The flexible developmental state: globalization, information technology and the "Celtic Tiger"

POLITICS & SOCIETYSEÁN Ó RIAIN The Flexible De elopmen al S a e: Globaliza ion, In o ma ion Technology, and he “Cel ic Tige ” SEÁN Ó RIAIN REMAKING THE DEVELOPMENTAL STATE Fo a numbe o yea s, commen a o s ha e looked o he “de elopmen al s a es” o Eas Asia as a coun e weigh agains he o ces o economic globaliza- ion. These s a es ha e been seen as cause o hope ha na ions could p omo e economic de elopmen , e en om a subo dina e posi ion in he in e na ional di ision o labo . Un il he 1990s, his de elopmen al s a e p esided o e one o he mos spec acula economic success s o ies o his cen u y, while o he econo- mies(e.g.,inLa inAme icaand heEu opeanpe iphe y)languished,o enasli - le mo e han expo pla o ms.1 In he 1990s, howe e , he de elopmen al s a e seemed o ha e had i s day in hesun. The Japanese andKo ean s a es appea ed oo in lexible ocope wi h ap- idly changing in o ma ional indus ies and decen alized “pos -Fo dis ” indus- ials uc u es.Ko eanandJapanese i ms anin oinc easingdi icul ies h ough he 1990s in apidly changing high- echnology ma ke s. The de elopmen al s a esalsoappea ed ooweak omanage heinc easinglyin e na ionalizedecono- mies o e which hey p esided, as e idenced in he inancial c isis o 1997 and 1998.2Theeme genceo lexible egionaleconomiesanddispe sed ansna ional ne wo kso echnologyand inanceappea ed oha esimul aneouslyunde mined he de elopmen al s a e om below and om abo e. Many hanks o Ge ald Au le , Ted Egan, Michael Bu awoy, Pe e E ans, Séamus G imes, Becky King, Seán Ó Foghlú, Denis O’Hea n, Balaji Pa hasa a hy, Bill Roche, Anno Saxenian, And ew Sch ank,Ka hleenSchwa zman,JohnS e ne,Ma Zook,and hePoli ics&Socie yedi o ialboa d. POLITICS & SOCIETY, Vol. 28 No. 2, June 2000 157-193 © 2000 Sage Publica ions, Inc. 157 Howe e , a di e en se o coun ies has eme ged in he 1990s ha appea likely candida es o mobili y in he hie a chy o he in e na ional economy. The Republic o I eland is among hose economies ha ha e begun o change hei ela ion o he global economy based on g owing s eng hs in in o ma ion ech- nology(IT)indus ies.Economicg ow h a esinI eland3ha eimp o edd ama i- cally since he economically and socially disas ous 1980s and ha e been among he mos apid in he wo ld in he mid-1990s. The e has been a signi ican imp o emen in expo pe o mance, and domes ic demand has inc eased since 1994a e hemassunemploymen andemig a iono he1980sand hecau iono he ea ly 1990s. Consume p ices, despi e some in la iona y p essu es in ecen yea s, ha e isen slowly. All o he abo e indica o s compa e a o ably wi h he pe o manceo o he leadingeconomiesin heO ganiza ion o EconomicCoop- e a ion and De elopmen (OECD), including e en compa a i ely “success ul” economies such as he Uni ed S a es, he Ne he lands, and e en he Asian Tige s in he 1990s.4Fu he mo e, he “jobless g ow h” o ea lie decades has been eplaced by he highes a e o employmen g ow h and he highes p opo ion o he popula ion employed in he his o y o he s a e. The mass emig a ion o he 1980s has gi en way o a subs an ial ne in low o mig an s, la gely consis ing o emig an s e u ning o I eland bu also including non-I ish-bo n immig an s. Unemploymen has allenmo eslowlybu has ecen ly eached i slowes le elin se en een yea s. G ow h in I eland is d i en no jus by o eign in es men bu by wo ela- i ely dis inc modes o in eg a ion in o he global economy— he pa ial local embedding o global co po a e ne wo ks and he inc easingly success ul in e- g a ion o local ne wo ks o indigenous i ms in o global business and echnol- ogy ne wo ks. These wo globaliza ions a e u he embedded wi hin a se o na ional neoco po a is ins i u ions ha ha e managed he ela ion o he global economy o bo h he mac o economy and o unionized wo ke s. Since 1987, a se ies o na ional “social pa ne ship” ag eemen s ha e nego ia ed wage es ain , public spending limi s, and some e o s o b idge social exclusion a he local le el. The mos e ec i e de elopmen al s a es o he 1990s ha e been ans o med om he bu eauc a ic models ha cha ac e ized he Eas Asian economies o he lexible e sions we ind in economies such as I eland and Is ael. The lexible de elopmen al s a e (FDS) is de ined by i s abili y o nu u e pos -Fo dis ne - wo ks o p oduc ion and inno a ion, o a ac in e na ional in es men , and o link hese local and global echnology and business ne wo ks oge he in ways ha p omo e de elopmen . This abili y is sus ained by he mul iple embedded- ness o he s a e in p o essional-led ne wo ks o inno a ion and in in e na ional capi al, and by he s a e’s lexible o ganiza ional s uc u e ha enables he e ec- i emanagemen o hismul iplici y.Thisuneasys uc u eo mul iplealliancesis h ea ened,howe e ,by hedi icul ieso a agmen eds a es uc u einhandling 158 POLITICS & SOCIETY he ensions a ising om une en in e na ionaliza ion o socie y and g owing inequali y. The I ish so wa e indus y is an in o ma i e case s udy h ough which o ana- lyze he key cha ac e is ics o his eme ging de elopmen s a egy.5The indus y has g own apidly, is one o he mos dynamic so wa e indus ies ou side he Uni edS a es,andisdi ided ela i elyequallyinemploymen e msbe ween o - eignandI ish-owned i ms.I occupiesaninc easinglysigni ican olein heI ish economy. So wa e is a signi ican employe in i s own igh , behind only elec- onic equipmen , ood, and chemicals as indus ial employe s in 1997. I is also g owing mo e quickly in e ms o employmen han any manu ac u ing sec o .6 The indus y accoun ed o 12 pe cen o I ish expo s in 1998 and, pe haps mo e impo an , was apidly becoming a model o indus ial policy in o he sec o s o he economy. The a icle begins by c i iquing accoun s ha o e emphasize ei he local o globalp ocesses h oughananalysiso hedynamicso ecen indus ialandeco- nomic de elopmen in I eland. I hen de elop he concep o he FDS in some de ail as an al e na i e heo e ical app oach o unde s anding he cen al ea u es o I ish economic de elopmen . The emainde o he a icle desc ibes he s uc- u eo heso wa eindus yinI elandandapplies he h eedimensionso he he- o y oexplain hede elopmen anddilemmaso heI ishso wa eindus y—how he s a e in e ened in he p ocess o globaliza ion i sel , he social and ins i u- ional condi ions o his s a e ole, and he h ea posed o de elopmen by social inequali y.Finally,someissuesconce ning hesus ainabili yandgene alizabili y o he model a e conside ed. NATIONAL DEVELOPMENT AND THE GLOBALIZATIONS OF IRELAND Fo some au ho s, he success o he I ish economy since he ea ly 1990s is based on i s mas e y o localized lexible p oduc ion and inno a ion. Cha les Sabela gues ha I ishsuccessisbasedon heabili yo I ish i ms olea n heles- sons o decen alized pos -Fo dis p oduc ion and c ea e local alliances ha sup- po lea ning, e iciency, and inno a ion.7Local s eng h becomes he basis o global compe i i eness. Howe e , a a ie y o commen a o s om di e en endso hepoli icalspec umemphasizeI eland’sloca ionwi hin hep ocesso globaliza ion as he c i ical ea u e o his u na ound. A pe sis ence wi h expo o ien a ion, ee ade,and o eignin es men appea s obe hekey oI ishde el- opmen in he 1990s, o be e o wo se. Denis O’Hea n explains he eme gence o he Cel ic Tige in he ollowing e ms: Ame icanco po a ions mademajo mo es oinc ease hei p esencein he Eu opeanma - ke ; hey ended o agglome a e hei new p ojec s o ake ad an age o he lexibili y his allowed; and I eland was o una e enough o ecei e a majo sha e o Ame ican-owned elec onicsp ojec sinEu opebecause heyagglome a eda oundo he majo i mssuchas In el.8 SEÁN Ó RIAIN 159 The simila i ies in he causal explana ions p o ided by a mo e conse a i e ana- lys , Paul K ugman, a e s iking (al hough hei e alua ions o he p ocess di e ma kedly): Thanks in pa o luck, in pa o policies . . ., I eland go a head s a o e o he Eu opean loca ions in a ac ing wha became a su ge o inwa d o eign di ec in es men ; he ea ly in es men s bo h gene a ed a cascade h ough in o ma ional e ec s and, e en ually, c e- a ed ex e nal economies ha u he ein o ced I eland’s ad an ages.9 In ac , i will p o e necessa y o combine hese “local” and “global” heo ies op o idea ull accoun o hemul iplewaysin which localandglobal p ocesses shape di e en modes o in eg a ion in o he global economy and how hey a e sus ained by pa icula ins i u ions. I ish indus y is cha ac e ized by wo such b oad modes o in eg a ion in o he global economy, combining local and global ne wo ksindi e en ways.The i s isbasedona ac ing o eignin es men and a emp ing o embed i in he local economy, and he second and mo e ecen modelisbased on he g ow ho indigenousI ish-owned i ms ha compe ein e - na ionally and a e inc easingly closely in eg a ed in o in e na ional echnology and business ne wo ks.10 Employmen in o eign-owned indus y g ew 24.8 pe cen in manu ac u ing and 384.5 pe cen in inancial and in e nally aded se ices (including so wa e) be ween 1989 and 1998.11 Denis O’Hea n p o ides a cogen c i ique o eliance on such ansna ional co po a ion (TNC) in es men as a model o economic de elopmen .12 He a gues ha I ish economic g ow h is la gely an illusion as i is domina edbyin es men byTNCs,andeconomics a is icsa eg osslyin la edby he expo s o a