Small Business - Business
20.02.2012
Investment in R&D by Irish companies stalling
Over half of Irish companies in a new survey have failed in the long-term to invest in research and development (R&D) since the recession started in 2008.
The survey of 200 companies by IT consultancy Choose Portal was published in a whitepaper called ‘Innovation: the first casualty of a downturn’ today.
The findings show that 59.5pc spend less than 2pc of the revenues on R&D, despite the fact that almost two thirds recognise that it can help maintain or grow market share.
The economic downturn has led to some companies cutting back R&D spend with just under 30pc saying they've reduced their investment levels since 2008.
But it's the fact that 58pc had maintained pre-recession spending which points to a long-term failure to invest appropriately in R&D and a key reason why Ireland lags behind many of its European counterparts, according to Choose Portal.
“Whether it’s the development of new products or new internal processes, investing in the R&D process is critical for long-term business success,” said Tony Egerton, sales and marketing director at Choose Portal.
“Cutting R&D investment might seem like a good idea in today’s economic environment but it’s a corporate version of cutting your nose to spite your face and is only going to be bad news for companies that think it’s a rational business strategy.”
Sorcha Corcoran
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