UK Innovation Funding Trends for 2025
The UK innovation funding landscape in 2025 promises to be a dynamic and exciting environment, shaped by significant public and private investments. As the UK government continues to prioritise research and development (R&D) to drive economic growth, enhance sustainability, and bolster technological advancement, innovators across various sectors can expect a range of opportunities to secure critical funding.
Strategic Focus Areas for 2025
In its strategic delivery plan, Innovate UK has identified three primary domains for funding in 2025: Net Zero Innovation, Healthy Living and Agriculture, and Digital & Emerging Technologies. These areas are designed to address global challenges while positioning the UK as a leader in innovation.
- Net Zero Innovation
With over £1.2 billion committed to supporting innovations that contribute to achieving net-zero carbon emissions by 2050, the UK government is keen to accelerate the green transition. Key areas of focus include:
- Clean Energy Technologies: Investment in renewable energy sources such as wind, solar, and hydrogen is a top priority. Additionally, funding will support advancements in energy storage solutions to enhance grid reliability.
- Carbon Capture and Storage (CCS): Projects aimed at capturing and storing carbon emissions from industrial processes will receive significant support.
- Decarbonising Transportation: The government is investing heavily in electric vehicles (EVs), sustainable aviation fuels, and hydrogen-powered transport to reduce reliance on fossil fuels.
- Sustainable Construction: Funding will also target innovations that improve energy efficiency in buildings, including retrofitting older structures and developing smart city infrastructure powered by sustainable energy.
- Healthy Living and Agriculture
The Healthy Living and Agriculture domain focuses on improving public health, advancing agricultural practices, and ensuring food security. Key initiatives include:
- Medical Technologies and Pharmaceuticals: Funding is directed toward developing personalised medicine, advanced diagnostics, and treatments for chronic and infectious diseases.
- Digital Health Solutions: The integration of artificial intelligence (AI) and data analytics into healthcare systems is a critical area of investment, aimed at improving patient outcomes and reducing healthcare costs.
- Sustainable Agriculture: Projects that enhance crop yields, reduce environmental impacts, and promote sustainable farming practices will receive significant backing.
- Food Security: Innovations in climate-resilient crops, alternative proteins, and efficient water usage are crucial to addressing global food supply challenges.
- Digital & Emerging Technologies
Digital transformation is at the heart of the UK’s innovation strategy. To maintain global competitiveness, the government is prioritising investments in:
- Artificial Intelligence (AI): Responsible AI development and adoption across industries are key priorities. This includes funding for AI-driven solutions in healthcare, finance, and manufacturing.
- Quantum Computing: The UK aims to lead in quantum technologies, supporting projects that push the boundaries of computing power, cryptography, and materials science.
- Cybersecurity: Enhancing digital security and protecting critical infrastructure are vital to ensuring the integrity of the country’s digital economy.
- Advanced Manufacturing: Funding will support the adoption of Industry 4.0 technologies, including robotics, 3D printing, and the Internet of Things (IoT).
- Creative Industries: Recognising the potential of the creative sector, investments will focus on digital content creation, immersive media technologies, and gaming.
Major Funding Competitions and Opportunities
In addition to strategic focus areas, several major funding competitions are open or expected to open in 2025, providing opportunities for businesses and research organisations to secure essential financial support. Here are just a few examples of what’s available:
- Innovate UK Smart Grants
Total Funding: Up to £1 million
Eligibility: UK-registered businesses, including micro, small, and medium enterprises (SMEs), as well as research organisations working in collaboration with businesses.
Scope: The Smart Grants competition is designed to support game-changing and commercially viable R&D projects across any sector. Successful applications typically demonstrate a clear potential for significant economic impact, job creation, and technological advancement.
- Innovation Loans Future Economy Competition
Total Funding: Up to £2 million
Eligibility: UK-registered SMEs with late-stage R&D projects that have a clear route to market.
Loan Terms: Loans range from £100,000 to £2 million, with fixed interest rates and repayment periods of up to seven years.
Focus: This competition targets businesses that need financial support to bridge the gap between late stage R&D and commercial success. Eligible projects include those focused on scaling production, completing final testing, or obtaining regulatory approval.
- Innovate UK Biomedical Catalyst Competition
Total Funding: Up to £30 million
Eligibility: UK-registered SMEs and research organisations developing innovative solutions in the biomedical sector.
Focus: This competition supports the development of new healthcare technologies, with a particular emphasis on novel therapeutics, medical devices, and diagnostics.
- Collaborative R&D: Creative Catalyst
Total Funding: Up to £200,000
Eligibility: UK-registered SMEs in the creative industries, particularly those working on innovative digital content, immersive technologies, or tools for film, television, and gaming.
Scope: This competition aims to develop commercially viable products that enhance the UK’s creative sector. Collaborative projects involving multiple partners are encouraged.
- Knowledge Transfer Partnership (KTP): 2024 to 2025 Round 5
Total Funding: Up to £9 million
Eligibility: UK-registered academic institutions, research organisations, or Catapults collaborating with businesses.
Scope: KTPs aim to transfer knowledge from academia to industry, helping businesses innovate and grow. Projects typically involve hiring a graduate (KTP Associate) to work on a specific innovation project within the business.
- ATI Programme Strategic Batch
Eligibility: Open to UK-registered businesses and collaborations in aerospace research or technology development.
Focus: This programme supports projects aligned with the UK Aerospace Technology Strategy, aimed at enhancing the competitiveness of the civil aerospace sector.
Other than Innovate UK
Here are other available funding sources outside of Innovate UK:
- NIHR (National Institute for Health Research)
Total Funding: Varies by competition
Eligibility: Open to academic researchers, NHS organizations, charities, and businesses involved in healthcare innovation.
Scope: The NIHR offers a range of funding opportunities, including programs focused on applied health research, global health research, and infrastructure support. Key initiatives include the Health Technology Assessment (HTA) programme, Efficacy and Mechanism Evaluation (EME) programme, and Invention for Innovation (i4i) programme.
