GovTech Europe chats with Erik O’Donovan, the Head of Digital Economy Policy at Ibec – Ireland’s largest body for business representation and lobbying.
O’Donovan has been with Ibec since 1999 and has held his current position since 2016. His role is concentration on the provision of cross-sectoral services, and see him represent Ibec’s network on digital policy, both at the national and EU level.
GOVTECH EUROPE: What’s next in Ibec’s digital economy policy? What new or recurring challenges will the organisation be focusing on as a priority to solve within the Irish economy?
ERIK O’DONOVAN: Ibec research indicates that four out of five Irish CEOs see being prepared for technological change as a top priority. Digital leadership at home and in Brussels is critical – not just in supporting our green transition, but for our economic recovery and future competitiveness also. Ibec will continue to focus on the national and EU digital priorities.
The Irish Government’s new National Digital Strategy (NDS), launched earlier this month, is an important step in ensuring Ireland is at the forefront of a more sustainable, digital decade. This framework and related action plans will be essential in co-ordinating, engaging and enabling everyone in further digital opportunities that can enhance lives and livelihoods across our economy. So, working with our sectors and our members, we plan to engage Government on the implementation of that Strategy and related work streams.

Ibec’s new campaign, entitled ‘Stronger Europe, Stronger Ireland’ was launched with European Commissioner Mairead McGuinness last week. The campaign stresses the need for an EU that leads an innovative digital decade while remaining open to trade, investment and collaboration with like-minded partners. We will continue to engage all stakeholders on these messages in 2022.
GE: In your role, you work a lot with EU and OECD partners. How significant is this kind of collaboration to developing the right digital transformation policies? How should Ireland’s strategy fit in with a wider European one?
EOD: Both the EU and OECD play important roles in shaping and benchmarking our digital policies and standards.
A strong EU has helped shape a strong Ireland, with economic and societal benefits flowing both ways. Today, Ireland is at the heart of Europe’s business ecosystem and international trading relationships, notably digitally intensive sectors who develop or use digital tools and data in their economic outputs. This extends beyond the direct ‘tech’ sector into other areas such as life sciences, financial and professional services, and advanced manufacturing. We estimate that there were 240,000 employed in our digitally intensive sectors in 2019.
This year marks a few important milestones, including the 50th anniversary of Ireland’s vote to join the European Community, and the half-way point of the current European Commission work plan. The current Commission President Ursula von der Leyen is clear that the EU ambition is to make this ‘Europe’s Digital Decade’, while helping achieve its target of a climate neutral Europe by 2050. The Commission has already proposed several new digital regulations and targets for digital adoption, skills, and infrastructure by 2030.
While it is important to ensure our digital policies and standards are informed by OECD and EU work, it is crucial that Ireland work with like-minded partners to shape these digital rules too.
Ireland must be a leading voice for an open, outward-looking, and pro-enterprise EU. This is even more important following the departure of the UK.
GE: You’ve mentioned growing global competition multiple times recently. How prepared is Ireland to meet the tech demands that this global competition will bring? Are there any notable comparisons for context?
EOD: While Ireland was ranked fifth in Europe in 2021 as a digital society, other globalised surveys show the pace of competition is quickening. We are well-placed, but cannot be complacent – the pandemic has accelerated the ‘state’ and ‘rate’ of digital transformation for us and our competitors. EU research, known as DESI, shows that while Ireland is a frontrunner, gaps and divides exist in our relative readiness to access and adopt existing and emerging digitally enabled opportunities. What’s more, the current underpinnings of our FDI, which include taxation, are likely to change. To maintain competitiveness, Ireland needs to invest further in its digital infrastructure. That includes further investment in digital skills, innovation, entrepreneurship, connectivity as well as in safeguarding our services, businesses, and people online.
GE: There are positive signs from the Central Bank of Ireland that as the pandemic wanes, the Irish economy will grow strongly. How will this impact Ibec’s policy outlook? What needs to happen now to ensure the country is digitally able for any rapid growth in the 2020s.
EOD: Investment in enabling our digital opportunity will underpin our foreign direct investment model for the coming years.
Ireland needs to boost digital capacities and innovation across its enterprise, research, and innovation ecosystems. That means accelerating the national broadband plan, and in creating the conditions that will allow us to embrace 5G. The reconvened Government’s Mobile Phone and Broadband Taskforce should play a positive role. We also support resources for and implementation of national initiatives on Industry 4 and artificial intelligence. Digital Innovation Hubs should be well-placed to play a growing role in advising businesses, particularly SMEs, on further digital adoption too.
As the economy starts to use more digital tools, we will need the skills and talent required to use them. Not just advanced digital skills, but the basic digital literacy too. We need to help educators, organisations, and individuals to build their capacities, whether by: promoting STEM subjects in schools; increasing the number of technology programmes in higher education; or by opening up alternative pathways into technology, such as via apprenticeships, as well as through employment activation schemes to help people upskill and reskill. Not only must we foster indigenous talent, but we must continue to attract mobile digital talent to our shores too.
As the economy becomes more digitalised, this needs to be increasingly safeguarded. Data protection and cybersecurity are very important and need to be adequately resourced.
At EU level, we must work with partners to complete and leverage our Single Market. We must work with, not against innovation in ensuring proportionate digital rules that safeguard both trust and further opportunity for all. We encourage the EU in its ongoing collaboration with like-minded partners, such as in the new transatlantic Trade and Technology Council (TTC) to shape mutually beneficial digital standards and enhance capacities. Finally, we encourage the Commission and their US colleagues to reach swift agreement on a revised and resilient framework for EU-US data exchange, addressing privacy issues as well as the needs of modern digitalised business. Safeguarding international data flows is important to both leveraging the potential of the TTC and unlocking further opportunities for all in a digital decade.