Submission to the Department of Finance in respect of the Public Consultation on The Knowledge Development Box by Eoin Costello, CEO Startup Ireland
The Knowledge Box, the MNCs and #Vision2020 Startup Island
(Ireland’s ambition to be a global startup hub)
Here is a two-paragraph summary for your blog post, based on your submission document regarding the Knowledge Development Box.
Our 2015 submission to the Department of Finance argued for a strategically designed Knowledge Development Box (KDB) to act as an economic engine for Ireland's startup sector. The core idea was to move beyond simply attracting multinational corporations (MNCs) for activities like sales and support, and instead to incentivise them to locate their 'mission critical' research and development (R&D), corporate venturing, and startup accelerators in Ireland. By doing so, we could build upon the existing concentration of global tech firms and deepen their long-term commitment to Ireland, making them more embedded in a strengthened local innovation ecosystem that would be difficult for other cities to replicate. The submission highlighted that startups are key creators of applied innovation, and fostering a symbiotic relationship between them and MNCs—through acquisition, investment, and collaboration—is crucial for a thriving, advanced economy.
The submission underscored that a strong indigenous startup sector is essential for attracting and retaining Foreign Direct Investment, as both large and scaling companies increasingly seek direct exposure to high-impact startup clusters near their R&D centres. Research shows that new and young businesses are the primary drivers of net job creation. Therefore, the KDB presented a historic opportunity to configure Ireland's fiscal framework to support the development of knowledge-intensive jobs and industries. We argued that the KDB's definition of intellectual property (IP) must extend beyond just patents—which are dominated by hardware and life sciences—to include copyright and branding, which are more relevant to Ireland's majority ICT startup sector. By incentivising MNCs to establish deeper R&D roots and engage with local entrepreneurs, the KDB could help transform Ireland into a global startup hub, creating a nexus of innovation between the EU and the US.
Click here for the full submission -
The Knowledge Box, the MNCs and #Vision2020 Startup Island