- Water Innovation Competitions
Funding: Part of a £300 million fund for 2025-2030
Eligibility: Water companies and their partners working on cross-sector collaborations to address challenges in the water industry.
Focus: Projects should aim to improve water efficiency, sustainability, and resilience.
- UK Games Fund
Funding: Part of a £5 million extension announced in 2023
Eligibility: UK-based independent game development companies
Focus: Supporting early-stage game development through prototype funding and talent development initiatives.
- Advanced Research and Invention Agency (ARIA) Funding Opportunities
Total Funding: £800 million over four years
Eligibility: Open to high-risk, high-reward projects from innovators across all sectors.
Scope: ARIA focuses on ambitious and potentially transformative projects that traditional funding bodies might consider too risky. The agency operates with a high level of autonomy and minimal bureaucracy, enabling it to fund breakthrough innovations quickly.
Focus: Supporting disruptive technologies and novel scientific discoveries that could lead to significant advancements in areas such as energy, healthcare, and advanced materials.
- Defence and Security Accelerator (DASA) Funding Opportunities
Total Funding: Varies by competition
Eligibility: Open to businesses, academics, and innovators working on defence and security solutions.
Scope: DASA runs multiple competitions throughout the year, seeking innovative solutions to complex defence and security challenges. Key areas include surveillance, AI for defence, autonomous systems, and cyber resilience.
Focus: Supporting projects that enhance the safety and effectiveness of the UK's armed forces and security services, with an emphasis on rapid development and deployment of cutting-edge technologies.
- Welsh Government's Smart FIS Programme
Total Funding: Up to £225,000
Eligibility: Open to Welsh SMEs and research organisations developing innovative solutions in priority sectors.
Scope: The Smart Flexible Innovation Support (Smart FIS) programme offers financial support for R&D projects with high commercial potential. The programme encourages collaborative projects and aims to enhance innovation capacity in Wales.
Focus: Supporting projects in sectors such as advanced manufacturing, energy, healthcare, and digital technologies, with a particular emphasis on boosting regional economic growth.
Emerging Trends in Innovation Funding
Several broader trends are shaping the UK’s innovation funding environment in 2025:
- Public-Private Partnerships: The government is increasingly leveraging public-private partnerships to maximise the impact of innovation funding, particularly in large-scale projects.
- Regulatory Innovation: The newly established Regulatory Innovation Office aims to streamline regulatory processes for emerging technologies, making it easier for innovators to bring products to market.
- Climate Finance: With a growing emphasis on green investment, initiatives like the National Wealth Fund and GB Energy are expected to play a crucial role in mobilising private capital for renewable energy projects.
- Skills Development: Addressing the decline in STEM graduates, the UK government is likely to introduce new initiatives aimed at fostering a robust talent pipeline to support future innovation.
Whether you’re a UK start-up looking to scale or an established business seeking to develop new technologies, 2025 will hopefully provide ample opportunity to support your growth ambitions.
EIC Summit 2025 - Save the Date
The European Innovation Council (EIC) is set to host its fourth annual summit on the 2nd and 3rd April 2025, at the historic Tour & Taxis venue in Brussels. This flagship event serves as a central hub for innovators, researchers, policymakers, and investors across Europe, fostering collaboration and showcasing groundbreaking advancements in technology and business.
Event Overview
The EIC Summit 2025 is structured over two days, each tailored to distinct audiences and objectives:
- Day 1: 2nd April 2025
- Focus: Exclusively dedicated to EIC beneficiaries.
- Activities: A series of workshops, pitching sessions, and networking opportunities designed to support and accelerate the growth of EIC-funded projects and companies.
- Day 2: 3rd April 2025
- Focus: Open to the public.
- Activities: Engaging discussions and fireside chats covering a broad spectrum of topics relevant to innovation, entrepreneurship, and technology policy.
Throughout both days, attendees will have ample opportunities to network and explore an exhibition featuring a diverse array of EIC-supported projects, providing insights into the latest innovations poised to impact various industries.
Significance of the EIC Summit
The EIC Summit has established itself as a pivotal event in Europe's innovation landscape. It brings together high-growth startups, small and medium-sized enterprises (SMEs), researchers, corporate leaders, and investors, creating a dynamic environment for knowledge exchange and partnership formation. The summit also serves as a platform for the EIC to announce new initiatives, funding opportunities, and policy directions that shape the future of European innovation.
What to Expect
Participants can look forward to:
- Workshops: Interactive sessions offering practical guidance on topics such as intellectual property rights, investment strategies, and scaling businesses.
- Pitching Sessions: Opportunities for startups and innovators to present their ideas to potential investors and partners, facilitating access to funding and collaborative ventures.
- Panel Discussions and Fireside Chats: Conversations with industry experts, policymakers, and successful entrepreneurs discussing current trends, challenges, and opportunities in the innovation ecosystem.
- Exhibition: A showcase of cutting-edge projects funded by the EIC, highlighting technological advancements across various sectors.
Networking Opportunities
The summit's design emphasises networking, providing structured and informal settings for attendees to connect. This environment encourages the formation of strategic partnerships, investment opportunities, and collaborative research endeavours, all crucial for driving innovation forward.
Venue: Tour & Taxis
Located in Brussels, Tour & Taxis is a historic site that has been repurposed into a modern event space, blending architectural heritage with contemporary facilities. Its central location and unique ambiance make it an ideal venue for hosting an event of this magnitude.
Stay Informed
As the event approaches, additional details, including registration information, agendas, and speaker announcements, will be made available. Interested parties are encouraged to stay updated by following the EIC on social media platforms such as X (formerly Twitter) and LinkedIn.
Proposal preparation grants for 2024 and 2025 calls
Innovate UK and the British Academy have funding schemes open for Horizon Europe Pump Priming Grants, to enable SMEs, research organisations and universities in the UK build partnerships and develop proposals. If you are planning a submission to a 2024 or 2025 Horizon Europe call, one of these schemes may support the development of your proposal.
