- Technological diffusion and managing the associated economic transitions in Ireland
Technological change is transforming Ireland’s economic structures, leading to new jobs and innovative products that benefit consumers. Adoption of new technologies by businesses has been high relative to many other OECD economies, but it has been uneven across industries and the impact on productivity growth in most firms has been modest so far. Policymakers must encourage further diffusion of new technologies through reforms that promote business dynamism, at the same time as supporting the accumulation of skills that help the productivity potential of such technologies be realised. Some workers who are displaced by technological change must be assisted in transitioning to new, higher productivity jobs through well-designed activation and training programmes. New jobs in the gig economy and changes in the geographic location of economic activity should also be accommodated, thereby adding to the flexibility of the Irish economy. Nevertheless, as technological progress causes business models and market structures to mutate, competition policies and data security measures will need to be revisited.