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.

  1. 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.
  1. 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.
  1. 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:

  1. 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.

  1. 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.

  1. 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.

  1. 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.

  1. 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.

  1. 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:

  1. 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.

  1. 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.

  1. 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.

  1. 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.

  1. 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.

  1. 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:

  1. Public-Private Partnerships: The government is increasingly leveraging public-private partnerships to maximise the impact of innovation funding, particularly in large-scale projects.
  2. 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.
  3. 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.
  4. 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.

by Dayne Hodgson

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.

by Dayne Hodgson

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:

  1. 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.
  2. 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.
  3. 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.
  4. 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.
  5. 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:

  1. 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.
  2. 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.
  3. Location of Work: All project activities must be carried out in the UK, with the aim to exploit results within the country as well.
  4. 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.
  5. 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:

  1. 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.
  2. 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.
  3. 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.

by Dayne Hodgson

Media Cymru's Scale Up Round 2 Funding Competition

The media landscape in Wales is poised for transformational change, and Media Cymru, a dynamic consortium of 22 partner organisations led by Cardiff University, is at the heart of this shift. As part of its ambitious five-year programme, Media Cymru has launched the Scale Up Round 2 funding competition, with support from Innovate UK and the UKRI Strength in Places Fund. With up to £700,000 available to be invested in research and development (R&D) projects, this competition is designed to place the Cardiff Capital Region firmly on the global media stage.

The Vision Behind Media Cymru
Media Cymru is committed to turning the Cardiff Capital Region into a global hub for media production and innovation. However, this transformation is not merely about boosting production capacity. The initiative prioritizes green and fair economic growth, which means creating a sustainable and inclusive media ecosystem where innovation is at the forefront.

The Media Cymru programme revolves around four strategic pillars:

  1. Green – Reducing the environmental impact of the media sector.
  2. Fair – Building a diverse, equal, and inclusive sector.
  3. Global – Expanding international collaborations and partnerships.
  4. Growth – Fostering economic growth and productivity through R&D and innovation.

Each project funded through this competition is expected to align with at least one of these pillars, ensuring that funded innovations contribute not only to the advancement of the Welsh media industry but also to the wider societal and environmental goals.

Scale Up Round 2: What’s the Opportunity?
Media Cymru: Scale Up Round 2 offers Welsh media companies the chance to secure significant funding for projects with the potential to scale, innovate, and compete on a global stage. The competition will invest in innovation-driven products, services, and experiences that have the ability to transform the media landscape, both locally and internationally.

Key Details:

  • Grant funding range: £100,000 to £250,000 per project.
  • Project duration: Up to 12 months.
  • Deadline: The competition closes at 11am UK time on the 4th December 2024.
  • Project start date: Must not begin before 1st April 2025 and should conclude by 30th April 2026.
  • Eligibility criteria: Projects must focus on the media sector and demonstrate a tangible economic benefit to the Cardiff Capital Region.

Importantly, applicants must be prepared for a competitive process, as the funding limit means not all high-scoring proposals will necessarily be funded.

What Makes a Winning Proposal?

Success in this competition hinges on a company’s ability to present a project that meets the specific requirements of the competition while standing out in terms of innovation and scalability.

Here’s what the competition is looking for in a winning proposal:

  1. Innovation-Driven Solutions: Your project must aim to solve a key challenge or seize an opportunity within the Welsh media industry. Whether it’s improving media production processes, creating innovative content platforms, or addressing challenges related to digital consumption, the project should be original and impactful.
  2. Proven Feasibility: Ideas are not enough on their own. You need to demonstrate the feasibility of your innovation. This means that the technology or solution you propose must have a sound basis for development and implementation, supported by clear evidence or research.
  3. Economic Impact: A core goal of this competition is to drive economic growth in the Cardiff Capital Region. Successful applicants will need to demonstrate how their innovation will contribute to the local economy by creating jobs, increasing productivity, or attracting additional investment.
  4. Rapid Commercialisation: The competition is not just about ideas; it’s about turning those ideas into tangible products and services that can be rapidly commercialised. Your proposal should include a clear commercialisation strategy, detailing how your innovation will be brought to market quickly and effectively after the project’s completion.
  5. Knowledge Sharing: Collaboration and knowledge-sharing are fundamental to Media Cymru’s vision. Applicants are expected to actively share knowledge and project outputs with the broader media community, fostering a culture of innovation across the region.
  6. Alignment with Strategic Pillars: Every project must align with one or more of Media Cymru’s strategic pillars (Green, Fair, Global, Growth). This ensures that your innovation contributes to the overarching goals of the programme, whether that’s through promoting sustainability, increasing diversity, driving international partnerships, or enhancing regional economic growth.

