Remandating the IFSC – an international VC Market for R and D
The IFSC has been a runaway success by any measure, creating many well-paid jobs that continue to be largely unaffected by the economic storms. Here I pose a simple question: can the mandate of the IFSC be extended in a new direction? Research scientists and others say that access to broad and deep risk capital markets with associated development expertise is a major problem. There are many companies abroad with deep pockets engaged in this kind of venture. So why not decide that Ireland will be the global home for international R and D venture capital funding, by extending the IFSC mission to secure these kinds of capital markets for Ireland?
Encouraging venture capital funds and other capital-rich entities to invest in Irish R and D via risk sharing through reduced taxation and enhanced R and D credits for incremental R and D could be a great first step. Creating SSIA-like investment opportunities for Irish residents in Irish-located R and D activity (this will likely be much less risky than property investments!) would be a great way of engaging with the smart economy. Perhaps extending the remit further so that income streams from investments abroad accrue here, as will all the back-office administrative and other operations. There will be many other things that could added on too; some form of risk sharing via tax credits or other write-offs might be appropriate also.