Pharmaceutical & Medical Device

According to a 2025 Ibec report, Ireland is a global hub for medtech and healthcare innovation. The country is home to 450 pharma and medtech companies with exports of €16.5billion. It is Europe’s greatest employer of medtech professionals, employing more than 48,000 people.

Galway is a popular centre for pharmaceutical companies: both Medtronic and Boston Scientific are based there. Cork has another medical cluster.

Ireland’s R&D landscape has a characteristic collab between multinational companies, Irish start-ups and state-funded research bodies. Ireland is actively seeking unmet clinical needs with its BioInnovate programme, its Disruptive Technologies Innovation Fund, and – of course – the R&D tax credit.

What R&D looks like in the pharmaceutical and medical devices industry

The pharma and medical devices industry in Ireland is strictly governed and must adhere to regulations such as the EU’s MDR. To be successful, an innovation needs to be strongly supported by clinical evidence.

R&D for medtech includes drug development – as well as development of new dosages. Clinical trials and regulatory testing are also R&D. Process improvement, as well as attempts to scale up a production process may also be eligible for the R&D tax credit, as can trials of new raw materials.

Some current areas of research in Irish medtech include:

• AI-controlled manufacturing of medical devices
• digital and connected health
• next-gen implants
• surgical robotics
• product life-cycle management, green medtech and sustainable manufacturing
• biomaterials

Examples of medtech activity that is eligible for the R&D tax credit

for tax relief.

• testing an AI-driven manufacturing process
• researching a biodegradable material that can be used to manufacture an implant that dissolves into the body during healing
• developing hardware and software for robot-assisted surgery
• trialling a new eco-friendly form of packaging for export
• medical device prototyping
• developing a digital printer designed to cheaply and efficiently print bespoke medical grade devices
• developing a temperature-controlled drone delivery system for medical supplies

Typical eligible costs for a pharmaceutical company

Typical eligible R&D costs for companies in the medtech sector include:

• plant and machinery
• emoluments of employees carrying on qualifying activities
• other qualifying costs

Most costs associated with investigating a technological uncertainty and laboratory R&D activities are likely to be eligible for the R&D tax credit. The project does not have to be successful. NX Advisory can help you to identify and qualify medical research activities within your business.

How NX Advisory helps pharma and medtech companies

We help limited companies that pay tax in Ireland to reclaim a substantial proportion of their research costs through the R&D tax credit.

Let us support you in gathering the relevant information and making a compliant application that meets Revenue’s deadline.

Life science sectors that are eligible for the R&D tax credit

Revenue’s guidance lists the following sectors in life sciences for the R&D tax credit:

• Basic medicine (including anatomy, cytology, physiology, genetics, pharmacy, pharmacology, toxicology, immunology and immunohematology, clinical chemistry, clinical microbiology, pathology)
• Clinical medicine (including anaesthesiology, paediatrics, obstetrics and gynaecology, internal medicine, surgery, dentistry, neurology, psychiatry, radiology, therapeutics, otorhinolaryngology and ophthalmology)
• Health sciences (including public health services, social medicine, hygiene, nursing, epidemiology)

Veterinary medicine is also included in the list.