Grant for Research & Development Clive Grunsell Team Leader

What is it?  DTI Business Support Product  Replaces the former SMART Scheme  Administered by RDA’s from 1 April 2005  Aligns and supports the North West’s Regional Economic Strategy

Why ?  Address a MARKET FAILURE that can only be addressed by public sector intervention, because it is very difficult to secure private funding on technically risky projects.  The grant will share the technical risk with the applicant.

Objective  Grant for Research and Development aims to help individuals starting up businesses and SMEs already based in England carry out research and development work on technologically innovative products and processes.  By offering a grant towards the costs of carrying out the research and development work, the grant will encourage businesses to carry out projects that they would not necessarily undertake without the grant and lever in to these projects finance from reluctant private investment sources.

Budgets  National Budget £26 million per year  North West Budget £3.9 million per year

Support Available 4 levels of support are available from £20,000 to £500,000  Micro  Research  Development  Exceptional Development

Micro Projects  Helps to develop a simple low cost prototype of a new product or process which involves technological innovation or novelty (or both). Maximum grant available £20,000 Grant rate – 50% support Eligibility – up to 10 employees

Research Projects  Helps to access the technological and commercial feasibility of turning innovative technology into a new product or process. Maximum grant available - £75,000 Grant rate – 60% support Eligibility – up to 50 employees

Development Grant  Helps to develop a pre-product prototype of a new product or process involving a significant technological advance. Maximum grant available £200,000 Grant rate – 35% support Eligibility – up to 250 employees

Exceptional Development  Helps with the development of a new technology that is strategically important to an industrial or technology sector. Maximum grant available £500,000 Grant rate – up to 35% support Eligibility – 250 employees

Appraisal Process  Conduct technical assessment  Confirm Intellectual Property Rights  Consider additionality and viability

Technical Assessment  Application sent to Department for Business, Enterprise and Regulatory Reform, executive agencies as listed on NWDA website, e.g. National Engineering Laboratory

Intellectual Property  Application sent to the UK Intellectual Property Office for IPR position

Due Diligence  Application sent to in-house accountants to determine the additionality and viability case

Decision Making Process  Applicant visited – project and issues discussed  Case paper prepared  Decision by review panel

Further Details Clive Grunsell