e y na ow band o economic sec o s and e en key i ms wi hin hose sec o s—such as In el in compu e s and Mic oso in so wa e. Indeed, o - eign p o i s domina e he I ish economy o such an ex en ha he g oss domes ic p oduc (GDP) o e s a es he size o he I ish economy by some 13 pe cen , as i does no accoun o he epa ia ion o ansna ionals’ p o i s. This is u he agg a a edby hep esenceo ce ainsec o s(includingso wa eduplica ion) ha a e essen ially “en epô ” sec o s, sec o s ha accoun o app oxima ely 10 pe - cen o manu ac u ing employmen bu a ound 30 pe cen o ou pu .13 While o eign in es men is ce ainly open o a wide ange o c i icisms, he e a e some indica ions ha a leas pocke s o mo e sophis ica ed wo k ha e eme ged among TNCs in I eland. In amu al spending on esea ch and de elop- men (R&D) among o eign-owned companies inc eased om £180m in 1993 o £256min1995and om2.1pe cen o salesin1993 o2.5pe cen in1995.14 TNC salesa ece ainlyin la edby ans e p icing15 and a iouso he o mso c ea i e accoun ing, bu his, in u n, may obscu e some o he esou ces hey gene a e wi hin heeconomy.Inpa icula ,s a is icsbasedonpe cen ageso TNCsalesa e likely o unde s a e he sophis ica ion o hei ope a ions, gi en he in la ion o hese sales igu es. The I ish economy expendi u es o TNCs declined as a pe - cen age o (a i icially in la ed) sales be ween 1990 and 1996 ( om 37.9 pe cen 160 POLITICS & SOCIETY o35.2pe cen ),bu heabsolu espendingo TNCsin heI isheconomy ose55.3 pe cen du ing ha pe iod.16 The e is some e idence he e o e o a local upg ad- ingand embedding o some TNC ope a ions, al hough his is limi ed, as O’Hea n igh ly poin s ou . None heless, O’Hea n is oo quick o educe he dynamics o I ish de elop- men oaTNC-led“en epô ”model,domina edbycompaniessuchasMic oso , In el,and Dell. This canno explain he exis enceo some ela i elysophis ica ed TNC ope a ions. No is he g ow h o indigenous indus y simply de i a i e o TNC in es men , as e idenced by he da a on he ela i ely limi ed local linkages o TNCs. C i ics o I eland’s eliance on o eign in es men canno ha e i bo h ways. Gi en he legi ima e aspec s o he c i ique o he de elopmen al impac o o eign in es men , i hen canno be a gued ha I ish de elopmen has de i ed almos comple ely omkeyin es men ssuchasIn elandMic oso .E enwi hin heTNCsec o , hese i ms emain ela i elyisola edandha eli le odowi h he mo e in e es ing TNCs such as E icsson, Digi al, and so on. Thei disp opo - iona eimpac onI ishexpo andg ow h igu esshouldno blindus o hei el- a i elacko con ibu ion o he e y eal ans o ma iono p oduc ionandinno- a ioncapabili ies wi hin pa s o heI isheconomy.Finally, he neoco po a is “social pa ne ship” a angemen s in place since 1987 canno be explained by O’Hea n’s model as hey a e only o angen ial ele ance o mos o he TNCs. Mos TNCs a e nonunion employe s o whom wage cos s a e a ela i ely low p io i y, and hey ha e gene ally paid well abo e he e ms o he na ional wage ag eemen s. The spec acula g ow h in he ou pu o TNCs can obscu e he imp essi e pe - o manceo I ish indigenous indus yinwhichemploymen g ew10.4 pe cen in manu ac u ing and 197.7 pe cen in in e na ionally aded se ices. This indige- nous indus y pe o mance is e y imp essi e in compa a i e e ms, all he mo e sosincei iscu en lyona e y apidg ow h ajec o yasmos o heemploymen g ow hhasoccu edsince1994.Fu he mo e, hisisno g ow h ha isdependen on links o TNCs in I eland (which a e gene ally weak)—expo s o I ish-owned manu ac u ing i msg ew as e han bo h ou pu and employmen be ween1990 and 1996.17 Indus ial R&D in he whole economy inc eased o 1.02 pe cen o GDP om 0.48 pe cen in 1986 and 0.53 pe cen in 1990. This was achie ed h ough a pe annum eal a e o g ow h o R&D spending o 15 pe cen among o eign i ms and 16 pe cen among I ish-owned i ms.18 The claims o au ho s such as Cha les Sabel ha he unexpec ed success o indus y in I eland is due o an abili y o mas e lexible p oduc ion con ains an elemen o u h.Indigenous i ms end obesmallandmediumsizedwi ha leas some e idence o ne wo king among i ms.19 The e is a leas some e idence o signi ican di usion o eamwo k a he le el o he o ganiza ion o p oduc ion, al hough no su icien o wa an he mo e en husias ic claims made on I ish indus y’s behal .20 The pic u e ha eme ges o indigenous indus y is o an o e - SEÁN Ó RIAIN 161 allupg adingin heo ganiza iono p oduc ionando managemen andma ke ing capabili ies, esul ing in g ow h sp ead ac oss a ange o sec o s. In es men , al hough clea ly no he d i e o de elopmen , has picked up signi ican ly, pa - icula ly in he mos dynamic sec o s.21 The e a e a numbe o sec o s, in pa icula inancial se ices and IT, ha exhibi acombina iono buoyan in es men ,highle els o R&D,signi ican le - els o “collabo a i e p oduc ion,” and “clus e ing” o dense ne wo king and ha a e he mos dynamic in he I ish economy.22 The so wa e indus y is clea ly loca ed a his “pos -Fo dis leading edge” o he indigenous sec o , wi hin a con- ex o o e all upg ading o capabili ies ac oss a b oad ange o indus ies. Indus ial g ow h has ansla ed in o a much imp o ed employmen pe o - mance. Be ween 1986 and 1995, ull- ime employmen inc eased by 2.5 pe cen among men and 21.2 pe cen among women, while pa - ime employmen inc eased by 24.4 pe cen among men and 36.6 pe cen among women. The I ish economy has indeed been c ea ing pa - ime jobs apidly, bu i has also c ea ed signi ican numbe s o ull- ime jobs, e en mo e so in ecen yea s. Fu he mo e, hejobsc ea edha e no simply been“bad”jobs.In ac ,employmen g ow hhas been cha ac e ized by an o e all upg ading o he occupa ional s uc u e com- bined wi h a signi ican pola iza ion o occupa ions and wages. The mos apidly expanding occupa ional ca ego ies be ween 1981 and 1995 include ca e ing, pe sonal se ices, sales wo ke s, and secu i y wo ke s—which added 59,000 employees o hei numbe s du ing hese yea s (an inc ease o 35.5 pe cen ). Howe e , by 1995, he e we e also 94,000 mo e manage s, p o essionals, and associa ep o essionals—ane enbigge inc easeo 44pe cen .Meanwhile,mo e classically “Fo dis ” occupa ions such as cle ks, ypis s, ope a i es, anspo wo ke s, and skilled and c a wo ke s added only 7,000 ex a jobs, and a me s and labo e s dec eased in numbe by 68,000 o 27.3 pe cen .23 Inequali y has been ising apidly wi hin he I ish economy, in e ms bo h o he sha e o na ional income going o capi al a he han labo 24 and o wage inequali y.I elandhasseenwha isp obably hemos apid iseinwageinequali y wi hin he OECD, despi e being second only o he Uni ed S a es in inequali y in he 1980s.25 P i a e consump ion’s sha e o GDP has dec eased om a ela i ely s able igu e o a ound 59 pe cen om 1985 o 1992 o 55.4 pe cen in 1996.26 Fu he mo e, he bo om hal o he income dis ibu ion has seen i s sha e o na ional household consump ion educed om 28.7 pe cen o 27.2 pe cen . Al hough GDP has g own apidly du ing ha pe iod and absolu e consump ion has inc eased in eal e ms o all deciles o he income dis ibu ion, he inc eases ha e been meage indeed o he poo es 40 pe cen , a end e lec ed in he con- inuing po e y (e en by ela i ely es ic i e de ini ions) o 15 pe cen o 16 pe - cen o heI ishpopula ionbe ween1987and1994.27 None heless,while heI ish economy has undoub edly c ea ed many “bad” jobs, i is also c ea ing a signi i- can numbe o “good” jobs. 162 POLITICS & SOCIETY The so wa e indus y has gene a ed a disp opo iona e numbe o hese “good” jobs and is one o he leading sec o s wi hin bo h o eign and indigenous indus y. Be o e u ning o a de ailed in es iga ion o he de elopmen o he indus y, I will de elop he cen al concep applied in ha analysis— he lexible de elopmen al s a e. BUREAUCRATIC AND FLEXIBLE DEVELOPMENTAL STATES “Local” and “global” pe spec i es on indus ial de elopmen a e one- dimensional and insu icien ly dynamic in hei analyses. Combining hese pe - spec i es o in es iga e he mul iple ways in which local and global p ocesses shape one ano he o e ime allows us o iden i y spaces and oppo uni ies o de elopmen s a egies, e en wi hin an inc easingly in eg a ed global economy. Choices emain as o how bes o in eg a e in o global lows and ne wo ks. The s a e emains a cen al ac o in he p ocess o shaping hese choices, building be e o wo se de elopmen pa hs ou o hese agmen s o local and global ne - wo ks. Howe e , he ways in which he s a e media es be ween local and global ne wo ks and he ins i u ional ounda ions o his ole in I eland a e di e en in a numbe o signi ican espec s om he Eas Asian bu eauc a ic de elopmen al s a es. I is necessa y hen o explain he eme gence o each se o global connec ions ha cha ac e ize he I ish economy and i s so wa e indus y, and hei su p ising abili y o coexis . Fu he mo e, we need o p o ide a comp ehensi e heo e ical amewo k ha canexplainbo h heposi i eexpe ienceso economicg ow hand occupa ionalandindus ialupg ading and he dis u bingmassi esocialpola iza- ion ha accompanies hem. I is oadd ess hese heo e icalweaknessesand oaccomplish heseanaly ical goals ha I de elop he concep o he lexible de elopmen al s a e ha is applied o he so wa e indus y case h ough he es o his a icle. The mos in luen ial analyses o he ole o he s a e in de elopmen ha e analyzed he success o he Asian Tige economies such as Japan and