A new Technology Strategy Board scheme opens today offering funding to small and medium-sized enterprises (SMEs) to engage in R&D projects which could create new products, processes and services.

From 4th April 2011, the Technology Strategy Board (TSB) is taking over the R&D grant schemes previously managed by the Regional Development Agencies (RDAs).

Three types of grant are available:

• Proof of market
• Proof of concept
• Development of prototype

Any UK SME working in any sector may apply; applications are accepted on a rolling basis for assessment by independent experts.

Proof-of-market grant

This grant enables companies to assess the commercial viability of a project, through:

• market research
• market testing and competitor analysis
• intellectual property position
• initial planning to take the project to commercialisation, including assessing costs, timescales and funding requirements

Projects will last up to nine months, have a maximum grant of £25k, and up to 60% of total project costs may be funded.

Proof-of-concept grant

SMEs may use this grant to explore the technical feasibility and commercial potential of a new technology, product or process, including:

• initial feasibility studies
• basic prototyping
• specialist testing and/or demonstration to provide basic proof of technical feasibility
• intellectual property protection
• investigation of production and assembly options.

It also includes pre-clinical research studies for healthcare technologies and medicines, including target identification and validation

Projects will last up to 18 months, have a maximum grant of £100k, and up to 60% of total project costs may be funded.

Development of prototype grant

This funding is used by companies to develop a technologically innovative product, service or industrial process, and can include projects such as:

• small demonstrators
• intellectual property protection
• trials and testing, including clinical
• market testing

Projects will last up to two years and have a maximum grant of £250k; up to 35% of total project costs for medium enterprises, or up to 45% for small and micro enterprises, may be funded.

At a time of big Government cut backs which place tough financial constraints on businesses, this is welcome news for those pioneering new innovations in the market. The overall budget may be restricted so businesses need to move fast to make the most of this opportunity.

Talk to our grant experts to discuss what option is right for you!

Richard Malczyk,  ibd Accredited Adviser