Business grants
Innovation grants: how R&D funding works for UK businesses
Innovation grants help businesses fund research, new products and new technology. In the UK, most are awarded through competitions, usually cover only part of a project’s costs, and are often paid after you’ve spent the money. Here’s how that works and where to look.
Wize Finance can help you explore innovation grant opportunities and talk through other business finance your project may need. Grants are awarded and assessed by the bodies that run them, and you can also search the official competitions yourself.
Tell us about your innovation project and the team can help you explore grant opportunities, and whether other finance may fit alongside them.
Who runs innovation funding in the UK
Innovate UK, part of UK Research and Innovation (UKRI), is the UK’s innovation agency. It runs competitions on specific themes, sectors and technologies. Opportunities are published on UKRI’s funding finder, and applications are made through the Innovation Funding Service.
Devolved and local bodies may also run innovation support in Scotland, Wales, Northern Ireland and parts of England. Check the official sources in Business Grants.
Scheme names change. Individual programmes open, close and get replaced. For example, Innovate UK’s Smart grants are now closed to new applications while its funding is aligned to a new strategic direction. Always check the live opportunity on UKRI before planning around a particular scheme.
How a grant-funded innovation project is paid for
Innovation grants often reimburse costs after you’ve spent them, so your business needs to fund the project as it goes.
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Apply to a competition.
Your project is assessed against the competition’s scope and criteria.
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Award agreed.
The grant covers a share of eligible costs. The share depends on your business size and the type of project.
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Your business pays the costs.
You fund the project as it runs, including your own share.
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Claim the grant.
You claim the grant for costs already incurred, typically in arrears.
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Grant paid.
The grant arrives after each claim is checked, while your own share stays with the business.
What innovation funders usually look for
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A genuine innovation: something new, with a clear route to market or impact
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A UK-registered business, often with SMEs leading or taking part (rules vary by competition)
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A credible plan: project scope, costs, milestones and the team
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Your contribution: evidence you can fund your share and carry costs until claims are paid
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Fit with the competition’s theme, sector or technology focus
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Reporting: progress and spending reports during the project
Is an innovation grant right for this project?
Innovation grants, R&D tax relief and other funding
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R&D tax relief is a separate system run by HMRC, not a grant. Ask your accountant about it. Wize Finance doesn’t give tax advice. See HMRC’s guidance: Check if you can claim Research and Development (R&D) tax relief ↗
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Equity investment is another way innovative businesses raise money: Equity Finance
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EU programmes: some EU research and innovation programmes may be open to UK businesses. Check eligibility on the official programme pages.
Innovation grants FAQs
What’s the difference between Innovate UK and UKRI?
Innovate UK is part of UK Research and Innovation (UKRI). UKRI publishes funding opportunities across its councils, including Innovate UK’s business innovation competitions.
Do innovation grants cover all of a project’s costs?
Usually not. Most cover a share of eligible costs, and your business funds the rest. The share depends on the competition, your business size and the type of project.
When is the grant paid?
Often after you’ve spent the money, through claims during the project. Check each competition’s terms.
Can a small business apply on its own?
In some competitions, yes. Others require or encourage partnerships. Each competition sets its own rules.
Is an innovation grant the same as R&D tax relief?
No. Grants come from funders such as Innovate UK. R&D tax relief is claimed through HMRC. Ask your accountant about tax.
Can Wize Finance help me win an innovation grant?
Wize Finance doesn’t award or assess grants, write applications or guarantee eligibility: the funding body decides, and applications go through the official routes. Wize Finance can help you explore innovation grant opportunities and discuss other business finance your project may need.
Find innovation funding
Tell us about your innovation project, and Wize Finance can help you explore grant opportunities and discuss other business finance it may need. Applications themselves go through the official routes.
For the wider picture, see Business Grants.
Last checked 26 October 2026.