Driving Innovation – The Technology Strategy Board
23rd June 2011The Technology Strategy Board (“TSB”) is a government funded organisation whose purpose is to support and stimulate technology-enabled innovation to accelerate UK business and economic growth.
The TSB works in collaboration with various research councils, devolved administrations and other government departments, to support and invest in technologies which provide a clear benefit to consumers and corporates.
Technology-driven SMEs are encouraged to enter the TSB’s competitions to create technologies which address specific challenges and appeal to the wider market. In addition to the various competitions and challenges, a designated pool of funds (a “Grant for Research and Development”) will be made available to those technology SMEs whose business proposals are approved by independent assessors appointed by the TSB as being viable commercial opportunities.
As well as offering Grants for Research and Development, the TSB promotes the use of other mechanisms to encourage innovation in the UK through Knowledge Transfer Networks, Knowledge Transfer Partnerships, Micro and Nano-technology Centres and International Programmes for products likely to have global appeal.
This note focuses on applications for Grants for Research and Development.
What can the grants be used for?
The grants are to be used for (i) research and (ii) development of a prototype only. A non-exhaustive list of the types of work within these two categories includes:
- Research: to explore the technical feasibility and commercial potential of a new technology, product or industrial process by conducting “proof of market” and “proof of concept” assessments and studies which include market testing, competitor analysis, IP investigation and protection, costs and manufacturing assessments and basic prototyping.
- Development of prototype: to develop a pre-production prototype of a technologically innovative product, service or industrial process to include product design, IP protection, testing and trials and marketing strategies.
Who can apply and what is on offer?
When competitions or challenges are run by the TSB, full details of the application process and grants available will be published in a competition brief. Details of current competitions can be found on the TSB website www.innovateuk.org and include challenges to develop technology, products and processes for a range of sectors from manufacturing/construction and energy to counter-terrorism. The website offers a free subscription to an RSS feed to ensure that interested parties are updated on competitions without the need to constantly check the TSB website.
The process to make speculative applications is explained in detail in the guidance notes available on the same website and sample applications are available to view. Applications are submitted online at the following web address: https://competitions.innovateuk.org/Security/Login.aspx
Only UK-based SMEs are eligible to apply under the scheme and all applications are assessed on their merits. The project must be based on activity to be conducted within the UK and be industry focused, presenting a clear case for business benefit. The level of project funding depends on the type of research and development to be undertaken, but is always subject to the following maximum values and timescales:
| Grant Type | Intervention Rate | Maximum Grant | Maximum Duration |
| Proof of Market | 60% | £25,000 (max. 20% advance payment) | 9 months |
| Proof of Concept | 60% | £100,000 (lower of 20% or £10,000 max advance payment) | 18 months |
| Development of Prototype | 35% medium enterprises and 45% small/micro enterprises | £250,000 | 24 months |
The “intervention rate” sets out the percentage level of project costs that can be claimed from the TSB. For example, if applying for a “Proof of Market” or “Proof of Concept” grant, the applicant must itself provide 40% of the project costs.
Only one grant can be applied for at any one time, regardless of the fact that the technology has elements of more than one grant type. This does not prohibit the applicant from making subsequent applications as the product progresses and other elements of its production that have not previously been funded by the scheme now require funding.
It should be noted, however, that an application under this scheme will be ineligible if the same project has received funding under a similar programme run by a devolved administration or under the previous Regional Development Agency schemes.
For a software project to be viable for a grant, the project must involve a significant technical development that produces a step change impact on how computers and other devices are programmed or used; incremental development, increase of functionality and general efficiency gains are not sufficient in the opinion of the TSB.
Any communications technology products, where a significant component of the product is software, must satisfy both the software development and innovation criteria in order for an application to be successful.
The Application Process
The application comprises three elements:
- A web-based application form;
- Appendices of information to support an application; and
- A finance form.
Applications are assessed in batches at the following intervals:
- 5 May 2011;
- 7 July 2011;
- 1 September 2011;
- 3 November 2011;
- 5 January 2012; and
- 1 March 2012.
Applicants are informed of the outcome of their application one month after the batch assessment date and successful applicants will be sent a conditional offer that must be accepted within 1 month. The acceptance of an offer must be accompanied by various documents produced by the applicant including a detailed project plan, financial forecast and exploitation plan.
Monitoring Officer
All projects are assigned a Monitoring Officer who will update the TSB with progress reports from time to time.
Mark Lewis Partner June 2011
