Ireland’s thriving life sciences and MedTech ecosystem

Ireland has firmly established itself as a global leader in the life sciences sector, with a particular emphasis on the dynamic MedTech industry. Recognised as one of the top five global MedTech hubs, Ireland competes with renowned regions such as Massachusetts, Minnesota, and California. This thriving sector is home to 450 companies, including nine of the world’s top ten MedTech giants. With total exports valued at €16bn, Ireland is the second-largest exporter of MedTech products in Europe.

There is over 50,000+ people employed in Ireland's MedTech industry. This makes Ireland the largest employer of MedTech professionals in Europe per capita. Forecasts predict this number will rise to 56,000 by 2028. Astonishingly, nearly 1 in every 100 people in Ireland’s workforce is employed directly in the MedTech industry. This remarkable ecosystem is underpinned by a unique blend of foreign direct investment (FDI) multinationals and a burgeoning small and medium enterprise (SME) sector, with 80% of MedTech companies being startups or SMEs.

Key drivers of Ireland’s MedTech ecosystem

Ireland’s MedTech success is fuelled by:

• Supportive government agencies: Organisations like IDA Ireland and Enterprise Ireland actively foster growth through investment and support.
• Convergent technologies: The integration of drug/device combinations and digital/software innovations highlights Ireland’s forward-thinking approach.
• Active advocacy: The Irish MedTech Association influences national, European, and global policy to create a favourable environment for innovation.

Innovation and R&D: The heart of Ireland’s MedTech success

Ireland’s ambition to lead in innovative, patient-centred medical technology solutions aligns with the global MedTech market’s annual growth rate of 5.6%. Over the years, Ireland has transitioned from being a manufacturing hub to becoming a centre for comprehensive R&D activities.

 Multinationals like Medtronic, Abbott, Edwards Lifesciences and Boston Scientific have expanded their R&D capabilities in Ireland, evolving from core manufacturing to full-scale R&D projects. These endeavours involve interdisciplinary teams working on product development, process innovation, and clinical research. SMEs and startups, supported by government agencies, are equally instrumental in driving innovation.

Ireland’s MedTech sector also boasts a high volume of patent applications, with 15,985 patents filed with the European Patent Office in 2023, reflecting robust growth and innovation.

The strategic importance of R&D in Ireland

R&D is critical to Ireland’s MedTech sector for several reasons:

• Differentiation: Combining manufacturing with R&D strengthens companies’ strategic positioning and enhances their global competitiveness.
• Talent development: Adding an R&D arm creates diverse career paths, attracting highly skilled professionals.
• Innovation cycle: R&D fosters the development of groundbreaking technologies, ensuring Ireland remains a leader in the field.

Recent changes to Ireland’s R&D tax credit regime have further incentivized innovation, increasing tax relief from 25% to 30%. This makes the regime particularly attractive to startups by providing crucial funding through refundable instalments

Challenges and opportunities

While Ireland’s MedTech ecosystem is strong, it faces challenges from global competitors, particularly the US and China. The US, for example, has streamlined its regulatory environment through FDA Innovation Pathways, attracting significant R&D investments

The EU’s complex regulatory framework under the Medical Device Regulation (MDR) has created uncertainty, prompting some companies to prioritize US markets. This regulatory challenge underscores the need for Ireland to advocate for a balanced approach that supports innovation while ensuring patient safety.

The future of R&D in Ireland

Ireland’s future in R&D is bright, driven by:

• Aging populations and chronic diseases: Technologies targeting diabetes, cardiovascular conditions, and obesity will be pivotal.
• Preventative care: Diagnostic technologies will play an essential role in healthcare systems.
• Convergent technologies: Digital health and drug/device combinations are rapidly gaining traction, supported by over 200 organisations mapped by Ibec’s “Where Digital Health Thrives” campaign.
• Collaboration and ecosystem growth

Ireland’s MedTech ecosystem thrives on collaboration between SMEs, multinationals, and government agencies. Initiatives like the “Realise Your R&D Ambition” guidebook provide actionable insights for companies aiming to excel in global R&D.

With its well-established ecosystem, world-class talent, and culture of collaboration, Ireland is poised to remain a leader in life sciences innovation, continuing to attract investment and drive growth in the MedTech sector.