Research, Development & Innovation (RD&I) Fund

About this scheme

The Research, Development & Innovation (RD&I) Fund supports companies to develop new or significantly improved products, processes or services, spanning 'industrial research' (planned research to acquire new knowledge/skills, including prototypes and pilot lines) and 'experimental development' (combining existing knowledge to prototype, demonstrate, pilot, test and validate new/improved offerings in real-world-representative conditions, excluding routine/periodic changes). A project must involve resolving a technical challenge, be non-routine, or represent a step-up in RD&I capability. Grant rates (per the GBER and Irish Industrial Development Act) are 45% (Small), 35% (Medium) and 25% (Large) for standalone experimental development, rising to 60%/50%/40% respectively with an effective collaboration bonus, plus a further 5-percentage-point bonus for projects in an assisted region. It is aimed at Enterprise Ireland, Údarás na Gaeltachta or Local Enterprise Office clients in manufacturing or internationally traded services, trading (or soon trading) internationally, with the majority of project work carried out in Ireland. A special appendix, Built To Innovate, extends the fund under the Housing for All plan to domestic residential construction companies, on its own separate eligibility and funding terms. Funding is normally a grant but may be offered as equity or a convertible loan note at Enterprise Ireland's discretion. A 5-year Contingent Grant Liability applies to all grant agreements.

Who can apply

• Applicants must have adequate cash resources to implement the proposed project
• Eligible companies are limited to existing/potential clients of Enterprise Ireland, Údarás na Gaeltachta or Local Enterprise Offices, subject to those agencies' prevailing policies
• Must operate in manufacturing or internationally traded services and be currently trading internationally, or trading internationally within the short term (Built To Innovate/Housing for All applicants in domestic residential construction are exempt from the export requirement)
• Majority of the project must be carried out in Ireland (costs incurred outside the State cannot exceed those incurred within the State; sister-company staff working on the project must be recorded as consultancy, at basic salary rate)
• Applications accepted from established companies, 2+ companies collaborating, or companies part of European consortia (e.g. Eureka); for cross-country collaboration, only the Irish companies' costs are eligible
• Enterprise Ireland HPSU start-up clients are typically ineligible for 3 years post-investment; eligible HPSU clients need 5+ full-time Irish staff, €500k in sustainable revenue, EBITDA-positive status (previous accounting period or 9+ months prior), and no external equity raised in the previous 6 months
• Eligible LEO and Údarás na Gaeltachta clients must employ 5+ full-time staff in Ireland
• All applicants must be EBITDA positive (previous accounting period, or 9+ months prior with demonstrable sustainable future EBITDA); the Undertaking in Difficulty (UID) rule is tested and applied to all GBER-supported projects
• Eligible costs: salaries, technical consultancy (capped at €900/day, and at less than a majority of total project costs, with a minimum 40% in-house salary requirement), contractual research (capped at €900/day for short assignments), certification/clinical trials (where necessary for RD&I, not for consumer reaction alone), patent costs (SMEs only, pre-grant costs), equipment rental, capital equipment (depreciated, project duration only), and (under the Defined Costing Method only) materials and rental space; overheads via either a 20% flat rate (Simplified Flat Rate Cost Method) or up to 20% of salary costs only, if justified (Defined Costing Method)
• Where the grant rate exceeds 50%, public procurement guidelines must be followed
• A 5-year Contingent Grant Liability applies; in material breach of the grant agreement, all grants received must be repaid (parent/holding companies generally underwrite this at approval)

How to apply

1. 1Read the eligibility requirements, then contact your Enterprise Ireland Client Advisor to discuss further (Local Enterprise Office or Údarás na Gaeltachta clients should contact their Business Advisor in the relevant agency); applications can be submitted at any time, with no fixed call close date
2. 2Once ready to apply, submit via Enterprise Ireland's online application system (secure.enterprise-ireland.com/Xtranet/OnlineFormsNew); first-time applicants must register, and the online forms provide a step-by-step guide for each tab; Údarás na Gaeltachta and Local Enterprise Office applicants should consult their own agency for their specific approval route
3. 3Project evaluation consists of a Commercial Assessment and a Technical Assessment, considering value for money, prior State funding received (last 7 years), strategic fit, financial track record, development needs, RD&I capability increase, technical feasibility, and cost reasonableness
4. 4Applications up to €150,000 total grant funding are considered under Delegated Powers by the Management Approvals Committee (MAC); applications over €150,000 go to the Investment Committee
5. 5Company must demonstrate an incentive effect: that the project would not have proceeded without the aid, and/or that aid results in a material increase in project size, scope, total spend, or speed of completion
6. 6If approved, a Letter of Offer issues, forming a legal agreement; the Committee's decision is final, though applicants may appeal to Enterprise Ireland
7. 7Projects should begin within 6 months of approval or approval may be withdrawn, and must be completed by the deadline in the grant agreement (or any approved extension)
8. 8Company completes a claims checklist for each claim and submits it with all required documents; incomplete claims are returned