If you’re a UK-based business, you may be able to apply for funding in the form of an R&D grant.
R&D grants (ones that you don’t have to repay) are available to help you research and develop a process, product or service, and they can also allow you to test your innovative ideas and collaborate with other businesses, research organisations, charities or other such entities. There are multiple options available, although the eligibility for some will depend on where you’re based or the industry you work in. In this article, we explain the options available for those looking to secure funding for their next R&D project.
UKRI & Innovate UK
UK Research and Innovation (UKRI) is a government-backed funding agency for science and research in the UK.
Within the UKRI sits Innovate UK, which is essentially the specialised business branch, driving growth by working with businesses to support research and development alongside a network of investor partners.
At the last spending review, UKRI was allocated £7.4 billion to support innovative companies, including funding for Innovate UK’s wider business grant activities.
Find out more about Innovate UK R&D grants.
Regional UK grants
As well as Innovate UK, businesses may be able to apply for a grant from one of the government’s regional business support agencies for each of the four nations in the UK, including:
Horizon Europe
Despite no longer being part of the European Union, UK businesses can apply for R&D grant funding through Horizon Europe, the world’s largest funding programme for research and innovation. As the UK is now an ‘associated country’, applicants can take part in projects and receive funding on the same basis as organisations in EU member states.
Find out more about Horizon Europe R&D grants.
Advanced Research and Invention Agency (ARIA)
While a slightly less conventional route for business funding, the Advanced Research and Invention Agency (ARIA) offers R&D grants that are available to the private sector. including SMEs, startups and larger R&D-intensive companies.
It’s also government-backed, but it focuses on high-risk, high-reward R&D, which means that it expects many of its projects to fail because of the bold and speculative nature of the innovation.
Find out more about ARIA R&D grants.
Sector-specific R&D grants
National Institute for Health and Care Research (NIHR)
The National Institute for Health and Care Research (NIHR) accepts funding applications from industry. They specifically fund research projects that help to improve patient outcomes or improve the efficiency of the health and social care system.
Find out more about NIHR R&D grants.
Advanced Propulsion Centre UK
The advanced propulsion centrefunds R&D which supports the automotive industry’s transition to net zero, with programmes designed to fund projects by SMEs, scale-ups, and organisations making large-scale capital investments.
Find out more about Advanced Propulsion Centre UK R&D grants.
Defence and Security Accelerator (DASA)
The UK’s Defence and Security Accelerator (DASA)offers funding to support the UK’s defence and security, as well as to help commercialise the technology for economic growth. Funding comes in the form ofopen calls for disruptive technology, themed competitions for specific government priorities, and innovation loans to help convert mature R&D projects into viable business propositions.
Find out more about DASA R&D grants.
Aerospace Technology Institute (ATI)
The Aerospace Technology Institute (ATI)facilitates fundingfor projects that support the UK’s aerospace technology strategy.
R&D grants are available for projects that deliver ultra-efficient and zero-carbon aerospace technologies within the civil aerospace sector.
Find out more about ATI R&D grants.
R&D Tax Credits
No matter which industry you work in, or where you’re based in the UK, R&D Tax Credits are available to support organisations seeking to make scientific or technological breakthroughs.
R&D Tax Credits are a government incentive that rewards companies of all sizes for their innovative projects. This might include developing a new process, a product or a service, as well as improving existing ones.
To be eligible, a project should aim to achieve an advance in science or technology by resolving technical uncertainty. As long as your solution can’t be easily worked out by a competent professional in the field, there’s a good chance that your work would be eligible for tax relief. So, if you’re looking to secure funding for your next R&D project, and you don’t qualify for a grant, it’s often one of the most applicable options for innovative businesses.
You can find out more about the tax relief available by reading our guide to R&D Tax Credits.
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