Why Should Welsh Media Companies Apply?
The Media Cymru Scale Up Round 2 competition presents a unique opportunity for media companies in the Cardiff Capital Region to receive significant financial backing for their most ambitious and innovative projects. However, the benefits extend far beyond funding.

  1. Enhanced Visibility and Prestige
    Being selected for funding through this competition positions your company as an industry leader. It showcases your commitment to innovation and your ability to develop solutions that can compete on the global stage. This visibility can lead to further collaborations, partnerships, and investment opportunities.
  2. Global Reach
    Media Cymru’s commitment to international collaboration means that companies funded through this programme will have the chance to build relationships with global partners, expanding their reach and influence beyond the Welsh and UK markets.
  3. Driving Positive Change
    By aligning your project with Media Cymru’s strategic pillars, you’re contributing to a more sustainable, diverse, and innovative media sector. Whether it’s reducing the carbon footprint of media production or creating a more inclusive industry, your project can be part of shaping the future of media in Wales and beyond.
  4. Economic Impact
    Perhaps most importantly, successful projects will play a pivotal role in driving economic growth in the Cardiff Capital Region. By creating new jobs, attracting investment, and increasing productivity, your project can have a lasting positive impact on the region’s economy.

by Dayne Hodgson

Biomedical Catalyst 2024 Now Open

Innovate UK has announced the next round of its Biomedical Catalyst (BMC) competition, offering up to £15 million in funding for innovation projects aimed at addressing critical health and healthcare challenges. This industry-led R&D initiative provides a valuable opportunity for small and medium-sized enterprises (SMEs) to develop cutting-edge solutions, spanning from disease prevention to digital health technologies.

Focus Areas of the Competition
The competition is designed to foster innovation across a wide range of health-related areas. Projects are encouraged to focus on one or more of the following:
• Disease Prevention and Management: Projects that develop proactive strategies for managing health and chronic conditions, with the goal of improving long-term health outcomes.
• Early Detection and Diagnosis: Innovations that allow for faster, more accurate detection of diseases, leading to more effective treatments and better patient outcomes.
• Tailored Treatments and Cures: Research aimed at personalising treatments that target the root causes of diseases or offer potential cures for conditions that currently have limited treatment options.
• Transforming Healthcare Delivery: Projects that focus on improving the efficiency and effectiveness of healthcare systems, making them more accessible and responsive.
• Development of Digital Health Technologies: The advancement of digital tools to enhance patient care, monitoring, and self-care.
• Consumer-Focused Self-Care: Innovations that empower individuals to take charge of their health and well-being through accessible, consumer-focused products.

This broad scope ensures that a wide range of health and healthcare innovations can be supported through the competition, from cutting-edge biotechnology to revolutionary digital health platforms.

Eligibility Criteria for Projects
To qualify for the BMC competition, projects must meet several key criteria. First and foremost, projects must demonstrate evidence of both commercial and technical feasibility. This ensures that proposed solutions have a strong chance of reaching the market and making a tangible impact on healthcare systems.

Additionally, each project must:
• Have total project costs between £150,000 and £4 million.
• Not exceed a grant request of £2 million.
• Ensure that at least 50% of the project costs are covered by the SMEs if it’s a collaborative project.
• Be completed within a timeframe of 6 to 36 months.
• Be carried out entirely within the UK and aim to exploit results in the UK.
• Begin no later than 1st May 2025 and finish by 30th September 2028.
Lead Organisations and Project Teams

To lead a project, the organisation must be a UK-registered micro, small, or medium-sized enterprise (SME). This SME can either work alone or in collaboration with other UK-based organisations, including businesses of any size, academic institutions, charities, public sector organisations, and research and technology organisations (RTOs). Notably, academic institutions are not permitted to lead projects but can serve as collaborators.

Types of Eligible Projects
The competition supports a wide variety of R&D activities, from early-stage experimental research to the development and testing of new products. Eligible projects can include:
• Experimental Evaluation: Testing new solutions on a laboratory scale or using in vitro and in vivo models to evaluate proof of concept or safety.
• Prototyping and Product Development: Moving ideas from concept to prototype, and ultimately, to market-ready products.
• Clinical Trials: Demonstrating clinical utility, safety, and efficacy through early-phase (Phase 1 and 2) clinical trials.
• Regulatory Planning: Preparing for regulatory approval by engaging with relevant bodies early in the development process.

