£1.25bn support package for innovative firms hit by coronavirus...
UK businesses driving innovation and development will be helped through the coronavirus outbreak with a £1.25 billion government support package, the Chancellor announced on 20th April 2020.
Rishi Sunak said the targeted and tailored help would ensure firms in some of the most dynamic sectors of the UK economy – ranging from tech to life sciences – are protected through the crisis so they can continue to develop innovative new products and help power UK growth.
The comprehensive package includes a new £500 million loan scheme for high-growth firms, called the Future Fund, and £750 million of targeted support for small and medium sized businesses focusing on research and development.
The £500 million Future Fund has been designed to ensure high-growth companies across the UK receive the investment they need to continue during the crisis.
Chancellor of the Exchequer Rishi Sunak, said:
"Britain is a global leader when it comes to innovation. Our start-ups and businesses driving research and development are one of our great economic strengths, and will help power our growth out of the coronavirus crisis. ...This new, world-leading fund will mean they can access the capital they need at this difficult time, ensuring dynamic, fast-growing firms across all sectors will be able to continue to create new ideas and spread prosperity."
Delivered in partnership with the British Business Bank and launching in May, the fund will provide UK-based companies with between £125,000 and £5 million from the government, with private investors at least matching the government commitment. These loans will automatically convert into equity on the company’s next qualifying funding round, or at the end of the loan if they are not repaid. To be eligible, a business must be an unlisted UK registered company that has previously raised at least £250,000 in equity investment from third party investors in the last five years.
The government is committing an initial £250 million in funding towards the scheme, which will initially be open until the end of September. The scale of the fund will be kept under review.
The £750 million of targeted support for the most R&D intensive small and medium size firms will be available through Innovate UK’s grants and loan scheme.
Innovate UK, the national innovation agency, will accelerate up to £200 million of grant and loan payments for its 2,500 existing Innovate UK customers on an opt-in basis. An extra £550 million will also be made available to increase support for existing customers and £175,000 of support will be offered to around 1,200 firms not currently in receipt of Innovate UK funding. The first payments will be made by mid-May.
This package builds on the government’s existing support for innovative, high-growth firms including the £2.5 billion British Patient Capital fund, the upcoming £200 million Life Sciences Investment Programme, internationally competitive R&D tax reliefs and our major commitments to increase public R&D spending to £22 billion by 2024-25.
Arrivederci Matteo...
After two and a half years at RedKnight, we were sad to bid farewell to Matteo Radice at the end of February. Matteo joined us in July 2017 as Project Manager for the €2.37m Horizon 2020 Fast Track to Innovation project, BREATHSPEC, which RedKnight helped secure. The project recently came to a successful conclusion and with that Matteo decided the time was right for him to return to his native Milan and pursue his next adventure.
We would like to take this opportunity to thank Matteo for all his hard work and commitment during his time at RedKnight and we wish him all the best with his future endeavours
Increase in funding for game-changing green innovation and woman-led companies…
A significant increase to the European Innovation Council (EIC) Pilot budget is expected to be adopted by the European Commission in March 2020, to support game-changing, market-creating innovation and deep-tech SMEs to scale-up, paving the ground for the launch of a ‘fully-fledged’ programme in Horizon Europe (2021 – 2027).
A one-off EIC Accelerator call for ‘green deal’ start-ups and SMEs is expected, whereby all applicants submitting for the 19th May 2020 cut-off will need to demonstrate how their innovation contributes to the goals of The European Green Deal. The 7th October 2020 cut-off for the EIC Accelerator Pilot will remain open to all innovations.
Additional opportunities for companies with women CEOs (or equivalent positions) is also expected, to ensure 25% of all finalists in the EIC Accelerator Pilot are women-led companies. If, following the first-round remote evaluation, a minimum of 25% of companies selected for the final-stage interviews are not led by women, additional interviews will be scheduled.
An advanced version of the amended EIC Work Programme is due to be released by the end of February, and the final version by the end of March, replacing plans for the year ahead in the current EIC Pilot Work Programme 2018 - 2020.
Important EIC Accelerator update for UK applicants...
The Withdrawal Agreement means that the UK can continue to participate in EU programmes, including Horizon 2020, that are financed by the 2014-2020 Multiannual Financial Framework (MFF) until their closure (i.e. for the lifetime of grants). UK participants will continue to receive EU grant funding for the lifetime of individual Horizon 2020 projects, including projects finishing after the transition period ends at the end of 2020.
