KPMG launch annual Innovation Monitor to track insights into innovation and R&D
Dublin, 18th September 2017 - KPMG has today launched its annual Innovation Monitor report, which tracks the views, insights and key issues impacting innovation and R&D among companies in Ireland. The research, conducted by Red C, found that 88% of companies currently innovate in Ireland and/or abroad, an increase of 8 per cent year on year. It also found that while the majority of companies (62 per cent) consider Ireland to be “innovation friendly”, this sentiment is down by 8 per cent year on year.
The findings of the research indicate that the main barriers impacting the ability of a company to increase the level of R&D and innovation are access to funding (68 per cent) and access to skill (63 per cent).
The Innovation Monitor also delved into attitudes towards R&D incentives and the impact of potential changes. The research found that 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, would negatively impact the attractiveness of the R&D tax credit for seven in 10 companies. It also found that just over half (52 per cent) of companies are unaware of the Knowledge Development Box (KDB).
Damien Flanagan, who is a Director in KPMG’s R&D Incentives and Capital Allowances Practices, commented on the findings:
“Ireland’s open economy is highly exposed to the impact of geopolitical developments. As such, in the current climate, as companies prepare for Brexit and adjust to changes in customer behaviour, technologies and other external factors, innovation is a strategic imperative for Irish businesses.
“While we see very positive indications that Ireland is innovation friendly and companies based here prioritise R&D, it is vital that Government policy incentivises and rewards innovators in this country. It’s important that there is no uncertainty around the R&D tax credit, as this is a key pillar of Ireland’s corporation tax policy. In this regard, it was helpful to see that last week’s Coffey report recommended that no changes be made to Ireland’s R&D tax credit regime or the KDB. Government, state agencies, businesses and higher education institutions will all need to continue to work to maintain Ireland’s robust innovation culture.”
For more information, contact:
Communications Manager, KPMG Ireland
firstname.lastname@example.org; (01)700 4169
About KPMG in Ireland
KPMG in Ireland employs 2,400 people across its audit, tax and advisory services from offices in Dublin, Belfast, Cork and Galway. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services.
About Innovation Monitor
The survey was conducted by RedC Research on behalf of KPMG. The survey was confined to businesses with at least 10 employees and quotas were placed on company size to ensure a nationally representative sample. Interviews were conducted with the Finance Director, Tax Director or a similar individual/partner in the company. Businesses from the following sectors were represented: Medical devices; pharmaceutical, chemical and biotechnology; engineering & mechanical, electrical, industrial products; electronics; agribusiness (food and drink, meat processing); ICT; financial services and renewable energy.