In the med-tech industry, deciding where to establish R&D operations isn’t that different from finding the right home – it’s all about location.
When looking at a home, how close it is to work, shopping, parks and restaurants can be deciding factors. For an R&D site, proximity to talent can heavily affect a decision. And then there are all those other things a location can offer, from favorable tax rates and government supports, to market access and a stable business environment.
For decades, multinational med-tech companies have chosen Ireland as the home for their R&D operations. And while there have been a lot of reasons for this – sometimes, for instance, Ireland is already the home of their EU operations – some factors are proving to be especially important today for why med-tech companies choose to innovate in Ireland. They include:
Robust talent pipeline
With more than 40,000 people employed in the med-tech industry, Ireland is the largest employer of professionals in the sector in Europe per capita. But it’s not just this established pool of talent that’s attracting med-tech companies. Ireland has also put a focus in recent years on developing the next generation of specialized skills in areas like AI, analytics and data science that are essential to med-tech innovation.
For example, years before ChatGPT introduced the world to AI’s potential, Ireland had already launched the world’s first industry-driven postgrad master’s degree in AI. And today, about 1 in 7 software engineers in Dublin have AI expertise. Companies like CERENOVUS have also worked with Irish academic institutions to not just identify new talent, but to also establish PhD programs that are relevant to tomorrow’s med-tech industry.
Ireland has also put a focus on upskilling and reskilling. Initiatives like Skillnet help ensure the Irish workforce is equipped with modern-day skills for areas like R&D. And networks within Skillnet, such as Irish Medtech Skillnet, specifically address the training needs of sectors like Ireland’s med-tech industry.
Ecosystem of collaboration
Collaborating with both industry and academia can be a powerful channel for med-tech companies to solve their top challenges, especially as they work to integrate new technologies into their products or harness the power of smart manufacturing. In Ireland, this collaboration is encouraged and enabled through multiple avenues.
For years, med-tech companies have worked with Ireland’s network of research centers to explore technology advances with academic and industry experts. At Tyndall National Institute, for instance, researchers and industry work together to understand how technologies like sensors, AI, and integrated electronic and photonic components can be used to create new and better bioelectronics solutions for healthcare.
Companies can also collaborate with each other through Digital Manufacturing Ireland (DMI). This recently launched national center strives to help manufacturers rapidly adopt digital technologies by accessing expertise, experimenting with new technologies, and training employees in new manufacturing areas. Companies can also join various collaboration groups within DMI to address challenges that are specific to them or their industry.
For example, the Visual Cognitive Manufacturing Group is harnessing advances being made in AI to help companies to gain access to cutting-edge AI technologies, particularly in machine vision. Today, about 60 med-tech and other manufacturing companies are active in this group. Ultimately, the group aims to help companies rapidly adopt and integrate AI-powered vision technologies into their production processes.
Pro-innovation business environment
Today, med-tech companies consider more than the corporate tax rate when choosing where to locate R&D operations. They also want to know what kind of support they can get to reduce the cost and risk of their investments.
The Irish government offers multiple supports for a wide range of innovation efforts. For example, a 30% R&D tax credit is available for qualifying R&D activity. The Disruptive Technologies Innovation Fund is also available to companies operating in Ireland. The fund covers 40% of a company’s costs for R&D and other projects that involve disruptive, forward-looking technology.
It also helps when companies know they share similar values with the governments where they invest – like a commitment to sustainability. Just as med-tech companies are trying to reduce their environmental impacts, such as by using more Earth-friendly materials and reducing their energy usage, Ireland also has its own sustainability goals. By the end of this decade, for example, Ireland plans to increase its share of electricity generated from renewable sources to 80%.
There’s no place like home
If choosing the right home is all about finding the right location that’s close to what matters most to a person, choosing the right R&D site is all about having access to what a company needs to innovate. And today, that’s the right talent, opportunities for collaboration and support.
John Nugent
John Nugent spearheads the development and implementation of IDA Ireland's strategy for Medical Technologies and Healthcare Services. With over 22 years of experience at IDA, John has held numerous pivotal roles since transitioning from Enterprise Ireland in 2002.
John's career at IDA began in the Engineering Division, followed by a successful overseas assignment at IDA's Silicon Valley Office from 2006 to 2009. Upon his return, he contributed to the Clean Technologies Division before becoming Regional Manager for the Northwest Region in 2011. He subsequently managed the expanded Border Region from 2015 to 2019. In February 2021, John joined the Medical Technologies Department as East Coast Manager and assumed his current role in October 2023.
John holds an honors degree in Chemistry from Queens University Belfast (1992), a Master’s degree in Environmental Protection from IT Sligo (1999), a Diploma in Business Strategy from the Irish Management Institute (2003), and a master’s degree in Management from UCD Smurfit Business School (2017). He began his career as an industrial/analytical chemist at Enterprise Ireland, later transitioning to a business advisory role in the Northwest region.