UK scientists, researchers and businesses can continue to participate in and lead Horizon 2020 projects and apply for Horizon 2020 grant funding. The vast majority of Horizon 2020 projects will be able to continue as before during the transition period and beyond. This includes ERC, MSCA, and the EIC Accelerator. However, for the latter, UK entities are now only eligible for the grant element of the programme, meaning they cannot apply for equity support.
A very limited number of UK Horizon 2020 projects, which involve access to security-related sensitive information restricted for EU Member States, may be unable to continue after EU Exit in their current form. The government expects the European Commission to inform participants if this is the case.
Special Report on the SME Instrument
As the SME Instrument has been redesigned into the European Innovation Council (EIC) Accelerator Pilot for 2021-2027, the European Court of Auditors was called upon creating a report in which the European auditors assessed whether this instrument has effectively supported innovation by SMEs; whether it has targeted the right type of SMEs; if it achieved wide geographic coverage; if the selection process and Commission support were effective, and if the Commission adequately monitored and followed up the instrument, in order to make improvements.
Overall, the special report concluded that the SME Instrument provides effective assistance to SMEs in developing their innovation projects and that having the EU branding helps companies to attract additional investment; however, the auditors also pointed out that the programme has shown a few short comings that, if assessed properly, would have been able to enhance the SME Instrument efficacy even further.
First of all, the frequent changes in the objectives and target groups have caused great confusion over the course of the programme and the late adaptation to the type of applicants (who progressively moved to a younger SMEs' audience) have slowed down the growth of the SME Instrument. Also, heavily relying upon local stakeholders (NCP; EEN) to promote the SME Instrument has proved to be an ineffective strategy and seriously lowered the otherwise enormous reach of the programme. In this regard, the report goes on remarking the fact that, whilst the impact of NCPs varied greatly between the Member States, scarce support from the Commission; no budget allocation to sustain dissemination activities and overlapping duties have been reported as the main causes for such shortcoming. Finally, other important matters such as failures in the online submission system; shortage of expert reviewers and no differentiation between resubmitted and new proposals have been highlighted as challenges to tackle in order to improve the impact of the SME Instrument
In conclusion, the Special Report provides a thorough list of recommendations that should be implement buy the start of the next Framework Programme, which include:
1.) Improve marketing and communication strategy from National Contact Points and the Enterprise Europe Network to SMEs by promoting peer-learning projects and the exchange of best practice and ensuring that targeted support to the network of National Contact Points for SMEs is operational at the beginning of Horizon Europe, in order to better raise awareness amongst SMEs.
2.) Provide remote evaluators with additional time to conduct their work by setting up a two-way information channel between remote evaluators and jury members to allow better access to the evaluation and provide with feedback on its quality;
3.) Develop purpose-built IT tools to reliably manage the submission and resubmission process, which should be kept separated and, especially with regards to the resubmission, limited, thus freeing up resources which are currently used to re-perform evaluations of the same proposal in multiple successive cut-offs;
4.) Collaborate with Member States and national promotional institutions to promote and advice on nationally backed financial scheme, similar to Phase 1, that might meet the financial needs of the SME-I beneficiaries.
Full version of the report and its recommendations is available here.
Source: https://www.eca.europa.eu/en/Pages/DocItem.aspx?did=52862
Keep Calm and Carry On
After three and a half years since the "gamble of the Century", the UK Government has finally delivered Brexit and the UK's departure from the EU will become definite at the end of this year. This poses some important questions. What of all the European funding programmes the UK has so successfully taken part in? What of its participation in Horizon 2020? Will the UK participate in Horizon Europe?
In response to these question that have been worrying researchers, scientists and industry, both home and abroad, the UK Research and Innovation (UKRI) department has released a statement where it urges UK entities to "continue to participate in, bid for and lead projects in the European Union’s (EU) flagship programme Horizon 2020, as if the UK remained a Member State, even after the UK exits the EU on 31 January 2020."