Innovate UK Horizon Europe Pump Priming
UK SMEs can apply for a grant of up to £5000 (Ex-VAT) to help them in their preparation for submitting a Horizon Europe proposal for a collaborative opportunity. This could be used to fund attendance at networking events, to contribute to the cost of joining associations and other activities that are solely directed at future Horizon Europe participation. Note that if you have already received an Innovate UK Pump Priming grant you will not be able to apply for another in this round. The closing date for applications is 17th January 2025 and the final date on which claims can be made for payment is 17th February 2025.
British Academy Horizon Europe Pump Priming
Principal Investigators (PIs) at universities and research institutions can apply for a grant of up to £10,000 to help them in their preparations for submitting a Horizon Europe proposal for Pillar 2 of Horizon Europe – Global Challenges and European Industrial Competitiveness. All of the details such as eligibility, closing dates, etc., are published on the British Academy website and any questions about this scheme should be addressed directly to them.
EU and Japan Enter Negotiations for Horizon Europe Association
On 29th November 2024, the European Union (EU) and Japan commenced formal negotiations to integrate Japan into Horizon Europe, the EU's flagship research and innovation programme. This move represents a significant step forward in deepening international scientific collaboration and highlights the global importance of cooperative research in tackling shared challenges. By exploring Japan's association with Horizon Europe, both parties aim to create a mutually beneficial framework for advancing scientific excellence and innovation.
What is Horizon Europe?
Horizon Europe is the EU's most ambitious research and innovation programme to date, with a budget exceeding €95.5 billion for 2021–2027. It succeeds Horizon 2020 and is structured around three key pillars:
- Excellent Science: Supporting top-tier researchers and frontier science through grants and scholarships.
- Global Challenges and European Industrial Competitiveness: Tackling pressing global issues such as climate change, health, and digital transformation.
- Innovative Europe: Boosting Europe's innovation potential by bridging the gap between research and market-ready products or solutions.
As the cornerstone of the EU's research agenda, Horizon Europe facilitates cross-border collaboration, driving breakthroughs that are often unattainable through isolated efforts.
The Context of EU-Japan Cooperation
Japan and the EU share a longstanding history of collaboration in science and technology. This relationship is built on mutual respect and a shared vision of addressing global challenges through innovative solutions. Over the years, their partnership has flourished in areas such as climate action, health sciences, renewable energy, and digital technologies.
Under Horizon 2020, the EU's previous research framework, Japanese organisations actively participated in 176 projects, contributing their expertise to collaborative research efforts. This history sets a strong precedent for Japan's potential association with Horizon Europe.
Why is This Association Significant?
The negotiations are focused on Japan's association with Pillar II of Horizon Europe, which is dedicated to addressing global challenges. By joining this pillar, Japanese researchers and institutions will have the opportunity to:
- Participate in multinational research consortia.
- Lead and coordinate joint projects with EU partners.
- Access funding and resources from the Horizon Europe programme.
This agreement would enable Japan to contribute directly to large-scale, multidisciplinary research initiatives designed to tackle issues like climate change, health crises, digital innovation, and sustainable development.
A Strategic Milestone for Japan and the EU
The association negotiations align with broader strategic objectives for both Japan and the EU.
- For the EU: This move reinforces its commitment to fostering global partnerships in research and innovation, ensuring that Europe remains a hub for scientific excellence. By collaborating with leading global innovators like Japan, the EU strengthens its position in tackling complex global challenges.
- For Japan: Associating with Horizon Europe provides Japanese researchers with access to one of the world's most prestigious and well-funded research platforms. It also allows Japan to integrate more deeply into global research networks, expanding its influence and leveraging international expertise.
Shared Goals: Addressing the Green and Digital Transitions
Iliana Ivanova, the European Commissioner for Innovation, Research, Culture, Education, and Youth, highlighted the importance of this collaboration:
"The opening of the negotiations on the association of Japan to Horizon Europe marks a step change in our cooperation. For both EU and Japan, research and innovation are key to ensuring competitiveness and achieving the green and digital transitions. Together, we will be able to reach them faster and find solutions to the world’s most pressing challenges."
The green transition involves achieving carbon neutrality by mid-century, a goal shared by both Japan and the EU. Collaborative projects in renewable energy, carbon capture, sustainable agriculture, and electric mobility are expected to play a pivotal role in reaching these objectives.
Similarly, the digital transition focuses on advancing artificial intelligence, data science, and cybersecurity. By pooling resources and expertise, Japan and the EU aim to lead in setting global standards for emerging technologies.
What Does Japan Stand to Gain?
Japan's association with Horizon Europe presents numerous advantages:
- Increased Collaboration: Japanese institutions will have greater opportunities to collaborate with European universities, research centres, and industries.
- Access to Funding: Japanese researchers can directly benefit from Horizon Europe's substantial financial resources, enabling them to pursue ambitious projects.
- Global Influence: Participating in EU-led initiatives enhances Japan’s visibility and influence in the global scientific community.
- Innovation Boost: Exposure to diverse perspectives and cutting-edge research can catalyse innovation within Japan's domestic research ecosystem.
Challenges and Considerations
While the potential benefits are substantial, several challenges must be addressed during the negotiation process:
- Funding Mechanisms: Determining how Japanese contributions will align with Horizon Europe's funding model.
- Regulatory Alignment: Ensuring that Japan’s research policies and intellectual property laws are compatible with EU standards.
- Administrative Barriers: Streamlining the integration process to facilitate seamless collaboration between Japanese and European researchers.
These challenges highlight the need for careful planning and mutual understanding to make the association successful.
Building a Global Research Ecosystem
The EU's Horizon Europe programme has already established partnerships with other non-EU countries, including Canada, New Zealand, and South Korea. These associations demonstrate the EU’s commitment to fostering a global research ecosystem that transcends geographical boundaries. Japan's inclusion in this network would not only strengthen bilateral ties but also contribute to a more interconnected and collaborative global scientific community.