Ko ea. De elopmen al s a es a e he mos likely candida es o boos ing an economy beyond he na ow logic o p i- a ein es men and he ebyimp o ingi sposi ionin hein e na ional di isiono labo . They achie e hei goals in he con empo a y e a no by aking on he asks o de elopmen hemsel esbu byshaping hecapabili ieso socie yand hema - ke odoso.Resea che s ha emo ed omanemphasisonanau ho i a iandi ec- i e s yle o s a e in e en ion o an unde s anding o how he s a e pokes and p odsdomes ic i ms ocompe ein heglobaleconomyand ocons an lyupg ade hei o ganiza ional and echnical capabili ies o ha end. The s a e assis s in he bi h and g ow h o domes ic, na ional i ms h ough i s ole as “midwi e” o new i msandsec o sandby ending o he“husband y”o heseg owingindus ies.28 Th ough policies such as selec i e and s a egic use o p o ec ionism, he p o i- sion o indus ial subsidies, and p og ams ied o pe o mance, as well as he c e- SEÁN Ó RIAIN 163 a iono close iesbe ween inancialcapi al,indus ialcapi al,and hes a e,econ- omies such as Japan, Ko ea, and Taiwan we e able o indus ialize apidly based onimp o edp oduc i i yinmanu ac u ingand“indus ializa ionbylea ning.”29 Howe e , he s a ecanno achie e heseendsinisola ion;in ac ,i dependson i s ela ion o socie y o i s success. In pa icula , de elopmen al s a es a e cha - ac e ized by wha Pe e E ans calls “embedded au onomy.” Such s a es a e embedded in local capi al h ough he close social ies be ween s a e bu eauc a s anddomes icbusinessowne sandmanage s.Whileaneduca edlabo o ceo ga- nized o lea ning is c i ical, labo is excluded om he key ins i u ions o he bu eauc a ic de elopmen al s a e.30 These s a es e ain hei au onomy due o he p esence o a classic Webe ian bu eauc acy—based on me i oc a ic ec ui - men and p omo ion and no ms o objec i e, p ocedu al a ionali y.31 While embeddedness allows he s a e o ga he in o ma ion and mobilize esou ces, au onomy sa egua ded by bu eauc acy gua an ees ha na ional de elopmen goals emain cen al o s a e ac ion.32 Fo his eason, I label he de elopmen al s a es o Eas Asia bu eauc a ic de elopmen al s a es (BDSs).33 Bu success can b ing i s own dilemmas. The de elopmen al s a e p omo es local i ms and encou ages hem o compe e globally. In becoming global i ms, howe e , hei alliances wi h he s a e a e unde mined as hey become mo e and mo e closely aligned wi h he in e es s o hei in e na ional pa ne s. In he la e 1990s, he Asian de elopmen p ojec ’s basis in he domes ic alliance be ween s a e and capi al was unde mined as Asian i ms in e na ionalized, became mo e in eg a ed in o in e na ional inancial ma ke s, and an in o a massi e deb c isis as Asian and U.S. capi alis ins i u ions clashed, unde mining he high deb inancing o he Asianco po a ions.Themuch-admi edcohe enceo hebu eau- c acy now became a liabili y as i s esponsi eness o changing local and global condi ions p o ed o be poo . The heo y o he de elopmen al s a e has been a aluable one ha has shed a g ea deal o ligh on he condi ions o e ec i e na ional de elopmen s a egies. Ne e heless, he heo y is ela i ely weak in explaining he ole o he s a e in newly eme ging economies such as I eland and Is ael, as well as in wha E ans desc ibesas“in e media ecases”suchasIndiaandB azil.34 The e o e,i mus be ex endedalongi s h eeunde lying dimensions—s a e in e en ionin he global- iza ion p ocess, condi ions o embedded au onomy, and h ea s o s a e in e en- ion ha eme gedynamically du ing hede elopmen p ocess— ode elopacon- cep ion o a “ emade” FDS. Table 1 ou lines he di e ences be ween BDSs and FDSs along each o hese h ee dimensions. Fi s , BDS heo is s analyze s a e in e en ion in he economy la gely as a p ocess o he c ea ion o new domes ic capabili ies ha can hen be b ough o bea in global ma ke s. The global economy is heo ized la gely as a con ex in which s a es and na ional capi als can compe e. Howe e , unde he globaliza ionp ojec , ansna ional i ms,ne wo ksand lowso money,in o ma- 164 POLITICS & SOCIETY ion, and esou ces ha e deeply pene a ed he mos success ul locali ies and na ions. The e o e, he ole o he s a e is inc easingly o media e be ween he global and he local, o connec hem, and o shape he na u e o he ela ionship be ween hem. The s a e may also be in ol ed in c ea ing he e y ac o s ha i hopeswillpa icipa ein heseglobal-localconnec ionsand hede elopmen p oj- ec mo e gene ally. While he BDS also p omo ed he c ea ion o economic ac o s,i ocusedonhie a chicalbusinessg oupsas“na ionalchampions”ins ead o ansna ionally in eg a ed local ne wo ks.35 This is he i s ex ension o BDS heo y— he unde s anding o he ole o he de elopmen al s a e as media ing local and global connec ions. The FDS is de ined p ecisely by i s abili y o c ea e and anima e pos -Fo dis ne wo ks o p oduc ion and inno a ion and in e na ional ne wo ks o capi al, and o link hem oge he in ways ha p omo e local and na ional de elopmen . The FDScana emp odo hisin wop ima yways.I canconnec oexis ing lowso capi al by a ac ing o eign di ec in es men (FDI) and hen building local ne - wo ks o p oduc ion ( ypically subsupply) and inno a ion (much mo e a ely) a ound his “impo ed” indus ialo ganiza ion.I can alsoa emp o os e indig- enous ne wo ks o inno a ion and hen encou age hem o in e na ionalize, bu om a posi ion o ela i e s eng h. In ei he case, he s a e de elopmen s a egy is o connec he local o he global economy in such a way ha local indus ial ans o ma ion, accumula ion, and de elopmen can ake place. The FDS plays a key ole in os e ing “be e ” connec ions o he global. The I ish s a e, in ac , played a c i ical ole in “scaling up” social ne wo ks wi hin local echnical communi ies in o an inno a i e and g owing indus y. These e o s we e o ganized la gely h ough a a ie y o indus ial de elopmen agencies ha p omo ed an indigenous de elopmen al e na i e o eliance on o - SEÁN Ó RIAIN 165 Table 1 Bu eauc a ic and Flexible De elopmen al S a es Bu eauc a ic De elopmen al S a e Flexible De elopmen al S a e Shaping globaliza ion Managing dependency Media ing global connec ions – S a egic use o p o ec ionism – Building local ne wo ks a ound global capi al – Indus ial subsidies – Taking local inno a ion ne wo ks global – Domes ic banking sys em Sou ces o embedded Cohe ence o s a e bu eauc acy Flexibili y o s a e s uc u e au onomy Embedded in Embedded in – Domes ic capi al – P o essional labo – Fo eign capi al Th ea o sus ainabili y In e na ionaliza ion o capi al In e na ionaliza ion o socie y Rigidi y o s a e bu eauc acy F agmen a ion o s a e S a es and Globaliza ions P o ec ionis measu es we e eased a e he 1950s o o eign in es o s in he Republic o I eland and we e emo ed en i ely in 1964. The s a e became he key ac o in a ac ing o eign in es men , and a ac ing mobile in es men became a dominan policygoal o he ollowing o yyea s.Among hec i icalelemen so I eland’s loca ional ad an age we e e y gene ous ax incen i es and g an s, as wellasa ansna ional- iendlyen i onmen includingno es ic ionson he epa- ia iono p o i s.A e p o idingalow-o no- axen i onmen since he1950s,a new policy in 1978 p o ided 10 pe cen co po a ion ax o all manu ac u ing om 1981 o 2000 inclusi e. This was ex ended o i ms in he in e na ionally adedse ices sec o (including so wa eand da a p ocessing) in 1981andgua - an eed un il 2010 he same yea . Recen ly a 12.5 pe cen co po a e ax a e has been gua an eed un il 2025. In la e yea s, a wo ld-class elecommunica ions sys em and, in pa icula , a young and coope a i e labo o ce ha e a guably been as o mo e impo an . Howe e , he s a e’s g ea es e o s we e dedica ed o he mobiliza ion and es uc u ing o local socie y h ough he c ea ion and shaping o a “sui able” labo o ce. A s a e-led eo ien a ion o he educa ion sys em owa d echnical educa ion was ein o ced o e ime by he inc easing in luence o he new col- leges ocused on echnology,whosesuccesspu p essu eon heexis inguni e si- ies o change hei o ien a ion o echnical and scien i ic educa ion and o os e - ing links wi h indus y.51 Thes a ewasplaceda cen e s ageinindus ialpolicybyi se o s ocon inu- allyupg ade hese “ ac o so p oduc ion.” I ookon he ole o “midwi e” o o - eignin es men .52 Thesepolicyandins i u ionalchangeshad hedesi ede ec o a ac ing ex ensi e amoun s o o eign in es men , including such so wa e i ms as Mic oso , Lo us, No ell, and Co el. The e has been some local embed- ding o hese i ms in a e i o ial complex a ound he Dublin egion based on a subsupplie base in u nkey se ices and so wa e manual p in ing. The s a e has played a cen al ole in suppo ing he g ow h o hese subsupplie indus ies, pa icula ly by p o iding inance and ad ice o he en e- p eneu s in hese newly min ed sec o s and by coo dina ing ela ions among I ish-bo nmanage so TNCsand heseeme ging i ms.P in ing i ms, o exam- ple, ecei ed signi ican unding om he IDA o he expensi e new Web p in echnologies equi ed o so wa e manual p in ing.53 Fu he mo e, he IDA began o a ge ha dwa e companies in he ea ly 1980s, encou aging hem o expand hei so wa e ope a ions. Some TNC subsidia ies ha e been able o de elop such ope a ions. This is pa icula ly he case in mo e gene al IT and elecommunica ions companies such as Digi al, Amdahl, IBM, Siemens Nixdo , Phillips, E icsson, o ATT/Lucen Technologies. As he man- age o one o hese ope a ions said, “We ha e go mo e han he Mic oso and Lo us subsidia ies. The di e si y o ou pa en company helps us a lo in ha .” 