With well over 200 companies in Ireland directly related to the Aerospace Industry, Ireland is seen as one of the major players in the Aviation/Aerospace Sector. These 200 companies range in a wide variety of technological capabilities such as optics, propulsion, space systems software, onboard data systems, ground station systems & networks, and passenger aircraft just to name a few. 

The global demand for passenger aircraft is ever increasing and there are exciting new opportunities for space travel, making this a sector brimming with R&D. A new aircraft development typically takes between 10–15 years and involves multiple partners across the supply chain working concurrently on a multi-phased programme. This provides opportunities across the supply chain to apply for the R&D tax credit – from OEM’s developing the fuel-efficient engines of the future to Tier 2 suppliers developing new composite materials to improve performance within them. In addition to commercial aerospace, defense is still a major part for the sector and here cutting-edge technology is also being applied.

Examples of Eligible R&D activities:

• Extending knowledge of new composite materials to replace parts to both extend life and minimise weight;

• Developing new aircraft and related equipment;
• Developing manufacturing processes to increase capacity, whilst reducing costs;
• Reducing the weight of in-flight equipment to achieve an appreciable improvement in performance;
• Developing digital systems to replace legacy analogue systems;
• Integrating available equipment on new platforms;
• Duplicating material development process from the automotive industry to provide light-weight requirements of space travel;
• Developing test rigs to resolve technological uncertainty for space travel.

Expenditures can include wages, third-party contractor cost (contractor performing R&D in EEA), materials, machinery, equipment, and overheads.