Introducing The National Wealth Fund
The UK government has launched an ambitious initiative, the National Wealth Fund (NWF), aimed at revitalising its economic landscape. Building on the foundation of the UK Infrastructure Bank (UKIB), the NWF is designed to address pressing challenges in clean energy, industrial innovation, and regional economic disparities. With a total capitalisation of £27.8 billion and an expected mobilisation of over £70 billion in private investment, the fund stands as a cornerstone of the UK's economic growth and sustainability agenda.
A Catalyst for Change
The NWF operates as a government-backed impact investor, focusing on areas where private sector financing alone may fall short. By providing catalytic capital and leveraging a diverse range of financial instruments, including equity investments, guarantees, and blended finance solutions, the fund aims to unlock investments that align with the UK’s industrial strategy and climate goals.
Key sectors of focus include:
- Green Hydrogen: Accelerating the transition to low-carbon energy sources.
- Carbon Capture: Enabling significant reductions in industrial emissions.
- Gigafactories: Supporting the production of batteries essential for electric vehicles.
- Ports and Green Steel: Strengthening infrastructure and advancing sustainable industrial practices.
Strategic Goals
The NWF’s strategy is anchored on three primary principles:
- Stability: Creating a predictable environment that encourages long-term investments.
- Investment: Mobilising resources to fill critical gaps in infrastructure and technology development.
- Reform: Streamlining public financial institutions to better align with the needs of investors and project developers.
Through these principles, the fund aims to spur economic growth and ensure regional equity by engaging local governments, devolved administrations, and mayors in identifying and supporting impactful projects.
Governance and Operational Independence
The NWF operates at arm's length from the government, ensuring credibility and market confidence. HM Treasury oversees the fund, while day-to-day operations and investment decisions are managed independently. This structure is intended to strike a balance between strategic alignment with government priorities and operational flexibility.
Expanding Tools and Capabilities
The fund’s financial toolkit includes:
- Debt Instruments: Offering tailored financing solutions to address liquidity issues.
- Equity Investments: Supporting early-stage technologies and scaling up innovative projects.
- Performance Guarantees: Mitigating risks in nascent sectors to encourage investor participation.
- Blended Finance Solutions: Combining public and private resources to achieve broader policy objectives.
These instruments are complemented by a proactive outreach strategy to identify and structure innovative transactions in collaboration with industry leaders, local authorities, and other stakeholders.
Driving Regional Growth
A significant aspect of the NWF’s mission is its regional focus. By partnering with local leaders and aligning with regional growth plans, the fund aims to unlock the economic potential of cities and regions across the UK. This approach is intended to create jobs, foster innovation, and ensure that the benefits of investment are distributed equitably.
Impact and Accountability
To measure its success, the NWF will adopt a robust set of metrics that assess its economic impact, the additionality of its investments, and outcomes across targeted sectors. These metrics will guide the fund in achieving its mission while maintaining transparency and accountability to the public.
Future Outlook
The establishment of the NWF marks a pivotal moment in the UK’s economic strategy. By mobilising private investment and addressing critical infrastructure and industrial needs, the NWF aims to position the UK as a leader in innovation and sustainability. With its ambitious goals and comprehensive approach, the fund is set to play a transformative role in shaping the country’s economic future.
This initiative reflects a forward-looking vision for the UK, blending public and private efforts to build a more resilient, innovative, and equitable economy. As the NWF begins its operations, its impact will likely serve as a benchmark for how governments worldwide can partner with the private sector to achieve shared economic and environmental goals.
For more information, please visit https://www.ukib.org.uk/
Taking a look at the Advanced Research and Invention Agency
The Advanced Research and Invention Agency (ARIA) represents a bold initiative by the UK government to revolutionise the nation's research and development (R&D) landscape. Established to fund high-risk, high-reward scientific endeavours, ARIA aims to propel the UK to the forefront of global innovation by empowering scientists and engineers to pursue groundbreaking projects that have the potential to yield significant societal and economic benefits.
Genesis and Mission
ARIA was formally established in January 2023 with an initial budget of £800 million, following the enactment of the Advanced Research and Invention Agency Act 2022. Inspired by the US Defense Advanced Research Projects Agency (DARPA), ARIA operates with a mandate to support ambitious research projects that traditional funding mechanisms might overlook due to their inherent risks. The agency's mission is to unlock scientific and technological breakthroughs that benefit everyone, recognising that many of society's most important advances have stemmed from those with the foresight to pursue new capabilities that most believed to be unattainable.
Operational Framework
ARIA distinguishes itself through a flexible and dynamic operational model. Unlike conventional funding bodies, it operates independently of UK Research and Innovation (UKRI) and is designed to function with minimal bureaucracy. This autonomy enables ARIA to swiftly allocate resources to emerging research areas and adopt innovative funding approaches, such as inducement prizes and rapid seed funding. The agency's structure is intentionally lean, allowing for agile decision-making and the ability to pursue unconventional research avenues.
Leadership and Governance
ARIA is led by CEO Ilan Gur, a physicist and entrepreneur with extensive experience in translating scientific research into market-ready technologies. Prior to joining ARIA, Gur founded Activate.org, a US-based organisation that empowers scientists and engineers to bring groundbreaking research to market. He also served as a program director at ARPA-E, the US Department of Energy's advanced research agency. Under his leadership, ARIA aims to challenge the traditionally cautious British science funding system by supporting pioneering projects considered too improbable by conventional standards.
The agency's governance structure includes a board of directors comprising distinguished figures from the scientific and business communities. Notably, Matt Clifford serves as the chair of ARIA. Clifford has been instrumental in bridging the gap between government and private companies in the development of cutting-edge technologies, particularly in the field of artificial intelligence (AI).
Funding Strategy
ARIA's funding strategy is centred on empowering scientists and engineers with the resources and freedom to pursue breakthroughs at the edge of the possible. The agency funds projects across the full spectrum of R&D disciplines, approaches, and institutions, seeking to unlock scientific and technological breakthroughs that benefit everyone.
The agency employs a variety of funding mechanisms to support its mission:
- Programmes: ARIA's programmes are directed by Programme Directors, scientific and technical leaders with deep expertise and a focused, creative vision for how technology can enable a better future. These programmes are designed to tackle specific scientific or technological challenges and are the primary means through which ARIA directs its funding.
