Five entities are involved in the research project.
More than €2.6m is being granted to a Westmeath project aimed at improving the life of those using stoma bags.
Developers say The Flow Assist Pouch would also help the skin condition of Ostomy Pouch users.
Four companies are involved in the research along with Athlone Institute of Technology.
The funding is from the government's €95m disruptive technologies fund.