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Just before yesterday’s Spending Review, an ambitious £86bn in funding was announced for Research and Innovation projects. We were expecting this announcement back in the Spring Statement as part of the Modern Industrial Strategy. Of course the devil is in the details but overall it looks encouraging if your business fits a specific funding profile. This money will be spread over 5 years with 20/29/2030 providing the final chunk of £22.5bn. It’s not yet totally clear where and how this will be delivered but some examples were provided.
No real surprises with the sectors mentioned with technology, life sciences, advanced manufacturing and defence being detailed. Examples of projects spanning AI, batteries and drug treatments cover the usual areas and it will be interesting to see what types of business will be eligible and of course what the criteria are. These are fairly broad sectors and a high number of companies.
It would be interesting to get a feel for the total pool of companies that could be included – an exercise we might look at when more detail becomes available. Specific previous projects were mentioned, such as new technology developed by the Greater Manchester advanced medical diagnostic accelerator and Moonbility from the West Midlands using AI software to help on replanning journeys. These examples might give us an indication of the likely type of projects that will get funding.
In terms of geographical distribution, £500m was earmarked for the regions which seems like a small percentage of the total funding but will still be welcomed and aimed at creating innovation clusters. Regions mentioned included Liverpool, Northern Ireland, West Midlands, South Wales South and west Yorkshire, London the North East and Northern Ireland – pretty much every urban centre then!. The fund will also include a competition, which will be open to all other parts of the UK for good measure
Existing mechanisms such as UKRI, local authorities and the Innovation Accelerator pilot will be involved in fund distribution, but specific mention of local leaders having the power to direct money to the right areas seems a bit vague. However, these organisations and individuals only have so much knowledge of the businesses that could be eligible. Education and awareness is key to success. Ensuring that the right businesses are backed is crucial in ensuring that R&D money provides the sevenfold multiplier effect on the economy that is so often mentioned. Therefore grant awareness amongst the local business community and encouragement, support and guidance will be crucial in ensuring a fair and even playing field.