- Opportunity Seeds: With smaller budgets and less structure than programmes, opportunity seeds support individual research teams to uncover new pathways that could inspire future programmes or might justify additional support as a standalone project. This approach allows ARIA to explore a diverse array of innovative ideas and identify promising research directions.
Current Initiatives
ARIA has launched several initiatives that exemplify its commitment to high-risk, high-reward research:
- Programmable Plants: This initiative explores the potential of engineering plant genomes to address challenges such as food insecurity, climate change, and environmental degradation. By developing programmable plants, ARIA aims to secure a sustainable and thriving biosphere for future generations.
- Safeguarded AI: Recognising the transformative potential of artificial intelligence, this programme focuses on developing technical solutions to ensure that powerful AI systems interact as intended. The goal is to usher in a new era for AI safety, allowing society to unlock the full economic and social benefits of advanced AI systems while minimising risks.
- Robot Dexterity: This programme aims to transform robotic capabilities and unlock a step change in human productivity. By funding cutting-edge research across robotic hardware and advanced simulation, ARIA seeks to demonstrate a paradigm shift in robotic abilities, creating vastly more capable and useful machines.
Collaborative Approach
ARIA emphasises collaboration with a broad spectrum of stakeholders, including academic institutions, industry partners, and other research organizations. The agency engages openly and seeks feedback to refine its programmes and funding strategies. This inclusive approach ensures that ARIA remains responsive to emerging scientific opportunities and societal needs.
Challenges and Outlook
While ARIA's mission is ambitious, it faces challenges inherent in funding high-risk research, including the potential for failure in many of its funded projects. However, the agency embraces this risk, understanding that the pursuit of audacious goals can lead to transformative successes that outweigh the setbacks. By fostering a culture that tolerates failure as a pathway to innovation, ARIA aims to inspire the next generation of scientists and engineers to push the boundaries of what is possible.
For more information about ARIA, please visit their website here.
UK-India Collaboration Funding for Net Zero Technologies
In an ambitious move to tackle the global challenge of achieving net-zero emissions, Innovate UK, part of UK Research and Innovation, has partnered with the Department of Science and Technology (DST), Government of India, to launch a competition that promises to catalyse groundbreaking advancements in Net Zero Technologies. With a substantial investment of up to £2 million, this initiative invites collaborative research and development (CR&D) projects from the brightest minds and most innovative businesses across the UK and India.
A Shared Vision for a Sustainable Future
The competition highlights the power of international collaboration in addressing climate challenges. With a focus on business-led, bilateral projects, this initiative aims to support the development of transformative technologies that can significantly reduce carbon emissions. By uniting UK and Indian expertise, the program seeks to accelerate progress toward a sustainable future while fostering economic growth in both nations.
Key Objectives of the Competition
The competition is structured to deliver impactful outcomes, emphasising the following objectives:
- Disruptive Innovation: Projects must demonstrate groundbreaking ideas that lead to the development of new products, processes, or services.
- Economic Impact: Initiatives should outline clear pathways for commercialisation and economic benefits in both countries.
- Collaborative Value: The partnership must showcase the advantages of bilateral collaboration, ensuring balanced contributions from both nations.
- Net Zero Focus: Proposals should directly contribute to achieving net-zero emissions, addressing key areas such as renewable energy, advanced materials, decarbonising manufacturing, and more.
How the Competition Works
The process ensures fairness, transparency, and genuine collaboration:
- Dual Applications: UK participants must apply via the Innovation Funding Service (IFS), while Indian partners submit a parallel application to the Technology Development Board (TDB).
- Independent Selection: Both Innovate UK and TDB must independently select the project for it to receive funding, ensuring mutual alignment on priorities and standards.
- Collaborative Teams: Each consortium must include at least one registered business from both the UK and India, with no single partner undertaking more than 70% of the project work.
Funding and Eligibility
Grant Details:
- UK Grant Range: £100,000 to £300,000
- Project Duration: 6–18 months, starting by 1st September 2025 and ending by 31st March 2027.
Eligibility Criteria:
- UK lead applicants must be registered businesses and involve at least one SME.
- Indian partners must apply separately through TDB and are not eligible for funding from Innovate UK.
- Proposals must focus on activities undertaken primarily in the UK and India, ensuring a balanced and equitable partnership.
Thematic Areas for Innovation
To maximise impact, the competition invites proposals in specific priority areas that align with the overarching goal of achieving net zero. These include but are not limited to:
- Advanced Materials: Developing materials that enhance energy efficiency or reduce carbon footprints.
- Decarbonising Manufacturing: Innovating processes to minimise emissions in industrial production.
- Renewable Energy Sources: Advancing technologies for clean, sustainable energy generation.
- Energy Storage and Distribution: Improving systems for storing and transmitting renewable energy.
- Decarbonising Mobility: Innovating transportation solutions to reduce greenhouse gas emissions.
This thematic focus ensures that the funded projects contribute meaningfully to addressing critical challenges in achieving net zero.
Why This Competition Matters
- Global Impact Through Collaboration: The programme highlights the importance of leveraging diverse expertise to solve global challenges. By combining the UK’s advanced research capabilities with India’s dynamic innovation ecosystem, this initiative exemplifies the potential of cross-border partnerships to drive meaningful change.
- Economic Growth and Market Opportunities: Beyond environmental benefits, the competition offers participants a unique opportunity to tap into new markets. With clear pathways to commercialisation, the projects are expected to generate substantial economic returns and foster sustainable growth in both countries.
- Advancing Technological Frontiers: By supporting high-risk, high-reward projects, the program encourages participants to push the boundaries of existing technologies, ensuring that the UK and India remain at the forefront of the global innovation landscape.
Application Process
- Prepare Your Proposal: Develop a compelling project idea that aligns with the competition’s themes and objectives. Ensure that it includes a clear business plan, financial viability, and potential for significant economic and environmental impact.
- Build Your Consortium: Collaborate with at least one registered business in India that is independent of the UK partners.
