Grant funding can be a valuable source for UK large companies that develop innovative products, processes, and services without relying on their own resources. Here, we outline the UK funding sources and the type of work that can be funded.

As a large company, it’s so important to secure good funding options as an important source of cashflow to fund further innovation. Grant funding can help large companies stay ahead of the competition, grow their market share, or expand into new markets. They’re also a great way for innovative firms to improve their public image and attract partnership and collaboration with other organisations. There is a large selection of UK and international grant funding currently available to reward innovation.

We find that there is a common misconception that large companies cannot apply for grant funding. While it’s true that many grant programmes are tailored towards smaller businesses, most grant awarding bodies will have funds are available for larger companies, especially in areas such as research and development, innovation, and specific industry sectors. Therefore, identifying the appropriate grant scheme and complying with the grant requirements is essential for any project to be considered eligible.

Types of grant funding

Innovate UK

The UK government has tried to centralise grant funding under the remit of one body, Innovate UK. Innovate UK is the principal funding body in the UK and supports businesses to develop and realise the potential of new ideas and works with businesses across all sectors to support innovation. Innovate UK manages various types of funding opportunities, from industry-specific funds such as Aerospace Technology Fund to international agreements such as the EU Horizons fund. Therefore, Innovate UK is the starting point for most businesses looking for R&D funding. Innovate UK offer a range of grants and funding programs, some of which are specifically aimed at larger companies, with most competitions open to collaboration between SMEs and large companies.

Your business can apply for Innovate UK funding if it wishes to test the feasibility of an idea, research and develop it, or demonstrate it in a prototype. In this competitive environment, businesses are most likely to succeed if the application shows how the product does not replicate products currently on the market, and how the advances sought will achieve an appreciable advancement on existing products within the field. Here, applicants will need to cover the innovative technology, background market knowledge, commercialist growth plan, and financial cost of proposed project.

Innovate UK Smart Grants

The Innovate UK Smart Grant exists as a way to fund novel, game-changing ideas for almost any industry which undertakes commercially viable R&D innovation. The Smart Grants are open to any area of technology and can be applied to any part of the economy. All R&D projects must be business focused with deliverable, realistic, adequately resourced plans to achieve a return on investment, potential to gain market share and generate economic impact. Innovate UK Smart grants are specifically designed to support R&D innovations with the potential to significantly impact the UK economy. Although each competition criteria varies, large companies can typically apply, and large companies can receive up to 50% of their eligible project costs.

To be eligible, there are a number of requirements which you must meet. Firstly, your project will need to be an idea for a completely new product, service or process, or a brand-new use or an unprecedented use of an existing product, service or process that is beyond what is currently available. Your project must finish within the specified project timescales. Additionally, you must include one micro, small or medium-sized enterprise (SME) as the lead grant-claiming partner. Therefore, large companies seeking grant funding must collaborate with smaller businesses to be eligible for grant funding.

Challenge-led competitions

Most significant opportunities for businesses seeking grant funding exist in four priority areas set out in the government's UK Research and Innovation Challenge Fund. These 'Grand Challenges' include:

• artificial intelligence and the data economy

• ageing society, health, and nutrition

• clean growth and infrastructure

• future of mobility

Throughout the year, Innovate UK will launch various competitions within each of these challenge areas, as well as competitions targeted at other sectors and technologies with significant innovation potential and impact.

The competition scope will specify the category of R&D activity eligible for each particular funding opportunity. If your R&D project meets the needs of one of these challenges, then there is a higher chance of the work being funded than via a highly competitive open grant competition. However, these challenges change throughout the year, and businesses need to keep up to date with what competitions are running to spot an ideal opportunity. We can assist with this grant scouting work, so please get in touch to find out more.

While certain challenge-led competitions welcome individual companies of all sizes, others might have specific size requirements. Large companies must collaborate with smaller businesses to be eligible for challenge-led competitions. Large companies will typically receive a lower funding percentage and can receive up to 50% of their eligible project costs.

Eureka

The Eureka programme is one of the biggest international funding programmes which is open to UK companies working on R&D. UK large businesses are eligible for funding through its Cluster Programmes and Network projects. Eureka is not a direct funding instrument, and projects are funded in a de-centralised manner through the funding agencies of the member countries. Therefore, funding for UK businesses can access the schemes through Innovate UK

• Cluster programmes – Eureka clusters are industry-led international communities focused on strategic technology areas that aim to meet market needs to solve economic, technological, and societal challenges. Eligible projects will go beyond the state of the art with clear market potential, and result in wider impacts. Clusters often encourage mixed consortia with an SME leading the project, with some Clusters calling for projects led by large companies allowing large companies receiving partial funding of up to 30% of their eligible project costs.

• Network projects – This is Eureka’s original flexible funding programme for international R&D projects which can be accessed by businesses of all sizes to ease collaboration between organisations in Eureka countries. Applicants can design their project proposal and build an ideal consortium in any technology field and market, providing applicants the freedom to define their own goals. With limited eligibility criteria and minimal paperwork, this programme accelerates applicants access to public funding. The programme calls for collaboration where an SME must lead the project, allowing large companies to receive partial funding of up to 50% of their eligible project costs.

Other Grant Sources

Other bodies, such as DSTI (Defence Science and Technology Laboratory), DEFRA (Department for Environment, Food & Rural Affairs), or the Welcome Trust, offer sector-specific grants outside the remit of Innovate UK. These funding bodies are very specific in their requirements to be eligible, so companies should determine the viability of grant funding before submitting an application as these can vary based on the size of your business, where you’re based, and the sector you’re in.

How to apply for grant funding

Each funding agency has a different application, rules, and criteria to be eligible under the scheme. Therefore, a grant application will require careful planning and attention to detail to ensure that the proposal will meet the specific requirements of the grant organisation and scheme.

When submitting a grant application, your financial plan must be thorough and explain how the funding will help grow the business. All applications must include realistic commercial opportunities that can either create new markets or exploit significant growth in an existing market. Strong applications will include a realistic cashflow forecast for managing your business finance. For any grant funded project to be considered eligible, the project must be seen as a disruptive innovative development capable of commercial success.

Once submitted, each grant application will undergo an extensive evaluation application to determine its eligibility under the scheme.

How we can help

Applying for R&D grant funding can be a minefield. It’s not always obvious what projects are eligible and which costs are applicable. If you choose Buzzacott to assist with your grant application process, we can:

• Scope projects to help identify gaps in available knowledge

• Review your R&D project to determine the viability of grant funding

• Work with you to research, prepare, and write the R&D grant application with the highest chance of success

• Review and support the submission of the grant application

• Monitor the management of grant submissions.

Our team of specialists are aware of the grant application complexities and will increase your chance of a successful application. From coaching, advising, and assessing your application, we can provide the specialist support your need.