Why Ireland ?

The short 60 Minutes clip we watched today gave the impression that US high-tech and pharmaceutical companies had located facilities in Ireland just because of US corporate taxes.  And, as you were leaving, I recall saying that there's more to it than that.  Well, there is more to it than just taxes.

I did a little investigation and found out that:

• Yes, there is a 10% corporate tax rate
• In the early 2000's, Ireland passed a number of "technology-friendly" laws (such as digital signatures).
• Ireland is the only English-speaking euro-zone country
• General government pro-business attitude
• High quality workforce

And, Ireland has become a major location for pharmaceutical companies, including firms from places other than the US, including Switzerland.  The Irish government has put a good deal of money into making Ireland attractive, including $80 million + into higher education and research in biotech. 

Pharmaceuticals in Ireland is a perfect example of Michael Porter's clusters (the evening class talked about this Monday night and the day class will get here in early October).  For even more details, refer to this report from Deutsche Bank.


Oh, and Cisco?  It really isn't just about the taxes.  A few recent examples:

Cisco announces 115 Galway jobs (April 2012)
Tech giant Cisco to expand Irish operation (January 2012)