New research by Knowledge Transfer Ireland has found a 38% increase in collaborations between third level institutions and industry.
Knowledge Transfer Ireland (KTI) is the state body which works to make it easier for businesses to access publicly-funded research.
KTI said that patent filings by colleges and universities also rose sharply last year - as did the number of spin-out companies created and the number of new products and services launched.
Today's review shows a 33% increase in licences, option agreements and assignment agreements in 2018 - the highest number since the survey began.
Most of the licences were signed with Irish companies (76%) of which 61% were with Irish SMEs.
KTI added that most of the licences were for patents and software.
The review shows that a total of 1,824 live research collaborations were agreed with industry by the end of 2018. 124 patent filings with the university sector accounted for 76% of these.
It also revealed that 33 new products and services were launched to the market last year, up from 24 in 2017.
Meanwhile, 30 new spin-out companies created - an increase from 21 new companies in 2017.
KTI also said that 80% of collaboration agreements last year were signed with Irish companies.
Dr Alison Campbell, Director of KTI, said the review shows that the state body has developed a strong platform for knowledge transfer in Ireland, that is continuing to mature and evolve.
Dr Campbell said the level of international interest in the Irish system and in KTI has been encouraging.
"The survey findings confirm the value that enterprise places on accessing Irish research and expertise to drive innovation and the upwards trend in repeat engagements reflects the quality of that experience," she added.
Paul O'Toole, CEO at the Higher Education Authority, said the HEA works to build Ireland's research capacity and to enhance the responsiveness of higher education institutions to the needs of society.
"We are very encouraged by the performance of the higher education sector in the context of knowledge transfer as evidenced by the latest results," Mr O'Toole said.
"This survey is an important contribution to ensuring transparency in the reporting of higher education institutions participation in knowledge transfer. Our aim is to enable institutions to work on a commercial basis with enterprise while preserving the public interest appropriately," he added.
