Technology Ireland says a resilient focused budget can help evolve Ireland’s tech sector

Technology Ireland, the Ibec trade association representing the ICT, digital, and software sectors, has published its Budget 2027 submission. TI are calling on the Government to leverage Ireland’s strong fiscal position to fund long-term resilience, balancing immediate cost pressures with strategic investments with a particular focus on talent development, research & innovation (R&I), and the indigenous startup ecosystem.

With Ireland’s upcoming Presidency of the Council of the European Union approaching, the global economy faces major structural challenges, including seismic shifts in Artificial Intelligence (AI) and changing patterns of globalisation.

Director of Technology Ireland said:

“Ireland stands at the heart of Europe’s vibrant technology ecosystem. In the coming year, Ireland has a unique window to shape European policy and champion a continent that prioritises competitiveness and adopts a smarter, pro-innovation approach to regulation. Budget 2027 must balance immediate cost pressures with strategic investments in talent, R&I, and our indigenous sector. Our goal is to ensure Ireland remains the leading location for global technology companies while building a domestic sector that starts here and grows here.”

The Budget 2027 submission outlines key policy recommendations across four core areas:

Securing the Future Talent Pipeline: To meet verified industry demand, Technology Ireland calls for an increase in core funding for Skillnet Business Networks by €50 million over three years (€16.7 million in 2027). Key proposals include a new €10,000 AI Training Voucher for SMEs and Mid-Caps, establishing an AI Skills Fund across the tertiary education system, and expanding the National Training Fund to subsidise Level 10 (PhD) training through the new PhDStart initiative. The body also emphasises the national scale-up of the STEM Passport for Inclusion and P-TECH programs to tackle gender imbalances.

Supporting Indigenous Founders and SMEs: The submission stresses the importance of fostering a domestic sector that scales globally. Technology Ireland recommends reforming Capital Gains Tax (CGT) for technology entrepreneurs to unlock stagnant capital and encourage new founder-led businesses. Furthermore, it highlights the critical need to simplify the Key Employee Engagement Programme (KEEP) by slashing burdensome administration and complex valuation requirements, enabling indigenous SMEs to realistically compete for world-class talent.

Boosting Research and Innovation (R&I): To keep pace with international knowledge economies, Technology Ireland calls on the Government to increase public investment in research and innovation to 1% of GNI* by 2035, requiring an extra €70 million in public spending. Additionally, the association recommends amending the R&D Tax Credit to include Irish-based management of offshore R&D activity, anchoring high-value decision-making roles within the country.

Enhancing Digital and Regulatory Ambition: As EU regulatory frameworks like NIS2, the AI Act, and the Data Act take effect, the submission notes that regional sectoral regulators must be adequately resourced through primary Exchequer funding rather than damaging industry levies. Technology Ireland also emphasizes accelerating the “Silicon Island” and “Quantum 2030” strategies, expanding Cyber Review and Improvement Grants up to €60,000, and scaling up Ireland’s defensive capabilities toward the Commission on Defence Forces’ Level 3 target.

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