Technology Hub of Europe: Why companies choose Ireland.

 

Innovation:

IDA Ireland offers collaborative funding and tax incentives (e.g. 25% tax credit) to eligible R&D investments. This dedication to innovation is reinforced by the Irish government spending €4.7 billion on R&D in 2021.

Highly Educated:

Ireland is celebrated as having a highly educated workforce, with "62.3% of Irish people aged 23-34 having completed third-level education" and the "Highest level of STEM graduates per capita in EU among 20-29 year-olds" (IDA Ireland, 2023).

Corporation tax:

Formerly, Ireland's tax rate was 12.5%, the second lowest in Europe behind only Hungary (9%) (Bray, 2023). Due to this, multinational corporations were incentivised to locate in Ireland to improve profit margins through a lower tax rate. As of budget 2023, legislation is being prepared to formalise this 15% corporation tax but it should be mentioned this rate only applies to corporations with revenue in excess of €750m (Taylor, 2023).

English speaking:

With English being the main spoken language in Ireland, multinationals corporations especially from the US are particularly keen to set up here where there are no language barriers.

Member of the EU:

Ireland being a member of the EU allows it to take advantage of all the benefits of being part of the bloc. Multinational corporations can make use of open travel across countries, EU grants and a diverse workforce.

Economy:

For a small country of only 5 million people, Ireland is the 9th biggest economy in the EU (Rao, 2023) and 26th biggest worldwide and on a per capita basis, we rank 2nd (worlddata, 2023).

Infrastructure:

Ireland's infrastructural basis is very strong, with motorways connecting the country, multiple airports, ports and a strong healthcare system. The government is already looking ahead with 'Project Ireland 2040' aiming to "make Ireland a better country for all and to build a more resilient and sustainable future" (Gov.ie, 2023) and a record €165bn was committed to be spent on infrastructure by 2030 (Webber, 2021).

Young population:

Ireland's working age population (15-64) accounts for ~65% of the population, ~30% of these being 20-34 year olds (CSO, 2021).

Energy:

50% of Ireland's energy production now comes from renewable sources, with wind being the biggest source (CSO, 2022), contributing 32% of the islands energy in the first 8 months of 2023 (O'Brien, 2023).

Networking:

As part of Ireland's National Broadband Plan (NBP), households and businesses will have access to fast and reliable broadband, currently over 100k premises now have been connected. The current EU average for households able to access broadband with speeds of a gigabit or more is 51%, with Ireland now achieving 58% (Department of the Environment, Climate and Communications, 2023).