Support for business research and development and innovation

R&D Tax Credits provide tax relief – or in some cases cash for companies not in profit - to incentivize companies to undertake more scientifically and technologically challenging Research and Development. Other tax breaks include capital allowances for investment in equipment and premises.

Most other Government support for business has been re-organised into a single portfolio of 30 products, presented under the Solutions for Business banner. This is intended to make it much clearer to business what is available and to improve access. This follows an extensive process of streamlining the thousands of publicly-funded support schemes previously available. The portfolio includes a number of new offers for business. The Innovation Products part of the portfolio was launched in March 2009.

A number of the products are particularly relevant to business R&D&I.

• Collaborative R&D: grant to businesses working together and with the knowledge base to develop and exploit new ideas;
• Networking for innovation: supports businesses to build relationships with knowledge base institutions to develop and exploit new ideas;
• Knowledge Transfer Partnerships:  grant to enable the placement of a recently qualified person in a business, or the exchange of staff between businesses and  knowledge base institutions;
• Low Carbon Energy Demonstration:  finance to assist a range of demonstration activity in order to commercially exploit R&D in low carbon energy generating technology;
• Smart (formerly known as 'Grant for Research and Development'): finance to assist a business to develop and exploit new ideas.
• Innovation advice and guidance: this product aims to provide businesses with expert knowledge and highly specialised, technical and advanced skills, enabling them to innovate and improve performance.
• Several of the other products address financing or coaching  needs.

The majority of these products  are  accessed via Business Link.  For more information visit the Solutions for Business website.

The Technology Strategy Board (TSB) stimulates technology-enabled innovation in the areas which offer the greatest scope for boosting UK growth and productivity.  The TSB :

• promote, support and invest in technology research, development and commercialisation;
• spread knowledge, bringing people together to solve problems or make new advances;
• advise Government on how to remove barriers to innovation and accelerate the exploitation of new technologies;
• work in areas where there is a clear potential business benefit, helping today's emerging technologies become the growth sectors of tomorrow.

For more information visit the TSB website.

The Small Business Research Initiative (SBRI) invites companies to tender for work directed towards addressing specific research challenges identified by Government Departments. These challenges are advertised in the form of competitions and companies are invited to put forward responses to these. Click here for more information on the SBRI.

Finance for Innovation

A comprehensive introduction to sources of finance for business investment in innovation and how to access them, is provided in The No Nonsense Guide to Finance for High Growth and Innovative Businesses (April 2009).

This online guide is available at:

www.businesslink.gov.uk/no-nonsense. 

Research into the part played by Government Support

The part Government support plays in Business’s decision making about undertaking R&D, has been investigated in research commissioned by HMRC and BIS. See the report, ‘Qualitative research into businesses’ Research and Development (R&D) decision-making processes’ prepared by Databuild Research and Solutions Ltd (August 2010) available here.  Report number 101 .

Contact BIS:

Innovation Investment Policy
Department for Business, Innovation and Skills
Orchard 2, floor 2
1 Victoria Street
London
SW1H 0ET

Email: Andrew.Culley@bis.gsi.gov.uk

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