This continued participation, at least for the remainder of 2020, is indeed great news for the UK's national framework which is the second highest recipient of Horizon 2020 funding for science and innovation. On top of that, the transition period, which started on 1st February 2020 will guarantee that researchers and businesses can continue to participate in ALL programmes financed by the 2014-2020 Multiannual Financial Framework (MFF) and receive EU grant funding for the lifetime of individual projects, including projects finishing after the transition period ends in 2020.
So, does this mean that it is going to be "business as usual" until the end of the year? On the whole, yes it does; however, we do still recommend if you double check the eligibility criteria for any programme you are considering applying to as a very limited number of Horizon 2020 programmes, which involve access to security-related sensitive information restricted for EU Member States, may be restricted to UK applicants and experience relevant changes in those cases where the project has already started. In this regard, we strongly advise to wait for formal communication from the European Commission or, in case of urgency, to contact directly [email protected].
RedKnight's priority remains to assist UK researchers and business to access the best available opportunity for their projects, continuing to invest in our capabilities to secure EU funding, whilst expanding our portfolio to provide our clients with the best possible environment for international collaboration.
For more information on our services, please visit www.redknightconsultancy.co.uk or contact us at [email protected].
UK access to EU funding secured during transition period
Will UK entities be able to apply for Horizon 2020 funding during the transition period? This has certainly become one of our most FAQs since the December vote to agree the withdrawal agreement.
We are still awaiting official confirmation from the UK Government at this point, but expect that guidance will be updated in the next week or so.
Essentially, if the withdrawal agreement is voted through, it means the UK move into the transition period during which it will continue to contribute to the EU budget and therefore remain in EU programmes (as if a member state). This means UK entities CAN STILL APPLY as they did before and the EU will pay out the grant as currently the case.
So It should be ok to continue to submit bids to the Horizon 2020 programme, but clearly this is dependent on the withdrawal agreement being ratified.
RedKnight awarded again Best Grants & Funding Specialists
The best way to conclude 2019 is with another award acknowledging our efforts in supporting innovation and technological development in Wales. Just like last year, RedKnight is proud to announce that it has been awarded as Best Grants & Funding Specialist at the 2019 Finance Awards hosted by SME News (the international provider of corporate news and information, part of the AI Global Media Group).
The award draws on an UK-wide network of industry insiders to reward only the best in their fields, as well as the latest cutting edge features and latest deals from across the UK SME landscape. It is an important recognition to all those UK Based CEOs, entrepreneurs, leaders and decision makers always looking to keep their finger on the pulse and stay ahead on the competition.
Of course, everybody at RedKnight is over the moon to receive another award in recognition of our services. RedKnight's Project Manager & Bid-writer, Mr Matteo Radice, said, "This is a most welcomed prize, which rewards us for all the great effort the team has put in over 2019 in maintaining the highest standard this company has set and our clients are accustomed to. This acknowledgement will make us look back at what we have achieved with great satisfaction and will also push us to set even higher standards for the future."
A new report to set up UK's agenda for Research and Innovation after Brexit
The announcement of a further delay on Brexit, and the issuing of a General election that might even turn the entire table, has brought the whole epopee into deeper levels of uncertainty, with some relevant impacts on the growth of many strategic sectors, amongst which the research and development sector stands out by importance.
Stirred by the fact that the EU currently makes for one-seventh of the overall research funding, many UK. researchers are still hoping for a ‘u turn’ on Brexit —or at least a deal good enough – and have urged the government to keep close ties to Horizon 2020 (which provides for the 11% of funding for UK universities), and its successor, Horizon Europe. In the case of a no- deal Brexit, the fear is that missing EU funds could trigger a ‘brain drain’ that would put UK’s competitiveness in danger
Partly in response to those fears, last March 2019, the U.K. science minister, Chris Skidmore, asked for independent advice about how the government should act if the United Kingdom decides to sever the ties with EU’s main funding programmes. The report, delivered at the beginning of November by the director of the Alan Turing Institute, Adrian Smith, and the UCL policy expert Graeme Reid, presents the eventuality of Brexit as an ‘unprecedented opportunity to promote an exciting, well-resourced vision for international collaboration’. Based on the assumption that the UK will be capable to replace the level of funding currently received from EU programmes – around £1.5bn per annum – with public investment, the report sketches out a strategy which advocates for a nationwide increase in spending for R&D, a new research fellowship program, and larger chunks of money for universities to quickly target research opportunities.
