The state, venture capital and domestic high-tech start-ups in a late-developing economy : Ireland

Ireland, the “Celtic Tiger” economy of today, had for decades been one of the poorest of the Western European economies. This paper analyses the three-pronged approach of the Irish authorities in promoting successful high-tech start-up firms. An investment climate conducive to the emergence of such firms was first created. Emerging firms were then offered substantial public support in developing their capabilities. Finally, the authorities
played a significant role in promoting the emergence of a dynamic venture capital industry. Such interventionist policies would have been highly unlikely to succeed in the absence of strong institutional capacity.