How Ireland Is Becoming an International Tech Hub

Ireland may be best known for shamrocks, Guinness and leprechauns, but it’s also gained prominence for something a little different in recent times: its tech industry.

The country has legitimately earned a reputation as an international tech hub, as epitomised by the likes of Facebook, Amazon, Apple, Netflix and Google all setting up their European headquarters in the capital of Dublin. Meanwhile, tech employment in Ireland continues to grow despite global layoffs, and new tech startup levels are at their highest number on record.

The evidence of Ireland’s status as an emerging international tech hub is pretty overwhelming, but what exactly has led to this change of fortunes?

A strong talent pool

Ireland has a strong pool of tech talent, something that is a major draw for tech companies looking to launch there. Key to this level of talent is a recent influx of overseas tech workers, with the highest number of immigrants arriving in 2022 since 2007.

Meanwhile, Ireland has invested heavily in tech education, ensuring its youth can jump straight into tech jobs, while the country also offers some of the best salaries around for tech workers. According to the latest figures from the Central Statistics Office (CSO), Irish tech employees received a total of €8.5bn in wages in 2019, the highest out of any sector in the country.

What’s more, it’s easy to find a tech job in Ireland, with specialised job sites like Relocate.me listing roles in fields such as SAP, AI and IT.

High level of support

A big factor in the growing number of tech startups in Ireland is the level of support available to them. For example, according to EU data, venture capital funding into Irish SMEs increased by 34% to €309 million in the third quarter of 2022 alone, bringing the year’s total to above €1 billion. In addition, there are a number of dedicated support initiatives for Irish tech companies, including:

• The Future Growth Loan Scheme – This scheme offers loans ranging from €25,000 to €3 million to eligible businesses, and was launched in 2019 with a total funding of €300 million.
• The Microfinance Fund – The Microfinance Fund is aimed at all micro-enterprises in Ireland — those with fewer than 10 employees and a turnover of less than €2 million per annum — and offers loans between €5,000 and €25,000.
• The Disruptive Technologies Fund – This fund offers financing to businesses developing and deploying disruptive and innovative commercial technologies, targeted at tackling national and global challenges.

As well as financial support, tech businesses in Ireland can also avail themselves of things like incubation centres and accelerator schemes. These include the National Design Research Centre IT incubator and the Propeller Venture Accelerator, which offers mentors, development plans and €45k in exchange for 7.5% equity.

A thriving economy

Ireland has the infrastructure to fund and support its prospering tech startup hub because of its impressive economic performance. In 2022, the country’s economy was the fastest growing in Europe, with GDP growth of 12.2%. This was driven by factors such as higher levels of investment by multinationals in intellectual property, continued growth in exports, and higher private consumption. This recent performance corresponds with Ireland’s long term economic showing, with the nation averaging 6.4% growth a year between 1996 and 2023.

The country —  and in turn its tech sector — has also benefited massively from Brexit, with companies looking to do business in the EU flocking to the Emerald Isle. As the only English-speaking country in the EU, Ireland has become an enticing destination for multinational companies. In addition, the country is home to the highest number of Brexit-related financial company relocations from the UK, injecting yet more money into Ireland’s thriving economy.