According to the report, spending in R&D should aim at meeting the Government’s set target of at least 2.4% of gross domestic product. To achieve this, Smith and Reid suggest four steps that underpin a vision which is even more ambitious than EU programmes such as Marie Skłodowska-Curie fellowships and European Research Council grants: an “international version of the UK Research Partnership Investment Fund (RPIF)”; “A coherent Global Talent Strategy, combining reforms to immigration policy”; “Substantial additional funding for basic research” and create a “flagship programme of research fellowships, offering large awards over long periods of time for exceptional researchers in all disciplines.”.
Additionally, the report points out that Brexit my also provide the government with the opportunity to redesign the national research funding landscape, promoting a more evenly spread across all regions of the UK. The current situation is dominated by a so-called “golden triangle” consisting of London, Oxford, and Cambridge, which have been grossly monopolising EU research funds. Smith and Reid suggest that the Government could better administer the geographical reach a post-Brexit funding vision by creating regional research centres, that focus on grand challenges such as reaching a zero-carbon economy.
Finally, the report suggests that in a post-Brexit scenario, Universities should get an increase in unrestricted block grants from the government, a type of funding resembling the EU Horizon Prizes, that would supposedly facilitate scientists to build consortia in a faster and easier way, without the constraints of a project-specific grant.
In conclusion, it is absolutely true that this report delineates a rather broad; ambitious and very optimistic vision for a post-Brexit research and innovation strategy; however, the work of Smith and Reid does not cover all the structural issues that a loss of EU funding would inevitably bring to the table and it leaves some important questions open to answers. For example, it is suggested that Government ministers should have a pot of money for creating policy-specific international partnerships, yet it is not specified specify how big these should be. Nor it is specified whether a completely new agency should be needed to replace the action from Brussels and give out these new funds mentioned: Smith and Reid do warn that replacing the £1.5bn from the EU could indeed over encumber the capacity of the UKRI, yet the ultimate decision on creating an entirely new funding agency to specialize in international partnerships looks like is going to fall on whatever majority will come out of the polls next December 12, 2019.
Source AAAS Science: https://www.sciencemag.org/news/2019/11/report-sketches-vision-uk-research-after-brexit
Two new competitions to decarbonise UK industry
The UK Government aims to achieve net zero emissions by 2050. However, some of the UK’s most economically active and industrially intensive areas are also some of the largest producers of carbon emissions, with around a quarter of all greenhouse gas emissions being produced by industry. For this reason, the Industrial Strategy Challenge Fund has launched two competitions in a new Industrial Decarbonisation challenge.
The Industrial Decarbonisation challenge will commit £170 million towards deploying technologies like carbon capture and hydrogen networks in industrial clusters, supporting the Industrial Clusters Mission to establish the world’s first net zero industrial cluster by 2040.
Competition 1 – deployment
UK businesses will have the opportunity to apply for a share of up to £1 million to develop plans for decarbonising an industrial cluster. To compete in this Deployment phase 1, applicants will have until 4 December to submit their proposals, which must:
- have total eligible costs between £60,000 and £200,000
- be led by a UK business
- be collaborative
- last between 3 and 4 months
- aim to carry out the project work in the UK and exploit the results across other UK industrial clusters
Successful applicants from phase 1 will then compete for phase 2, where up to £131 million will be awarded for projects that will deliver, or support delivery of, significant emissions reductions in a UK industrial cluster by 2030.
Competition 2 - roadmaps
In the roadmaps competition, UK organisations can apply for a share of up to £1 million to prepare plans for their journey to achieving low carbon and net zero industrial clusters. In this competition, applicants will have until 4 December to submit their projects, which must:
- have total eligible costs between £40,000 and £120,000
- be carried out by a single organisation or in collaboration – which we encourage
- demonstrate how it will collaborate within a cluster
- last between 3 and 4 months
- be led by a UK registered business of any size, a research organisation, public sector organisation, charity or academic institution
- carry out its project work in the UK
- intend to exploit the results in at least one UK industrial cluster
In phase 2 up to £8 million will be awarded for the development of industrial cluster decarbonisation roadmaps for major UK industrial clusters. These must set out how a cluster could be decarbonised to net-zero levels.
More information can either be found on the Innovate UK web page or you can always call us for a FREE consultation!