Incentives in RD&I

Ireland’s intellectual property laws provide companies with generous incentives to innovate. The Irish tax system offers huge support to turn brilliant ideas into the finished article. A highly competitive corporate tax rate of 12.5% is a major incentive. No tax is paid on earnings from intellectual property where the underlying R&D work was carried out in Ireland.

Ireland recently introduced a new R&D Tax Credit, designed to encourage companies to undertake new and/or additional R&D activity in Ireland. It covers wages, related overheads, plant/machinery, and buildings. Stamp duty on intellectual property rights has been abolished.

The IMD World Competitiveness Yearbook 2009 ranks  the investment incentives available in Ireland to foreign investors as among the best in the world.  IDA Ireland is committed to supporting our clients to establish and grow R&D activities in Ireland.

Support for first time research and development activity

Feasibility study
If you are considering Ireland as a location for conducting R&D we can support you from the start. We will help you to investigate the possibility of doing R&D here using a feasibility study. You may need to check out new technology, different opportunities or growing markets – IDA will help you to take the first step to discover if your ideas have solid foundations and real potential.

Training
Having well qualified, highly trained staff and management is crucial to implementing effective and innovative R&D initiatives.We will help you to upgrade the skills portfolio and knowledge base of your key staff to carry out these activities.
This could range from formal internal staff training to off-site training programmes in Ireland or abroad or visits to existing corporate R&D facilities to acquire technology and R&D management skills.

Pilot R&D Project
When you have identified a specific area of your business that could be developed and enhanced with research, we can provide support for a small pilot R&D project.
We envisage that this type of support would be available for first time R&D activity once every two or three years.

• Feasibility and Training Support Guidelines - Word (247kb) 
• Feasibility and Training Grant Support Application Form - Word  (252kb) 
  
  

Press Release - January 2008 -  €500m Research & Development Scheme Open

Support for companies with existing research and development activity
We are eager to support companies that are already engaged in some level of R&D activity. IDA Ireland will work closely with you to strengthen, expand or deepen your existing R&D activity and capability. Our supports cater for the complete range of research and development, from small scale projects to large scale programmes and the development of dedicated R&D functions.

• As you push the boundaries of your R&D, you many need to up skill your current R&D team or recruit additional staff, IDA can help you. Support is available for operational costs including: personnel (researchers and support staff), travel and expenses associated with training placements, management training and other project activities.
• Scaling up your R&D activity may require additional capital expenditure on new equipment and technology, or on modifying or creating new R&D facilities, which IDA Ireland can also support.
• To advance your R&D strategy you may need to utilise specialised consultancy and technology which IDA Ireland can also support.

Working closely with client companies, IDA Ireland facilitates collaborative research, affording companies the opportunity to access and harness the benefits of the knowledge based resources and ideas of Ireland’s Eco-systems, including, uiversities, Institutes of Technology and applied research centres.

• RD&I Application Form - Word (407kb) 
  

The Innovation Partnership Initiative can provide financial support to encourage companies to undertake collaborative projects with Irish Universities and Institutes of Technology.
All manufacturing, processing and research companies involved in science, engineering, technology and internationally tradable goods and services and with an operating base in the Irish Republic are eligible to participate. Collaboration with Irish third-level institutions is also a required criterion.

Click here for further information on the Innovation Partnership Initiative

Funding is also available through the European Union’s Framework Programme. This programme offers companies which are based in Europe the opportunity to collaborate with leading European researchers and research organisations.

In order to encourage participation in this programme, advice and financial assistance are available to IDA client companies.

• EU 7th Framework Application Form - Word (223kb) 
• EU 7th Framework Guidelines - Word (190kb)

The Irish Finance Act 2004 introduced an R&D Tax Credit scheme in the state which was designed to encourage both foreign and indigenous companies to undertake new and/or additional R&D activity in Ireland. Over the years various amendments to Finance Acts have greatly improved the original scheme.

The twenty five per cent tax credit is available to Irish tax-resident companies and branches engaged in in-house qualifying R&D undertaken within the European Economic Area (EEA), provided such expenditure is not otherwise eligible for tax benefit elsewhere within the EEA. The credit also provides that up to five per cent of the R&D expenditure can be outsourced to European universities and in addition ten per cent of the R&D expenditure can be sub contracted to unconnected parties. (i.e. fifteen percent in total).

In order to make Ireland a more attractive location for Intellectual Property (IP), there is no stamp duty tax charge from the transfer of Intellectual Property to Ireland. This exemption also applies to the value of any goodwill attaching to the intellectual property. For the purpose of this exemption, IP includes any patent, trademark, copyright, registered design, design right, invention, domain name, supplementary protection certificate or plant breeders’ rights.