Innovation Monitor | KPMG | IE

Innovation Monitor 2017

Innovation Monitor 2017

At a time when businesses face rapid change and disruption, nurturing innovation has never been more important.

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Innovation Monitor 2017

Ireland’s open economy is highly exposed to the impact of geopolitical developments.This, combined with changes to customer behaviour, technologies, regulation, and demographics, has made innovation a strategic imperative for Irish businesses.

Research conducted by RedC Research on behalf of KPMG shows that innovation levels continue to increase. 88 percent of companies currently innovate in Ireland and/or abroad, up eight percentage points on 2016. Yet despite their innovative work, most have never claimed an R&D tax credit and many could potentially lose out on financial benefits through lack of awareness of the knowledge development box (“KDB”).

Key findings:

  • 88 percent of companies engage in innovative activity in Ireland and/or abroad (up eight percentage points on last year).
  • The availability of qualified in-house personnel (68 percent) and R&D funding (63 percent) are the factors most frequently cited by businesses when asked what influences their ability to innovate.
  • 73 percent of companies say that the attractiveness of the R&D tax credit as an incentive for R&D would be negatively impacted if the Government was to reintroduce some form of mechanism that meant the credit was only available on incremental R&D spend in excess of the prior year R&D spend.
  • Limiting the amount of cash refunds a company can claim, or reducing the rate of the incentive for non-taxpaying firms that avail of the refundable mechanism over a number of years, would negatively impact the attractiveness of the R&D tax credit for seven in 10 companies.
  • 52 percent of companies were unaware of the KDB prior to this survey.

We hope that you will find this snapshot of current innovation matters in Ireland useful and thought provoking. If you would like further information or to discuss how to build more innovation into your business, please do get in touch - our contact details are included at the back of this report.

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