Summary

Intel and EMC Corporation are good examples of international companies that have made a great commitment to establish major operations in Ireland. The challenge facing Ireland with multinational companies such as Intel and EMC is that Ireland may have reached the limits of its physical infrastructure of housing and transportation to support more people, just as in Silicon Valley.

Another challenge is that growth may not be sustainable. The Irish dependency is on multinational companies. The downturn in the U.S. economy can be quite severe for Ireland. As local Irish companies have grown, they tend to become absorbed by larger multinationals. Ireland is not big enough to recreate Silicon Valley. The era of cheap labor and cheap land is now gone. The Irish labor market has tightened, wage costs are climbing, and the impact of a weak Euro currency is threatening economic growth.

A third concern is that, with consolidation in the European Union, new labor laws may inhibit the Irish. The Irish also worry that the tax advantages they now have will be eliminated with a uniform corporate tax in the EU.

The Irish have succeeded in technology, food production, and tourism. Whether these industries will be able to sustain the Irish miracle is yet to be determined. If the task can be done, the Irish government can do it. They have proven themselves to successfully recruit, retain, and cultivate foreign direct investment to provide high quality jobs for Ireland's people.