A survey of 200 companies across Ireland has found that 58 per cent have failed in the long-term to invest in research for new ideas, services and products. The survey by IT consultancy, Choose Portal, asked whether companies had increased, decreased or maintained spending on R&D since the recession began in 2008.
The findings show that 59.5 per cent of Irish companies spend less than two per cent of their revenues on research and development, despite the fact that almost two-thirds of those surveyed recognise it can help maintain or grow market share.
“Whether it is the development of new products or new internal processes, investing in the research and development 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.”
One key finding from the survey was that 66 per cent said they would invest more in R&D if the Government offered tax incentives.
