External threats mean Budget 2027 requires decisive action to safeguard global hub Irish Medtech

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Irish Medtech, the Ibec group that represents the medtech sector, today launched its budget 2027 submission, “Safeguarding and Scaling Ireland’s Medtech Ecosystem”.

Eoghan Ó Faoláin, Director, Irish Medtech, said, “Ireland’s medtech sector is one of the top five in the world. But the macroeconomic environment has changed dramatically. Budget 2027 comes at a critical juncture. To safeguard our competitiveness, we need to stimulate long-term productivity, technological preparedness and structural resilience. The National Life Science Strategy marks a step in the right direction for delivering a coordinated approach to maintain our competitiveness. But now we need to see a dedicated Office of Life Sciences established, a model which is already paying dividends in the UK and Singapore, we must embrace policy best practice to avoid getting left behind.

He continued, “Businesses face a multitude of costs pressures with the very real potential to have a detrimental impact on patients and health systems, from US tariffs that impact not only European exporters but US manufacturers as supply chains are disrupted in this highly specialised sector. Additionally, regulatory pressures are mounting in Europe with energy prices rises due to geopolitical challenges as well as the Green Transition targets. The medtech industry has taken proactive measures in the face of these changes and invested ambitiously to meet these targets, as well as embrace sustainability by design principles, but support is needed to make this time of transition a success. This pre-budget submissions outlines practical fiscal measures which need to be deployed by Government to unlock the full potential of this vital industry in the face of an increasingly turbulent and AI-driven future”

Emer Sherry, Senior Executive, Irish Medtech, said “Internationally, the Irish medtech industry is improving lives with €20 billion exports across cardiovascular, orthopaedics, digital health and more. In Ireland not only do the 550 companies here employ 50,000 people, additionally the Irish medtech community is supporting regional growth with major clusters of employment in Galway, Sligo, Dublin, Waterford, Cork, and Limerick. These medtech businesses not only span some the world’s leading foreign direct investment companies, but in volume terms, 80% are startups or SMEs. More needs to be done to help these small medtech businesses to scale. Founders and innovative startups sit at the coal face of disruptive innovation, addressing the unmet clinical needs of patients. To achieve this, we are calling on the Government to attract capital to ensure life changing devices reach key milestones, enhance the R&D tax credit, and for the HSE to have a ring-fenced budget to support patient access to cutting edge Irish innovation."

Irish Medtech Budget 2027 recommendations:

Accelerating Innovation Enhance the R&D Tax Credit: Fund process and digital innovation, and close the gap between clinical validation and health-service adoption.

Estimated cost: €295 million in tax and innovation measures, together with targeted clinical-trial and HSE adoption funding

Energy Resilience and the Green Medtech Transition: Stabilise industrial energy costs and de-risk the regulatory-driven transition to sustainable manufacturing.

Estimated cost: €418 million in direct interventions, plus a multi-annual green transition framework

Empowering Founders and Attracting Capital: Reform founder taxation, simplify investment incentives and unlock domestic institutional capital.

Estimated cost: principally tax-relief reform; cost dependent on uptake

A Coordinated National Life Sciences Strategy: Establish a dedicated, permanent home for implementation of the National Life Sciences Strategy.

Estimated cost: €1 million

Scale Skillnet Business Networks and unlock the National Training Fund: Unlock the National Training Fund surplus and scale industry-led upskilling for the AI-driven future.

Estimated cost: €16.7 million in 2027, rising to €50 million over three years

ENDS