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Introduction
The UK Government has recently released its Technology Adoption Review for 2025 that assesses the barriers for UK businesses in their ability to adopt transformative technologies that can enhance innovation and growth activities across key British sectors.
Some of the key barriers to adopting technology for businesses cited in the report as part of the calls for evidence include:
i) Financial Constraints and Cost Concerns
Many SMEs cited high initial upfront costs and a lack of available finance as preventing them from upgrading, this is a particular issue in the manufacturing sector, where in many cases, a large number of existing processes and equipment would need to be replaced with new ones. Other businesses cited concerns about the increase in ongoing long term costs of new technology, such as maintenance and subscription costs.
ii) Lack of STEM Skills and Training
The report has highlighted that a large number of businesses lack both workforce and management level skills in terms of being able to handle new technological advances. In many cases the overall workforce at many businesses were cited as lacking STEM (Science, Technology, Engineering, and Mathematics) skills to use new innovative tools and processes or the training processes to upskill staff. There were also concerns that management level lacked technological proficiency to harness things such as advanced data management and AI to manage innovation and growth activities.
iii) Lack of Awareness on Emerging Technology
The report also states that key stakeholders such as the UK Government has not sufficiently promoted to industries and business that certain critical technological advances such as AI are safe and have sufficient security measures in place to use and have reached a level of technological maturity in order to encourage the likes of SMEs to integrate innovative technologies into their everyday work activities.
iv) Lack of Clarity on Policy and Regulatory Environment
A number of businesses are holding back on adopting new innovative technologies over concerns that whilst the technologies are still developing there is a risk that future regulatory red tape administered by the UK Government could hinder any gains they have made from using the technology or prevent them from using it altogether for their intended commercial purpose. There is also currently a view from international businesses who export or operate within the UK that there are greater regulatory hurdles in place when it comes to adopting new technology than in other overseas markets that they operate in.
v) Lack of Access to Technology Infrastructure
There are UK businesses who have cited that they are unable to adopt new technology in their location due to them not having access to the physical or digital infrastructure either at their facilities or provided within their local area in order to adopt new technology. Significant upgrades would need to take place in order for them to take on the most advanced innovative technology.
How Can Businesses Attempt to Overcome Some of These Hurdles
Many of the hurdles listed above can be addressed by grants, other types of funding and business support available for innovation activities from a number of providers within the UK. Businesses looking to apply for innovation grants can regularly check Government funding providers such as Innovate UK in order to see if grants are available that align with specific research and development goals for their projects. The European Commission Horizon Programme provides a large number of research and development funding grants across key innovation sectors for collaboratively funded projects across Europe. There are also innovation grants available on a local level, typically issued by local authorities or in collaboration with universities and backed by the UK Shared Prosperity Fund.
What Are Some Of The Latest UK Business Innovation Funding Opportunities Available?
i) Sovereign AI – Proof of Concept
Innovate UK is running a competition that aims to support the development of Proof of Concept demonstrators of AI technologies with state of the art performance for UK businesses. Project areas include fundamental AI research, AI for biosciences and health, AI for defence and national security and AI aided design. Funding up to £84,000 is available.
Application Deadline: 10th September 2025
ii) Advanced Innovation Vouchers
Interface Knowledge Connection and the Scottish Funding Council is running a scheme aimed at fostering enduring research partnerships between SMEs and sole traders and education establishments in Scotland such as Universities or Further Education Colleges. Projects should be innovative and lead to new products, services and processes. Funding up to £20,000 is available.
Application Deadline: 30th September 2025
iii) Build Your Capacity for Innovation to Grow and Scale
Innovate UK is providing funding for businesses that are looking to grow and scale through innovation with funding to access Catapults and Research and Technology Organisations to explore and test new product ideas, seek technical expertise and specialist sector knowledge and gain advice on regulatory and government processes as well as access networks of customers, services and funders. Funding up to £15,000 is available.
Application Deadline: Applications are invited on an ongoing basis
iv) Knowledge Transfer and Innovation Fund
The Scottish Government is running a scheme that aims to support projects that will promote skills development, knowledge transfer and research activities in the primary agricultural sector and projects that will deliver innovative on-the-ground improvements in agricultural competitiveness, resource efficiency, environmental performance and sustainability. Funding up to £200,000 is available.
Application Deadline: 7th September 2025
v) DRIVE35 Innovation Fund: Demonstrate
The Department for Business and Trade is running a funding competition that aims to support businesses with late stage demonstration research and development projects that will support the UK’s transition to zero emission vehicles and a pathway to a net zero automotive industry. Funding up to £1.5m is available.
Application Deadline: 1st October 2025
vi) Station Innovation Zone – Innovation Funding Programme – Year Four
The Connected Places Catapult is running a competition that aims to support SMEs to develop and trial new ways of improving various aspects of the British Rail passenger experience, with Bristol Temple Meads Station as the testbed site. The programme challenges include station weather resilience and improving the interchange experience. Funding up to £45,000 is available.
Application Deadline: 24th September 2025
vii) Rewilding Innovation Fund (August 2025)
Rewilding Britain is providing funding for private landowners and managers that are members of the Rewilding Network (RN) to apply to support projects that take an innovative approach to land and marine rewilding, which will help develop learning and evidence for others within the RN. Funding up to £15,000 is available.
Application Deadline: 29th August 2025
viii) Research and Development Grant
Erewash Borough Council is running a scheme backed by the UK Shared Prosperity Fund that is providing funding to businesses in the local area to enable the research and development of a particular product, process, or technology that would be considered ‘new to the firm’. Funding up to £20,000 is available.
Application Deadline: 31st January 2026
How To Apply For Business Innovation Schemes
Full details about how to apply for schemes and the eligibility criteria is available on each individual scheme page on the relevant website. Any deadlines, who can apply and what eligible costs the grants will cover will also be outlined on these pages. Interested businesses can speak to innovation advisors based at each provider who can guide them through requirements and eligibility criteria to see if the relevant funding is a match with their needs and help them to apply. There are also application forms and other supporting guidance available on scheme pages as well.
Want To Find The Latest UK Business Innovation Funding Opportunities?
If you want to see the full set of UK research and innovation funding currently available, please visit https://getbusinessgrants.com/