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Introduction
According to the 2025 Innovation Barometer by Ayming, a London based innovation funding consultancy specialist, UK businesses surveyed are requesting that the Government provides further targeted support to drive innovation and growth as a lack of funding is holding back research and development (R&D) activities.
Currently, only 39% of UK businesses surveyed were able to take advantage of innovation grants and a further 37% of firms stated they were unable to access UK Government grants due to strict eligibility requirements. A total of 56% of businesses reported they were reliant on self funding to carry out their research and development activities.
Smaller businesses have been affected the most by being unable to access UK Government grants and a lack of overall available finance was cited as the main barrier to pushing research and development activities at SMEs. Only 14% of UK SMEs reported that innovation was a top priority at their organisation in 2025, down from 31% in the previous year’s barometer.
Despite the perceived gap in funding for SMEs, businesses should regularly check key Government funding providers such as Innovate UK in order to see if grants become available that align with specific research and development goals for a project or sector. Funding advisors at enterprise support organisations can also help match businesses with potential funding if they are not familiar with what innovation funding is available at Government level.
Here Is A Selection Of The Latest Innovation Funding Schemes
i) Developing Semiconductor Hardware For Critical Technologies
Innovate UK is running a competition that aims to encourage exploration of feasibility for innovative ideas with the potential to advance semiconductor hardware that can contribute to the global competitiveness of the UK in the critical technologies. Funding up to £300,000 is available.
Application Deadline: 29th May 2025
ii) Project Definition
Invest Northern Ireland is running a Project Definition scheme for businesses who are new to research and development to scope out a collaborative R&D project or assist them in applying for external R&D funding, such as Innovate UK. Funding up to £100,000 is available to make and test prototypes or handle intellectual property costs.
Application Deadline: Applications are invited on an ongoing basis
iii) Research and Development Grant
Carmarthenshire County Council is running a scheme to strengthen R&D and innovation in the local entrepreneurial ecosystems and support businesses at early stages of development of innovative products, processes and/or services. Funding up to £50,000 is available.
Application Deadline: 30th September 2025
iv) Research and Development (R&D) Grants
Scottish Enterprise is running a scheme for businesses looking to develop a new product, process or service or significantly improve an existing one can apply for funding to help with project costs and financing research. Funding is available for a minimum of £150,000 in grant funding at 50% project costs.
Application Deadline: Applications are invited on an ongoing basis
v) Subsidised Contract Research Programme
The University of Hertfordshire is running a scheme that provides a 50% subsidy for contract research for companies looking to enhance research capabilities and achieve a step change by developing new products, services, or technologies, or by advancing current innovations through access to research expertise and specialist labs. Funding up to £5,000 is available.
Application Deadline: Applications are invited on an ongoing basis
vi) Success Through Research Innovation and Development Excellence – Innovation Vouchers
The University of Plymouth has a programme offering tailored support to businesses looking to commercialise new opportunities. The programme includes innovation vouchers, which can be used for crucial interventions such as purchasing specialist equipment, organising surveys, hosting focus groups, or securing legal documents. Funding up to £4,500 is available.
Application Deadline: Applications are invited on an ongoing basis
vii) SME Development Grant
Invest Fife has a scheme providing financial support to Fife-based businesses to help them develop and grow. The funding can cover areas including trade development, workforce upskilling, transition to net zero, R&D activities and innovation support. Full details of funding available on application.
Application Deadline: 31st January 2026
viii) International Collaboration on AI Factories and HPC-AI
The European Commission is running a funded project aimed at strengthening the current and future capacities of the EU HPC-AI ecosystem, and in particular of AI factories, by supporting the active EU participation in the international initiatives for scientific and engineering massive GenAI HPC-based solutions. Funding up to £1.5 million is available.
Application Deadline: 4th June 2025
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 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 More UK Innovation Funding Opportunities?
If you want to see the full set of UK innovation funding currently available, please visit https://getbusinessgrants.com/