The Irish Government's proposed creation of an 'Innovation Island' will be central to Ireland's economic recovery, the Irish Pharmaceutical Healthcare Association (IPHA) has said. Launching the latest edition of its Pharmaceutical Healthcare Facts and Figures, an IPHA statement said: "... it is crucial that Ireland maintains its reputation as a country that understands and values innovation and the contribution of the pharmaceutical industry. In this regard, Government needs to ensure we maintain our competitive rate of corporation tax, improve the existing R&D tax credit and most important of all that Irish patients continue to have timely access to innovative medicines. The 'Innovation Island' and Ireland's economic recovery depend on these types of actions."

While the pharmaceutical industry has been a key driver of the Irish economy over the last forty years, employing more than 24,500 people directly (and as many again indirectly), and benefiting from investments of 1.2 billion euro in the last three years, "we cannot rest on our laurels," the IPHA statement added. In 2008 the industry in Ireland produced 9 of the top 15 medicines in the world, but last year that dropped to 5 of the top 12 as revenues fell off as a result of patent expirations and subsequent generic competition.