172 POLITICS & SOCIETY Many policymake s did indeed hope ha he TNCs a ac ed o I eland would in imespino a angeo I ish-owned i ms.Thishashappened oalimi edex en in he so wa e indus y, al hough i p o ides only one piece o he puzzle o he indus y’sg ow h.One- hi do he esponden sinas udyo hi y-sixindigenous so wa e en ep eneu s had wo ked in a TNC di ec ly be o e s a ing hei own company—ei he in TNCs in he IT sec o o in he IT sec ions o TNCs in o he sec o s.Two- hi dso indigenous en ep eneu shad wo ked o a TNC in I eland a somes ageo hei ca ee s,hal hadwo kedab oadinso wa eo a ela edsec- o ,andhal hadwo kedin asec o ha wasnowacus ome o hei i m.54 Di ec spin-o s o so wa e i ms om so wa e TNCs a e ela i ely a e, howe e . While his in e na ional and cus ome expe ience migh be expec ed gi en he dominanceo TNCsin heI isheconomyand hemassemig a iono he1980s,i has been a aluable sou ce o expe ience o many echnical en ep eneu s. Ne e heless, hese igu es alone canno explain why hese indi iduals did indeedul ima elylea e heTNCsands a ou on hepa ho indigenousen ep e- neu ship a he han aking he mo e common ou esun il he ea ly 1990s o emi- g a ion o long- e m TNC employmen . Re u n emig a ion did no become a sig- ni ican ac o un il a e he g ow h dynamic o I ish so wa e was well unde way, al hough i was clea ly impo an in sus aining ha g ow h. No can i explain hein e nalg ow hdynamico heindigenousindus y— hemos signi i- can pa o he indigenous s o y. The same s udy showed ha ano he hi d o so hadcomedi ec ly om indigenous so wa e i ms,while he inal hi d hadcome om indigenous i ms in o he sec o s, mos no ably so wa e dis ibu ion and compu e ha dwa e. The e o e, he dynamic o gene a ing new companies is s onges in he indigenous sec o and especially wi hin he so wa e indus y i sel . Sohowdid heindigenous so wa eindus y eme ge om he icious ci cle o TNC dependence and p o essional emig a ion? The s a e, h ough i s hea y in es men in educa ion, had c ea ed a new class basis o an indigenous echno- logyp omo ionandbusinessexpansionagenda.Thedange he ewas,o cou se,a massi e b ain d ain ha did indeed ake place. Howe e , o hose who s ayed, a numbe s a ed hei own companies and combined wi h a ickle o people om he o eign-owned sec o and om use o ganiza ions o o m a cons i uency ha could suppo s a e agencies p omo ing indigenous de elopmen . Wha did he s a e agencies do o suppo he de elopmen o his new cons i uency? The i s elemen o he agencies’app oach was o de ine he o ien a ion o he I ish so wa e indus y. In i s s a egic e iew o 1992, he Na ional So wa e Di ec o a e (NSD) iden i ied so wa e p oduc s clea ly as he majo ocus o he I ish indus y, making o icial wha had been he a i ude o he s a e agencies o some ime.55 Fu he mo e, he NSD iden i ied he need o so wa e p oduc i ms o expo ea ly in hei de elopmen , due o he small size o he I ish domes ic ma ke , as a c i ically impo an issue o he I ish indus y. The s a e agencies SEÁN Ó RIAIN 173 ocused henonencou aging i mswi hso wa ep oduc s o expo ,beingmuch mo e ecep i e o such i ms in hei g an applica ions and designing some s a e suppo s(especiallyin hea eao ma ke ing)so ha heywe e o ien edmainly o he p oblems o p oduc expo ing. Indus ial policy also began o shi h ough he 1980s owa d a g ea e ocus on indigenous indus y and a g ea e selec i i y in g an gi ing.56 Howe e , he s a eagenciesul ima ely ocusedno onlyon“pickingwinne s,”which heydid o some ex en , bu also on a mo e gene alized s a egy o “making winne s” ou o he many i ms hey deal wi h by upg ading he capabili ies o he indus y as a whole. To al g an paymen s by s a e agencies o indigenous so wa e companies inc eased om IR£ 3 o 3½ million pe annum be ween 1988 and 1990, up o 5.4 million in 1991, and 5.66 million in 1992.57 Fo bai , he p ima y agency dealing wi hindigenous i msa he ime,alsobecamemo edemandingo heindigenous companies p esen ing p oposals o hem. As one I ish emig an s ockb oke in Silicon Valley pu i o me: “I hink Fo bai ha e been g ea . The e’s a lo o money o companies, bu you ha e o be good; you almos ha e o be selling in B i aino Eu opebe o eyouge heg an s.Fo bai a e e y ough.”Thisle elo inancing o he indigenous so wa e indus y was e y signi ican in he con ex o a se e e sho age o o he capi al sou ces o he indus y. In ac , much o he ea ly en u e capi al ha did become a ailable o he indus y was induced in o he indus y by s a e ac ions. Fo bai , now pa o En e p ise I eland, ies he inance i p o ides o i ms o a ious aspec s o company de elopmen —in pa icula , R&D, ma ke ing, and managemen de elopmen . A s iking aspec o R&D unding is he c i ical impo ance o s a e and EU unding in he ea lie pe iod—accoun ing o almos 30 pe cen o unding di ec ly and, since many o hese unds we e p o ided on a ma ching- unds basis, o a ound hal o all R&D unding in he indigenous so - wa e companies in 1993. These go e nmen al policies, he e o e, we e c i ical in s imula ingR&Din heea lie s ageso heindus y’sde elopmen .Anexecu i e in Fo bai wo king closely wi h so wa e companies old me ha Fo bai a emp s o p o ide o each s age o he de elopmen o a company— easibili y g an sasseedcapi al o s a -ups,employmen g an s o heea lyg ow hphase, and hen unding o R&D, aining, and managemen de elopmen o he com- pany de elopmen phase. Theimpac o hisapp oachon i msseems o ha ebeenposi i e.Whilemany i mscomplainabou headminis a i edemandso illingou g an applica ions, analysis o g an -aided and non-g an -aided i ms shows ha h ough he ea ly 1990s, a leas g an -aided i ms signi ican ly ou pe o med non-g an -aided i ms—bo h in he so wa e indus y and in he economy as a whole.58 Fu he - mo e, many i ms hemsel es say ha hey ha e ound s a e suppo help ul, whichisimp essi egi enmanymanage s’skep icismo s a eac ion.59 The e o e, he agencies a e clea ly aking a sel -consciously de elopmen al app oach o 174 POLITICS & SOCIETY companiesaswellas o heindus yasawhole,e en hough hisapp oachiso en couched in he mo e neolibe al language o en e p ise.60 The I ish de elopmen agencies lea ned how o upg ade he capabili ies o i mswi hinadecen alizedindus y,askillqui edi e en om hoseo heBDS bu eauc a s. Howe e , hey also wen beyond his ole and played a signi ican pa in os e ing and de eloping he social ne wo ks and associa ional li e unde - pinning inno a ion in he indus y. They ha e ins i u ed “so e ” suppo s such as he men o ing scheme, whe e small companies a e pu in ouch wi h expe ienced indus y igu eswho o a ela i elysmallsumbecomea“guide,philosophe ,and iend” o he company, some imes ul ima ely becoming company di ec o s. The agenciesalsoused heg an -aidp ocessasanoppo uni y oin o mallys imula e connec ions among i ms wi hin he indus y, d awing on hei de ailed knowl- edgeo o he i msaccumula ed h ough heg an -aidp ocess.ThesameFo bai execu i e men ioned abo e a gued ha he de elopmen agencies lea ned ha he lone ange app oach doesn’ wo k. A com- pany needs pa ne s, he men o ing p og am helped wi h ha . The agencies also played anin o mal oleinin oducingpeople.Tha ’ssome hingwewouldha epushed, hepa - ne ships. The o he hing he agencies pushed was he capi al issue, Fo bai has been p iming en u e capi al unds....Ou ole is no picking winne s bu “helping o make winne s.”I ’s oodi icul op edic winne s opick hem,o he wisewewouldn’ need o be wo king! A lo o ou discussions wi h companies a e no ega ding he money bu ega dingbusinessissues....The eisalo o companycapabili yde elopmen wo k;we we elessp oac i e han ha in hedayso COPS[anindigenouscompany ha wen bus in 1990]. The agencies ha e gone om being unding agencies o doing company de elopmen . Fu he mo e, a ne wo k o indus y and ade associa ions, uni e si ies, inno- a ion and echnology cen e s, and o he o ums and g oups ha e been c ea ed ha p o ide an associa ional in as uc u e o in o ma ion sha ing, coope a ion, and inno a ion in I ish so wa e. While hese bodies a e ou side he s a e o semiau onomous om i , in mos cases hey ha e been ounded h ough s a e ini- ia i es and unde w i en by s a e gua an ees and unding. Typically, hey a e loca ed in uni e si ies and ha e ep esen a i es om he s a e, business, and edu- ca ion on hei boa ds. Some b ie examples should illus a e he key ole o hese ins i u ions. The Na ional Mic oelec onics Applica ion Cen e (MAC) was ounded in he ea ly 1980s and was cha ged wi h b inging elec onics o I ish indus y. Based in he Uni e si yo Lime ick, i p o ides echnicalad ice and housesup- o-da eequip- men o indus y use and is epo ed by in e iewees o ha e had close ela ions wi h many so wa e i ms. The di ec o o MAC old me he ollowing: Ou co eskill is hede elopmen cycle, a he hananypa icula echnicala ea.Wespend a lo o ime alking wi h en ep eneu s—90 pe cen may decide ha hei idea is no on, usually because he idea is ou he e al eady o hey a e oo soon o oo la e is-à- is he SEÁN Ó RIAIN 175 echnology cu e. We ge a lo o business om he emaining 10 pe cen . Typically, he people we a e dealing wi h, i ’s hei i s ime h ough he cycle, hey ge upse a any shocks. Thec i icalpoin he