Ireland’s status as a global hub for research and innovation is fundamental to attracting and retaining high value multinational investment.
AmCham members, which comprise the Irish operations of leading US multinationals across every sector, have consistently identified research and innovation as central to their business and investment strategies.
Amid ongoing geopolitical shifts and global trade challenges, Ireland’s ability to compete in research, development and innovation (RD&I) is not just a strength, but is essential to sustaining our position as a leading destination for high-value foreign direct investment.
Our strength in this area has resulted in Ireland being home to 14 of the top 15 global medtech companies, nine of the top 10 US tech companies and numerous global leaders in AI, automation, and pharmaceuticals. And these companies are not just investing in Ireland, they are choosing Ireland as the base for their research operations and developing life-saving products and services and enhancing them from right here on Irish soil.
A recent AmCham FDI Insights Survey found that 90 per cent of member companies view Ireland’s research and development environment as competitive when compared with other advanced economies. Notably, 58 per cent of respondents indicated that their organisation is currently undertaking one or more research projects in Ireland, demonstrating the active and growing role that Ireland plays in the global innovation strategies of US companies.
Artificial intelligence (AI) emerged as the leading area of focus, with 44 per cent of member companies engaged in AI-related research here. This was closely followed by research in software, with 31 per cent of respondents conducting research in this area. To sustain and grow this investment, it will be vital to reinforce Ireland’s position as a trusted regulatory hub within the EU, a priority identified as important by 94 per cent of AmCham members. Additionally, 96 per cent of members said continued EU investment in AI is critical to sustaining Ireland’s competitiveness and leadership in this transformative field.
However, a competitive research and innovation ecosystem cannot rely on business investment alone, it requires a co-ordinated, strategic approach that fosters collaboration between research institutions, universities, industry and Government.
To this end, AmCham has called for a comprehensive, multiannual investment strategy that prioritises the development of world-class research infrastructure, supports industry-academia collaboration and accelerates the adoption of emerging technologies. To ensure Ireland remains globally competitive in attracting top research talent, we have also recommended increasing PhD stipends and introducing targeted initiatives to recruit and retain world-leading researchers.
While attracting top talent is key for supporting research and innovation, it is also vital for supporting Ireland’s broader economic competitiveness across all sectors.
Ireland ranks first globally for attracting and retaining talent and 63 per cent of respondents to an AmCham survey said Ireland’s highly skilled talent pool was the country’s main competitive advantage.
However, as we look to the future and the sectors that will drive the next wave of investment, Ireland is experiencing a skills gap in some key areas.
The largest skills gap reported by AmCham members is in digital and data, at 23 per cent, followed by engineering, at 21 per cent, and machine learning, at 19 per cent.
With these areas representing some of the greatest opportunities for Ireland’s future growth, it is essential that we take an innovative approach to addressing this challenge. AmCham members believe that the expansion of the range of apprenticeships available, with a particular focus on digital and AI, engineering, advanced manufacturing, supply chain management and cybersecurity will be pivotal in addressing this challenge.
Yet while talent and RD&I are vital pillars of competitiveness, they must be supported by a broader pro-business environment. Our members have consistently highlighted critical issues around housing availability, energy costs and supply, planning delays and infrastructure bottlenecks as challenges to our competitiveness. These must be addressed as a matter of urgency.
While challenges exist, Ireland remains a top destination for US businesses. Our economic growth continues to outpace competitor jurisdictions; Ireland is the main economic bridge to Europe for US companies and nine in 10 AmCham members say that their corporate headquarters has a positive view of Ireland as an investment location.
By strengthening our RD&I ecosystem, investing in the next generation of talent, and reinforcing Ireland’s position as the gateway to the EU, we can ensure that Ireland remains a global leader in an increasingly competitive and fast-moving economy.
Liz Cunningham is president of the American Chamber of Commerce in Ireland
