The Research, Development & Innovation (RD&I) Scheme Explained
We’re all familiar with the age-old adage: “knowledge is power”. And, when you consider that knowledge is the byproduct of quality research and development (R&D) it, therefore, makes sense that Ireland should prioritise R&D and launch incentives to boost innovation within the country.
This post takes you through one of these R&D incentives: The Research, Development and Innovation (RD&I) scheme, and explains what it means for the emerald isle.
What is the RD&I scheme?
The RD&I scheme is run by the Industrial Development Authority (IDA) and EI (Enterprise Ireland). It offers companies of any size the opportunity to develop new or vastly improved products, services or processes by funding their research, development and innovation projects.
The scheme is split into two parts: EI supports homegrown Irish businesses with their R&D and innovation, and the IDA helps businesses attract foreign investment for their projects and makes sure they’re seen as pioneers in the world of research, development and innovation.
The RD&I scheme has four key objectives:
- To create and maintain jobs to strengthen the economy
- To develop and grow small, medium and large Irish companies
- To help Irish companies gain market share by developing an advantage over their competitors
- To increase the export potential for companies across Ireland
Who is the RD&I scheme for?
If you’re an Irish company that’s in the manufacturing or internationally traded service industry, and you meet the following criteria, you could apply for RD&I funding:
- You have the financial capability to deliver on your R&D plans
- You are managing an R&D project which will cost between €300,000 and €3 million
- You have a positive Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA)
How does the RD&I scheme work?
Both the EI and IDA RD&I schemes work in a similar way. Before any funding is awarded, they both require companies to provide a growth plan that proves how that particular research, development and innovative project will help the company grow.
The plan must demonstrate how the R&D project either:
- Resolves a specific technical challenge
- Is not easily solvable by a professional in the field
- Moves the company forward in terms of its R&D (research and development) capabilities
With IDA RD&I funding, companies must also demonstrate that they have:
- A highly skilled R&D team
- Created a process for R&D quality management
- Developed a culture of innovation within the organisation
How much funding is available through the RD&I scheme?
The amount of RD&I funding that’s available under the RD&I scheme ranges from between 25% to 50% of the project costs, depending on the size of the company.
For research and development projects:
- Small companies can receive up to 45% of the project costs
- Medium companies can receive up to 35% of the project costs
- Large companies can receive up to 25% of the project costs
For innovation projects:
- Small companies can receive up to 50% of the project costs
- Medium companies can receive up to 50% of the project costs
- Large companies can receive up to 50% of the project costs
What can you claim RD&I funding for?
The ‘’project costs’’ that companies can receive funding for include:
- Existing staff costs / New staff costs
- Travel & Subsistence
- Patenting Costs
- Certification and clinical trials
- Capital depreciation
How do I apply for RD&I funding?
With a highly respected and experienced innovation grant team, Myriad Associates can not only help you pull a winning growth plan together, but they will support you through the entire RD&I application process, which can be incredibly time-consuming and competitive.
Having worked in the R&D and innovation grant field for over a decade, the team has built a strong relationship with EI and the IDA and know exactly what you need to do to get hold of funding for your R&D project. Take a look at this article to see the latest wins that the Myriad Associates grant team have secured.
Give us a call on +353 1 566 2001 or send us a message here, and we’ll look forward to seeing how we can help you secure RD&I funding for your next project.
This article was brought to you by Tax Cloud
Tax Cloud is a self-service online R&D tax credit claim portal. If your company is entitled to R&D tax credits, but you don’t want to use an R&D tax consultancy service, Tax Cloud could be for you. The entire R&D tax claim process is split into easy-to-follow steps, which you can work your way through in your own time. You also have full access to the Myriad Associates R&D tax claim experts who are on hand to answer questions, check your R&D claim to make sure it gets accepted and file it with HMRC on your behalf.
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