These projects should demonstrate how they can address significant health challenges while also improving the productivity and competitiveness of the SMEs involved.

Supporting a Portfolio of Projects
Innovate UK aims to fund a diverse portfolio of projects across different technologies and themes. This approach ensures that a wide range of innovative solutions have the opportunity to receive funding and make a meaningful impact on the UK’s healthcare sector.

Specific themes that the competition encourages include, but are not limited to:
• Advanced Therapies: Such as gene and cell therapies that represent the cutting edge of personalised medicine.
• Biosciences and Preclinical Technologies: Exploring new drug targets and mechanisms before they enter clinical trials.
• Medical Technology and Devices: Developing new tools for diagnosing and treating diseases.
• Digital Health: Pioneering new platforms and technologies that transform healthcare delivery, enhance remote monitoring, or improve patient outcomes.
• Independent Living: Supporting technologies that enable individuals, particularly those with chronic conditions or disabilities, to live more independently.

Competition Process
The BMC competition is a competitive process, meaning that not all projects will receive funding, even if they score highly. The competition closes at 11am on Wednesday, 16th October 2024. Projects that request grants of over £500,000 may be required to attend an interview as part of the assessment process.

Applicants are encouraged to review the specific details of the competition through the Innovate UK competition brief to ensure they are submitting the most accurate and relevant information: Biomedical Catalyst 2024 Round 1: Industry-led R&D

by Dayne Hodgson

Travel support for UK businesses to attend European events

Innovate UK has launched a travel support scheme designed to assist small and medium-sized enterprises (SMEs) in the UK in expanding their reach into European research and development (R&D) collaborations. This initiative, set to run throughout the second half of 2024, provides funding to enable SMEs to attend key European events focused on R&D and consortia-building.

Following the UK’s renewed association with Horizon Europe, this travel support aims to bolster international collaboration by ensuring that UK businesses remain visible and active participants in European research initiatives. SMEs are the backbone of innovation, and this initiative offers them a unique opportunity to expand their networks, secure partnerships, and contribute to major collaborative projects across the continent.

The industries covered under this initiative are wide-ranging, including space technology, sustainable urban mobility, and hydrogen energy, among others. Each event offers a platform for SMEs to engage with international counterparts, forming partnerships that could lead to new research breakthroughs and technological advancements.

One of the key benefits of this program is its role in removing financial barriers for UK businesses. Travel and accommodation costs can be prohibitive, particularly for smaller enterprises. Innovate UK's travel support offers up to £700 per company to cover these costs, enabling more businesses to participate in high-impact events without the burden of additional financial strain.

This initiative is viewed as a strategic tool to ensure that UK businesses remain at the forefront of global research collaborations. As Europe’s R&D landscape continues to evolve, especially with the Horizon Europe program driving significant funding and opportunities, it’s essential that UK SMEs are not left behind. By facilitating their involvement in European consortia, this initiative helps ensure that the UK remains a leader in research and innovation.

For more information, please visit: https://iuk.ktn-uk.org/news/travel-support-now-available/

by Dayne Hodgson

Sustainable Medicines Manufacturing Initiative

The pharmaceutical industry has long been associated with high energy consumption and waste. In response, Innovate UK, in collaboration with the Department of Health and Social Care (DHSC), has launched a new initiative aimed at promoting sustainable practices in the manufacturing of medicines. This £15 million program, opening for applications with a deadline of 16th October 2024, is set to drive innovation and greener technologies across the pharmaceutical sector.

The aim of this competition is to drive innovation in sustainable medicines manufacturing across three key pillars:
• green chemistry
• circularity
• productivity and resource efficiency

Projects must also consider both critical enablers:
• regulations: how to overcome any regulatory barriers to adoption of your innovation.
• measurements, standards and data: approaches to capture data that support the measurement and reporting of sustainability indicators aligned with industry standards.

These new manufacturing innovations are expected to support more environmentally sustainable manufacturing processes with significant and measurable improvements in at least one of the following areas:
• productivity
• waste reduction
• emissions reduction
• energy use reduction
• resource efficiency

Funding must be used to invest in innovation to deliver across four key goals:
• drive disruptive and novel technologies or processes in medicines manufacturing to optimise production efficiency, minimise waste and reduce emissions, aligning with global sustainability goals
• facilitate the effective implementation of innovative solutions and promote their adoption across the medicines manufacturing sector, ensuring scalability and widespread utilisation
• enhance the UK’s attractiveness as a prime location for investment in medicines manufacturing, thereby stimulating economic growth and enhancing resilience in the sector
• strengthen the UK's manufacturing innovation ecosystem through collaborative partnerships between academia, industry, and government entities, promoting knowledge exchange and collaborative initiatives to enhance sustainable manufacturing practices

