R & D Grants

31/10/08, Birmingham Mail

One of the first casualties in a Credit Crunch is often investment in innovation and R&D, yet such investment is often a key factor to being able to compete in the current economic climate. The question confronting businesses today is ‘how can I afford to innovate when revenue levels are under severe pressure?’

For West Midland businesses there is a range of resources available, and many useful initiatives are now operating in the region ranging from the Proof of Concept Grant, Grants for Research and Development (R&D) and a plethora of regional venture capital funds.

For example, the grant for R&D from Advantage West Midlands is aimed at supporting businesses in carrying out R&D activity that they might not otherwise undertake and attracting other private finance. There is a graduated system in place, providing grants from small (£20,000) short-term research projects through to exceptional development projects of national importance that can receive up to £500,000. Another option is the Selective Finance for Investment (SFIE), a form of financial assistance available to UK businesses for investment in capital expenditure. Awards can range from £10,000 to just shy of £2 million. The latest funding available from AWM is the Proof of Concept Grant offering a 75% grant of up to £30,000 operated by University of Warwick Science Park.

However, the key to unlocking the widest range of funding for the SME lies in providing strong evidence of future commercial success. Businesses often make the mistake of thinking that because they happen to be in need of external funding, they are by default investment ready.

The truth is that to become investment ready requires aligning the interests of the business as closely as possible with the interests of potential investors. This also requires being extremely realistic about the type and stage of funding that you plan to obtain. A clear-eyed assessment of whether working capital, product development or research funding is needed can save much time and heartache.

One of the best moves an ambitious company can make is to contact the advice and support network available in the region. Here you will gain access to networking opportunities with relevant companies and investors that will help drive ideas forward – this is often by far the best investment an entrepreneur can make.

For further information on business support for ICT contact: Business Link on 0845 113 1234.   For information on how the ICT Cluster can help technology companies grow please visit www.wmictcluster.org or email This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

Mike Musson, ICT Cluster Manager