Irish Medtech, the Ibec group that represents the medtech industry, is calling on the Government to introduce a major package of financial supports and tax cuts in Budget 2027.
In its pre-Budget submission, published this week, the group further recommends an annual ring-fenced HSE innovation budget and major reform of the eligibility criteria for Entrepreneur Relief.
The submission calls for expansion of the existing R&D tax credit to allow qualifying expenditure for offshore connected-party R&D, at an estimated cost of €130 million. Irish Medtech says this is vital to secure “strategic, high-value global mandates for multinationals anchored in Ireland”.
The group also proposes a new Innovation Credit which would promote innovation, and the adoption of digital, green and ‘new-to-firm’ technologies. Ibec estimates that the cost to the Exchequer would be €150 million.
In addition, the cap on R&D outsourced to third-level institutions and research centres needs to be increased to foster deeper academia–industry integration and expand SME access to academic infrastructure, the submission states.
A number of immediate crisis interventions are proposed, including activating the €2 billion Contingency Reserve in order to establish a ring-fenced fund which would support industry in responding to unexpected energy price hikes. The group also calls for a €50 million system of ready-to-deploy emergency supports to provide “critical liquidity to viable businesses and offset sudden, unmanageable cost surges.”
Furthermore, Irish Medtech says a grant should be made available to assist high-intensity manufacturers in meeting the cost of Transmission Use of System (TUoS) charges and the high-intensity PSO levy. The cost of this measure is estimated at €300 million.
Irish Medtech is recommending that the current Diesel Rebate Scheme be extended to include company-owned fleets and industrial plant and machinery, along with a 130 per cent super-deduction for investment in environmental and sustainability-related outlay.
Eoghan Ó Faoláin, Director of Irish Medtech, said: “Ireland’s medtech sector is one of the top five in the world. But the macroeconomic environment has changed dramatically. Budget 2027 comes at a critical juncture. To safeguard our competitiveness, we need to stimulate long-term productivity, technological preparedness and structural resilience.”
“The National Life Science Strategy marks a step in the right direction for delivering a coordinated approach to maintain our competitiveness. But now we need to see a dedicated Office of Life Sciences established, a model which is already paying dividends in the UK and Singapore, we must embrace policy best practice to avoid getting left behind.”
Mr Ó Faoláin said businesses faced “a multitude of cost pressures with the very real potential to have a detrimental impact on patients and health systems, from US tariffs that impact not only European exporters but US manufacturers as supply chains are disrupted in this highly specialised sector.”
“Additionally, regulatory pressures are mounting in Europe with energy price rises due to geopolitical challenges as well as the Green Transition targets. The medtech industry has taken proactive measures in the face of these changes and invested ambitiously to meet these targets, as well as embrace sustainability by design principles, but support is needed to make this time of transition a success.
“This pre-budget submission outlines practical fiscal measures which need to be deployed by Government to unlock the full potential of this vital industry in the face of an increasingly turbulent and AI-driven future.”
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