- Submit Applications:
o UK participants: Apply via the IFS portal.
o Indian participants: Submit a parallel application to the TDB program. - Demonstrate Collaboration: Showcase a balanced technological contribution from all partners and ensure the project is truly bilateral.
- Meet the Deadlines: Ensure your application is submitted before 11 am (UK time) on Wednesday, 12th February 2025.
Key Considerations for Success
To stand out in this competitive process, applicants should focus on:
- Clear Commercial Intent: Highlight how the project results will be commercialised and generate value in domestic and global markets.
- Robust Collaboration: Demonstrate genuine cooperation between UK and Indian partners, with balanced contributions and shared benefits.
- Sustainability Impact: Provide evidence of how the project will contribute to reducing carbon emissions and achieving net zero.
- Financial Soundness: Ensure the project offers good value for money with well-defined financial plans and timelines.
A Portfolio Approach
Innovate UK and TDB aim to fund a diverse range of projects to ensure a balanced portfolio across different technologies and sectors. This approach maximises the competition’s impact, fostering innovation in multiple areas critical to achieving net zero.
For more information about this opportunity, contact RedKnight.
Autumn Budget: Record £20.4bn R&D investment
In the 2024 Autumn Budget, the UK government announced a landmark investment of £20.4 billion into research and development (R&D) to boost economic growth, tackle national challenges, and establish the UK as a global leader in innovation. This substantial funding demonstrates a commitment to addressing critical areas like healthcare, sustainable energy, digital infrastructure, and technological advancements, aiming to achieve the UK’s “five national missions.” Here’s an overview of the key allocations and expected impacts.
Horizon Europe and Core R&D Budget
A significant portion of the budget secures the UK's full participation in Horizon Europe, the EU's primary research and innovation program. By committing to this association, UK scientists and innovators gain access to an €95 billion fund for collaborative projects, positioning the UK at the heart of global scientific advancements. Additionally, the Department for Science, Innovation, and Technology (DSIT) received a budget increase to £13.9 billion, while core research funding rose to a record £6.1 billion. These increases aim to bolster the UK’s research base and foster innovation across various sectors.
Life Sciences Innovative Manufacturing Fund
The government unveiled a £520 million Life Sciences Innovative Manufacturing Fund (LSIMF) to enhance the UK's capacity for manufacturing critical medical supplies. Starting with an initial £70 million in grants, the LSIMF is expected to unlock up to £1.8 billion in private investment, creating thousands of high-skilled jobs and supporting the healthcare sector’s resilience. This fund aims to strengthen the NHS by ensuring quicker access to innovative treatments, contributing to the UK’s preparedness for future health emergencies.
R&D Missions Programme
A new R&D Missions Programme will initially receive £25 million to address specific national challenges, such as healthcare advancements and clean energy transition. This initiative will foster partnerships with private and third-sector organisations to convert scientific discoveries into practical solutions, enhancing the quality of life and driving forward the UK’s sustainability goals.
Proof of Concept Fund for University Spinouts
To foster innovation from UK universities, the government is investing £40 million over five years in a Proof of Concept Fund. This fund will help researchers transform breakthrough ideas into viable businesses, creating job opportunities and stimulating economic growth. Success stories like Pragmatic Semiconductor and Oxford Nanopore underscore the potential of university spinouts to drive growth, with both companies raising significant investment and creating high-skilled employment in critical sectors.
Innovation Accelerators and Made Smarter Innovation Programs
The budget extends funding for Innovation Accelerators, supporting regional innovation in areas like Glasgow, Greater Manchester, and the West Midlands. These accelerators focus on developing high-potential local industries, with projects like Chemify and the Biochar Cleantech Accelerator attracting millions in private investment. Additionally, the Made Smarter Innovation program will receive £37 million to encourage manufacturers to integrate digital technologies, enhancing productivity and sustainability across UK industries.
Project Gigabit and Shared Rural Network
To improve connectivity, the government will invest £500 million in Project Gigabit and the Shared Rural Network. This funding supports the expansion of high-speed digital infrastructure to underserved regions, with the goal of achieving full gigabit coverage by 2030. Reliable internet access is crucial for businesses and communities across the UK, ensuring equal access to digital resources and fostering regional economic development.
Shared Services Strategy
An £80 million allocation will modernise shared services across nine government departments, streamlining operations for greater efficiency. By updating these systems, the government aims to cut costs and improve services, providing better value for taxpayers.
Barriers to Transformative Technology Adoption
To identify obstacles in adopting transformative technologies, a review led by Chief Scientific Adviser Professor Dame Angela McLean and National Technology Adviser Dr. Dave Smith will assess high-growth sectors. This review seeks to enhance productivity and drive innovation in alignment with the government’s Industrial Strategy, ensuring the UK remains competitive in emerging tech fields.
Reaction from the Scientific Community
This record R&D investment has been met with widespread approval from the scientific community. Royal Society President Sir Adrian Smith commended the government’s recognition of research as a “crucial national asset,” emphasising that protecting the science budget is essential for long-term economic growth. He noted the importance of supporting net-zero initiatives and promoting innovation in sectors like AI to maximise the economic benefits of scientific advancements.
Developing AI Competencies in Key Sectors
Innovate UK has announced a £2 million competition under its BridgeAI programme aimed at driving innovation in artificial intelligence (AI) across essential sectors in the UK. This initiative seeks to enhance AI competency in the fields of construction, transport and logistics, creative industries, agriculture, and food processing. The competition focuses on fostering responsible and ethical AI-based learning solutions that support upskilling, reskilling, and competency development within these sectors. Here, we explore the programme’s objectives, requirements, and what applicants need to keep in mind to qualify for funding. The competition opens on 11th November with the deadline set at 11am on 29th January 2025.
Objectives of the BridgeAI Programme
The primary goal of the BridgeAI competition is to accelerate the development of AI competencies tailored to specific industry needs. The competition is designed to encourage responsible and ethical approaches to AI education, ensuring that new technologies are not only effective but also aligned with industry standards and values. Proposals submitted to the competition should address how they will meet the following key objectives:
- Accelerating AI Competency Development: Projects should demonstrate how their proposed solutions will enhance AI skills relevant to the sector in a responsible and ethical manner.
