Cáit Caden: Big Tech is slowing but pharma may keep delivering for Ireland

Tech firms have had a number of golden years of uninterrupted growth, that has helped to bring thousands of jobs to Ireland.

Economic uncertainty threatens to slow short-term growth of tech multinationals, but this could lead to a surge in investments into Ireland from pharma firms.

Investors and advertisers are becoming more cautious as global central banks raise interest rates trying to stifle inflation, hitting tech firms such as Twitter and Meta.

US tech has had a number of golden years of uninterrupted growth, that has helped to bring thousands of jobs to Ireland.

A handful of high-profile companies have been forced to slim down, but other foreign-owned multinationals that do not rely as heavily on advertising, including the pharmaceutical companies, continue to invest in Ireland and create jobs.

“When it comes to big expansions and the big new jobs, it’ll be more in life sciences and more in manufacturing than in the tech sector,” said Tánaiste and Minister for Enterprise, Trade and Employment Leo Varadkar.

Mr Varadkar made his comments during the IDA’s annual results briefing, adding “the tech sector will grow again” and there will be a “huge expansion in the tech sector in the medium-term”.

The IDA remains optimistic about the future of tech in Ireland, but while the sector battles economic challenges, there is a golden opportunity to pursue foreign direct investment from pharmaceutical and manufacturing firms. Ireland’s pharmaceutical and manufacturing industry has been investing over €1bn into the economy and creating hundreds of jobs in what could be a sign of the times to come.

Amgen announced it will buy Irish-headquartered pharmaceutical firm Horizon Therapeutics at a valuation of about €24.7bn, in what would be its biggest-ever acquisition.

Life-sciences company Abbott is reportedly planning to expand its infant formula nutrition facility in Cavan.

Meanwhile, drug giant Pfizer announced plans to invest €1.2bn into its Dublin site, which will create more than 400 jobs by 2027.

However, a significant level of investment is needed in infrastructure if Ireland is to take advantage of this growing interest coming from life science, pharmaceutical, and manufacturing multinationals.

“To remain successful in the years ahead we need to accelerate the carrying capacity of the economy with regard to housing, energy, water, planning, infrastructure and also with talent policies,” said Mr Varadkar.

In addition to interest rates, an energy crisis, and high inflation levels, another uncertainty faces multinationals: Who will take over the portfolio of minister for enterprise, trade and employment as Mr Varadkar prepares to again take on the role of Taoiseach?

Also, the search continues to find a replacement for IDA chief Martin Shanahan, with Mary Buckley continuing as interim boss. A replacement is set to be announced by the end of March.