eis ha he eisaneduca ional e u n o heindus yin e ms o he90pe cen whodono pu sueadoomedp ojec ,e en houghMACdoesno ecei e anypaymen om hese companies. Indeed, hep ima y ole o MAC is a mo e specialized educa ional con ibu ion han he de elopmen agencies can p o ide: We can lay ou he po en ial o sma p oduc s o he en ep eneu s. We’ e helped in ha ega d,we ha e aneduca ion ole,wecanguideen ep eneu s, wepush hemon i s -class global s anda ds, le hem know wha is expec ed. In he la e 1980s, he P og amme in Ad anced Technologies (PAT) was es ab- lished, including so wa e. The so wa e PAT consis ed o h ee cen e s ini ially. Pe haps he cen e wi h he mos impac on he so wa e indus y i sel has been he Cen e o So wa e Enginee ing (CSE), loca ed a Dublin Ci y Uni e si y. Al hough he ini ial PAT p oposal called o a ce ain amoun o esea ch wi hin he PATs, he CSE’s ole has been mainly p omo ional and in o ma ional. In pa - icula , i has p omo ed quali y in so wa e p oduc ion and he ISO 9000 quali y s anda d and has had a majo impac on he so wa e indus y h ough i s cou ses and a ious o ms o in o ma ion dissemina ion.61 In his i was no doub helped byi sgood ela ionshipwi hDublinCi yUni e si y,whe ei isloca edandwhe e i hadac uallybeen oundedin1989be o ebeingb ough in o heso wa ePATin 1990.Fu he mo e, he e a eclose ela ionswi hindus yas heCSEboa d spans academia, indus y, and s a e agencies. The o he wo PAT cen e s—Mul imedia Technologies I eland and he Na ional Ins i u e o Managemen Technology— an in o mo e di icul ies. Bo h o hese cen e s we e mo e ocused on smalle cons i uencies, he small mul imedia indus y, and execu i es in business ou side o high ech, espec i ely, and his made hei ela ion o he so wa e PAT some- wha p oblema ic. Wi hin hese cons i uencies, howe e , hey we e easonably welle alua ed.62 Ingene al,in ac ,mos o hePATschemesha e ecei ed a o - ablee alua ions,noma e wha sec o heya ein.None heless,bo ho hesecen- e s we e closed o sold in a eo ganiza ion o he PAT scheme in 1997. Thes a ehasalsobeenins umen alines ablishingindus yassocia ions. One such inno a ion cen e and indus y associa ion is he Localiza ion Resou ces Cen e(LRC),es ablisheda Uni e si yCollegeDublin(UCD)unde he echnol- ogycen e sscheme.The LRCp omo es quali yand esou cesha ingin helocal- iza ion sec o o he so wa e indus y and has been ins umen al in se ing up he success ulindus y o um, heSo wa eLocaliza ionIn e es G oup(SLIG).This is no he only indus y associa ion se up by a s a e agency— he Mul imedia TechnologyIns i u e (MTI) helped o s a he I ish In e ac i eMul imediaAsso- cia ion, which pe sis s a e he demise o MTI, while he NSD has a close ela- 176 POLITICS & SOCIETY ionshipwi h heI ishSo wa eAssocia ion(al hough ha bodyhas beeninexis- ence since he 1970s). Ano he agency unded by he EU bu playing a somewha di e en ole is he NSD.TheNSDwases ablishedwi hin heIDA,al houghi mo ed obecomepa o Fo bai when heagencieswe e eo ganizedin1994. I s ole,whilesomewha unclea a i s , has e ol ed so ha i has become a cen al ocal poin wi hin he s a e agencies o dealings wi h so wa e. Al hough he e e yday wo k o g an assessmen is ca ied ou by he In e na ional Se ices P og amme wi hin Fo bai , he NSDis ep esen ed ong an -gi ingcommi ees.I also ul illsmany o he educa ional and ne wo king oles discussed abo e in ela ion o he s a e agencies.Howe e , heNSDisp ima ilyas a egiclinkbe ween heindus yand he s a e de elopmen agencies. Fu he mo e, he NSD cons an ly moni o s and e iews he key issues o he so wa e indus y and he ope a ion o he ins i u- ionsandin as uc u esuppo ing heindus y.I hasbeenap imemo e in e o- cusing he ac i i ies o he PATs and in he deba es o e a g owing p essu e on skills and he issue o access o capi al. The e is he e o e a ne wo k o ins i u ions p o iding echnical and business in o ma ion o a ious kinds and deg ees o specializa ion o di e en sec o s wi hin he so wa e indus y. These ins i u ions p o ide a way in which he s a e can p o ide an e e yday impe us owa d wo ld-class echnical, business, and quali ys anda dswi hou in ol ingi sel di ec lyin egula ing he i ms—amea- su e ha wouldbe deeply unpopula .The s a o hesecen e s become he e e y- day eache sandad ise so heindus y.Howe e , heyalsoga he ag ea dealo up- o- he-minu e in o ma ion om he indus y and can be a aluable sou ce o in o ma ion o he cen al s a e agencies when hey need o make apid shi s o adjus men s in policy. They a e la gely s a ed by people wi h backg ounds in indus y hemsel es who some imes main ain ha in ol emen on a pa - ime basis.63 Va ious s a e agencies ha e played c i ical oles in de eloping he I ish so - wa eindus y.IDAI elandhasbeen e ye ec i eina ac ing o eignin es men andsomewha success ulinp omo ing heupg adingo TNCac i i iesandde el- opmen o subsupplie s. O he s a e agencies ha e played key oles in de eloping a high alue-added indigenous so wa e sec o . In pa icula , s a e ac ions ha e beenable os ee I ish echnicalp o essionalsaway om he emp a ionso TNC employmen o emig a ion and in o he pe ils, and po en ially luc a i e ewa ds, o small- i m en ep eneu ship. The s a e has also been able o shape he capaci- ies and cul u e o he indus y h ough i s emphasis on p omo ing inno a ion, business de elopmen , and ne wo king ac oss he indus y. The wo modes o in eg a ion in o he global economy o he I ish so wa e indus y a e only angen ially linked o one ano he . Howe e , he s a e has been c i ical o heeme genceo eachglobaliza iono I ishso wa e.Howwasi possi- ble o he s a e o play his ole o each o hese globaliza ions, and how has i SEÁN Ó RIAIN 177 been possible o hem o be pu sued simul aneously wi hou one o e whelming he o he ? He e we u n o ou unde s anding o he mul iple embedded au ono- mieswi hin heI ishs a eand he lexibleo ganiza ionals uc u e ha econciles hem wi hin he s a e i sel . Embedded Au onomy h ough Flexibili y The s a e agency mos closely linked o TNCs is he IDA, es uc u ed as IDA I eland since 1994. The IDA was ounded in 1949, ook on a mo e cen al ole in a ac ing o eignin es men in heea ly1960s,andby hela e1960shadbecome he cen al agency in o mula ing and implemen ing indus ial policy. I hasde elopedclose ieswi hmanyTNCs—ab oadandinI eland.These ies a e i s o med h ough he IDA’s in e na ional o ices. The p ojec o ice s in hese ou Eu opean,sixU.S.,and i eAsia-Paci ico iceses ablishanea ly ela- ionshipwi hmanycompaniesin hei a eaandul ima elyhand hecompanieso o hei coun e pa s in I eland. The IDA also plays a c i ical ole in p o iding o hese i ms’needs once hey a e es ablished in I eland, p o iding a “one-s op shop” o so s o hem wi hin he I ish poli ical economy. As one long ime TNC manage said,“We’ e a li le cu o ou he ebu weha ea good ela ionship wi h heIDAo ice s.Icanalways ingKie an[McGowan— henCEOo IDAI eland] anyway.”Theseclose ies olocalmanage so TNCsa eimpo an owha e o s a e made o p essu e he TNC subsidia ies o con inue o make e o s o upg ade hei ope a ions. O en hese local and in e na ional ies a e combined o good e ec . Fo example, ies o a TNC head o ice migh be use ul in de eloping a close ela ionshipbe weenanI ishsupplie i mand hepa en i min heUni ed S a es—as one IDA o ice old me: “Some imes we ha e o use ou con ac wi h heU.S. o ge a ound helocalTNCmanage who’s ying oge all he c edi o himsel and won’ ell head o ice abou his supplie in I eland.” The IDA is a quasi-independen s a e agency, al hough i ecei es i s unding om, and mus epo o, he Depa men o En e p ise, T ade and Employmen and he cabine minis e in ha depa men . In 1969, he IDA became an agency ou side o he ci il se ice s uc u e and i has become inc easingly independen , un il ecen yea s, o he es o hes a e economic de elopmen egime.Un il he ea ly1990s,mos o heini ia i esinindus ialpolicywe ede eloped h ough he IDA. Al hough i s boa d membe ship changes, i s execu i e leade ship has been e y s able and he IDA has de eloped a s ong co po a e iden i y o i s own. I s placeou side hecon en ionalci ilse icegi es i a lexibili yinin e nal o gani- za ion and a eedom o maneu e ing ha is unusual o s a e agencies. Wi h s ong in e nal p omo ion pa e ns and li le mobili y ou o he IDA, i o ms a e ycohesi euni wi hin heI ishs a e wi h as ong ocus oni sgi en objec i es o a ac ing FDI. I has also been able o build up signi ican skills in e nally in e ms o knowledge o in e na ional ma ke s and he poli ics and economics o indus ial loca ion. The IDA is embedded in he TNCs and au onomous om he 178 POLITICS & SOCIETY es o he s a e, indica ing he di icul ies o a emp ing o shape he ac ions o TNCs. The embedded au onomy o he s a e agencies p omo ing he indigenous indus yis qui edi e en ,and hese agenciesha ealwayshad adi icul ela ion- shipwi h heIDAandi sdominan posi ionwi hin hes a e.TheIDA’sau onomy wi hin he I ish s a e ins i u ionalized an indus ial policy ocus on a ac ing o - eign in es men . Such ins i u ionaliza ion appea s o be a c ucial elemen o he e ec i eness in he medium o long e m o any policy agenda, as i allows he accumula ion o esou ces, skills, and poli ical legi imacy and alliances. How- e e , his also means ha an exis ing agenda is likely o “c owd ou ” o he agen- das, unless hey hemsel es can c ea e “sa e” ins i u ional spaces whe