- Supporting High-Quality Education: By leveraging evidence-based teaching and learning methodologies, applicants are expected to promote effective learning practices that are aligned with industry standards.
- Aligning with Competency Frameworks: The BridgeAI programme highlights the importance of aligning learning content with both sector-specific standards and the AI Skills for Business Competency Framework to ensure the potential for future accreditation.
- Upskilling and Reskilling the Workforce: Each solution must address the need for upskilling and reskilling existing professionals within the sectors, allowing them to stay current with the latest AI developments.
- Piloting with End Users: Applicants must have a clear plan for piloting their solutions with real-world end users, providing a tangible demonstration of the project’s applicability and effectiveness.
Funding and Project Scope
To be eligible, projects must meet several essential requirements outlined by Innovate UK:
- Eligible Costs and Compliance: The competition offers grants ranging between £50,000 and £100,000 and only eligible project costs should be included in the application.
- Project Duration and Timeline: Projects should have a duration of 6 to 10 months, starting no later than 1st June 2025, and concluding by 31st March 2026.
- Location of Work: All project activities must be carried out in the UK, with the aim to exploit results within the country as well.
- Alignment with Learning Personas: The project must focus on at least one learner type outlined in the AI Skills for Business Competency Framework, including AI Workers, AI Professionals, or AI Leaders, ensuring that solutions are adapted to different levels of experience within the AI landscape.
- Commitment to Diversity and Inclusion: The programme places significant emphasis on promoting equality, diversity, and inclusion, encouraging applicants to design personalised learning journeys that are accessible and fair.
Organisational Requirements
Applicants must be UK-registered businesses of any size, and to be eligible for funding, projects must involve at least one UK-registered micro, small, or medium-sized enterprise (SME). Innovate UK also welcomes collaborations with a variety of UK-registered entities, including academic institutions, charities, non-profits, public sector organisations, and research and technology organizations (RTOs).
In collaborative projects, the lead organization must invite other partners to join the project through the Innovation Funding Service (IFS) platform, where partners will enter their project costs and respond to questions on project impact. Both the lead organisation and any collaborators seeking funding must complete these steps to qualify for the competition.
Portfolio Approach
Innovate UK’s portfolio approach seeks to fund a diverse range of projects, ensuring that the benefits of AI competency development are distributed across various regions and industries. This approach enables Innovate UK to maximise the impact of the BridgeAI programme by investing in innovative solutions across different sectors, meeting the unique needs of each one. Projects that align with the specific themes of AI competency development in key sectors, support diverse learning personas, and uphold inclusive values are particularly valued under this approach.
Specific Themes for Applicants
To align with Innovate UK’s vision for the BridgeAI programme, applicants should ensure their projects address specific themes relevant to the competition:
- Industry-Specific AI Competency Development: Each project must aim to develop AI competencies in at least one of the programme’s target sectors, such as construction, transport and logistics, creative industries, agriculture, or food processing.
- Learner Personas: By focusing on different learner personas within the AI Skills for Business Competency Framework, including AI Workers, Professionals, and Leaders, projects should offer personalised learning pathways that cater to diverse levels of expertise and roles in the industry.
- Promoting Diversity and Inclusion: The competition strongly encourages projects that consider equality, diversity, and inclusion in their learning approaches, thereby ensuring AI competency development is accessible to a broad range of individuals.
Application Tips
Given the competitive nature of this funding opportunity, applicants are encouraged to focus on building a strong case for how their project will accelerate sector-relevant AI competency development while meeting all the programme’s ethical and responsible AI standards. Highlighting clear, evidence-based educational methods, demonstrating an understanding of industry standards, and showing an actionable plan for piloting with end users will increase the chances of selection.
You can read the full competition details here.
The EIC 2025 Work Programme
The European Innovation Council (EIC) unveiled its 2025 Work Programme, highlighting ambitious initiatives designed to solidify Europe’s position as a leader in breakthrough technologies and strengthen its strategic autonomy. By funding high-risk, high-reward innovations, the EIC aims to transform scientific discoveries into market-ready technologies, fostering an environment where innovative companies can thrive and compete globally. This article delves into the essential changes, major highlights, and anticipated impact of the EIC 2025 Work Programme.
1. The New STEP Scale-Up Scheme: Bridging the Funding Gap
One of the centrepieces of the EIC 2025 Work Programme is the newly introduced STEP Scale-Up Scheme. This €300 million initiative is a direct response to the well-documented challenges European deep-tech startups face in securing sufficient growth funding. While Europe has excelled in generating innovative ideas and producing early-stage start-ups, a lack of substantial follow-on funding has limited many companies’ abilities to scale globally.
The STEP Scale-Up Scheme is specifically tailored to address this gap, targeting high-impact companies developing critical technologies. These include digital innovations, clean tech, and biotech solutions - sectors deemed essential for Europe’s competitive and strategic positioning. The scheme will prioritise funding for projects that have a clear path to scale but need significant investment to reach that next level. By doing so, the EIC aims to prevent promising companies from seeking funding outside the EU, which often results in them relocating.
2. Enhanced Focus on Strategic EIC Challenges
The EIC has refined and expanded its EIC Challenges, allocating over €370 million to address pressing global and European priorities. EIC Challenges act as targeted calls for proposals within specific high-potential fields, encouraging innovators to tackle some of the world’s most complex problems. For 2025, the EIC has introduced new and strategically relevant challenges, each designed to push the boundaries of current knowledge and technological capability.
Key areas of focus include:
• Generative Artificial Intelligence (AI): As generative AI continues to disrupt industries, the EIC Challenge in this domain is set to accelerate the development of Europe-centred AI innovations. The goal is to build competitive AI applications that address Europe’s ethical, social, and economic needs, ultimately ensuring Europe’s sovereignty over AI technologies.
• Climate-Resilient Crops: Responding to the urgent need for sustainable agriculture in the face of climate change, this challenge calls for the development of crops that can withstand increasingly extreme weather patterns. Innovations in this space are expected to bolster food security and reduce dependency on external agricultural imports.
