Enhancing the R&D Tax Credit Scheme for Ireland’s Medtech Sector

Ireland’s Medtech industry is a world leader in health technology design, manufacturing, and export. With more than 450 companies, including 9 of the world’s top 10 medtech companies, operating across the country, including indigenous startups, contract manufacturers, and multinational R&D hubs, the sector contributes over €16 billion in exports and employs more than 48,000 highly skilled professionals. The Medtech ecosystem thrives on a robust foundation of innovation, manufacturing, R&D and shared services, and is integral to Ireland’s broader knowledge economy.

Irish Medtech, a business sector within Ibec, represents Ireland’s medical technology sector. We are presenting this response to the Department of Finance’s public consultation on the R&D Tax Credit and Innovation Supports. While aligned with Ibec's national recommendations, this submission offers a Medtech-specific perspective on current barriers and proposes solutions designed to reflect the industry's operational realities and international competitiveness pressures.

We welcome the Budget 2024 enhancement of the R&D tax credit to 30%, yet persistent structural and administrative issues inhibit its full impact—particularly for SMEs. To further strengthen Ireland’s competitiveness and stimulate greater innovation, we recommend exploring an increase in the R&D tax credit to 35% for high-value, R&D-intensive sectors such as Medtech, subject to economic impact evaluation. This document outlines detailed background, international comparisons, and actionable reforms to enhance Ireland’s innovation landscape.

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