New funding scheme will support innovative small companies
A new scheme will offer funding to small companies to enable them to research and develop new products, processes and services that could stimulate economic growth.
Managed by the Technology Strategy Board, the Grant for Research and Development scheme, which comes into effect from 4 April 2011, will support small and medium-sized companies (SMEs) across the UK that want to carry out research and development generating new and innovative products and services. The new scheme supersedes the Grant for R&D scheme previously managed by England’s regional development agencies and will have similar objectives.
Speaking about the importance of innovation by small businesses for future economic growth the Technology Strategy Board’s Chief Executive, Iain Gray, said:
”Innovative small companies are vital to the UK’s economic future. Nearly two-thirds of all commercial innovations originate in small companies and we need to nurture and encourage this vital source of exciting new innovations.
“Small companies may under-invest in innovation because of the high degree of risk and uncertainty around both the development and commercial exploitation of new ideas. Offering partial funding through this initiative should help many innovative small businesses to overcome this barrier and to invest in innovation, helping to generate future business success.”
The Grant for Research and Development scheme will offer SMEs three types of grant:
- Proof-of-market grants will enable companies to assess commercial viability through, for example, market research, market testing and initial planning;
- Proof-of-concept grants will help companies to explore the technical feasibility and commercial potential of a new technology, product or process through, for example, a feasibility study, basic prototyping and specialist testing;
- Development of prototype grants will be used by companies to develop a technologically innovative product, service or industrial process. This might include small demonstrators, intellectual property protection, market testing and product design.
The maximum funding available will be £25,000 for proof-of-market grants, £100,000 for proof-of-concept grants and £250,000 for development of prototype grants.
Further information about the Grant for Research and Development scheme will be available on the Technology Strategy Board website: www.innovateuk.org from 4 April 2011.