• Autonomous Robots for Sustainable Industry: Targeting robotics and automation in industrial settings, this challenge aims to make European industries more sustainable and efficient. By promoting innovations in autonomous robotic systems, the EIC hopes to minimise environmental impact, reduce waste, and create safer working environments.
• Agri-Tech Solutions: Recognising agriculture as a backbone of European sustainability, the EIC is also investing in disruptive agri-tech solutions. These solutions will focus on precision farming, smart sensors, and AI-enabled decision-making tools to support sustainable practices and enhance productivity across European agriculture.
These challenges reflect the EIC’s commitment to addressing both immediate and long-term strategic needs, ensuring that Europe stays at the forefront of technology-driven societal change.
EIC Transition Programme: Bridging Research and Market
The 2025 Work Programme allocates €98 million to the EIC Transition Open, which has no predefined thematic priorities and is open to proposals in any field of science, technology, or application.
The EIC Transition programme is designed to mature novel technologies beyond the experimental proof of principle, facilitating their progression from laboratory settings to real-world applications. It supports single entities or small consortia, including SMEs, start-ups, research organisations, and universities, aiming to validate technologies and develop business plans for specific applications at Technology Readiness Levels (TRL) 3 to 6.
Key features of the EIC Transition include:
• Funding Support: Grants of up to €2.5 million are available to validate and demonstrate technology in application-relevant environments and develop market readiness.
• Booster Grants: Additional booster grants, not exceeding €50,000, are offered for ongoing projects to explore potential commercialization pathways or for portfolio activities.
• Business Acceleration Services (BAS): Beneficiaries gain access to a range of tailor-made BAS, including coaching, mentoring, expertise, training, and connections to global partners and innovation ecosystems.
EIC Accelerator Programme: Scaling Innovations
The EIC Accelerator programme offers €634 million for start-ups and SMEs to develop and scale up innovations with the potential to create new markets or disrupt existing ones. It supports companies aiming to scale up and seeking substantial funding, particularly when the associated risks are too high for private investors alone.
Key components of the EIC Accelerator include:
• Grant Funding: Lump sum contributions below €2.5 million are provided for innovation activities (TRL 6-8), to be completed within 24 months.
• Investment Component: To bridge the gap for high-risk innovations, the programme offers equity investments ranging from €0.5 million to €10 million, with higher amounts available under the STEP Scale-Up scheme. (Not available to UK entities).
• Blended Finance: A combination of grant and equity or quasi-equity (such as convertible loans) is available to support both innovation activities and market deployment.
• Business Acceleration Services (BAS): Similar to the Transition programme, Accelerator beneficiaries have access to BAS, facilitating connections with global partners, coaches, mentors, and innovation ecosystems.
3. Expanded Business Acceleration Services (BAS) for Wider Inclusivity
Recognising that financial support alone isn’t sufficient, the EIC has broadened its Business Acceleration Services (BAS), giving startups and SMEs access to invaluable non-financial resources. This includes mentorship, networking opportunities, and tailored coaching designed to support companies at all stages of growth. The BAS programme will be further expanded in 2025, with an emphasis on reaching underrepresented regions and sectors across the EU.
For the first time, the BAS will specifically target innovators from underrepresented regions, addressing imbalances within the EU’s innovation ecosystem. By providing these innovators with the same level of support available to their counterparts in more established innovation hubs, the EIC aims to create a more balanced and inclusive landscape for European innovation.
Additionally, Seals of Excellence will be awarded to highly promising projects that do not receive EIC funding, guiding them towards alternative European and national funding opportunities. This measure serves to reduce the potential for lost innovation due to limited resources, maximising the impact of the EIC's efforts.
4. The Role of Strategic Autonomy and Sustainability
The EIC 2025 Work Programme places a strong emphasis on strategic autonomy, particularly within sectors deemed critical to Europe’s long-term competitiveness. This includes ensuring that Europe has control over key technologies that could influence its economic independence, such as clean energy solutions, digital innovations, and health-related technologies. By investing in these areas, the EIC aims to reduce Europe’s reliance on non-EU countries for strategic resources and technologies, thereby safeguarding its economic and technological resilience.
Sustainability is also a cornerstone of the 2025 Work Programme. The EIC has aligned its funding strategies with the EU’s broader Green Deal objectives, investing in innovations that promote environmental protection, sustainable resource use, and emissions reduction. In doing so, the EIC supports Europe’s transition to a green economy, ensuring that new technologies contribute positively to the global fight against climate change.
5. Commitment to Research and Innovation Across Key Technology Sectors
The EIC 2025 Work Programme continues its tradition of fostering deep-tech innovation by supporting groundbreaking research and innovation. Deep-tech areas such as quantum computing, advanced materials, and biotechnology remain focal points of the EIC’s funding strategy. These fields have the potential to redefine existing markets and create entirely new ones, driving economic growth and technological leadership within the EU.
In biotechnology, for instance, the EIC has dedicated funding to innovations in gene editing, personalised medicine, and biomanufacturing, areas that could revolutionise healthcare and therapeutics. Similarly, quantum computing is recognised for its potential to transform industries by providing unprecedented computational power, which could support advancements in fields ranging from climate modelling to cryptography.
6. Boosting Public-Private Partnerships and Industry Engagement
A significant aspect of the EIC’s 2025 strategy is encouraging stronger partnerships between the public and private sectors. The Work Programme outlines initiatives to foster collaboration between EIC-funded projects and major industry players, creating pathways for knowledge transfer, co-investment, and broader market access. Through these partnerships, the EIC hopes to fast-track the development and commercialisation of technologies, enabling smaller innovators to access the resources and expertise they need to scale.
In 2025, the EIC will place added emphasis on co-investment schemes, wherein public funding is matched by private sector investment. These co-investment opportunities are intended to mobilise additional financial resources, ensuring that European deep-tech startups have access to the capital required to scale.
You can download the full EIC 2025 Work Programme here.