KPMG research highlights SMEs are missing opportunities to claim tax credits
A new survey of 200 Irish business leaders by KPMG in conjunction with RED C Research has found high levels of confidence for innovation prospects among Irish-based businesses, with over 4 in 5 (84 per cent) either innovating or planning to do so.
The results are published in KPMG’s Innovation Monitor survey which assesses attitudes to innovation in Ireland and reveals that, coinciding with the end of the recession, 61 per cent of Irish businesses have become significantly more innovative. There has also been an increase in the number of those planning to innovate from 13 per cent to 23 per cent, year on year.
Reasons for Irish businesses deciding to innovate include:
Innovation improving but complacency a danger
Commenting on the findings, Ken Hardy, Partner and Head of the R&D Incentives Practice at KPMG said: ‘The research reveals strong support for the existing Government’s backing for innovation but a lack of awareness of those supports among smaller companies in particular. Ireland is doing very well in innovation terms according to our latest survey but we must warn against complacency given the highly competitive international environment. The report highlights that Ireland benefits from inward investment tax policies, but that there is an equal need to focus on indigenous and smaller businesses.’
Large companies more positive about innovation
The survey also finds that large companies tend to be more positive about the innovation environment than SMEs, with only 16 per cent believing that innovation levels have declined or remained the same since Ireland’s emergence from recession. In contrast, 27 per cent of small businesses feel that Irish companies are less innovative or static when it comes to innovation.
US most innovative country
The report also highlights the continued perceived dominance of the United States as the world’s most innovation-friendly economy (37 per cent) whilst Ireland has moved from third to second place (13 per cent) with the UK moving from sixth to third place.
R&D Tax Credit
The report highlights a continued need to refine the tax treatment of R&D and innovation. Only 44 per cent of companies say they have claimed the credit, and large companies almost twice as likely to claim as smaller companies (60 per cent versus 35 per cent). Also:
An industry view
The report also highlights perspectives from business, state agencies and third level colleges on the state of innovation in Ireland with insights gained from Enterprise Ireland, UCD and others.
For more information, contact:
Communications Manager, KPMG Ireland
email@example.com; (01)700 4728
About the survey
KPMG has conducted annual research of Irish business attitudes to innovation and research and development (R&D) for the past four years. We see this research and associated commentary as essential in encouraging an informed debate about how we further develop Ireland’s strengths in this area. The survey, conducted on our behalf by RED C Research, gauges opinion amongst a representative sample of 200 Irish business leaders.
The priorities highlighted by business and innovation leaders interviewed for this report include:
About KPMG in Ireland
KPMG in Ireland employs 2,200 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.
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