Case Study: Developed EconomyFootloose Pharmaceutical Industry in Cork

Pharmaceutical Industry in Ireland

• Many pharmaceutical (pharma) industries are footloose.

• 9 of the top 10 pharma companies in the world have plants in Ireland (e.g. Pfizer in Ringaskiddy).

• The pharma industry employs roughly 47,000 people in Ireland and its exports are worth €50.8bn annually.

Pharmaceutical Industry in Cork

• A large proportion of Ireland’s healthcare and pharma industries are located in Cork.

• County Cork accounts for nearly half of the total employment in the pharma sector.

• Pharmaceutical manufacturing is concentrated in Cork harbour since the late 1970’s. Over 20 plants operate in the area today.

Factors leading to the

development of pharma industry

in Cork Harbour:• Human Factors

oGovernment Policyo Labour Force

• Physical FactorsoWater supplyo Sheltered deep water porto Energy supplies

Human Factors:Government Policy

Since the 1950s Irish government policy has encouraged the location of pharma industry in Cork Harbour by:• Investing in foreign-owned MNCs in order to

modernise Ireland’s industry.• Grants and tax incentives for chemical, pharma and

electronics industries.• Investing in education to ensure the provision of an

educated workforce.• Setting up the Industrial Development Authority

(IDA)• Joining the EEC (EU) in 1973 which gave MNCs

located in Ireland access to the large European market.

Human Factors:Labour Force

• The Buchanan Report (1968) identified Cork as one of several growth centres for investment in social and industrial development because of its labour force.

• Cork has a young and educated workforce. • The Cork area can provide an excellent quality of

life to its residents and many companies use the social factors as an important attraction for their executive employees.

Physical Factors:Water Supply

Pharma industries require sites with efficient water supplies for two reasons:1. The pharma industry creates chemically

contaminated wastewater which must be diluted by mixing with river or sea water. (Effluent discharge systems were built at Ringaskiddy).

2. The production process requires large amounts of fresh water. (Cork County Council created the largest supply of processed water in the country).

Physical Factors:

Cork Harbour

• The harbour has been a natural advantage for industrial location in the area.

• Cork Harbour is a natural, sheltered, deep water port.

• Cork Harbour is located close to the major shipping lanes between Europe and America.

Physical Factors:Energy supply

• The manufacture of pharmaceuticals requires large amounts of energy so the Kinsale Gas Field was an important attraction.

• In addition,The ESB built a gas-fired power station at Aghada near the harbour in 1980 to supply the growing industrial demand.

The Scale and Impact of the

Pharma

Industry in Ireland:

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