Dr Eoghan Ó Faoláin
Director, Irish Medtech
Medtech’s ability to transform lives and grow the economy depends on its culture of innovation. Recent policy changes, specifically changes in the R&D tax credit, may impact this.
Global headwinds are seeing competition for medical technology innovation rise as this dynamic industry grows. It’s one of the most pioneering sectors in Europe, and the recent increase in R&D tax credit to 35% marks a milestone that Irish Medtech has lobbied for. Additionally, the upcoming review of outsourcing and qualifying expenditure definitions, along with the announcement that the threshold for first-year refunds under the R&D tax credit scheme will increase to €87,500 to support smaller projects, marks a positive step forward.
Strengthening Ireland’s global edge
Ireland’s medtech sector is a global leader, directly employing 50,000 people, contributing €20 billion in exports and delivering life-saving technologies worldwide. There are over 450 medtech companies in Ireland, of which 80% are SME’s or start-ups, underscoring the scale of innovation-led entrepreneurial activity. Ireland is also home to 9 of the world’s top 10 medtech companies and a thriving indigenous base.
Our neighbours, France, have an R&D tax credit at 43%, followed by the Netherlands at 32%, with the UK also strengthening support with a focus on SME R&D relief. This means that the Budget 2026 announcement will undoubtedly support our position as an internationally recognised leader.
Targeted improvements to our R&D support will ensure we stand out both locally
and globally, as well as further enhance Ireland’s competitiveness.Legacy of breakthrough medical innovations
Medtech is one of Europe’s most innovative industries, and if measured in patents, Ireland has a proud record with over 2,000 patents filed over the past decade and more than 60% of businesses actively investing in R&D here. Targeted improvements to our R&D support will ensure we stand out both locally and globally, as well as further enhance Ireland’s competitiveness.
Ireland has made a big impact from the first bi-aural stethoscope developed by Trinity College Dublin graduate Arthur Leared in 1851, to the portable defibrillator developed by Dr James Francis ‘Frank’ Pantridge in partnership with NASA in 1965, and beyond. Irish Medtech is confident that, with the right business environment, we’ll continue to reinvent the way we view health and treat for a better future.
