Digital Business Ireland says doubling investment in digital would add €8.3bn to economy

Report makes case for digital and online industries

Victor Timon, Digital Business Ireland chair, called for a transformative investment in digital transition in Ireland.  

Digital Business Ireland, a body representing 8,000 digital and online businesses, says that doubling digital investment would add €8.3bn to the Irish economy. 

The report, titled ‘Taking Digital Commerce in Ireland to the Next Level’ says that Ireland is among the European leaders in terms of online purchasing. It says that in 2024, 37.9% of small enterprises were engaged in digital commerce (CSO) - the second highest in Europe - "yet many SMEs have still not reached the level of digital maturity required to compete effectively".

"For all the progress we have made as an economy, the accelerating pace of digital innovation and the unprecedented opportunities offered by AI means there is always new ground to travel and there is always another level to be reached. Digital Business Ireland’s core message is that all businesses should be striving and supported to move up to the next level of digital maturity," said Digital Business Ireland chair Victor Timon. "To achieve this, there needs to be transformative uplift in business investment in digital transition in Ireland.” 

The report calls for the introduction of a second, higher-value tier of the Grow Digital Voucher to support businesses in Ireland to invest in next-level digital commerce capabilities, building on the discontinued Enterprise Ireland Online Retail Scheme.

It also proposes targeted tax measures, such as accelerated tax credits, to incentivise ongoing business investment in next-level digital commerce capabilities.

The report notes that skills gaps remain a major challenge to digital transition, stating that only 20% of Irish SMEs provide ICT skills training for staff. "It is critical that businesses are facilitated to support their staff to continuously update their skillsets to adapt to the rapidly changing digital space, including new developments in digital marketing and the use of AI in digital marketing and CRM (customer relationship management)," the report states.

“The reality of digital transition is that it is a task that is never completed. The tempo of change never slows,” said Mr Timon.

The report also recommends that Government conduct an assessment of the value of digital advertising to the Irish economy and jobs.