Industrial development in Ireland, North and South : case studies of the textile and information technology sectors

This paper follows from another study, which showed that the industrial structures in the Republic and Northern Ireland are very different—the former with a cluster of modern high technology sectors, the latter retaining its nineteenth-century specialization in more traditional sectors. However, the most important dynamic promoting increased intra-EU trade in the single market of the EU is associated with inter-firm trade in similar product areas rather than trade in finished goods. This two-way trade cannot easily take place between North and South, given contrasting production structures. In this paper we explore the history and the nature of this dichotomy, using two case studies as illustrations: the clothing and textile sector, which is mainly a northern area of specialization, and the computer sector, a primary focus of specialization in the South. We suggest that both regions face challenges that could be used to promote North-South links on the island for the first time in modern history.