Projects must also consider how to overcome any regulatory barriers to adoption of the innovation, alongside approaches to capture data that support the measurement and reporting of sustainability indicators aligned with industry standards. By fostering collaboration between researchers, innovators, and manufacturers, this initiative hopes to accelerate the adoption of cutting-edge solutions that can be implemented quickly. The aim is to see tangible impact within three years of project completion, meaning that the results of these investments should be felt before the end of the decade.
Innovators interested in applying for the funding will have the opportunity to develop and commercialise technologies that can significantly transform medicine manufacturing processes while contributing to broader environmental goals.

by Dayne Hodgson

Innovate UK Women in Innovation Programme Outrage

The recent Innovate UK Women in Innovation outcome has drawn significant attention, particularly after Innovate UK's failure to deliver on its funding promises for women-led projects. The initiative, which began in 2016, aims to foster female entrepreneurship by offering financial support and mentorship. However, the most recent round of awards has been mired in controversy, as only 25 applicants were going to receive funding instead of the promised 50, sparking backlash and concerns about Innovate UK's commitment to gender equality.

Women in Innovation Background

Women in Innovation was designed to address the gender disparity in the UK's innovation sector, aiming to support women entrepreneurs and innovators with financial resources and expert mentorship. It has played a crucial role in fostering female participation in a traditionally male-dominated field. Innovate UK has been credited with increasing the representation of women innovators, noting that successful grant applications from women have risen from 1 in 7 in 2016 to 1 in 3 in recent years.

The program’s focus on creating opportunities for women to grow and scale their businesses has been widely welcomed. However, in the 2024 iteration of the program, the initiative drew significant criticism when Innovate UK announced only 25 of the originally promised 50 projects would receive funding. This decision, seen as a significant misstep, left many applicants feeling unsupported and cast doubt on the future of gender equity in UK innovation. The shortfall in funding not only affected the individual businesses hoping for support, but also raised broader questions about how resources are allocated and the priorities of public funding bodies like Innovate UK.

Innovate UK’s Response and Proposed Measures

This situation prompted Innovate UK to acknowledge their mistake. They admitted that their decision to prioritise fewer projects was wrong and issued a public apology, recognising the negative impact this had on applicants and the larger innovation community. Innovate UK also confirmed that they would fund the remaining 25 projects, thus meeting their original commitment of 50 awards with a total investment of £4 million.

In the face of mounting criticism, Innovate UK has laid out a series of measures aimed at rectifying the situation and ensuring that such mismanagement does not happen again. Their response has been characterised by transparency and an effort to rebuild trust with stakeholders. They have committed to fully funding the 50 projects as originally promised, stating that they are already in the process of contacting the additional 25 successful applicants.

To further demonstrate their commitment to supporting women in innovation, Innovate UK has promised to reach out to all applicants to provide information on additional support and resources available to them. This includes highlighting various services within the broader Innovate UK system, such as the Innovate UK Catapult Network and Business Connect, which are designed to help innovators at different stages of their entrepreneurial journeys.

Innovate UK has also pledged to improve its strategic engagement with business leaders and gender equality advocates to better understand the needs of women innovators and create new opportunities for them. They are working on refining their internal processes and co-creating new programs that will expand the support available to women in innovation.

Rebuilding Trust and Accountability

While Innovate UK’s quick response and admission of fault are positive steps, the scandal has emphasised the importance of accountability in public funding. There is now greater pressure on Innovate UK to ensure that such mistakes are not repeated. By reaffirming their commitment to gender equality and promising to deliver on their initial funding promises, Innovate UK is attempting to restore its credibility within the innovation community.

Moving forward, Innovate UK will need to demonstrate that it has learned from this controversy. Its plan to co-create opportunities with business leaders and advocates, alongside improving transparency and funding processes, is critical to regaining the trust of the community it serves. Gender equality advocates are also calling for increased oversight to ensure that public funds are managed responsibly and that women innovators receive the support they need to succeed.

Broader Implications for Women in Innovation

This scandal (for this author, who has been watching too much Bridgeton) has highlighted the broader challenges that women face in the innovation sector. While initiatives like Women in Innovation are crucial for addressing gender disparities, they must be backed by consistent and reliable support. The Innovate UK funding shortfall serves as a reminder that efforts to close the gender gap in innovation require more than good intentions - they demand effective execution and follow-through.