e hey can a oid an a ack om he exis ing egime. Such spaces did no eme ge o he p o- mo ion o indigenous indus y un il he 1980s. None heless, he e had always been elemen s wi hin he I ish s a e ha had conce ned hemsel es wi h indigenous de elopmen . Wi hin he IDA i sel , p o- g amswe epu suedin he1970s ela ing oindigenousindus y,al hougha ac - ing FDI domina ed he o ganiza ional objec i es, cul u e, and skills o he IDA. The e we e, howe e , a se ies o o he s a e bodies ha ca ed ou some space a ound he agenda o p omo ing science, echnology, and inno a ion and ha we e la gely o ien ed owa d indigenous indus y. These s a e ins i u ions elied hea ily on EU unds o hei ac i i ies, and many o hei p og ams we e unded in la ge pa by Eu opean S uc u al Funds. These unds we e designa ed o I e- land as pa o an e o o de elop he pe iphe al egions o he EU in he ace o he upcoming Single Eu opean Ma ke in 1992. Many commen a o s ha e a ib- u edI eland’sg ow h o hisin luxo EUcapi al.Howe e , hesigni icanceo he S uc u al Funds was ha hey we e he means by which a a ie y o new, some- imesexpe imen al,measu escouldbe akenwi hou ha ing o igh he es o he s a eagencies o unding.Thenewde elopmen egimecouldde elopalongside heoldanddidno ha e ochallenge heoldde elopmen modeldi ec ly o unds and p io i y, excep in a e cases. Such a e he oppo uni ies wi hin a “ne wo ked poli y”64 o local and na ionaland ansna ional ac o s o o gingnewcoali ions ha bypass exis ing na ional powe s uc u es—e en, as in cases such as his, whe e he ul ima e goal is na ional economic ans o ma ion. Agenciessuch as heNa ional Boa d o Scienceand Technology(NBST)and he NSD we e embedded in he eme ging echnical p o essional class h ough pe sonal and associa ional ne wo ks. Key indi iduals pu sued ca ee s ha spanned p i a e, public, and semipublic o ganiza ions, making he bounda ies be ween hese di e en sphe es po ous and os e ing inc easedin e ac ion ac oss hoseo ganiza ionalbounda ies.This,in u n, imp o ed he agencies’capaci y o make and implemen e ec i e policy. The i s di ec o o he NSD,65 Ba y Mu phy, had been he managing di ec o o Insigh So wa e—an I ish company sold o Hoskyns om he Uni ed Kingdom in 1988. Di ec o o he NSD un il SEÁN Ó RIAIN 179 1996,he mo ed on o wo k wi h heCullinaneG oupI eland(CGI), an o ganiza- ion ounded by U.S. so wa e indus y e e an John Cullinane o in es in I ish so wa ecompaniesbu ha alsoca iesou esea chon heso wa eindus yand boos s I ish high- ech. Mu phy was also in ol ed in w i ing he s a egy docu- men published by he I ish So wa e Associa ion in Ma ch 1998. The second di ec o o NSD,Jenni e Condon,came om heindus y owo kon hema ke - ing side o he Na ional So wa e Cen e (a s a e-sponso ed cen e suppo ing indus y de elopmen and ca ying ou esea ch) in he mid-1980s. She was hen managing di ec o o ICL’s IT Cen e in Dublin om 1988 un il 1996, when she joined he NSD. The pos o di ec o o he NSD is i sel a empo a y one ha ensu es ha he di ec o ul ima ely e u ns o heindus yinsomeguise.Thes a o heNSDcon- sis o he di ec o and h ee o he s a membe s— wo o whom a e om wi hin hes a ede elopmen agenciesanda hi dwi habackg oundin heindus y.This also ensu es a combina ion o embeddedness in he indus y and a ce ain au on- omy o ocus and objec i es. The e also is a g oup o p ominen so wa e manag- e swhoha ebeenin ol edinpolicyini ia i eswi hin heindus y,ei he h ough heindus y adeassocia ion, heI ishSo wa eAssocia ion,o aspa icipan sin policy consul a ion g oups such as he So wa eIndus yWo kingG oupin1989 o heSo wa eConsul a i eCommi eea hep esen ime.Fu he mo e, he eis a signi ican o e lap wi h he educa ional sec o , as p ominen compu e science and enginee ing academics ha e liaised closely wi h indus y and he s a e in a a ie y o o ums. Au onomy om hei business cons i uency is main ained by he pe o mance equi emen s placed on he a ious agencies, cen e s, and p og ams. These equi emen sa egi enacu ingedgeby he egula e alua iono p og ams—and publica ion o hose e alua ions.66 Fu he mo e, poo e alua ions can esul in closu e,sale,o eo ganiza iono suchp og ams.Fo example,aspa o hisp o- cess o cons an shi ing and expe imen a ion wi h s a e and semis a e agencies, he Na ional Ins i u e o Managemen Technology was sold, MTI es uc u ed, and he Cen e o So wa e Enginee ing gi en new esponsibili ies. This can occu a hele elo eo ganiza iono heagencies hemsel es.Theseincluded he Na ionalScienceCouncil, oundedin he la e 1960s, and i s successo , he NBST ounded in 1977. In he mid-1980s, science and echnology policies we e eo ga- nized signi ican ly wi h a new O ice o Science and Technology being o med unde a minis e o s a e (a junio cabine minis e ) in wha was hen he Depa - men o Indus y and Comme ce. The NBST was me ged wi h he Ins i u e o Indus ialResea chand S anda ds in 1987 o o mEolas,a new science and ech- nology agency. A ound he same ime, a ious agencies we e consolida ed in o one agency o deal wi h ac i e labo ma ke policy (FÁS) and in o ano he o deal wi h expo ma ke ing (An Bo d T ách ála). In 1994, Fo bai , an agency ocused solely on indigenous indus y, was c ea ed inco po a ing mos o he s a and 180 POLITICS & SOCIETY unc ions o Eolas and he I ish Indus y sec ion o he IDA. In 1998, An Bo d T ách ála was me ged in o Fo bai , al hough unde some p o es om local i ms,which ea edalosso ma ke ingassis ance.Finally, hese a iousagencies we e olded in oEn e p iseI eland,which consolida ed heseagenciesunde one ins i u ional oo . This expe imen a ion can also ope a e wi hin an exis ing agency ha changes i s ocus o e ime. Due o he equi emen s o he EU unde s, cen e s such as LRC, CSE, and NSD a e subjec o signi ican and de ailed ex e nal e alua ion. They a e also ul ima ely subjec o he con ol o he s a e and will he e o e also e lec b oad policy conce ns. Fo example, he CSE has been se ing a ge s o heup akeo quali y p ocedu eswi hin heindus y asa whole.In 1997, he CSE, a he eques o he NSD, ins iga ed p og ams aimed a di using quali y p oce- du esin osmallso wa e i ms,basedoni sp io successa di usingsuchp oce- du es among he la ge i ms. This loosely coupled and lexible o ganiza ional s uc u e has no eme ged wi hou ongoing ensions. In pa icula , he IDA was peculia ly powe ul wi hin heI ishs a e,and hishelps oexplain heweaknesso heins i u ionssuppo ing indigenous indus y un il he la e 1980s. I ook he massi e social and economic c isis o he 1980s o delegi ima e he IDA’s ole as he sole bea e o he ask o I ish indus ial ans o ma ion. I was in o his es ic ed ins i u ional space ha he alliance o I ish echnical p o essionals and he p e iously ma ginalized “sci- enceand echnology”s a eagenciess epped osuppo indigenousindus y,in he p ocess c ea ing he delica e comp omise a he hea o he FDS. Inequali y, F agmen a ion, and Sus ainabili y Despi e he ela i ely success ul adap a ion o s a e s uc u es o he mul iple globaliza ionso I ish indus y,andso wa ein pa icula , hisisno as o ywi h- ou i s own ensions and da ke sides. These globaliza ions ha e occu ed wi hin he con ex o a mac oeconomic s abiliza ion secu ed since 1987 by a na ional neoco po a is “social pa ne ship” comp omise. Rising inequali y has c ea ed signi ican ensions be ween he ins i u ionalized globaliza ions o so wa e (and simila indus ies) and he ins i u ions o na ional neoco po a ism. Wage inequali y has inc eased d as ically in I eland since he la e 1980s, a whichpoin i wasal eadyoneo hemos unequalOECDna ionsinanycase.The majo componen o ha inc ease in inequali y has been a g owing gap be ween hemiddleand he opo heincomedis ibu ion.While hea e ageincomeo he op 10 pe cen was 195 pe cen o he median income in 1987, by 1994, ha pe - cen age had g own o 224 pe cen . Al hough he supply o skilled labo has inc eased apidly, i has s ill been ou s ipped by demand, and inc easing e u ns oeduca ionaccoun o asizeablep opo iono hisg ow hinwageinequali y.67 The I ish case is clea ly an excep ion o he endency in e na ionally o neoco po a ism o lessen wage inequali y. This is explained, as a as can be old SEÁN Ó RIAIN 181 ion o na ional economies, limi ing he des uc i e endencies owa d egula o y compe i ion. Any such poli ical p ojec ha does eme ge is inc easingly likely o wage i s ba les on he e ain cu en ly s aked ou by he FDS. NOTES 1. See Chalme s Johnson, MITI and he Japanese Mi acle (S an o d, CA: S an o d Uni e si yP ess,1982);AliceH.Amsden,Asia’sNex Gian :Sou hKo eaandLa eIndus- ializa ion (Ox o d, UK: Ox o d Uni e si y P ess, 1989); Robe Wade, Go e ning he Ma ke (P ince on, NJ: P ince on Uni e si y P ess, 1990); S ephen Hagga d, Pa hways om he Pe iphe y: The Poli ics o G ow h in he Newly Indus ializing Coun ies (I haca, NY: Co nell Uni e si y P ess, 1990); Richa d Applebaum and Je ey Hende son, eds., S a es and De elopmen in he Asian Paci ic Rim (London: Sage, 1992); Pe e E ans, Embedded Au onomy (P ince on, NJ: P ince on Uni e si y P ess, 1995); Me edi h Woo-Cumings,ed.,TheDe elopmen alS a e(I haca,NY:Co nellUni e si yP ess,1999). 