Dáil Éireann Debate, Thursday - 1 May 2025
68. Deputy Rose Conway-Walsh asked the Minister for Enterprise, Trade and Employment to consider including supports for businesses to undertake research and development, to enhance innovation and competitiveness, in his action plan on competitiveness and productivity; and if he will make a statement on the matter. [21685/25]
Amharc ar fhreagraIn 2024, Ireland was ranked as the 4th most competitive country in the World in the IMD World Competitiveness Rankings. Indeed, Ireland currently holds a strong competitive position globally, and this performance is underpinned by several key factors, including a highly skilled workforce, strong economic growth, and success in attracting foreign direct investment in high-value sectors. Ireland has also enjoyed exceptionally strong economic performance in recent years, and employment is at record levels.
However, the international context is rapidly changing, and it is important to recognise that many businesses, whether indigenous or FDI, are facing increased challenges. In an evolving geopolitical landscape, the focus must be placed on addressing those challenges that are within our domestic sphere of influence. In recognition of the challenges facing Ireland, the Government has committed to a new whole of Government Action Plan for Competitiveness and Productivity. The Government has expedited this plan, with a draft of the Plan to be considered by Ministers at a Competitiveness Summit this July, and published as soon as possible thereafter. It is expected that the Plan will address areas which are impacting on the ability of SMEs to compete internationally.
These include, but are not limited to: energy costs and cost drivers for firms more generally, looking at ways to enhance the scaling of SMEs, and increasing the rate of research, development and innovation activity among firms. This is consistent with the Programme for Government, which has committed to examining options to enhance the R&D Tax Credit and to examine options to reward innovation and digitalisation, and ensure Ireland has the global best in class incentive to encourage innovation by domestic and international companies.
Over the coming weeks, the NCPC will finalise its Ireland’s Competitiveness Challenge 2025 report. This work will feed into the development of the Action Plan. The Action Plan will be evidence based, and will be underpinned by consultations by my Department with other Government Departments and stakeholders, as well as by research and analysis. These consultations are already underway. Given the heightened level of international uncertainty, most if not all of which is outside of our control, the Action Plan will focus on matters within our domestic control by way of policy changes which can make the Irish economy more competitive and resilient to economic shocks.
