A new Grant for Research and Development (GRD) scheme is being
introduced to offer funding to small companies, enabling them to
research and develop new products, processes and services.
Managed by the Technology Strategy Board, the scheme, which
comes into effect from 4th April 2011, will support small and
medium-sized companies (SMEs) across the UK.
The new initiative supersedes the former GRD programme which was
managed by England's Regional Development Agencies and will have
similar objectives. Under the scheme, the maximum funding available
will be £25,000 for proof-of-market grants, £100,000
for proof-of-concept grants and £250,000 for development of
prototype grants.
In the East Midlands, since 2005, the previous GRD programme was
managed by East Midlands Development Agency (emda) and part-funded
by the European Regional Development Fund (ERDF). From that time,
the Agency awarded grants to 203 regional businesses, totalling
just over £18.5 million. The awards were made to companies in
a range of sectors, including bioscience, construction, transport
equipment and food & drink.
An independent report into the GRD programme run by emda also
found that it was one of the most effective in the UK, with a
return on investment of almost £10 for every £1
spent.
Speaking about the impact that GRD has had on businesses in the
East Midlands, John O'Reilly, emda's Business Support Director,
said: "The Grant for Research and Development has proven to be
extremely successful in helping businesses in the East Midlands
develop new products and processes to give them a competitive edge
in the global marketplace. Independent research has shown that
businesses in our region are the best in the country at
transforming their ideas into successful and profitable
innovations."
The Technology Strategy Board's Chief Executive, Iain Gray,
said: "Innovative small companies are vital to the UK's economic
future. Nearly two-thirds of all commercial innovations originate
in small companies and we need to nurture and encourage this vital
source of exciting new innovations.
"Small companies may under-invest in innovation because of the
high degree of risk and uncertainty around both the development and
commercial exploitation of new ideas. Offering partial funding
through this initiative should help many innovative small
businesses to overcome this barrier and to invest in innovation,
helping to generate future business success."