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Introduction
According to the 2025 UK Innovation Report from EmpowerRD, the average annual R&D spend of UK scale-up businesses now stands at £1.46 million, or 12% of their overall expenditure. A scale-up business is classed as a start-up business that is now registering regular growth of at least 20% per year and are typically found in high tech sectors.
According to surveyed companies, AI is the top area of innovation that businesses believe will have the most positive impact on research and development growth activity with 91% of respondents citing it as a priority.
In terms of key barriers to growth in innovation, 52% of businesses cited regulatory complexity as the main hurdle to their R&D plans and a further 37% have highlighted that administrative burden creates difficulties, in particular dealing with HMRC and tax issues revolving around R&D activity.
Businesses can boost their innovation activities by applying for grants and other types of funding from a number of providers within the UK and across Europe. Businesses can regularly check Government funding providers such as Innovate UK and the UK Catapult Network in order to see if grants are available that align with specific research and development goals for their projects. The European Commission Horizon Programme and the European Space Agency provide a 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 universities.
Here Are Some Of The Latest Business Innovation Funding Opportunities
i) Industry Impact Fund
The Construction Industry Training Board is running a scheme for construction employers to apply for funding to develop solutions that will address key challenges faced by the UK workforce. Solutions should enhance productivity, equality, diversity, and inclusion. Activity must focus on a skills and training solution that doesn’t already exist. Funding up to £500,000 is available.
Application Deadline: Applications are invited on an ongoing basis
ii) DRIVE35 Scale-up Fund
Innovate UK and the Department for Business and Trade and the Advanced Propulsion Centre UK is running a fund that aims to support the creation of scale up manufacturing facilities for zero emission vehicle technologies. The key goal is to support projects for growth, transition, and resilience of the UK’s automotive supply chain, increasing capability whilst improving productivity, efficiency, and competitiveness. Funding up to £20 million is available.
Application Deadline: Applications are invited on an ongoing basis
iii) Space4Rail ESA Open Call – Demonstration Projects
The European Space Agency is running a scheme that aims to support the exploitation of space-based assets in innovative and sustainable applications and services related to future control, command and signalling applications of the European Rail system. Funding up to £500,000 is available.
Application Deadline: 31st December 2025
iv) HS2 Accelerator 8.0
High Speed 2 Limited and the Connected Places Catapult is running a scheme seeking innovative small businesses to develop new technology business cases and funded pilot projects for the HS2 rail scheme. For this round, the focus is on solutions for Data and AI themed challenges. Funding up to £50,000 is available.
Application Deadline: 31st October 2025
v) Farming Innovation Programme – Small R&D Partnership Projects – Round 4
Innovate UK and the Department for Environment, Food and Rural Affairs is running a competition that aims to support the development of solutions with the potential to improve overall productivity, sustainability, resilience and move existing agricultural sectors to net zero. Funding up to £2.1 million is available.
Application Deadline: 5th November 2025
vi) National Centre for Accessible Transport Scaling Innovation Programme
The Connected Places Catapult is running a programme that aims to support organisations, individuals, and entrepreneurs to test and develop solutions to remove barriers to transport for disabled people in line with set challenges identified by robust evidence. The 2025/26 round comprises three challenges: Vehicle Stop Design, Travel Assistance Services and Access to Information. Funding up to £150,000 is available.
Application Deadline: 7th November 2025
vii) Invest to Grow – Grants
The University of Derby is running a programme that provides funding towards the cost of investments to create long term sustainable job and business growth in the East Midlands. Eligible projects will focus on innovation in products, processes and systems that will result in business and supply chain efficiency, growth and profitability. Sectors that can apply include advanced manufacturing, green energy/low carbon, life sciences, biomedical and health, construction, logistics and supply chain and creative and digital industries. Funding up to £250,000 is available
Application Deadline: Applications are invited on an ongoing basis
viii) SMART: SCOTLAND – New Round
Scottish Enterprise is running a scheme providing funding for SMEs to help them undertake technical feasibility studies that support high risk, highly ambitious projects. Eligible projects include scaling future high-growth industries in Scotland including space, energy transition, industrial biotech, life sciences, fintech and quantum, photonics and semiconductors. Funding up to £100,000 is available.
Application Deadline: Applications are invited on an ongoing basis
How To Apply For Business 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.
Want To Find The Latest UK Business Innovation Funding Opportunities?
If you want to see the full set of UK business innovation funding currently available, please visit https://getbusinessgrants.com/