Both Ireland and Israel have, over the last three decades, established internationally competitive electronics industries. Israeli electronics has its origins in locally initiated R&D, is dominated by indigenously owned firms, and has its main export-market strengths in the research-intensive leading-edge markets for telecommunications and medical diagnostic equipment. In contrast, large-scale, US-owned plants producing computer equipment and components dominate the Irish electronics sector. The authors explore the factors that have contributed to these very different development paths. Social and political factors are examined, along with differences in technology and industrial policy, and the availability and cost of suitably skilled labour. The suggestion is that Ireland retains some cost advantages for large-scale manufacturing operations whereas Israel provides a more attractive location for research-intensive activities or niche manufacturing. The experience of the two nations suggests important policy lessons for Israel if it is to capture more of the value added generated by the products it develops and for Ireland if it is to move towards more research-intensive electronics activities.
Get full access to this article
View all access options for this article.
References
1.
Bank of Israel, 1996Annual Report Bank of Israel, PO Box 780, 97007, Jerusalem.
2.
CohenJ SMintzAStevensonRWardM D, 1996, “Defence expenditures and economic growth in Israel—the indirect link”Journal of Peace Research33341–352.
3.
De RouenK R, 1995, “Arab – Israeli defence spending and economic growth”Conflict Management and Peace Science14(1) 25–47.
4.
EU Commission, 1997Panorama of EU Industry.
5.
FelstensteinD, 1994, “University related science parks—seedbeds or enclaves of innovation?”Technovation14(2) 93–110.
6.
Financial Times1996, “Survey of Israel – Swords into plough shares”, 15 July.
7.
FrenkelAReissTMaitalSKoschatzkyKGruppH, 1994, “Technometric evaluation and technology policy: The case of bio-diagnostic kits in Israel”Research Policy23281–292.
8.
Frucht-ErenL, 1996, Israel: A Science ProfileDepartment of Trade and Industry, British Council, Tel Aviv.
9.
GorgHRuaneF, 1998, “Linkages between multinationals and indigenous firms: Evidence for the electronics sector in Ireland”, P98/13, Trinity Economic Papers Series, Trinity College Dublin.
10.
InbarE, 1998, “Israeli national security—1973 – 86”Annals of the American Academy of Political and Social Sciences555(January) 62–81.
11.
Israel Association of Electronics Industries, 1998, Israel's Electronics Industries Profile PO Box 5002b, Tel Aviv 65000, Israel.
12.
LavyV, 1994, “The effect of investment subsidies on the survival of firms in Israel”, P94.04, The Maurice Falk Institute for Economic Research in Israel, Jerusalem.
13.
MaitalSFrenkelAGruppHKoschatzkyK, 1994, “The relationship between scientific and technological excellence and export performance: A theoretical model and empirical test for EC countries”Science and Public Policy21(2) 138–146.
14.
MetcalfeS, 1997, “Technology systems and technology policy in an evolutionary framework”, in Technology, Globalisation and Economic Performance Eds ArchibugiDMichieJ, (Cambridge University Press, Cambridge) pp 268–290.
15.
Ministry of Industry and Trade, 1997Information for Entrepreneurs (in Hebrew), Ministry of Industry and Trade, Jerusalem.
16.
ModenaVSheferD, 1998, “Technological incubators as creators of new high technology firms in Israel”, presented at the 38th European Regional Science Association Congress, Vienna; copy available from D Shefer, Faculty of Architecture and Town Planning, Technion, Haifa 3200, Israel.
17.
NBST, 1983National Programme for Science and TechnologyNational Board for Science and Technology, Dublin.
18.
NelsonR RWinterS G, 1982An Evolutionary Theory of Economic Change (Harvard University Press, Cambridge, MA).
19.
OCS, 1997aGovernment Encouragement for Industrial Research and Development in IsraelOffice of the Chief Scientist, Ministry of Industry and Trade, Jerusalem.
20.
OCS, 1997bTechnological Incubators in IsraelOffice of Chief Scientist, Ministry of Industry and Trade, Tel Aviv.
21.
O'RiainS, 1997, “The birth of a Celtic tiger”Communications of the Association for Computing Machinery40(3) 11–16.
22.
PlessnerY, 1994The Political Economy of Israel—From Ideology to Stagnation (State University of New York Press, Albany, NY).
23.
RoperS, 1999, “Israel's technology incubators—repeatable success or costly failure?”Regional Studies33175–180.
24.
RoperS, 2000, “Innovation policy in Israel, Ireland and the UK—an evolutionary perspective”, WP 47, Northern Ireland Economic Research Centre, Belfast, BT7 1NJ.
25.
RoperSHewitt-DundasN, 1998Innovation in Ireland: Lessons for Irish Companies (Oaktree Press, Dublin).
26.
RuaneFGorgH, 1997, “Reflections on Irish industrial policy towards foreign direct investment”, Trinity Economic Papers Series 97/3, Trinity College, Dublin.
27.
SheferDBar-ElE, 1993, “High-technology industries as a vehicle for growth in Israel's peripheral regions”Environment and Planning C: Government and Policy11245–261.
28.
SheferDFrenkelA, 1998, “Local milieu and innovations: Some empirical results”Annals of Regional Science32185–200.
29.
SimmondsD K, 1993, “An evaluation of current efforts to promote entrepreneurship in Israel”, unpublished masters thesis, Faculty of Architecture and Town Planning, Technion, Haifa.
30.
Stationery Office, 1992A Time for Change—Industrial Policy for the 1990s The Culliton Report (The Stationery Office, Dublin).
31.
SteinbergG, 1985, “Technology, weapons and industrial development—the case of Israel”Technology in Society7387–398.
32.
TeubalM, 1993, “The innovation system of Israel: Description performance and outstanding issues” in National Innovation Systems: A Comparative Analysis Ed. NelsonR R, (Oxford University Press, Oxford) pp 476–502.
33.
UNESCO, 1995Statistics Yearbook (UNESCO, Paris).
34.
UNESCO, 1997Statistics Yearbook (UNESCO, Paris).
35.
WrynnI, 1997, “Foreign direct investment to a peripheral country—the case of Ireland” in Competing from the Periphery Eds FynesBEnnisS, (Oaktree Press, Dublin) pp 181–206.
36.
YearlyS, 1995, “From one dependency to another: The political economy of science policy in the Irish Republic in the second half of the twentieth century”Science, Technology and Human Values20(2) 171–196.
