Behind the Scenes of EDIH Funding in Ireland: RRF, De Minimis, and the IP Conundrum

When the European Digital Innovation Hubs (EDIHs) were established across Ireland, they weren’t just echoing a European mission—they were firmly grounded in national strategy. All four Irish EDIHs are funded through Ireland’s Recovery and Resilience Facility (RRF), underpinned by the NextGenerationEU initiative. The Department of Enterprise, Trade and Employment (DETE) channels this investment, with Enterprise Ireland managing the funding and ensuring Ireland’s digital recovery aligns with European milestones.

Simultaneously, there’s a funding pathway directly supporting SMEs through De Minimis state aid. This EU-regulated scheme allows small amounts of public support (up to €300,000 over rolling three-year periods) without triggering lengthy EU approval procedures. In practice, SMEs tapping into EDIH services—like “Test-before-Invest” or skills training—can use De Minimis aid to cover up to 100% of such services (up to around €100,000 per project), subject to eligibility and availability.

But here’s the rub: the funding model that strengthens the EDIH network also unwittingly restricts IP generation in Ireland as part of service delivery. EDIH projects are co-funded (part EU / part national), they operate under a cost-recovery model with no profit allowed. This means that any EDIH activity must remain in the public domain — rather than the SME or the EDIH retaining or commercialising any IP. Instead, the role of EDIHs is to ensure that SMEs can access what is already available. For example, an SME might test an AI product with an EDIH to validate its impact, receive staff training to ensure successful adoption, and then apply it within their business. The emphasis is on demonstration, training, and de-risking technology uptake — creating a faster path to efficiency and scaling — not on generating proprietary intellectual property.

Yet this creates a tension. Ireland’s EDIHs are competing within an EU-wide network, where some Member States have enabled IP creation through their public service organisations as part of EDIH engagement. In Ireland, we do have the Technology Gateway Network (https://technologygateway.ie) to support Enterprise Ireland clients in navigating IP, licensing, and technology transfer. But what of the SMEs who are not EI clients — do they risk falling through the cracks?

As we look ahead to EDIH 2.0, a policy conversation is needed: could we develop mechanisms that allow Irish SMEs to benefit from structured IP pathways, without undermining the public-service mandate of EDIHs? Finding that balance may be key to ensuring Ireland’s hubs remain competitive, sustainable, and impactful within the European network.