2. See Jason Ded ick and Ken K aeme , Asia’s Compu e Challenge: Th ea o Oppo uni y o he Uni ed S a es and he Wo ld? (Ox o d, UK: Ox o d Uni e si y P ess, 1998) ega ding compe i i e di icul ies. Fo mo e on he deb c isis, see Nicole Bigga , “DeepFinance—TheO ganiza ionalBases o Sou h Ko ea’sFinancialCollapse,”Jou nal o Managemen Inqui y7(1998):311-320;andase ieso a iclesbyRobe Wade,includ- ing“TheComingFigh o e Capi alFlows,”Fo eignPolicy113(1998):41-54;“TheAsian Deb -and-De elopmen C isiso 1997-?:CausesandConsequences,”Wo ldDe elopmen 26 (1998): 1535-53; “F om ‘Mi acle’ o ‘C onyism’: Explaining he G ea Asian Slump,” Camb idge Jou nal o Economics 22 (1998); “The Asian C isis and he Global Economy: Causes, Consequences, and Cu e,” Cu en His o y 97 (1998): 361-73; Robe Wade and F ankVene oso,“TheAsianC isis:TheHighDeb Model e sus heWallS ee -T ea- su y-IMF Complex,” New Le Re iew 228 (1998): 3-24. 3. I eland e e s he e o he wen y-six coun ies o he Republic o I eland. 4. Paul Sweeney, The Cel ic Tige (Dublin: Oak T ee P ess, 1998). 5.Thisa icled awshea ilyon heanalysisinSeánÓRiain,“AnO sho eSiliconVal- ley?”Compe i ionandChange2(1997):175-212;SeánÓRiain,“Remaking heDe elop- men al S a e: The I ish So wa e Indus y in he Global Economy” (Ph.D. diss., Depa - men o Sociology, Uni e si y o Cali o nia, Be keley, 1999). 6. McI e Consul ing, Manpowe , Educa ion and T aining S udy o he So wa e Sec- o (Dublin: Fo ás Áiseanna Sao hai , 1998). 7.Cha lesSabel,I eland:LocalPa ne shipsandSocialInno a ion(Pa is:O ganiza- ion o Economic Coope a ion and De elopmen , 1996). 8. Denis O’Hea n, Inside he Cel ic Tige : The I ish Economy and he Asian Model (London: Plu o, 1998), 153. 9. Paul K ugman, “Good News om I eland: A Geog aphical Pe spec i e,” in Alan G ay, ed., In e na ional Pe spec i es on he I ish Economy (Dublin: Indecon, 1998), 51. See also chap e s by Je ey Sachs and Kenne h A ow in he same olume. 10. See Ó Riain, “An O sho e Silicon Valley?” o an accoun o how local and global p ocessesshapedeacho he o e ime oc ea eeacho hese woglobaliza ionso heso - wa e indus y. 11. Fo ás, Su ey o Employmen (Dublin: Fo ás, 1998). 12.O’Hea n,Inside heCel icTige ;DenisO’Hea n,“Globaliza ion,‘NewTige s’and he End o he De elopmen al S a e? The Case o he Cel ic Tige ,” Poli ics & Socie y 28 (2000). 188 POLITICS & SOCIETY 13. Pa ick Honohan, Be and Mai e, and Cha les Con oy, “In isible En epô Ac i - i y in I ish Manu ac u ing,” I ish Banking Re iew, summe 1998. 14. Fo ás, Resea ch and De elopmen in he Business Sec o : Findings om he 1993 Census o R&D Pe o ming En e p ises in I eland (Dublin: Fo ás, 1995); Fo ás, Su ey o P oduc and P ocess Inno a ion in I ish Indus y 1993-1995 (Dublin: Fo ás, 1997). 15.JimS ewa ,“T ans e P icing:SomeEmpi icalE idence omI eland,”Jou nalo Economic S udies 16 (1989): 40-56. 16. Cen al S a is ics O ice, Census o Indus ial P oduc ion 1990 (Dublin: Cen al S a is ics O ice, 1991); Cen al S a is ics O ice, Census o Indus ial P oduc ion 1996 (Co k, I eland: Cen al S a is ics O ice, 1997). 17. Ibid. 18. Fo ás, Su ey o P oduc and P ocess Inno a ion, 30-32. 19. Na ional Economic and Social Council, Sus aining Compe i i e Ad an age: P o- ceedings o NESC Semina , Resea ch Se ies no. 4 (Dublin: Na ional Economic and Social Council, Ma ch 1998). 20.JohnGea y, “TheNewWo kplace: Changea Wo kinI eland,”In e na ionalJou - nal o Human Resou ce Managemen 10 (1999): 879; William K. Roche and John Gea y, “ ‘Collabo a i e P oduc ion’and he I ish Boom: Wo k O ganiza ion, Pa ne ship and Di ec In ol emen in I ish Wo kplaces,” Economic and Social Re iew (2000), o hcoming. 21. Na ional Economic and Social Council, P i a e Sec o In es men in I eland, Repo no.103(Dublin:Na ionalEconomicandSocialCouncil,Feb ua y1998),chap.2. 22. On in es men , see Na ional Economic and Social Council, P i a e Sec o In es - men ; on esea ch and de elopmen (R&D) and indigenous indus y mo e gene ally, see Ma y O’Sulli an, “The Sus ainabili y o Indus ial De elopmen in I eland” (pape p e- sen ed o Dublin Economics Wo kshop, Dublin, Ap il 1999); on sec o al and o he ac o s a ec ing collabo a i e p oduc ion, see Gea y, “The New Wo kplace,” 879-86; on clus e - ing, see Na ional Economic and Social Council, Sus aining Compe i i e Ad an age. 23. Figu es on occupa ional change om Paul Tansey, I eland a Wo k: Economic G ow h and he Labou Ma ke 1987-1997 (Dublin: Oak T ee P ess, 1998), 41. 24. O’Hea n, Inside he Cel ic Tige , 125. 25. Alan Ba e , Tim Callan, and B ian Nolan, “Rising Wage Inequali y, Re u ns o Educa ion and Labou Ma ke ins i u ions: E idence om I eland,” B i ish Jou nal o Indus ial Rela ions 37 (1999): 77-100. 26. O’Hea n, Inside he Cel ic Tige , 126. 27. Tim Callan e al., Po e y in he 1990s: E idence om he Li ing in I eland Su ey (Dublin: Oak T ee P ess, 1996). 28. E ans, Embedded Au onomy. 29. Amsden, Asia’s Nex Gian . 30.Amsden,Asia’sNex Gian ; F edDeyo,Benea h heMi acle:Labo Subo dina ion in he New Asian Indus ialism (Be keley: Uni e si y o Cali o nia P ess, 1989). 31. E ans, Embedded Au onomy; see Pe e E ans and James Rauch, “Bu eauc acy and G ow h: A C oss-Na ional Analysis o he E ec s o ‘Webe ian’S a es S uc u es on Eco- nomic G ow h,” Ame ican Sociological Re iew 64 (1999): 748-765 o c oss-na ional quan i a i e e idence ega ding he bene icial g ow h e ec s o bu eauc acy. 32. E ans, Embedded Au onomy; Syl ia Max ield and Ben Schneide , eds., Business and he S a e in De eloping Coun ies (I haca, NY: Co nell Uni e si y P ess, 1997). 33.Fo di e encesamong heAsianTige economies,seeMa coO ù,NicoleBigga , and Ga y Hamil on, The Economic O ganiza ion o Eas Asian Capi alism (Thousand Oaks, CA: Sage, 1997). The Ko ean model has he mos au ho i a ian s a e and co po a e SEÁN Ó RIAIN 189 s uc u es,Japancombines“co po a ismwi hou labo ”wi h“en e p iseunionism,”while Taiwan has a much less hie a chical poli ical and co po a e s uc u e. 34. E ik Olin W igh , “Re iew o P. E ans ‘Embedded Au onomy,’” Con empo a y Sociology 25 (1996): 176-77. 35.Fo c i iqueso Pe e E ans’sina en ion o hes a e’s oleincons i u ingeconomic ac o s as well as guiding hei ac ions, see Da id S a k and Laszlo B usz , Pos socialis Pa hways: T ans o ming Poli ics and P ope y in Eas Cen al Eu ope (Camb idge, UK: Camb idge Uni e si y P ess, 1998) and Nicole Bigga and Mau o Guillen, “De eloping Di e ence: Social O ganiza ion and he Rise o he Au o Indus ies o Sou h Ko ea, Tai- wan, Spain, and A gen ina,” Ame ican Sociological Re iew 64 (1999): 722-47. 36. The posi ion o p ime minis e . 37. Ch is Ansell, “The Ne wo ked Poli y: Regional De elopmen in Wes e n Eu ope” (Depa men o Poli icalScience,Uni e si yo Cali o nia,Be keley,1999,mimeog aphed). 38.Neil B enne , “GlobalCi ies,Glocal S a es: GlobalCi yFo ma ionand S a eTe i- o ialRes uc u inginCon empo a yEu ope,”Re iewo In e na ional Poli ical Economy 5 (1998): 1-37; “Beyond S a e-Cen ism? Space, Te i o iali y and Geog aphical Scale in Globaliza ion S udies,” Theo y and Socie y 28 (1999). 39.Onloosecoupling,seeJ.DouglasO onandKa lE.Weick,“LooselyCoupledSys- ems: A Reconcep ualiza ion,” Academy o Managemen Re iew 15 (1990): 203-23; Cha les Pe ow, Complex O ganiza ions (New Yo k: Random House, 1986), chap. 4. 40. On modes o con ol in decen alized o ganiza ional o ms, see Wol V. Heydeb and, “New O ganiza ional Fo ms,” Wo k and Occupa ions 16 (1989): 323-57. 41. On au ocen ic de elopmen , see Sami Amin, Unequal De elopmen (New Yo k: Mon hly Re iew P ess, 1976); Die e Senghaas, The Eu opean Expe ience: A His o ical C i ique o De elopmen Theo y (Do e , NH: Be g, 1985). 42.SeánÓRiain,“AnO sho eSiliconValley?”;NeilCoe,“UST ansna ionalsand he I ish So wa e Indus y,” Eu opean U ban and Regional S udies 4 (1997): 211-30. 43. Localiza ion o so wa e e e s o he p ocess o cus omizing exis ing so wa e packages o speci icna ionalandlinguis icma ke s.Themainac i i yis he ansla iono he ex , bu i may also in ol e changing da e o ma s, le e o ma s, and o he cul- u e-speci ic aspec s o he so wa e. In U.S. so wa e companies, he wo k o designing heso wa ep og amso ha i can be cus omizedin his wayis calledin e na ionaliza ion andisgene allyca iedou in heUni ed S a es.The wo ko ac uallycus omizing hep o- g am o speci icma ke siscalledlocaliza ion.Thiswo kis ela i elyuncomplica ed.See Honohan, Mai e, and Con oy, “In isible En epô Ac i i y,” o an analysis o indus ial s a is ics ela ing o hese ac i i ies. 44. Ó Riain, Remaking he De elopmen al S a e, 81. 45. The Is aeli so wa e indus y was es ima ed o ea n app oxima ely $700 million in expo s in 1997 (including indigenous and ansna ional co po a ion [TNC] i ms), while he alue o Indian so wa e indus y expo s ose o $1,750 in 1997-98. Expo s o I ish indigenous i ms came o $713 million and hose o TNCs o (an in la ed igu e o ) $5,615 million.Ca eshouldbe akeninusing hese igu es ocompa e he h eeindus iesas he e a ea numbe o di e encesin how he igu eswe e calcula ed. Howe e ,i is clea ha he I ish indus y is o a simila o de o magni ude as he indus ies in India and Is ael. The I ish indus y’s expo o ien a ion is simila o ha o he Indian indus y, al hough he Indian indus y’s expo s consis la gely o o sho e de elopmen and in e na ional labo con ac ing. See Balaji Pa hasa a hy, “Indus ializing Coun ies and he Changing In e - na ional Di ision o Labo in he Compu e So wa e Indus y: Lessons om he Indian Case 1977-1997” (pape p esen ed o he Sloan Founda ion Globaliza ion Wo kshop, DukeUni e si y,Du ham,NC,26-28Ap il1998).TheI ishindus yisclose o heIs aeli 190 POLITICS & SOCIETY and indeed he U.S. indus y in i s g ea e ocus on so wa e p oduc s and a oidance o la ge-scale labo con ac ing. Fu he mo e, hese a e he leading in e na ional so wa e indus ies ou side he G-7 ( he leading capi alis economies, which mee as a g oup on a egula basis). The o he leading con ende s such as Taiwan, Singapo e, and Aus alia a e wellbehind he“ h eeI’s”o globalso wa e.SeeDed ickandK aeme , Asia’sCompu e Challenge. O he eme ging indus ies such as Hunga y and China ha a e likely o p o e signi ican in he long e m a e s ill ela i ely unde de eloped. 