Ireland is a global leader in Life Sciences, but changes are needed to ensure we maintain our position in the sector

AmCham publishes White Paper ‘Life Sciences: Delivering for patients and enhancing Ireland’s competitiveness,’ identifying the core challenges for the sector’s progress and proposing primary solutions to support growth and futureproofing of the sector.   

Paul Sweetman, Chief Executive, American Chamber of Commerce Ireland: 

The global economic landscape continues to experience great turbulence, with ongoing tensions shifting priorities and forcing economies to reassess and reinforce their industry strengths. In the midst of this uncertainty, it is critical that we identify our leading sectors and work to maintain their position on a global scale. 

The life sciences sector has experienced remarkable growth in Ireland over past decades. Supported by the implementation of pro-enterprise policies by successive Governments matched with a rich history of innovation and a talented workforce, Ireland has firmly established itself as a global powerhouse in the sector. With more than €15 billion in foreign direct investment (FDI) in biopharma over the past decade, the employment of more than 50,000 people, and exports of more than €100 billion, Ireland ranks among the world’s top life sciences manufacturing hubs. 

Despite this, challenges remain for the sector, with the largest threat stemming from a risk of stagnation rather than continued progression.  

Ireland continues to be a stable and secure environment for enterprise growth. Recent Government decisions, such as the enhanced Research and Development (R&D) tax credit to 35% in Budget 2026 will build on Ireland’s existing attractors, including EU state aid-compliant grant incentives for biopharma companies to build sustainable facilities in the country and upgrade operations.  

While this increase is welcome, there is potential to further enhance the credit in future Budget negotiations so that it better reflects how R&D is delivered in a small, high-cost economy. Removing or relaxing existing caps on eligible outsourced R&D spend and enabling entitlement for related R&D costs where the Irish entity is the principal owner and manager of the research programme would present tangible benefits and promote further investment. 

A sustainable life sciences future requires deep anchoring in exploratory research and breakthrough technologies. Ireland must substantially elevate its R&D system from a model predominantly based on manufacturing towards one that incorporates innovation. Currently, 127 medical device manufacturing facilities and 109 pharmaceutical manufacturing facilities operate nationwide. This has had tremendous national and regional impact, with regions such as Cork and Galway supporting a strong ecosystem of innovation and collaboration. However, we cannot rest on our laurels.  

Our current strengths in manufacturing must be complemented by a sharper focus on drug discovery, innovative medicines and advanced therapies to ensure Ireland’s competitiveness remains strong. The strategic expansion of research centres, enhanced support for collaboration between academia, industry and the health system, as well as targeted incentives for R&D investment – such as the tax credit enhancement – will be essential to consolidating the gains made to date and facilitating greater progress. 

Current access to medicines has significant scope for improvement, with Irish patients waiting far longer than statutory timelines for access to lifesaving treatments. The Government’s commitment to achieving the 180-day timeline for HSE decisions is welcome but reform and stronger alignment with European frameworks are required.  

The priority in the coming years should be to implement the new Framework Agreement commitments on pricing and reimbursement system reform and to adhere to statutory timelines for decision-making. The attractiveness of Ireland as a location for clinical research has been hindered by protracted approval processes and fragmented infrastructure. Clinical research infrastructure must be modernised to reduce administrative friction and accelerate study initiation. Streamlining ethical approvals, enhancing regulatory coordination, and integrating research into routine healthcare delivery will help ensure Ireland is an attractive destination for clinical trials. 

However, innovation and access alone will not be sufficient to sustain Ireland’s competitive position. Infrastructure constraints, including planning delays and capacity pressures in energy and water, alongside broader cost challenges, risk undermining future investment. Addressing these issues through a coordinated, whole-of-government approach will be essential to ensuring the continued growth of the sector. 

Ireland’s upcoming EU Council Presidency offers a significant opportunity to drive change. The State must transition from passive alignment with EU regulatory frameworks to proactive leadership that shapes policy environments favourable to innovation. This includes championing adaptive regulatory approaches for generative AI, large language models in healthcare and advanced digital platforms, as highlighted by global calls for regulatory science innovation in AI-enabled health technologies. 

Ireland’s future competitiveness in life sciences rests on its ability to translate strategic ambition into sustained policy action. The sector’s contributions to employment, export performance and innovation are a testament to Ireland’s success as an open, investment-oriented economy.  

By integrating the Government’s commitments on competitiveness and productivity with sector-specific strategic interventions, Ireland can secure its place as a global leader in life sciences innovation, manufacturing and patient impact, delivering economic and societal benefits for decades to come.