However, the underlying base driving output and exports is quite narrow and the long-term performance of industry in Ireland continues to be hampered by a weak commitment to technological innovation. Government-supported Programmes in Advanced Technology in the areas of software, power electronics, optoelectronics and telecommunications, as well as the National Microelectronics Research Centre, carry out research and provide postgraduate opportunities in the ICT field.
Walsh, However, the level of existing funding for these organisations does not permit them to generate the scale and activity necessary to build up and maintain world-class centres of expertise.
Whether from public or private or both sources, support at a higher order of magnitude is needed. In addition, the Information and Communications Technologies have made a major contribution to recent economic growth in all developed countries.
Ireland has benefited very significantly from these technologies, in terms of employment and wealth generation. These technologies will continue to be at the core of economic and social progress in the years ahead. Ireland is justifiably proud of its performance in the ICT area. The national government has built a vibrant indigenous industry and a number of indigenous companies have achieved very significant success on world markets.
Nonetheless, these successes there are several weaknesses in the current industry structure that must be addressed if the industry is to prosper in the coming years and realize the potential benefits for Irish society.
In general, the ICT industry in Ireland is positioned at a relatively low point on the value chain: In the years ahead, there will be intense competition at this end of the value chain. The main competitive factor will be cost and particularly labour cost. Ireland is unlikely to be able to compete on this basis: In order to carry this out, the industry will need a cadre of world class professional researchers in the ICT disciplines — people who can contribute original marketable ideas, who can form the nucleus of new, world class companies, and who can attract a new kind of multinational investment.
Walsh, The current output of postgraduates approximately 60 per annum with pertinent skills is quite inadequate for this kind of development. Likewise, state investment in research is significantly lower than in most developed economies. As we move from an economy based on relatively low skill levels to one based on knowledge and expertise, our continued prosperity depends on substantially increasing this investment.
They are therefore unable to conduct the type of research that will attract international attention, bring in significant industrial investment, or routinely spin off high technology, market-leading enterprises. The development impact of ICT has two distinctive aspects.
The first is the benefits of enhancement of the infrastructure and applications to users of information and communication services, who can be distinguished according to whether they use these services for production, distribution or consumption activities. The second is the benefits derived by the economy from changes in the supply of communications network infrastructure and applications. Furthermore, improvements in ICT lower the cost of information, the cost of dealing with others in the market such as suppliers and customers and the cost of business start-ups.
Through both of these processes, transaction costs in society drop, which improves overall efficiency and growth. Complementing this, the ability to transmit data on communications networks contribute to increases in the quantity and quality of information available to service and productive enterprises, which opens up new opportunities and enables more thorough evaluation of the risks and returns associated with these opportunities.
In many instances, the additional information that becomes accessible will contribute to the spatial expansion of markets, assisting producers to move from local into regional or national markets, and from domestic into international markets.
Evidence suggests that countries that have invested in communications network infrastructure have attracted high levels of foreign direct investment as well as domestic investors into other sectors. The value of the infrastructure is in the linkage effects to other sectors, more than in the infrastructure per se. For you to write that unmatched research paper or term paper that gets you the best grades, you need a hand from an expert.
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