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Introduction
The University of Cambridge has released its key UK Innovation Report 2026 that reveals innovation trends over a number of years and benchmarks the UK’s performance on innovation activity against other global economies.
The report has uncovered that the UK was ranked 6th for Research and Development (R&D) investment in 2023, with a spend of $98.5bn PPP (purchasing parity power) on innovation activity. 1) The United States ($823.4bn), 2) China ($780.7bn), 3) Japan ($193.9bn), 4) Germany ($160.2bn) and 5) South Korea ($134.1bn) took the top 5 slots.
The report also reveals that UK business R&D funding totalled £55.6bn in 2024 across all sectors.
The total amount of R&D funding for Manufacturing was £27.3bn and the top sectors were:
i) Pharmaceuticals – £9.3bn
ii) Motor Vehicles – £5.3bn
iii) Rest of Manufacturing – £2.5bn
iv) Aerospace – £2.3bn
v) Machinery and Equipment – £1.8bn
The total amount of R&D funding for Services was £25.5bn and the top sectors were:
i) Software Development – £10.3bn
ii) Miscellaneous Business Activities – £6bn
iii) Research and Development Services – £3.6bn
iv) Computer Programming – £3bn
v) Rest of Services – £2.7bn
There was £2.8bn in R&D investment across other non manufacturing or services sectors with the most coming from Construction at £1.7bn.
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.
What Are Some Of The Latest UK Innovation Funding Opportunities Available?
i) Zero Emissions Vessels and Infrastructure 2: Energy Efficiency
The Department of Transport and Innovate UK is running a competition that aims to fund projects to develop, deploy and operate innovative clean maritime solutions for three years in a real world environment. The Energy Efficiency strand will fund the development and build of innovative vessel energy efficiency technology and any accompanying innovative infrastructure upgrades. Funding up to £42m is available.
Application Deadline: 16th September 2026
ii) Clean Maritime Demonstration Competition 7: Deployment Trials
The Department for Transport and Innovate UK is running a competition providing funding for projects to carry out deployment trials for innovative clean maritime technologies. The aim of the scheme is to transform the UK into a global leader in the design and manufacturing of clean maritime technology and accelerate the fuels and technologies required to decarbonise the sector to meet net zero. Funding up to £10.5m is available.
Application Deadline: 15th July 2026
iii) Solution Development for Advanced Connectivity Technologies
Innovate UK is running a competition that aims to accelerate the development, demonstration, and commercialisation of next generation communications technologies that strengthen the UK’s security, resilience, sustainability, and long term competitiveness. Funding up to £5m is available.
Application Deadline: 13th May 2026
iv) Northern Valleys Initiative
Cardiff Capital Region is running a fund that aims to support businesses and projects that have the ability to increase prosperity in the region. The programme is focused on the infrastructure, digital connectivity and tourism sectors and will be aimed at boosting research and development activities. Funding up to £2m is available.
Application Deadline: Applications are invited on an ongoing basis
v) Future Offshore Wind Technologies
Innovate UK is running a competition that aims to support mid-stage innovation projects within offshore wind, aligned with the Offshore Wind Industrial Growth Plan. Funding up to £1.05m is available.
Application Deadline: 3rd June 2026
vi) Investor Partnerships Future Economy Fund
The Universities of Bath, Bristol and Cardiff are running a scheme for businesses that are innovating to drive towards net zero, improve health & wellbeing or develop the next generation of digital technologies to apply for grant funding alongside angel co-investment to support their R&D projects. Funding up to £900,000 is available.
Application Deadline: Applications are invited on an ongoing basis
vii) Rapid Transfusion Diagnostics: Optimising Safety on Deployed Operations
UK Defence Innovation is running a competition that is seeking proposals that develop technology to reduce the logistical burden associated with collecting, testing and administering blood in a deployed setting. Funding up to £700,000 is available.
Application Deadline: 2nd June 2026
viii) Open Call for Proposals: Proof-of-Concept Studies and Pilot Projects
The European Space Agency is running a call that will fund proof-of-concept and pilot studies relating to a space-enabled application or service for any industry, market or topic. Funding up to €600,000 is available.
Application Deadline: Applications are invited on an ongoing basis
How To Apply For Innovation 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.