Report

Life Sciences Ireland Cluster Report 2025 


The document is a report advocating for the establishment of a Life Sciences Growth Cluster Organisation in Ireland to enhance innovation, collaboration, and economic growth in the life sciences sector.

Ireland's Life Sciences Sector Overview

Ireland's life sciences sector is a vital economic driver, showcasing significant growth and global competitiveness.

  • Over 700 life sciences companies operate in Ireland.
  • Exports of medical and pharmaceutical products reached nearly €100 billion in 2024, accounting for 45% of total goods exports.
  • The sector is crucial for high-value economic output, job creation, and global reputation.

Need for a Life Sciences Cluster Organisation

The absence of a formal cluster organisation poses a strategic vulnerability and an opportunity for growth.

  • Ireland lacks a dedicated national cluster organisation for life sciences, unlike peer countries.
  • The current model is over-concentrated, with five companies accounting for 43% of total exports in 2022.
  • A cluster organisation could enhance innovation, policy alignment, and industry collaboration.

Global Trends and Competitive Disadvantages

Ireland risks falling behind in the global life sciences landscape without proactive measures.

  • Countries with established cluster organisations are attracting investment and fostering innovation.
  • Ireland's life sciences sector is heavily focused on manufacturing (63% of pharmaceutical sites) with only 5% dedicated to R&D.
  • Geopolitical tensions and trade wars could impact multinational operations in Ireland.

Proposed Structure and Goals of the Cluster Organisation

The proposed Life Sciences Growth Cluster Organisation aims to drive innovation and collaboration. ​

  • It will be established as a Designated Activity Company (DAC) with a not-for-profit mandate.
  • Key goals include fostering cross-sector collaboration, accelerating R&D, promoting skills development, and attracting international funding.
  • The organisation will be headquartered in one of Ireland's cities leveraging the region's life sciences activity. ​

Government Support and Policy Alignment

The establishment of a cluster organisation aligns with government policies and strategic goals. ​

  • The Irish Government recognizes the need for cluster organisations to enhance competitiveness and innovation. ​
  • The National Life Sciences Strategy will require collaboration and alignment that a cluster organisation can provide. ​
  • Existing government policies emphasize the importance of clustering and regional innovation ecosystems. ​

Economic Impact and Benefits of Clusters

Clusters have been shown to significantly enhance innovation and economic growth. ​

  • Companies within clusters are 25% more productive than those outside. ​
  • Cluster participants are four times more likely to innovate and experience 3.6% higher productivity growth. ​
  • Successful clusters, like BioCat in Catalonia, have mobilized over €1 billion in research funding and attracted significant foreign investment.

Industry Support for Cluster Organisation

Broad support exists within the industry for the establishment of a life sciences cluster organisation. ​

  • A consultation event in June 2025 gathered over 50 senior actors from the life sciences value chain. ​
  • Attendees emphasized the need for collaboration, innovation, and national relevance. ​
  • Feedback indicated strong consensus on the potential impact of a cluster organisation on Ireland's economy. ​

Financial Considerations for Establishing the Cluster

Establishing a life sciences cluster organisation requires a significant initial investment. ​

  • An initial operating budget of €1.06 million per annum is recommended to start the organisation. ​
  • Costs are primarily driven by staffing levels and the need for a high-profile location.
  • Securing funding to match EU grants is essential for the cluster's success. ​

Life Sciences Cluster Development in Ireland

The establishment of a Life Sciences Growth Cluster Organisation in Ireland is essential for enhancing innovation and competitiveness in the sector.

  • The proposed model is adapted from successful clusters in Norway, Sweden, and Belgium. ​
  • Aiming for 150 members, the expected staffing level is 6 people. ​
  • Estimated annual operating costs for a fully established cluster are €1.064 million. ​
  • Key costs include salaries (€480k), specialist support (€150k), and promotional activities (€80k).

Funding Models for Cluster Organisations

Initial funding for cluster organisations typically comes from government sources, with increasing reliance on membership fees over time. ​

  • Comparator clusters like Biocat in Catalonia started with public funding and evolved into public-private foundations. ​
  • Membership fees vary significantly; for example, Biovia charges between €0 and €4500 based on company size. ​
  • Other income sources include grants, events, and partnerships, which grow as the cluster matures. ​

Income and Expenditure Projections

The financial model outlines expected income and expenditure for the cluster over seven years.

  • Membership is projected to grow from 0 to 250 over seven years.
  • Annual membership fees start at €2500 with a 3% increase each year. ​
  • Total income is expected to reach €1.046 million by year 7, while expenditures will rise to €1.2 million.
  • A funding deficit is anticipated in the initial years, decreasing as membership and income grow.

Phased Approach to Cluster Establishment

The establishment of the cluster will occur in three phases, focusing on building resources and capabilities. ​

  • Phase 1 (0-12 months): Establish operational infrastructure, engage stakeholders, and conduct best practice research. ​
  • Phase 2 (12-24 months): Expand the team, grow membership, and develop alternative income streams. ​
  • Phase 3 (24 months+): Execute cluster ambitions, track outcomes, and evolve the network of partners. ​

Governance Structure for Cluster Organisation

A not-for-profit Designated Activity Company (DAC) is recommended for effective governance and funding acquisition.

  • The organisation must act as an "honest broker" among stakeholders, including industry and academia. ​
  • Clear goals should be articulated through stakeholder dialogue to ensure alignment with cluster activities. ​
  • Successful clusters focus on R&D collaboration, incubator programs, skills development, and regulatory support.

Activities and Services Offered by Clusters

Clusters provide a range of services to support their members and foster collaboration.

  • Key activities include R&D collaboration, incubator and accelerator programs, and skills training. ​
  • Clusters facilitate access to funding and regulatory support for life sciences companies. ​
  • Networking events and marketing initiatives promote the cluster nationally and internationally. ​

Conclusion on Ireland's Life Sciences Sector

Ireland's life sciences sector is a critical component of its economy, requiring proactive measures to maintain its competitive edge.

  • The sector has seen significant investment and talent development but faces increasing global competition. ​
  • Establishing a Life Sciences Growth Cluster Organisation is crucial for fostering innovation and collaboration. ​
  • The report emphasizes the need for commitment from government and industry to realize this vision. ​