46.Theda ain hisa iclecome om120in e iewsca iedou inSiliconValleyandin I elandbe weenOc obe 1995andSep embe 1997,indus yjou nalsando he documen- a y sou ces, and a su ey o so wa e i ms in I eland ca ied ou in June and July 1997. The esponse a e o he su ey was an abo e-a e age 54.5 pe cen , he sample was eweigh ed o e lec he size and owne ship o he su ey popula ion, and six companies we e emo ed om he sample because hey ecei ed mo e han 60 pe cen o hei e e- nues om ha dwa e. 47. Na ional So wa e Di ec o a e, 1995 So wa e Indus y Su ey Resul s (Dublin: Fo bai , 1995). 48. Ga y Ge e i, “The In e na ional Economy,” in Neil Smelse and Richa d Swedbe g, eds., The Handbook o Economic Sociology (P ince on, NJ: P ince on Uni e - si y P ess/Russell Sage Founda ion, 1994); Benne Ha ison, Lean and Mean (New Yo k: Basic Books, 1994). 49.Da idJacobsonandDa idO’Sulli an,“AnalysinganIndus yinChange:TheI ish So wa e Manual P in ing Indus y,” New Technology, Wo k and Employmen 9 (1994): 103-14; “The I ish So wa e Manual Indus y: Globaliza ion h ough Local Supply?” (pape p esen ed a “I eland, Eu ope & he Global In o ma ion Socie y: A Con e ence o Social Scien is s,” Dublin, 24-25 Ap il 1997); Indus ial De elopmen Au ho i y, “The I ish So wa e Indus y,” in o ma ion pamphle , n.d. 50. Union densi y ell om 48.3 pe cen in 1992 o 43.5 pe cen in 1997. The only sec o ha inc eased union densi y is Public Adminis a ion and De ense, wi h a union densi y o 74.1 pe cen in 1997. By con as , Comme ce, Insu ance, Finance and Busi- ness Se ices (including so wa e) ell om 31.6 pe cen o 29.0 pe cen in 1997. Da a gene ously p o ided by William K. Roche, G adua e School o Business, Uni e si y College, Dublin. 51.Pa ickClancy,“TheE olu iono PolicyinThi d-Le elEduca ion,”inD.Mulcahy and D. O’Sulli an, eds., I ish Educa ional Policy: P ocess and Subs ance (Dublin: Ins i- u eo PublicAdminis a ion,1989);Robe Osbo ne,Highe Educa ioninI eland:No h and Sou h (London: Jessica Kingsley, 1996). 52.E ans,EmbeddedAu onomy;seeO’Hea n,“Globaliza ion,NewTige sand heEnd o he De elopmen al S a e” o applica ion o he concep o he s a e as “midwi e” o a ac ion o o eign in es men . 53. Jacobson and O’Sulli an, “Analysing an Indus y in Change.” 54. Colm O’Go man, Eoin O’Malley, and John Mooney, Clus e s in I eland: The I ish Indigenous So wa e Indus y: An Applica ion o Po e ’s Clus e Analysis (Dublin: Na ional Economic and Social Council, 1997), 35. 55. Na ional So wa e Di ec o a e, The So wa e Indus y in I eland: A S a egic Re iew (Dublin: IDA I eland, 1992). 56. Eoin O’Malley, “De elopmen s in I ish Indus ial Policy since he Mid-1980s” (pape p esen ed a he special con e ence o he Poli ical S udies Associa ion o I eland “TheS a eo he I ish Poli ical Sys em,”Co k, I eland, 28-30 May 1992); Eoin O’Malley, Kie anA.Kennedy,andRo yO’Donnell,Repo o heIndus ialPolicyRe iewG oupon he Impac o he Indus ial De elopmen Agencies (Dublin: S a ione y O ice, 1992). SEÁN Ó RIAIN 191 57. Ann Cla ke, So wa e Suppo P og amme: Final Repo (Dublin: EU S uc u al Funds Ope a ional P og amme o Indus ial De elopmen E alua ion Uni , 1995). These a e hela es yea s o which igu esa ea ailable,al hough o als a eexpendi u eonbusi- ness de elopmen has con inued o inc ease. 58.Onso wa e,seeCla ke,So wa eSuppo P og amme. Onall i ms,seeO’Malley, “De elopmen sinI ishIndus ialPolicy,”andO’Malley,Kennedy,andO’Donnell,Repo o he Indus ial Policy Re iew G oup. 59. Cla ke, So wa e Suppo P og amme; O’Go man, O’Malley, and Mooney, Clus- e s in I eland. 60. Pa icia Ca , “‘Riding he Jugge nau ’: Selec i i y and En ep eneu ship in I e- land,” I ish Jou nal o Sociology 5 (1995): 67-88; “The Cul u al P oduc ion o En e p ise: Unde s anding Selec i i y as Cul u al Policy,” Economic and Social Re iew 29 (1998): 133-55. 61. Cla ke, So wa e Suppo P og amme, chap. 7. 62. Ibid., chaps. 8-9. 63.Fo amo ecomple eanalysiso heseando he associa ions,agencies,and o ums, see Ó Riain, Remaking he De elopmen al S a e, chap. 4. 64. Ansell, “The Ne wo ked Poli y.” 65.Thehead o he Na ional So wa e Di ec o a e, cha gedwi h de elopingpolicy o , and p omo ing, he so wa e indus y in I eland, pa icula ly indigenous i ms. 66. See, o example, Cla ke, So wa e Suppo P og amme; gi e Fo ás e e ences. 67.An honyA kinson, Lee Rainwa e ,andTimo hySmeeding, Income Dis ibu ionin OECD Coun ies: E idence om he Luxembou g Income S udy (Pa is: O ganiza ion o Economic Coope a ion and De elopmen , 1995); Ba e , Callan, and Nolan, “Rising Wage Inequali y.” 68. John Gea y, “Ini ial Resul s om he Na ional Su ey o Employee Rela ions and HumanResou ceP ac iceinI eland,”wo kingpape ,Smu i BusinessSchool,Uni e si y College Dublin, 1998. 69. Summa y quo e om Ba e , Callan, and Nolan, “Rising Wage Inequali y,” 95. Nei he ha e ecen changes in ax and social wel a e done any hing o mi iga e hese inequali ies.Al hough edis ibu ionwassigni ican be ween 1987 and 1994, ax and wel- a echanges om1995 o1998 esul edin hepoo es 30pe cen o hepopula ionmaking 2 pe cen less han i hei income had inc eased a he same a e as he a e age inc ease in income o he popula ion. Du ing he same pe iod, he op 10 pe cen o ea ne s bene i ed om axchanges o heex en ha heymade4pe cen mo e hanwouldha ebeen hecase i hey had simply ollowed he a e age income inc ease. Fo he 1987-94 pe iod, see Tim Callan and B ian Nolan, “Income Inequali y in I eland in he 1980s and 1990s,” in F ank Ba y, ed., Unde s anding I eland’s Economic G ow h (London: Macmillan, 1999), 167-92. Fo he 1995-98 pe iod, see Tim Callan, B ian Nolan, and John Walsh, “Income TaxandSocialWel a ePolicy,”inT.Callan, D.Du y,T.Fahey,B.Feeney,B.Nolan, P. O’Connell, S. Sco , and J. Walsh, eds., Budge Pe spec i es (Dublin: Economic and Social Resea ch Ins i u e/Oak T ee P ess, 1998). 70.SeánÓRiain,“Time-SpaceIn ensi ica ion:I ishSo wa eDe elope sin heGlobal Wo kplace,”inM.Bu awoy,J.Blum, S.Geo ge,Z.Gille, T. Gowan,L.Haney, M.Klawi e , S. Lopez, S. Ó Riain, and M. Thaye , Global E hnog aphy (Be keley: Uni e si y o Cali- o nia P ess, o hcoming). 71. Pa O’Conno , Eme ging Voices: Women in Con empo a y I ish Socie y (Dublin: Ins i u e o Public Adminis a ion, 1998). 72.P opo ionscalcula edonbasiso da ainCen alS a is icsO ice,HouseholdBud- ge Su ey 1987 (Dublin: Cen al S a is ics O ice, 1988), 44-45, and Cen al S a is ics 192 POLITICS & SOCIETY O ice, Household Budge Su ey 1994 (Co k, I eland: Cen al S a is ics O ice, 1997), 46-47. 73.Thiscanonlybeagg a a edby heg owinginequali ybe ween hesha eo na ional income going o capi al and o labo and he abili y o owne s o capi al o shel e ha income om ax h ough in e na ional inancial ins umen s, as pa ially e ealed in a se ies o ecen inancial and ax scandals. 74.Fo a de ailed discussiono hese issues,seeÓ Riain,Remaking he De elopmen al S a e, chap. 8. On ends owa d agmen a ion in indus ial ela ions, see William K. Roche, “Be ween Regime F agmen a ion and Realignmen : I ish Indus ial Rela ions in he 1990s,” Indus ial Rela ions Jou nal 29 (1998): 112-25. 75. Wo ld Bank, The Eas Asian Mi acle (Washing on, DC: Wo ld Bank, 1993); O’Hea n, “Globaliza ion, New Tige s and he End o he De elopmen al S a e?” 76. O’Hea n, “Globaliza ion, New Tige s and he End o he De elopmen al S a e?” 77. Ansell, “The Ne wo ked Poli y.” 78. On Du ch egional policy, see B enne , “Global Ci ies, Glocal S a es.” On neoco po a ism in he Ne he lands, see Jelle Visse and An on Heme ijck, A Du ch Mi a- cle? (Ams e dam: Ams e dam Uni e si y P ess, 1997). 79. Gio anni A ighi, The Long Twen ie h Cen u y (London: Ve so, 1994). 80. On local s a e co po a ism, see Jean Oi, Ru al China Takes O (Be keley: Uni e - si y o Cali o nia P ess, 1999). On he cen al and local s a es in China, see Michael Bu awoy, “The S a e and Economic In olu ion: Russia h ough a China Lens,” in Pe e E ans, ed., S a e-Socie y Syne gy: Go e nmen and Social Capi al in De elopmen (Be keley: In e na ional and A ea S udies, Uni e si y o Cali o nia, Be keley, 1997), 150-77. 81. On in e i m ne wo ks, see Ded ick and K aeme , Asia’s Compu e Challenge.On ansna ionalcommuni ies,seeAnnaLeeSaxenian,SiliconValley’sNewImmig an En e- p eneu s (San F ancisco: Public Policy Ins i u e o Cali o nia, 1999). On co po a e inance, see Bigga , “Deep Finance.” 82. Philip McMichael, De elopmen and Social Change: A Global Pe spec i e (Thou- sand Oaks, CA: Pine Fo ge P ess, 1996). 83. Philip Ce ny, “Globaliza ion and he Changing Logic o Collec i e Ac ion,” In e - na ional O ganiza ion 49 (1995): 595-625. 84.F i zScha p ,Go e ninginEu ope(Ox o d,UK:Ox o dUni e si yP ess,1999). SEÁN Ó RIAIN 193