Credit worthy?Getting funding for your R&D

摘要

If there is one issue above all others that has impacted companies in Ireland in recent years it is funding, or, more to the point, the lack of it. Internal competition within companies for limited resources has, at times, become almost as fierce as that which exists when products and services make it to market. Unfortunately, it can be engineering departments that are hardest hit by cutbacks, be it layoffs or reduced budgets. Given that the engineering department is often the source of the inspired thinking that leads to new and improved products and processes, this has been a most unwelcome consequence of the economic downturn. However, what is also concerning is that many companies are overlooking a source of funding that could subsidise up to 25 per cent of certain activities on an on-going basis. Think of the impact that a 25 per cent reduction in expenditure could have on the decision making process within your company when it comes to investment appraisal and resource allocation. Many companies are carrying out qualifying R&D activities on shop floors and within design offices without either realising it, or appreciating the extent to which they are undertaking it. They are therefore losing out on valuable R&D tax credits. The main reason for this is the lingering, inaccurate perception that qualifying R&D is only carried out in laboratories by men and women in white coats and goggles.