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4 I Why Ireland? A guide to doing business in Ireland I ByrneWallaceRESEARCH ANDDEVELOPMENT (R&D)Over the last decade, Ireland hasemerged as one of the world’sleading lights in the area of Researchand Development. According tothe World Intellectual PropertyOrganisations Global Innovation 2014,Ireland is ranked 11th in the world forresearch and development.Ireland offers a very competitiveResearch and Development Tax Creditsystem. In 2012 50% of IDA Irelandsupported Foreign Direct Investmentwere in research and development,valued at over €517 million. Accordingto the latest IBM Global Trends report2010 Ireland is placed 9th globally forestimated total jobs in Research andDevelopment. Ireland offers a tax creditof 25% of incremental expenditure bya company, or group of companiesincurred wholly and exclusively onresearch and development.EXTENSIVE TAXTREATY NETWORKIreland has signed double taxationtreaties with 62 countries. New treatieswith Turkey, Serbia, Georgia andMoldova are in force since January 2011.New treaties were signed with HongKong, Singapore and the United ArabEmirates among others and will haveto be ratified. Updated treaties withGermany, Belgium and Switzerland willbe signed shortly.THE NATIONAL RECOVERY PLAN2011-2014The Irish Government’s NationalRecovery Plan 2011-2014 announced onthe 24th of November 2010 aims to dealwith Ireland’s current fiscal challengesbut will continue to improve Ireland’sattractiveness to overseas investors andhelp to sustain Ireland’s projected levelsof economic growth. Key measures inthe plan are aimed at overseas investors,supporting Research and Developmentand focusing on job creation.BUSINESS ENVIRONMENTIreland offers a pro business attitude,this is apparent when looking atsuccessive Governments policies,the approach taken by GovernmentAgencies and the working culture.Ireland has a stable constitution basedparliamentary democracy, an excellenttransport network and a very advancedtelecommunication network. Ireland wasranked fifth within the EU for its ease ofdoing business according to the WorldBank Doing Business 2014 Report.HIGHLY SKILLED WORK FORCEAlmost 50,000 graduates leave Irishcolleges every year. A large percentageof these with degrees in businessstudies, science and engineeringand most speak a second language.According to the most recent EurostatYearbook 2012 Ireland has the thirdhighest proportion of science, mathsand computer graduates in the 20-29age group within the EU. Also accordingto the IMD World CompetitivenessYearbook.Ireland ranks first regarding theavailability of skilled labour. This makesIreland a very attractive place to locate.COST COMPETITIVEOne of the few good things to come outof the global economic downturn hasbeen a pressure on costs. With rents,both office and private and salariesfalling dramatically in the last fewyears, Ireland has become increasinglycost competitive. As a consequenceIreland was ranked 10th worldwide forthe number of jobs created in businesssupport services, including call centers,shared services centers and businessoutsourcing in a study undertaken byIBM highlighting the role of foreigndirect Investment.IDA AND ENTERPRISE IRELANDIreland has recognised for a numberof years the need to assist foreigncompanies who wish to invest here.Several agencies were founded. Themain agencies today are the IDA andEnterprise Ireland. ByrneWallace has avery good working relationship with boththe IDA and Enterprise Ireland and canfacilitate relevant introductions.The IDA provides foreign companieswith help and guidance for setting upoperations in Ireland and can also helpcompanies who have already set upoperations here. Various grants andfinancial assistance to companies locatinghere are available and it is advisable toget into contact with the IDA from thestart of the planning process in order toavail of all possible assistance.The IDA’s strategy Horizon 2020 isfocused on employment intensiveservices and R&D. There may be capitalgrants available for example for sitedevelopment, or grants for training of thework force and the IDA also has a numberof business parks where companies canlocate.Enterprise Ireland is assisting Irishcompanies and foreign companies in thefood, drink and timber sector who wish toset up in Ireland.Ireland is a very attractive location forbusiness and we hope that this guidewill help you and your company to fullyappreciate Irelands offering. Any queries,we are happy to assist.