Cutting edge
Over the past two years 12 Science Foundation Ireland (SFI)
research centres have been established in Ireland linking
scientists and engineers in partnerships across academia and
industry.
T
he aim of the programme is
to foster the development of
new and existing Irish-based
technology companies;
attract industry that could make an
important contribution to Ireland and
its economy; and expand educational
and career opportunities in Ireland in
science and engineering.
“All 12 centres are focused on
delivering excellent science at the
cutting edge and on being industryfriendly and relevant. A minimum
of 30pc funding is required from
industry with each project, 10pc
of which must be in cash. This is
important as it gives industry skin
in the game and a vested interest in
getting value for money,” explains
Prof Mark Ferguson, Director General
of the SFI.
A key part of the model is the high
degree of flexibility to allow it to grow
and evolve - each year spokes can
be added in terms of new projects,
industry partners, academic partners
and the same companies but with
different projects.
LOOKING
FORWARD
Why Ireland is a global
hub for innovation,
entrepreneurship
and business
In our foreword, President Barack Obama cites Ireland as
an “inspiration to the world” and talks about Ireland’s wealth
of education saying: “Ireland’s youth, and those who’ve
come back to build a new Ireland, are now among the besteducated, most entrepreneurial in the world”.
Prof Mark Ferguson, Director General, Science Foundation Ireland
Kevin McLoughlin, Head of Tax and
EY Entrepreneur Of The Year, Ireland
Room for
improvement
Competitive tax policies
are critical to support a
sustainable entrepreneurial
ecosystem. Kevin
McLoughlin, head of tax and
EY Entrepreneur of The Year,
Ireland outlines areas that
could be improved by the
Irish Government.
I
reland has a long term vision to
make Ireland the go to place in
Europe for Start-ups and become a
hub for entrepreneurial businesses.
It is important to understand that
improvements in fiscal policy are not just
to provide a tax advantage to those who
take entrepreneurial risk, but more to
free up capital for reinvestment in new
business ventures, which should facilitate
job creation and in turn a greater return
for the exchequer, he says.
Capital gains tax: Following a number of
capital gains tax (CGT) rate increases
in recent years, Ireland’s CGT rate
has increased to a relatively high rate
in international terms of 33pc, which
increases the challenge for Ireland’s
competitiveness. This is a funding
issue. Most successful entrepreneurs
will reinvest in new ventures, and
entrepreneurs are known to be great
engines for job creation. Therefore the
higher the after tax gain, the greater the
amount available for investment.
Special Assignee Relief Programme:
This is an important tax relief for our
entrepreneurial ecosystem as it’s
designed to boost the relocation of key
talent to Ireland. We would like to see the
relief extended to include the USC.
R&D tax credit regime: These types of
improvements are a vital part to ensuring
the Irish regime continues to remain
internationally cost competitive. That said,
more needs to be done, especially as our
international counterparts are significantly
enhancing their R&D schemes in an age
where R&D is becoming ever increasingly
more mobile. Particular areas of focus
should be on outsourcing, as this is critical
for many industries.
Here at EY, we will continue to consult
with Government, Department of Finance
and other key stakeholders to assist the
direction of Ireland’s future tax policy to
ensure that Ireland remains a leading hub
for innovation based business.
Simon Harris, Minister of State at the Department of Finance with special
responsibility for International Financial Services
T
his resonates throughout
these pages, where through
collaboration of the key
sectors within Ireland’s
entrepreneurship ecosystem, we
see industry, education, research
and development, entrepreneurs
and Government working closer to
advance a nation from which startups and scale-ups continue to fast
emerge.
One of the fastest growing and
most exciting industry sectors with
huge global opportunities for startups in Ireland is fintech.
Simon Harris, Minister of State
at the Department of Finance
with special responsibility for
International Financial Services, is
committed to developing the sector
for start-ups and scale-ups over the
next five years. In his new strategy,
launched in March 2015, entitled
Vision and Targets for International
Financial Services (IFS) 2020, he
is confident that Ireland can be a
global hub for fintech.
“One message I would like to
send out to Ireland and the world is
that the Irish Government is serious
about cultivating Ireland as a global
hub for fintech and testament to this
is my own appointment to Minister
with a specific remit to drive jobs
22-23.indd 23
and entrepreneurship in the whole
financial services sector.
“Secondly, I have set up a
taskforce m YH \و[