Written answers

Tuesday, 11 October 2016

Department of Jobs, Enterprise and Innovation

Research and Development Supports

Photo of David CullinaneDavid Cullinane (Waterford, Sinn Fein)
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637. To ask the Minister for Jobs, Enterprise and Innovation the supports, strategies and processes in place to support companies operating in the life sciences sector in dealing with specific challenges in relation to an expiry of patents, the costs of research and development and global over capacity and competition from Asia and the Far East; and if she will make a statement on the matter. [29654/16]

Photo of Mary Mitchell O'ConnorMary Mitchell O'Connor (Dún Laoghaire, Fine Gael)
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Ireland has one of the world’s leading life sciences clusters. This cluster includes world-class researchers, leading global multinationals supported by IDA Ireland, innovative indigenous companies supported by Enterprise Ireland (EI), clinical specialists and ancillary service providers.

The Irish life sciences sector accounts for approximately €50 billion in exports annually. There are 50,000 people directly employed in the sector in foreign direct investment (FDI) companies and indigenous industry.

IDA Ireland offers a wide range of financial assistance including research and development (R&D), capital, employment, training and environmental supports to companies wishing to locate or expand their existing operation in Ireland.

IDA Ireland also aims to support companies as they develop new products and processes to address challenges in the sector such as those presented by the expiration of patents on older products. For example, in the last 10 years, IDA Ireland has worked with existing and new clients to compete for over €10bn in capital to support the development and manufacturing of a new wave of biotech drugs. In addition, companies are encouraged to develop and commercialise intellectual property (IP) in Ireland by availing of the 6.25% preferential tax rate on income arising from IP development. R&D active companies can also avail of Irish tax relief via the 25% tax credit.

Enterprise Ireland operates a range of supports to help indigenous companies drive their own internal R&D capacity and to help them engage with third level researchers to undertake collaborative research for the benefit of the company.

These R&D capabilities, along with leadership and management strengths and collaborative partnerships with some of the world’s leading companies, have been central to the success of Irish life science companies

Global over capacity and competition from Asia is primarily a challenge for large multinational pharmaceutical manufacturers, which can be a consequence of expiring patents. There is no discernible difference between competition from Asia and the competition that EI client companies face from other parts of the globe. To remain competitive, it is hugely important that the sector continues to invest in Lean programmes, RD&I and market diversification initiatives.

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