Ireland’s progress up the economic value chain has been accompanied by the development of a highly advanced research, development and innovation (RDI) ecosystem. The State is leading the way across many areas of health, technology and climate innovation, and enjoys healthy and vibrant interaction and co-operation between industry and academia.
Without its RDI structure, the Republic would not be seen as a place of innovation with a competitive edge internationally, says Derek Collins, director of industry engagement and collaboration, Huawei Ireland Research Centre, who sees several key elements within that structure driving its success.
“The Irish Government offers significant support for R&D through tax credits and grants. The increase in the R&D tax credit to 30 per cent has further incentivised companies to invest in innovation, hence encouraging strong private-sector investment,” says Collins.
Ireland’s universities and research institutions are highly regarded, and strong partnerships have been fostered between academia and industry, he adds. This collaboration enhances the quality of research and accelerates the transfer of knowledge and technology. Organisations including Research Ireland (RI) and numerous programmes increase the level of collaborative R&D activity between industry and academia. This includes industry-academic projects supported through innovation partnerships, technology gateways in institutes of technology and technological universities, and funding for industry-led technology centres and networking initiatives.
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Collins points out that talent lies at the heart of Ireland’s RDI performance and its international reputation.
“Various programmes, such as the InterTradeIreland Fusion programme, Research Ireland’s employment-based programme and industry fellowships help companies to access the talent that they need for their R&D activities, ranging from graduates to postgraduate and highly skilled researchers,” he says.
SSPC, the RI Research Centre for Pharmaceuticals, is one of Ireland’s globally competitive research centres. It is a prime example of successful collaboration between research and industry, partnering with industry leaders such as Innopharma, Janssen and Boston Scientific.
Such centres thrive on strong collaboration between government, industry and academia, and contribute to Ireland’s ranking as the seventh most innovative country in Europe on the European Innovation Scorecard, ahead of countries such as France and Germany.
However, while the State’s innovation system is strong, the Government’s stated aim of Ireland being a recognised leader in the space will require a significant investment in RDI to match that of similar-sized economies such as Denmark, where investment levels are significantly higher. In terms of budget allocation, Ireland spends about 0.96 per cent of GDP on RDI, Denmark spends around 1.8 per cent, while the EU average is 1.43 per cent. There is therefore some distance to travel before Ireland can be acknowledged as a leader.
Mark O’Sullivan, partner, R&D incentives, BDO Dublin, believes the steady incremental enhancement and improvements have kept Ireland as a significant player in the global market in terms of R&D and innovation which has resulted in genuine job creation.
“Recent amendments from the Government proactively on the R&D tax credit regime have resulted in both large groups and SMEs benefiting,” he says. “For most companies, the credit rate has gone from 25 per cent to 30 per cent, while large groups under new Pillar II rules are still able to avail of a net 25 per cent credit.”
O’Sullivan also sees the role of third-level institutions as being critical.
“I have personally seen serious collaboration between industry and academia,” he says. “In particular, I see universities being able to give dedicated resources in specialised areas of research – commercial organisations would not have the bandwidth for such detail.
“In addition, over the past 18 months, I’ve seen a fantastic number of companies and start-ups being spun out of third-level institutions.”
O’Sullivan acknowledges that Ireland’s location, having direct access to European markets and Brexit have contributed to its success. Coupled with the State’s stable political position and effective tax policies, these attributes have given it a competitive edge, he says.
Sinead Keogh, director of BioPharmaChem Ireland, has particular views on the BioPharmaChem (BPCI) sector industry in the State. She sees Ireland’s RDI ecosystem as having been pivotal in the growth of this sector. With more than €10 billion in capital investment over the last decade and €120 billion in annual exports, the sector demonstrates how targeted RDI strategies and public-private collaborations have driven economic output, created jobs and enhanced Ireland’s high-value manufacturing capabilities.
“Investment in initiatives like the IDA’s NIBRT institution and SSPC ensures Ireland remains competitive in new modalities like RNA therapeutics and cell therapies, which are reshaping global healthcare markets,” says Keogh.
Ireland’s largest biopharmaceutical research collaboration, the SSPC is comprised of 79 academic investigators, more than 50 industrial partners and 60 international academic collaborations. Dublin-based NIBRT specialises in biological manufacturing, offering training and research support across the entire process, from upstream cell engineering to final product fill and finish. Their work drives innovation in areas such as cell and gene therapies, accelerates drug development and strengthens Ireland’s position in global biopharma markets.
For Keogh, universities are instrumental in driving innovation and play a crucial role in RDI by equipping the workforce with high-calibre skills and collaborating with industry to develop and refine advanced biopharmaceutical processes.
She concludes: “Ireland’s R&D success stems from its building of a cohesive ecosystem where government policy, enterprise funding and academic research align to drive innovation. Ireland has also transformed its workforce dramatically over the years, with increasing numbers of tertiary degrees well above the EU average.”