OECD's 2013 Economic Survey of Ireland examines recent economic developments, policies and prospects. This issue's special chapters cover youth employment and innovation. Ireland was one of the first countries to have been hit by the large financial crisis of 2008 and is now emerging from the difficulties and gradually regaining access to market financing. Activity is slowly recovering, the unemployment rate has started a gradual decline, cost-competitiveness has improved, and strong exports have helped to eliminate the external deficit. Re-invigorating long-term growth will be essential to ease the burden left behind by the crisis. Despite gradual improvement, unemployment remains high, emigration has resumed, and poverty has increased, adding to heavy debts and financial distress. Although the recovery is reducing unemployment, this is likely to be a gradual process, and people having been unemployed for a long time risk being marginalised and discouraged. Skills mismatches are also an issue that needs to be addressed. Ireland offers a supportive environment for innovation, according to international scoreboards, but this largely reflects the presence of high-tech multinational firms. Raising SME capacity to innovate and to build greater linkages between enterprises and the higher education sector would provide a new engine of growth.