Making Ireland a global innovation leader
The Programme for Government (PfG), Securing Ireland’s Future, sets an aim to ensure the State is a global innovation leader by expanding research capacity and increasing research and development (R&D), while it presents AI as the foremost focus for technology.
The PfG outlines commitments to reform the Smart Regions Enterprise Innovation Scheme, develop an all-island innovation and entrepreneurial ecosystem, and review and simplify the existing business and enterprise tax system.
It states that funding of Taighde Éireann, the research and innovation funding agency established in August 2024, will continue. The PfG also commits to the expansion of EU research and innovation partnerships with SMEs. Additionally, it outlines an aim to introduce new academic career paths, contracts, and professorships in technological universities to enable their transformation.
The PfG asserts that the State will ensure it is a leader in in the digital economy and artificial intelligence. It contains aims to update the National Digital Strategy and to work with EU partners to ensure the State and the EU are positioned to benefit from new technologies such as AI.
The Government also commits to ensuring skills necessary for AI deployment, innovation, and support are provided through education and professional learning networks.
Innovation climate
Central Statistics Office (CSO) figures from April 2025 show that R&D expenditure in 2023 stood at €7 billion, 81 per cent higher than 2021. Current expenditure accounted for €4.6 billion (66 per cent), while capital expenditure accounted for €2.4 billion (34 per cent).
Of total R&D expenditure in 2023, 16 per cent (€1.1 billion) came from Irish-owned enterprises. The top 10 enterprises accounted for 58 per cent (€4 billion) of total R&D expenditure, compared with 37 per cent in 2021.
CSO figures from February 2025 indicate that 15.2 per cent of all enterprises used AI technologies in some capacity in 2024. The most common use of AI was for natural language generation at 7.4 per cent, followed by data mining (6.5 per cent), and automating workflows or assisting in decision-making (6.4 per cent). In 2024, 51.2 per cent of large enterprises used AI, compared with 25.1 per cent of medium, and 12 per cent of small enterprises.
Digital Public Services Plan 2030
The Digital Public Services Plan 2030, published in November 2025, sets two key policy targets. The first is to achieve 100 per cent accessible provision of key public services by 2030 as set out in the EU Digital Decade Policy Programme 2030. The second is to have 90 per cent of applicable services consumed online by 2030 as set out in the National Digital Strategy: Harnessing Digital.
Aligned with this is the rollout of a life events online portal. This would consolidate government services for administrative processes of life events in one place. The portal will be based on ‘digital building blocks’, including a new Digital Wallet. This is a platform where citizens’ digital credentials, such as their driving licence and birth certificate, can be stored.
Budget 2026 and NDP Review
Under Budget 2026, €1.3 billion was allocated to the Department of Enterprise, Trade and Employment. This includes an R&D Tax Credit increase from 30 per cent to 35 per cent, with the first-year payment threshold increased €75,000 to €87,500. This is aimed at supporting smaller research and development projects.
An increase for the existing capital gains tax revised entrepreneur relief from €1 million to €1.5 million was also announced. Budget 2026 states that funding for Enterprise Ireland will be increased to support business in scaling innovation, but does not specify the amount. It also allocates €1.4 million to establish a national artificial intelligence office.
The Department has stated that it will use budget funding to support Enterprise Ireland in delivering green innovation, enable IDA Ireland to invest in innovation, and drive innovation through the Disruptive Technologies Innovation Fund.
Over the lifetime of the revised National Development Plan (NDP) for 2026 to 2030, the Department will oversee a spend of €4.88 billion, which includes €1.2 billion of projected income from enterprise agencies. Of this, €50 million has been allocated for scaling technology centres to drive innovation and commercialisation.
Under Budget 2026, the Department of Further and Higher Education, Research, Innovation and Science was allocated €4.9 billion. This includes a €810 million capital allocation to fund key infrastructure projects including Taighde Éireann, and the development and operation of 11 technological university facilities.
The Department was allocated €4.55 billion over the five-year period of the NDP. Aligned with this, the Department published the Tertiary Sector Capital Investment Plan 2026-2030 in December 2025. Over €2.45 billion will be invested into research and innovation.
The plan contains the following measures aimed at strengthening innovation and research capacity:
- delivery of new infrastructure programme to replace ageing equipment and enhance institutional capacity;
- invest in a new high-performance computing system with the University of Galway and the Irish Centre for High-End Computing;
- support for Tyndall National Institute in deep-tech research, development, and graduate training;
- €1.4 billion in funding for Taighde Éireann in implementing its first five-year strategy; and
- €60 million contribution to maintain Ireland’s membership in international research organisations, including CERN.
Upon publication of the plan, Minister of Further and Higher Education, Research, Innovation and Science James Lawless TD said: “This plan represents the largest capital injection ever delivered to the tertiary sector. It will strengthen Ireland’s research and innovation ecosystem, expand capacity in higher education to meet workforce demands, and support balanced regional development.”
