Ireland’s Multinational Windfall: A Missed Opportunity for University Innovation?

Ireland’s Multinational Windfall: A Missed Opportunity for University Innovation?

Ireland has become an undeniable hub for multinational corporations, reaping the financial and reputational rewards of this success. The country’s tax revenues are buoyed by an ever-growing surplus, with the latest headline-grabbing figure being the €13 billion recouped from Apple. Yet, for all the wealth pouring into state coffers from these global giants, Ireland is missing a crucial opportunity to support the very backbone of its future economic development: indigenous entrepreneurship and innovation in universities.

The disparity is striking. Our indigenous companies, many of which struggle with global competitiveness, desperately need support to thrive in an increasingly complex market. Universities are one of the most important sources of innovation for companies. Yet, many have had to divest from their innovation and entrepreneurship activities due to broader funding constraints across third-level institutions. This disinvestment leaves a gap in the ecosystem that, if addressed properly, could help drive a more balanced and sustainable economy.

While global companies may provide short-term tax revenue and jobs, the long-term resilience of Ireland's economy hinges on developing homegrown talent that can create, innovate, and lead.

Universities are the breeding grounds for that talent. Not every student will go on to start their own business, but those who engage in entrepreneurial activities at university are equipped with a mindset that is vital to the competitiveness of indigenous companies.

Moreover, this isn’t just about creating entrepreneurs. Even those who don’t start their own companies will be able to bring an entrepreneurial or “intrapreneurial” mindset into the MNCs that have already made Ireland their home, ensuring their own sustainability on our fair Isle.

Agile, adaptable, and innovative thinkers are essential for companies—whether homegrown or global—to stay ahead in today’s fast-moving business environment. Encouraging this mindset early in universities strengthens both our indigenous businesses and supports the continued success of MNCs operating here.

So why, with Ireland’s massive corporate tax surpluses, is there no serious plan in place to invest in university innovation and entrepreneurial hubs? Why aren’t we seeing more of this windfall being redirected into third-level institutions, enabling them to act as springboards for Ireland’s next generation of innovators, entrepreneurs, and intrapreneurs?

Innovation hubs, mentorship programs, seed funding, and access to industry experts—these are the essential ingredients needed to foster a thriving ecosystem of young innovators, entrepreneurs, and intrapreneurs. Yet, the funding for such initiatives remains limited. Many universities, stretched for resources, are being forced to scale back and cancel the types of programs that could propel Ireland’s economy forward in a more balanced way.

The government must take a more strategic approach in using its corporate tax windfall to invest in the future. A large portion of that money should be earmarked to build up Ireland’s university innovation capacities, which not only benefit students but the entire economy. Universities that prioritise innovation and entrepreneurial skill-building are effectively equipping their students with tools that can enhance competitiveness across all sectors, from indigenous to multinationals.

The funds are there. What’s missing is the political will to use them strategically to build a long-term, innovation-driven future.

It's time to ask ourselves: How can we make the most of this wealth, not just for today but for generations to come?

By investing in our universities and their innovation and entrepreneurship capabilities, we can ensure that Ireland remains competitive on the world stage—not only as an attractive location for MNCs but as a leader in homegrown innovation.

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Ken Finnegan is a director at DCU, responsible for delivering student the innovation, creativity, and enterprise strategy to the university.

He was the former CEO of Tangent, Trinity’s Ideas Workspace, and the Chief Technology Advisor for IDA Ireland.

Sources:

Ireland’s Competitiveness Scorecard 2023

Funding crisis 'could threaten the viability of Irish universities'