The fact that applications for this year’s Women in Innovation program reached an all-time high (1,452 applications) is a positive sign that more women are seeking opportunities in the innovation sector. However, with only 50 projects being supported at a maximum grant of £75,000 each, the lack of funding threatens to undermine this progress and further delay and/or disruption women entrepreneurs and their business plans, which could have long-term implications for their success.

by Dayne Hodgson

Innovate UK's Innovation Loan Programme

Empowering SMEs for Future Growth

Innovate UK's Innovation Loan programme is aimed at supporting micro, small, and medium-sized enterprises (SMEs) with late-stage research and development (R&D) projects that demonstrate high innovation potential and significant future economic impact. This initiative provides up to £25 million in loans to help these businesses bridge the gap between R&D and commercialisation.

Overview of the Programme

The Innovation Loan programme is designed for SMEs registered in the UK, focusing on projects that are significantly ahead of current market offerings or utilise existing products, processes, or services in innovative ways. The loans range from £100,000 to £2 million, with the expectation that projects will commence by April 1, 2025. The programme aims to support a variety of sectors, emphasising themes such as Net Zero, health and wellbeing, next-generation digital technologies, and advanced manufacturing.

Eligibility Criteria

To qualify for the loan, businesses must:

  • Be a UK-registered micro, small, or medium-sized enterprise.
  • Conduct and exploit their project within the UK.
  • Demonstrate the need for public funding and the ability to repay the loan on time.
  • Provide evidence of their business's suitability to handle a loan.

Notably, individuals, large companies, non-profits, academic institutions, and research organisations are not eligible. Collaboration is not funded, but subcontractors are allowed, if justified.

Project Requirements

Eligible projects should:

  • Lead to the development of innovative new products, processes, or services.
  • Include prototyping, demonstrating, piloting, testing, or validation in real-life conditions.
  • Align with one or more future economy areas specified in Innovate UK's plan for action.

The programme encourages applications from underrepresented communities, including those outside major investment hubs and from diverse backgrounds.

Application Process

The application process is comprehensive, consisting of three main sections: business and financial details, project questions, and project finances. The application is evaluated based on the quality of the project and the business's ability to manage and repay the loan.

Applicants must also address specific project aspects, including:

  • The business need, technological challenge, or market opportunity.
  • The market potential and commercialisation plan.
  • The team’s skills and project management strategy.
  • Detailed project costs and financial planning.

Submissions are reviewed by independent experts and Innovate UK’s credit team. Successful applicants will proceed to detailed credit analysis and final lending decisions.

Key Dates

The programme operates through multiple rounds:

  • Round 16: Opens on 27th June 2024, and closes on 21st August 2024.
  • Round 17: Opens on 22nd August 2024, and closes on 2nd October 2024.
  • Round 18: Opens on 3rd October 2024, and closes on 3rd December 2024.
  • Round 19: Opens on 3rd December 2024, and closes on 29th January 2025.

Financial Terms

Innovation loans are structured with favourable terms:

  • Availability Period: Up to three years with loan drawdowns and interest at 3.7% per annum.
  • Extension Period: Up to two years, focusing on commercialisation with deferred interest.
  • Repayment Period: Up to five years with quarterly repayments and a 7.4% interest rate.

Security is generally in the form of a debenture, with no personal guarantees required. Loans cover up to 100% of eligible project costs, with the equivalent benefit of a grant due to below-market interest rates.

What Next?

For a free consultation to discuss your project, contact RedKnight today.

by Dayne Hodgson

Immersive Technology in Mental Health

Innovate UK’s £20 million Mindset programme is driving the growth of immersive digital mental health solutions in the UK.

A series of events are planned around the UK where you can find out more about funding opportunities, and the Mindset-XR Innovation Support Programme delivered by Health Innovation Network (HIN) South London.

These events are a great opportunity to:

  • Hear from innovators in this exciting and developing field and learn more about why this is important for mental health services.
  • Meet some of the current Mindset-XR award winners and XR innovators.
  • Hear about upcoming funding for Mindset-XR Round 3.

Who should attend? Anyone interested in mental health and immersive technology, including but not limited to:

  • immersive tech companies
  • clinicians
  • researchers /academics
  • innovators
  • regulatory/ legal organisations
  • voluntary sector
  • creatives with an interest in mental health
  • people with lived experience

The events are taking place in the follow cities:

  • Leeds - 25th June
  • Glasgow – 27th Jun
  • London – 2nd July
  • Cardiff – 8th July
  • Exeter – 19th July

To register your attendance, please click here.

by Dayne Hodgson