The life sciences sector continues to be a linchpin of the Republic’s foreign direct investment strategy and indeed, the wider economy. More than 700 biopharma, medtech, and digital health companies comprise the sector in the State, employing more than 102,000 people and exporting goods worth more than €120 billion annually.
Decades of deliberate policy decisions have ensured the State’s position as a global hub for cutting-edge life sciences R&D and advanced manufacturing – 19 of the top 20 global pharmaceutical and biopharmaceutical companies are based in the Republic, as well as 18 of the world’s top 25 medtech companies.
Ireland has firmly established itself as a world-renowned centre of excellence for the biopharmaceutical and chemical sectors, evolving into a global powerhouse that drives significant economic impact, says Sinead Keogh, director of BioPharmChem Ireland.
This is echoed by Dr Aisling McEvoy, head of enterprise partnerships with Research Ireland, who says the State’s reputation for R&D excellence is pivotal in driving our life sciences success.
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“Ireland has a world-class research and innovation ecosystem, with strong interconnectivity between academia, industry, Government and a highly engaged public that values the role of research,” she says. “We are currently ranked internationally as a strong innovator – first in the world for knowledge diffusion, with an ambition to develop as a leading innovator.”
Underpinning this is our unique talent ecosystem, Keogh says. “Ireland benefits from one of the youngest populations in the EU, with one-third of the population aged under 25, providing a dynamic and future-proof workforce. The country also holds the distinction of having the highest level of Stem graduates per capita in the EU among 20-to-29-year-olds.”
Furthermore, the sector is research-driven, absorbing 25 per cent of all PhD graduates in the State, which Keogh says ensures a continuous pipeline of top-tier innovation capability.
To sustain this talent pipeline, the State has invested heavily in world-class training infrastructure; the National Institute for Bioprocessing Research and Training is a prime example, training approximately 5,000 people annually in realistic good-manufacturing-practice simulated environments.
“Our combination of EU access, global connectivity and a thriving R&D ecosystem positions Ireland as a bridge between Europe and North America, and a magnet for high-value investment in biopharma, medtech and digital health,” says Sharon Scanlan, partner and head of healthcare and life sciences at Grant Thornton, who also agrees that our highly skilled workforce serves as a big attraction.
Looking to the future, Ireland is not resting on its laurels but is actively moving up the value chain toward drug discovery, development and digital therapeutics. The sector is currently managing more than €5 billion in new biopharma investments under construction, Keogh notes.
Yet stakeholders also agree the sector faces a number of threats. Scanlan points out that Ireland is vulnerable to increasing global competition and potential shifts in tax regimes. “Other countries are offering aggressive incentives for life sciences FDI, challenging Ireland’s position,” she warns.
The most recent BioPharmaChem Manufacturing Report shows that trade uncertainties are now the top overall challenge for biopharmchem businesses, with 68 per cent reporting concerns and three-quarters saying they are affected by US tariffs.
“Escalating geopolitical risk and persistent cost pressures are creating a challenging backdrop for the sector, despite important support measures announced in Budget 2026 such as the increase in R&D tax credit to 35 per cent,” says Keogh.
“Ireland stands at a pivotal moment to shape a future where life sciences drive both economic prosperity and health system transformation,” says Eimear O’Leary, director of communications and advocacy at the Irish Pharmaceutical and Healthcare Association. “There are several strategic opportunities Ireland could seize to align with our ambition to become a global hub of excellence for life sciences research and innovation.”
She believes Ireland must position itself as an early launch market, making itself a priority destination for new medicines and technologies, positively impacting healthcare outcomes for patients.”
But without a clear, co-ordinated approach for the life sciences sector, the State risks losing momentum in innovation adoption and access. Multiple stakeholders have made submissions towards the new national life sciences strategy (NLSS), as promised in the Programme for Government, and they say it needs to be published without delay. “We believe that the strategy should position Ireland as a global launch pad for life sciences innovation, delivering better health outcomes, economic growth, and resilience,” O’Leary says.
The hope is that the strategy will commit to establishing a life sciences council for permanent cross-sector collaboration, while also accelerating the digitalisation of healthcare and strengthening R&D investment and incentives, matching leading life sciences nations.
“The central ambition for the NLSS is to move Ireland up the value chain, ensuring we are globally recognised as a centre of excellence for innovation and the location of choice for the launch of new products,” Keogh adds. The industry is keen to see a “bold, actionable plan”, she says, that delivers clear, transformative outcomes.
“This means the strategy must create the conditions for increased investment in clinical trials, advanced therapeutics and next-generation drug discovery, and, crucially, it must secure and futureproof the national talent pipeline for a new era of advanced manufacturing and research.”
