Irish Innovation and Productivity Doing Well
Recent statistics from the Global Innovation Index of the World Intellectual Property Organization (WIPO) showed that Ireland’s economy is the 12th most innovative in the world. The Republic scored high in technical exports and foreign direct investment (FDI).
The Irish economy also ranked first in FDI outflows as an over-all percentage of the GDP. Ireland scored best in infrastructure knowledge and technology service outputs, and won first place in information and communications technology service exports.
In the area of productivity, the Central Statics Office (CSO) showed an Irish growth rate of 3.9%, compared to an EU rate of only 1.3%. Thanks to the increased efficiency of the Irish work force, Ireland’s labor productivity has grown to three times that of the EU.
The Organization for Economic Co-operation and Development (OECD) also released figures suggesting that Irish workers, adding value to the economy, are the most productive in the world. The report placed them ahead of workers in France, Germany and the UK.
In addition, Ireland’s growth rate is significantly higher than its largest trading partners: the UK and the U.S. and nearly twice that of the OECD. These positive statistics in innovation and productivity will be needed in an economy facing an unpredictable Brexit.
Another concern of economists is the extremely low rate of spending on education; Ireland ranks only 88th in global ratings. Other indicators display a poor ranking in “market sophistication” related to international credit, investments, competition and market scale.
Moreover, the CSO study cautioned that multinationals must be factored into any analysis of the domestic economy. In 2015, a massive influx of multinational assets caused an unprecedented 26% jump in the Irish GDP, which was later derided as “leprechaun economics.”
Nevertheless multinationals, while significant in the evolution of the Irish economy, can’t completely explain the amazing progress in innovation and productivity. The Irish work force has earned credit here and will likely retain its high world standing.
Accounting Pro is proud to be a contributing member of the growing Irish economy. Our experienced, innovative staff are constantly working to discover new methods to enable our customers to save, invest and increase their fiscal dividends. Give us a call; you won’t regret it.
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