Government funding

Why the Irish State funds Lean

Why Lean sits at the centre of Ireland’s productivity policy, and what it has delivered.

Ireland is a small, export-led economy. Its Irish-owned businesses produce a fraction of the output per hour of the multinationals based here. Since 2009 the State has funded Lean as one of the most practical ways to close that gap: it improves how existing work is run, without large capital investment.

It began as a response to the downturn

The 2008 to 2013 downturn showed how exposed Irish firms were to global conditions. Enterprise Ireland piloted its Lean Business Offer in 2009 and rolled it out from 2010, to help manufacturers, software firms and service companies cut cost and waste and build lasting capability. In 2013 Forfás, the State’s enterprise policy advisor, recommended Lean be adopted widely, and a step change in performance was written into the Action Plan for Jobs.

The productivity gap is still the core issue

Figures from the Central Statistics Office in 2026 put labour productivity in the domestic sector at about €66 an hour, against about €507 an hour in sectors dominated by foreign-owned companies. Without the multinationals, Irish productivity is broadly in line with the rest of Europe. Irish-owned firms also lag on new technology: about 16% use AI, compared with 44% of foreign-owned firms. Raising the productivity of Irish-owned businesses has been central to enterprise policy since the OECD’s 2019 review of Irish SME policy.

It has produced measurable results

A Department of Enterprise review of the Lean Business Offer, covering more than 700 supported projects, reported productivity up around 20%, sales up 40%, employment up 11% and more than 6,200 people trained in Lean. Enterprise Ireland reported average savings of about €45,000 from a LeanStart and €130,000 from a LeanPlus, the larger offer available at the time. These were early results, but they gave Government the evidence to keep funding it.

Multinational sites benefit too

IDA Ireland runs a parallel Lean and Digitalisation Business Offer for its client companies, to help them sustain and grow their Irish operations. Irish sites, including shared-service and global business services centres, have to show world-class performance to win work within their own groups.

Lean and digital now go together

Both offers now pair Lean with digitalisation: improve the process, then digitise it. Enterprise Ireland now funds Lean training and training in digital, AI and automation through the same grant, Build Capability, which replaced LeanPlus. It also offers Digital Discovery for a first step with an independent digital or AI expert, and Digital Process Innovation grants for the next step. The Government’s Action Plan on Competitiveness and Productivity (September 2025) continues the focus on productivity and on helping smaller firms adopt new technology, and Enterprise Ireland’s Strategy 2025–2029 sets a target of 3% a year productivity growth in the companies it supports.

What it means for your business

The State has made a deliberate choice to share the cost of improving how Irish businesses work. If you are an Enterprise Ireland or IDA client, that support is available to you now.

Book a free call to check what you qualify for

See the funding options