (4)

Coyles (147)

S F Quinn (29)

Sherry Bros. (93)

Neeson (27)

Glenwood (27)

McNally & Finlay (72)

Woodland (75)

K & T (4)

M Duffy (3)

S-Mac Kitchens

(3)

Cadden Carvers

(4)

Hallmark (32)

Scotstown (24)

Tydavnet (20)

Treanor (2)

Callery (2)

P McCabe (2)

McGuigans (18)

Leonard (3)

D Kerr (3)

Ferdale (6) Style Woods (2)

J Walsh (3)

KeyFirms that are directly

related to Coyles; their founders worked in Coyles

Firms that are indirectly related to Coyles; their founders worked in firms that were established by former employees of Coyles

Firms that are not related to Coyles; their founders never worked in Coyles.

Pre-1950s

1950s

1960s

1970s

1980s

1990s

The Genealogical Tree of Furniture in Monaghan

The Torc NetworkThe Torc Network

PNP network brokers (Danish model)PNP network brokers (Danish model) Three firms: Dublin, Wicklow, CorkThree firms: Dublin, Wicklow, Cork Joint marketing venture, hotel furniture Joint marketing venture, hotel furniture

UKUK Mutual learning, e.g. outsourcingMutual learning, e.g. outsourcing

Recent DevelopmentsRecent Developments

John E. Coyle - €3m Enterprise John E. Coyle - €3m Enterprise Ireland re-equipment grant; impact Ireland re-equipment grant; impact on local linkages?on local linkages?

Woodland Products – WCM, Woodland Products – WCM, Romanian partner, 90% exportsRomanian partner, 90% exports

Software Manual PrintersSoftware Manual Printers

Software MNEs in Ireland, 1985-1990Software MNEs in Ireland, 1985-1990 Microsoft, Apple/Claris, IBM/Lotus, Digital, Microsoft, Apple/Claris, IBM/Lotus, Digital,

Oracle, Symantec, BorlandOracle, Symantec, Borland Manual printersManual printers

Ormond, Cahills, Printech, Mt Salus, Smurfit, Ormond, Cahills, Printech, Mt Salus, Smurfit, Printcraft, Colorman, DonnellyPrintcraft, Colorman, Donnelly

Decline of SMPI, rise of CD-ROM, 1995-2003Decline of SMPI, rise of CD-ROM, 1995-2003 Decline of CD-ROM, 2003-Decline of CD-ROM, 2003- Rise of broadband…Rise of broadband…

SMPI and CD-ROMSMPI and CD-ROM

0102030405060708090

100

1985

1987

1990

1992

1994

1996

1998

1999

2007

SMPI (Rev. £mn)CDROM (Empl.x10)

Recent DevelopmentsRecent Developments

Sonopress (300); Sonopress (300);

Zomax bought Kao 2003, Zomax Zomax bought Kao 2003, Zomax

operations in Ireland merged in JV with operations in Ireland merged in JV with

MPO 2006;MPO 2006;

Maxell opened 1996, closed 2001 (70);Maxell opened 1996, closed 2001 (70);

Saturn opened 1996, closed 2003.Saturn opened 1996, closed 2003.

Other Sub-SectorsOther Sub-Sectors

Fish processing:Fish processing: Leader firm-supplier strategic Leader firm-supplier strategic

alliance (Superquinn-Oceanpathalliance (Superquinn-Oceanpath)) Printing:Printing:

Five Dublin firms in the Printing Five Dublin firms in the Printing Consortium of IrelandConsortium of Ireland

Bakeries:Bakeries: No horizontal cooperation. One No horizontal cooperation. One

major success, Cuisine de Francemajor success, Cuisine de France

Conclusions IConclusions I

Integration of high-tech and low-techIntegration of high-tech and low-tech Rapid introduction of new tech by Irish SMEs Rapid introduction of new tech by Irish SMEs

in printing industry: market-driven learning? in printing industry: market-driven learning? What about Oceanpath?What about Oceanpath?

For indigenous development: preferred For indigenous development: preferred suppliers (SMPI) and/or SME networks (PCI, suppliers (SMPI) and/or SME networks (PCI, TORC) and/or stretched embeddedness TORC) and/or stretched embeddedness (Coyle, Woodland) and/or autonomous growth (Coyle, Woodland) and/or autonomous growth (Cuisine de France)? Sub-sector specificity…(Cuisine de France)? Sub-sector specificity…

Conclusions IIConclusions II

The software MNEs formed alliances with The software MNEs formed alliances with CD-ROM pressing companies - displacing CD-ROM pressing companies - displacing indigenous SMEs; but in fish processing the indigenous SMEs; but in fish processing the Superquinn-Oceanpath alliance successfulSuperquinn-Oceanpath alliance successful

Institutions: Institutions: Informal - Cultural impediments to SME co-Informal - Cultural impediments to SME co-

operation in printing; but lessons learned, e.g. operation in printing; but lessons learned, e.g. PCIPCI

Formal - Inappropriate policies/regulation, so Formal - Inappropriate policies/regulation, so delays in broadband; but success elsewhere, delays in broadband; but success elsewhere, e.g. National and Regional Linkage e.g. National and Regional Linkage Programmes, and Pilot Network ProgrammeProgrammes, and Pilot Network Programme

Conclusions IIIConclusions III

Are indigenous firms and MNEs Are indigenous firms and MNEs alternatives?alternatives?

Are there alternative policies? Are there alternative policies?

Can Ireland be a ‘sticky place in Can Ireland be a ‘sticky place in slippery space’?slippery space’?