Innovation
Innovation is at the heart of Ireland’s founder ecosystem, driving growth from early-stage ideas to global-scale businesses. A culture that supports innovation is essential not only for competitiveness but also for collaboration across startups, enterprises, academia, and public bodies.
Despite its importance, public investment in research and innovation has declined to 0.36% of national income — well below the EU average of 0.72%. To maintain Ireland’s edge, increased investment through business supports and tax incentives is needed.
The R&D Tax Credit is gaining traction, with uptake rising from 40% in 2024 to 53% in 2025. However, awareness of resources like the National Enterprise Hub remains low, with 58% of businesses unaware of its launch. Boosting visibility and engagement is key to unlocking Ireland’s full innovation potential.
Key recommendations:
To remain competitive with leading innovation economies, Ireland should raise public R&I investment—including through the R&D Tax Credit—to 1% of Gross National Income by 2035.
Broaden eligibility to include emerging tech sectors like AI and green innovation. Simplify the application process and provide clearer guidance to improve accessibility for founders and SMEs.
Increasing the cap will enable early-stage founders to collaborate more effectively with third-level institutions, strengthening academic linkages, regional ecosystems, and skills development.
Expand access to innovation supports—such as Innovation Vouchers, the R&D Tax Credit, and Grow Digital—to help founders integrate digital and AI technologies early and gain a competitive edge.
Further promotion and expansion of the National Enterprise Hub would strengthen its role as a centralised platform, enabling founders to more effectively access and navigate the supports available to them.