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Lack of funding the main barrier to innovation by firms

By May 27, 2024No Comments

60% of Irish based businesses say a lack of funding is the main barrier they face when it comes to increasing their innovation levels, new research has found.

41% of those surveyed also said the time consuming nature of the grant administration was a large obstacle when it comes to research, development and innovation (RDI) activities.

Despite the challenges, a little over three quarters of businesses said they plan to increase spending on RDI.

The findings are contained in a study carried out by the Industry Research and Development Group (IRDG) and KPMG, which aims to capture the attitudes of domestic to large multinationals companies on the issue of RDI in Ireland.

500 companies were surveyed for the research which also found that Ireland ranks 22nd on the Global Innovation Index, behind leading countries like Switzerland, Sweden, the US, the UK and the Netherlands.

Despite a lower government R&D budget, Ireland leads Europe in private sector R&D investment at 80%, the study found.

40% of businesses surveyed in the research also said that Ireland must prioritise streamlining RDI support processes.

A third said there needs to be increased funding amounts and expanded eligibility criteria and 9% claimed there should be improved access for SMEs.

51% of multinational corporations feel that Ireland’s RDI grants and R&D tax credit support compare equally or favourably to other countries.

13% feel that the Irish system compares negatively and 36% are not sure.

83% of the multinational respondents indicated that 50% or less of their R&D would be carried out in Ireland without the presence of the R&D tax credit.

Article Source – Lack of funding the main barrier to innovation by firms – RTE

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