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Introduction
According to the UK Innovation Survey 2025 from the Department for Business and Trade released in June 2026, 34% of UK businesses were innovation active in the report time period of 2022-2024, which is a slight decrease down from 36% in 2020-2022.
Between 2022-2024 businesses chose to invest in the following innovation areas
- Computer Software – 17%
- Computer Hardware – 16%
- Internal R&D – 13%
- Machinery and Equipment – 12%
- Training For Innovative Activities – 11%
- Design Activity – 9%
- Launch Advertising – 4%
- Changes To Marketing Methods – 4%
- Acquisition Of External R&D – 4%
- Changes To Product Or Service Design – 4%
- Acquisition Of Existing Knowledge – 3%
- Market Research – 3%
In terms of financial support, 3% of businesses received support for innovation activities from the UK Government between 2022 and 2024, this was down from 4% between 2020 and 2022.
The sectors that saw the greatest innovation increases between the 2020-2022 period and 2022-2024 were as follows
i) Transportation (land, sea and air): +10%
ii) Warehousing and storage: +10%
iii) Technical Testing and Analysis: +8%
The sectors that saw the biggest innovation decline between the same 2 periods above were as follows
i) Other professional, scientific and technical activities: -13%
ii) Post and courier activities: -9%
iii) Manufacture of computer, electrical and optical equipments: -9%
Businesses can regularly check Government funding providers such as Innovate UK and other funding providers that fall under the UK Research and Innovation network to see if grants are available that align with specific research and development goals for their projects. There are also innovation grants available on a local level, typically issued by local authorities, business enterprise support agencies and universities. For international grants, businesses can explore funding available from the European Commission as part of the Horizon Programme.
What Are Some Of The Latest UK Innovation For Business Grants Funding Opportunities Available?
i) Innovation Worcestershire Grant
Worcestershire County Council is providing funding towards the cost of activities directly related to the development and/or introduction to market of innovative products, technologies or services. Funding up to £15,000 is available.
Application Deadline: Applications are invited on an ongoing basis
ii) DRIVE35: Scale Up Fund
The Department for Business and Trade is running a fund that aims to support manufacturing facility and process development at pilot scale or demonstration scale of strategically important technologies for on board vehicle applications in particular for electric machines and electrical energy storage. Funding up to £20 Million is available.
Application Deadline: Applications are invited on an ongoing basis
iii) RWIF Innovation Vouchers
Aberystwyth University has a scheme that supports Wales-based SMEs, farms, supply chain businesses and community organisations to explore innovative ideas, test new approaches, and address real-world challenges in the workplace. Funding up to £2,112 is available.
Application Deadline: 31st August 2026
iv) Farming Innovation Programme – Feasibility Projects – Round 5
Innovate UK and the Department for Environment, Food and Rural Affairs is running a competition that aims to fund feasibility studies investigating new solutions that will address major on-farm or immediate post farmgate challenges or opportunities. Funding up to £350,000 is available.
Application Deadline: 9th September 2026
v) Herefordshire Defence and Security Research and Development Grant
Herefordshire Council has a scheme that aims to support businesses to develop and grow their ideas, keeping Herefordshire at the forefront of research, policy and practice in areas of defence and security. Funding up to £49,999 is available.
Application Deadline: Applications are invited on an ongoing basis
vi) R&D Partnership Fund – New Round
LYVA Labs are providing grants to advanced manufacturing businesses to foster new research and development partnerships and support the development of innovative new product or service ideas towards commercialisation. Funding up to £15,000 is available.
Application Deadline: Applications are invited on an ongoing basis
vii) North East Offshore Wind Innovation and Demonstration – NEOWIND
Catapult Offshore Renewable Energy has a scheme that aims to support businesses undertaking research and development activities to develop new technologies for the offshore wind sector, in alignment with the thematic priorities established by the NEOWIND Programme Partners. Funding up to £300,000 is available.
Application Deadline: 3rd September 2026
viii) UK-Switzerland CR&D Round 3
Innovate UK is running a competition that aims to enhance UK and Swiss collaborations and capabilities in the emerging technology fields, resulting in the development and delivery of new innovations and applications across a broad range of sectors. Proposals must address innovation in the fields of Semiconductors, Life Sciences or Engineering Biology. Funding up to £450,000 is available.
Application Deadline: 3rd September 2026
How To Apply For UK Innovation For Business Funding 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 individuals and 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.