Damien English (Meath West, Fine Gael) | Oireachtas source

The figures as regards the gap between larger companies and SMEs that avail of the research and development tax credit have been out there for quite a while. This information was captured in the last two science strategies. Every policy aim has been to try to encourage more of our SMEs to tap into the opportunities presented by research and development. It is driven through local enterprise offices, Enterprise Ireland and other forms of State engagement. In effect, a research and development credit is demand led and we are trying to get more companies to avail of it. It encourages larger companies to bed down their enterprises in Ireland and to do their research and development and innovating here. That creates more jobs. Many of our SMEs benefit as well.

This is not just about the rate, but also the other changes that the Minister mentioned that would make it easier for our SME community to avail of research and development grants without fearing they will be taken off them again, which is the point Deputy Doherty made as regards Revenue. That is why I asked that the message go out to everyone, including Revenue, that we want to make it easier for more of our small businesses to avail of this research and development credit and other supports. It should also be recognised that much of the €1 billion being spent through our public research and development infrastructure is being tapped into by our SMEs. Groups have been formed between larger multinationals, SMEs and our educational system, which should lead to the better terms and conditions we want to achieve. That is what is happening in every other country, where the full network – the combination of public and private – is unlocked by research and development credits and the importance of investing through state infrastructure is recognised. Thankfully, we are doing that, but we are still not where we should be in terms of the percentage of GDP. That is why we are trying to do more of this, and I am glad that we are having this discussion.

The imbalance is pretty much common knowledge to anyone in the research community who has been trying to change it and increase the role of our SMEs. I am glad that the issue is being addressed in this incentive.