Ibec has published its latest two policy position papers as part of its Business Ambition campaign. The first paper focuses on skills, and the second on research and innovation. The campaign is designed to offer policymakers clear, actionable solutions to strengthen Ireland’s ability to adapt and compete in the global economic landscape.
Ibec’s skills ambition
The paper encouraged the Government to capitalise on the National Training Fund (NTF) to ensure a sufficient pipeline of skills that supports the long-term competitiveness of Ireland’s labour market. Ibec recognised the unique competitive potential of the NTF, particularly in relation to future-proofing Ireland’s workforce. As the global economy evolves, the workforce must move with it and adapt to the changes brought by “AI, digital and green transitions, and demographic change”. The group called on the Government to fully leverage the NTF and set a clear cap on the surplus to support skills development.
Furthermore, the group believes that employers should play a more active role in shaping the strategic direction and allocation of funding from the NTF. This would ensure alignment with industry needs.
The paper recommends the creation of a new Lifelong Learning Action Plan to address skills gaps and support workforce development. Persistent skills gaps are undermining Ireland’s competitiveness. As workforce needs evolve rapidly, the impact of these gaps, ranging from limited innovation to rising costs, is becoming more pronounced. Notably, Ireland’s lifelong learning rate stands at 16 per cent (Q4, 2024). In comparison, Sweden stands at 42 per cent while Denmark reports a rate of 32 per cent. Without decisive action to expand lifelong learning and upskilling, the competitiveness of Ireland’s workforce will continue to lag behind its European counterparts.
Ibec’s innovation ambition
The group advocated for increased public investment in research and innovation, aiming for 1 per cent of GNI by 2035, and proposed the establishment of a new multiannual fund to support third-level institutions in achieving their long-term objectives.
Additionally, access to innovation support for the industry, particularly the R&D tax credit, needs to be improved. Despite its significance, credit is often underutilised due to its complexity and the administrative burdens involved. According to Ibec, making the credit more accessible and expanding its scope to include process innovation would better align with global R&D practices and help retain intellectual property within Ireland’s tax base.
This comes as Minister Paschal Donohoe confirmed that an enhanced R&D tax credit will be included in Budget 2026. It will focus on driving innovation and protecting investment. Minister Donohoe emphasised the Government’s commitment to maintaining a stable tax environment for investors in the coming years. Furthermore, the Minister acknowledged the importance of industry feedback in shaping policy, ensuring that business support measures are adaptable and support competitiveness in an unpredictable global landscape. Business-related tax issues remain a priority for the Government, which will continue engagement through public consultations and the business tax stakeholder forum.
To realise the ambitions of Impact 2030, a multiannual, budgeted funding strategy is essential. While the strategy outlines critical actions to advance Ireland’s research and innovation agenda, progress is hindered by the absence of dedicated funding and coordination.
Ibec’s key recommendations include:
- Establishing a stakeholder forum with strong industry representation to guide implementation.
- Securing a ringfenced R&I budget in the next Multiannual Financial Framework (MFF) to close the growing innovation gap between Europe, the U.S., and China.
- Ensuring increased R&I investment strengthens public-private partnerships that support knowledge transfer and commercialisation.
