IRISH COMPANIES: EXPORTING INNOVATION TO THE WORLD

Investment in R&D and internationalization is powering renewed economic growth

Just ten years after the global financial crisis, the Republic of Ireland has become the fastest-growing economy in Europe and emerged as a global hub for investment in innovation, research and development.

Home to the youngest population in the EU, with one-third of Irish people under the age of 25, and with strong support for continued membership of the single market and the Eurozone, the country is pursuing an ambitious, innovationled vision of economic growth that is inspiring businesses of all sizes in all sectors, from local startups and SMES to giant multinationals.

“We have a strong pro-business environment, an open economy, and a stable and consistent 12.5% corporate tax rate,” says Michael D’arcy Minister of State at the country’s Department of Finance. “We’re having conversations with our third level [educational] institutions, and they understand that technology is going to be dominant in every sector.”

Already home to over 1,200 multinationals employing some 230,000 people Ireland has become an important English-speaking, common-law base in particular for U.S. companies looking to serve their European markets. Nine of the world’s largest pharmaceutical companies, eight of the top 10 technology businesses and more than 50% of the world’s leading financial services firms have established major operations in the country, while Internet poster-boys Google, Facebook, Twitter, Linkedin and Airbnb have all located their European headquarters in Dublin’s socalled Silicon Docks area.

While the UK’S imminent exit from the EU is enhancing Ireland’s appeal to foreign investors looking for a European base, the Irish government is also focused on diversifying the country’s exports and helping domestic companies expand into new markets overseas in response to the seismic changes in its largest trade partner.

Clients of Enterprise Ireland, the state agency responsible for helping Irish companies sell to international markets, recorded export sales of €22.7 billion in 2017, a 7% increase on 2016 and the highest level of exports in EI’S history. An estimated 85% of clients are taking Brexit-related actions.

In terms of innovation and internationalization, the strongest performing sectors in the country are the agricultural and pharmaceutical industries. Glanbia, Ireland’s leading dairy company, has won the highest ever level of EU Horizon 2020 funding in the country for a project which will convert dairy waste into high-value raw materials.

“Agri-food is the largest indigenous industry in Ireland,” says Tara Mccarthy, the CEO of Bord Bia, the Irish Food Board. “We have annual exports of €12.6 billion and by 2025 we think that could increase to €19 billion. We are looking seriously at how to get our food to customers in new markets.”

According to Bord Bia, international markets have been the focus of exceptional growth in Irish food and drink exports over the last eight years. In 2018, Ireland’s total food and drink exports to countries outside of the EU rose to €3.45 billion, almost double their value in 2010.

To maintain their position as world leaders, both the food and pharmaceutical sectors are investing heavily in new technologies and in education and skills development. “There is a huge body of knowledge and talent that has been built up here,” says Ian Jones, CEO of Innopharma Labs, which runs training courses for food, pharmaceutical and medical device businesses and develops advanced manufacturing tools for pharmaceutical and Medtech companies.

On the educational side, Innopharma College of Applied Sciences is recording strong demand for its courses, which range from diplomas for medical device operations to Msc’s in food business management and technology. The company is one of the leading providers of the government-funded Springboard+ program, which offers free places on more than 200 training courses. Many of Innopharma’s lecturers have held senior management positions with major multinationals in their industries in Ireland and overseas.

In its technology offering, Innopharma Technology reached the finals of the Irish Times Innovation Awards 2018 with a platform that enables pharmaceutical manufacturers to accelerate product development and automate their processes.

According to Jones, Ireland’s concerted efforts to support both technological innovation and skills development will consolidate the country’s position as a global powerhouse for technology exports.

“There is an incredible ecosystem of research in Ireland and a naturally entrepreneurial culture,” Jones says. “The country is going to continue to be a major hub for pharma and Medtech.”