Research, Development & Innovation (RD&I) Grant
R&D I Grant
Ireland stands as a prominent global hub for Research, Development, and Innovation (RD&I) initiatives. The RD&I grant, like the R&D Tax Credit, plays a pivotal role in funding companies engaged in R&D endeavours. This grant is backed by both Enterprise Ireland and IDA Ireland, and it supports businesses in their pursuit of research and innovation. These organisations maintain a consistent interpretation of eligible R&D activities, concentrating on industrial research and experimental development aimed at advancing new or enhanced products, processes, and services with significant global market potential.
Enterprise Ireland
Enterprise Ireland takes a look at two eligible project criteria which are R&D projects and business innovation projects. Similar to the R&D Tax Credit, the R&D projects must be a form of technical challenge that is trying to develop a new product, service, and/or process. With the business innovation projects, a company has implemented new services or has changed the production method/business model to existing processes. In both cases when applying for the RD&I Grant, Enterprise Ireland allows for only six projects to be claimed. This is the maximum, but Enterprise Ireland does encourage companies to focus mainly on the innovation portion of projects rather than the entire program developed.
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- Who Can Qualify For The Fund?
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Enterprise Ireland is focused on supporting Irish-owned businesses (registered with a positive EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization)) from small to medium to large corporations. If an Irish registered company is not positive EBITDA, they can still apply but must contact their Development Advisor first before doing so.
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- Who Do Companies Need To Contact Before Applying?
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Before starting the application process online, a company must contact its assigned Development Advisor. The Development Advisor will listen to your eligible R&D projects and will provide feedback on if your company would qualify for the RD&I grant. To access your assigned Development Advisor, please click here.
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- How Do Companies Apply?
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Once the projects have been determined and approval has been made by the Development Advisor to processed, the applicant will now apply for the RD&I Grant. The application process consists of four main criteria that have to be met by the applicant: The Business Plan Summary, Financial Data, Projects Costs, and the Project Plan.
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- What Is My Companies Return On Investment?
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R&D Project Rates 1. Small-size companies will receive a 45% return on their project eligibility 2. Medium-size companies will receive a 35% return on their project eligibility 3. Large corporations will receive a 25% return on their project eligibility Please note that the funding per company is capped at €650,000 Business Innovation Project Rates 1. All sized companies will receive a 50% return on their project eligibility Please note that the funding per company is capped at €150,000.
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- How Long Does It Take To Receive Funding?
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The current timeframe outlined by Enterprise Ireland is 8-9 weeks after the committee meeting.
IDA Ireland
IDA Ireland’s main focus with the RD&I grant is to increase job growth throughout Ireland by funding R&D projects. As Enterprise Ireland has a category for business innovation projects, with IDA Ireland, this is strictly related to R&D projects that are either experimental development or industrial research. Routine work of any kind is not considered an innovation or development and will not be accepted for this funding. Multiple projects can be submitted to IDA Ireland as well as multiple work packages. Multiple projects are defined as two separate R&D projects with their own technological success. Multiple work packages are one project with multiple objectives that the company is trying to achieve.
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- Who Can Qualify For The Fund?
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IDA Ireland is mainly focused on supporting Foreign Direct Investment (FDI) enterprises.
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- Who Do Companies Need To Contact Before Applying?
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Before starting the application process online, a company must contact its assigned IDA Ireland Project Executive and IDA Ireland Technologist. The Request for Horizontal Aid form must also be completed as well and submitted to IDA Ireland before proceeding.
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- How Do Companies Apply?
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All documentation will be submitted to the companies designated IDA Ireland Project Executive. The application process consists of three main criteria that have to be met by the applicant: Commercial & Strategic Overview of Proposed Activity, Technical Description of Projects, and RD&I Project Costs.
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- What Is My Companies Return On Investment?
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Companies can expect a maximum of 40% for industrial research and a maximum of 25% for experimental development. Funding with IDA Ireland works a little differently as companies have the ability to negotiate further funding depending on the complexity of the R&D projects. Having proper technical documentation is very important to emphasise a company’s cash for additional funding.
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- How Long Does It Take To Receive Funding?
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The timeframe for a companies return on their refund all depends on the size of the funding. 1.Up to €500,000 per project will take 4-6 weeks 2.€500,000 to €7.5 million will take 6-8 weeks 3.Any amount greater than €7.5 million will take 8-10 weeks.
How Can Visiativ Ireland Assist (Technical Reporting)
Similar to the R&D Tax Credit submitted to Irish Revenue, The RD&I Grant focuses on a strong technical report to underline and articulate your companies’ innovation. A weak technical report will lead to a rejected funding opportunity. The Visiativ service offering provides:
1. Access to our in-house PhDs, Engineers & Developers that will collate, analyse, process, and draft the grant technical application.
2. Our consultants conduct interviews with your technical leads, identify the eligible projects as well as determine which projects can be amalgamated.
3. A scientific and technical data compilation phase will occur where our consultants narrate and draft the necessary reports.
An advantage to preparing such technical reports for grants is the use of them when the client is also looking to take advantage of the R&D Tax Credit program. Since the RD&I Grant focuses on the present or future R&D projects, the technical projects can be potentially used when claiming the R&D Tax Credit as well. Please note that the fund received through the RD&I grant schemes will be net of the R&D TC expenditure.
For further information on how Visiativ Ireland can assist your company in successfully preparing an RD&I Grant application, please contact us today.
