Ireland’s Innovation Policies
Creating Long-Term Economic Prosperity
R&D credits are a large stimulus for innovation, which in turn drives long-term economic prosperity. Due to this, encouraging additional R&D through public policy measures has proved to be a vital component of the Irish government’s Innovation 2020 strategy. This seeks to transform Ireland into a global innovation leader and at the same time increase investments (both private and public) in research in order to reach the intensity target of 2.5% of Gross National Product by 2020.
Supporting R&D in Ireland
Policymakers have a number of tools that they can use to support R&D in Ireland. As in most advanced economies, the government supports R&D through both direct and indirect R&D funding. Some of the fiscal direct interventions by the government include grants and awards to firms to conduct R&D. Indirect incentives in the form of R&D tax credits account for around 70% of government R&D support.
Direct & Indirect Policy Interventions
The direct and indirect policy interventions by the government stimulate innovation, particularly for startups and are designed to complement each other. Beyond this, investment in innovation also includes computerized information, intellectual property, software and firm-specific skills and organizational capabilities.
Collaboration Between Public and Private Sectors
It is therefore evident that innovation requires a broad set of policies especially those that strengthen the digital economy. In this, the National Digital Strategy has constantly emphasized on the importance of digital technologies for Ireland. Collaboration between the public sector and domestic companies is vital to creating innovation in areas like transport, health and energy.