Innovate UK grants | Innovation grants

What is an innovation grant?

Government and commercial bodies offer grants, or heavily subsidised loans, through competitive funding programmes to support innovative firms with the aim of encouraging the creation of high-growth businesses. Businesses that want to investigate and develop a novel product or test out concepts are ideal applicants for this financing.

Innovation grants are a great way for innovative firms to secure funding: business founders do not lose any equity and the company will never be required to repay the money. Similarly, innovation loans can be used as a low-cost alternative to regular non-equity lending. Various funding organisations offer these initiatives, however, Innovate UK is the principal funding body in the UK, which offers both loans and grants. 

Government incentives for innovation can help you save money on the start-up costs of your projects. The amount of funding will be determined by the project’s stage, and when awarded earlier in the process, these grants can cover 50% or more of expenditures. R&D loans, on the other hand, are often used for initiatives that are closer to commercialisation and require short-term funding. 

How do I get UK funding for innovation?

A variety of factors, such as ownership structure, firm size, and profitability, influence a company's grant eligibility. Before applying, it's crucial to understand the requirements and goals of each grant programme, as the more closely your organisation fulfils the parameters, the more likely you are to receive funding.

There are also government funding programmes that contribute generously to highly specialised investments like training or capital equipment. 

Some programmes require a registered office in the United Kingdom, while others require the award recipient to be situated in the European Union. Therefore, applicants need to ensure the right entity applies to receive an award. Businesses that develop their own products rather than outsource work are more likely to receive funding, as are businesses that want to build a unique solution that combines cutting-edge technology to solve a pressing issue.

The application process for an innovation grant financing is competitive and time-consuming, and you must stick to financial and record-keeping standards, which may be difficult for your company to meet. To secure a successful grant win, you must have a well-defined project before beginning the bid writing process, as well as a thorough understanding of the administrative requirements you will agree to when accepting the grant award.

By properly assessing innovation grants UK incentives, you'll be able to choose the best source of support for your project while ensuring that the funding is in line with your company's overall plan.

How we can help

Our specialist R&D team can help you apply and secure innovation funding. 

Because grant financing is extremely competitive, with thousands of organisations applying each year and only around 10% winning funding, you must first determine whether you should use company time and resources to apply. That's where we come in. 

We can assist you with your R&D strategy to determine the viability of a variety of grant financing mechanisms or determine whether your business should be focusing on other sources of funding to maintain flexibility. We’re familiar with the intricacies of an innovation project and understand what it takes to be successful. 

Working with a team of specialists that are aware of the grant application complexities will increase your chances of success. We know what funding agencies require for an application to be successful. From coaching, advising, and assessing your application, we can provide the specialist support you need.

Once you've been awarded a grant, our team of accounts and audit specialists will help you manage the project finance submissions to the grant provider.

If you’re looking to raise finance unrelated to innovation, our Corporate Finance team can help.

Get in touch

If you would like to speak to one of our R&D experts to find out more about how we can help, please get in touch via the form below.