The Irish economy (the "Celtic tiger") has become the envy of many others ever since it took off in the 1990s. Behind the miracle lies sensible fiscal policies, a wage accord with labor, and--surprise, surprise--a range of industrial policies. The New York Times explains how Enterprise Ireland, a government agency, works. The agency takes equity positions in startup firms, leases space in Midtown Manhattan to provide accommodation for young Irish firms looking to expand in the U.S., helps set up operations in China by hooking up Irish firms with Chinese government officials, and finances R&D.
Colm O’Gorman, who teaches entrepreneurship in master of business administration courses at Dublin City University, said the government agency is at the heart of several trends. Enterprise Ireland “supports research and development at Irish companies and universities,” Professor O’Gorman said, “and it is encouraging more women to become entrepreneurs, as the role of women has changed in Irish life.”
And oh, the corporate tax rate is only 12.5 percent, which must help too.