Grant for Investigating an Innovative Idea

Frequently Asked Questions

1. Q: What’s the aim of the new Investigating an Innovative Idea product?

A:  The prime aim of the product is to help improve the productivity of businesses through the use of innovation. It is intended to help SMEs improve their capability to innovate through specialist advice to plan a specific project idea.

This product relies on the use of a diagnostic tool, the assistance of a mentor with suitable knowledge and experience to oversee the project, and expert consultant help on a range of issues including technology, marketing and organisational factors that can be necessary for successful innovation.

The output is a detailed action plan to help the business successfully implement their innovative project idea.

2. Q: When and why would the Investigating an Innovative Idea product be used?

A:  The product is targeted at SMEs that have a specific innovative project idea (for a product, process or service) within their business but lack the internal capability to initiate and manage the innovation process required to implement their idea successfully. The product should ensure that initial plans are well considered and that suitable skills and expertise are used to maximise the opportunity for a successful outcome.

3. Q: Who can apply for the Investigating an Innovative Idea product?

A: SMEs operating in England, or individuals seeking to start a business in England, are eligible to apply for an Investigating an Innovative Idea grant.

We use the European Commission’s SME definition as the basic eligibility criteria.  This definition includes worldwide ‘group’ associations, so if a business is part of a group, the group will also need to qualify as an SME for the applicant business to be eligible.

4. Q: What sort of projects will be considered for support?

A: Projects must:

• address the significant weaknesses identified by the diagnostic tool analysis
• focus on an applicant’s innovative idea and have the potential to deliver a technologically new or improved product, process or service
• be subject to uncertainty such that enhanced technical and organisational capability will be needed to ensure project success
• be of significant importance to the future commercial success of the business

5. Q: Does the project or idea have to be proven to be viable before getting this grant?

 A: The viability of the innovative project idea may not necessarily be known at the application stage - this, in part, is what the Investigating an Innovative Idea project could prove (or disprove!).

6. Q: What is the diagnostic tool?

A: A diagnostic analysis is undertaken with the applicant by their chosen mentor and is intended to highlight any areas of weakness in the applicant’s ability to implement their innovative idea which would then be addressed in the proposed Investigating an Innovative Idea project. The intent is to create an action plan to help the applicant successfully implement its innovative project idea.

The diagnostic tool used in the analysis has been developed especially for this product and is possibly unique in that it focuses on the ability of a business to implement a project rather than looking at business attitudes or operations. Many business advisors helped us develop this tool.

7. Q: Can we use existing diagnostics for this?

A:  No. The diagnostic tool to be used with the Investigating an Innovative Idea grant must be the one developed specifically for this product.

8. Q: Can the tool be used as self-diagnostic?

A:  No. The diagnostic tool has been designed to be facilitated by BL business advisors and independent consultants acting as mentors in Investigating an Innovative Idea projects. The diagnostic is the first step for the applicant in building a relationship with their chosen mentor and seeks to provide an objective view of the applicant’s capability to implement their innovative project idea.

9. Q: Is the diagnostic free of charge?

A:  We expect that this work will be undertaken mostly free of charge. Mentors will perhaps see this as a ‘loss leader’ with the likelihood of funded work during the project (should an application be approved). However, we cannot enforce this and it may be that some mentors will charge a potential applicant for taking them through the diagnostic analysis, whether or not a successful application results from this.  

10. Q: Who typically would be the mentor?

A:  The mentor can be a BL advisor or an independent business consultant with wide experience and/or knowledge of SMEs.

11. Q: What is the role of the mentor?

A:  Mentors are required to take the applicant through the diagnostic analysis and can assist in the preparation of an application, help identify appropriate experts to work on projects, oversee the project and signpost businesses to relevant support after its completion.

12. Q: How can mentors access the diagnostic tool?

A:  The diagnostic tool is available on the ‘Innovation’ community on the SBS Extranet. Business Link Advisers will already have access to this, but independent consultants seeking to act as a mentor will need to formally apply to become members of the Innovation Community to access the tool. They can do this by sending an e-mail with an appropriate CV detailing expertise/experience to sreynolds@cnr.co.uk. A username and password will then be issued allowing access to the Innovation Community and the diagnostic tool.

13. Q: Do the mentor or expert consultants have to be accredited

A:  Mentors and expert consultants do not currently have to be accredited - but mentors are required to submit their credentials when requesting access to the tool.

14. Q: What credentials do you expect the expert consultants to have?

A:  We have to be satisfied that consultants have the relevant expertise to carry out the work in the proposed project. This is done at the application stage through the submission of an appropriate CV.

15. Q: Are consultants for scheme sourced from the Small Business Service National Consultants Database?

A:  The choice of consultant is to be made by the applicant as, importantly, it should be someone they feel they would be happy to work with. The applicant may source the consultant themselves or with the help of their local BL (presumably through the National Consultants Database).
The decision to make it compulsory to choose a consultant from the national database may be considered later. We would need to be certain that the database contains sufficient consultants with the right experience/expertise before doing so.

16. Q: What is the ‘action plan’ output from an Investigating an Innovative Idea project?

A:  An action plan is the output from an Investigating an Innovative Idea project. It is a report to be produced by the applicant and mentor/expert consultants detailing the areas investigated in the project with suggested actions for the company to implement. These would address the weaknesses/barriers identified in the diagnostic analysis and would help the applicant implement their innovative project idea successfully.

17. Q: What about money for implementation of the action plan?

A:  It is anticipated that successful applicants would be sufficiently convinced by the work in the project that they will be ‘bought in’ to its implementation and fund this themselves. In any case, some projects will lead directly to other products and their implementation will be the development of a comprehensive and well-argued application for funding from another source.

18. Q:   Who makes the decisions on applications?

A:    The Investigating an Innovative Idea Secretariat based in Investment Directorate in the Small Business Service will appraise all applications.  We aim to inform applicants of decisions within 10 working days of receiving a fully documented application. The Secretariat can also be contacted for specific advice regarding the Investigating an Innovative Idea product (tel: 020 7215 8671).

19. Q:   What comprises a fully documented application?

A:    Applicants must complete an application form and submit it together with the results of the diagnostic analysis, a latest set of financial accounts for the business, a signed Agreement with their chosen mentor detailing the work to be undertaken in the project, and copies of CVs for all expert consultants working on the project.

20. Q: What are the criteria for a successful application?

A: The main criteria are:

• Applicants must be SMEs operating, and individuals who intend to start operating, in England who meet EC SME eligibility criteria, i.e. have fewer than 250 employees and have either an annual turnover not exceeding 40m euro or an annual balance sheet total not exceeding 27m euro.
• The project must be for a specific innovative idea, have realistic aims, and must address all significant findings from the diagnostic
• The company must be viable and look as if it will stay viable for the duration of the project
• The applicant must show additionality, i.e. the grant must be essential for the project to proceed (but we can take into account that they will want funds to implement the action plans resulting from projects).
• Mentor/expert consultants costs must be realistic (and competitive) for the work
• The project must be carried out in a reasonable timescale. We would expect most to be completed in 3-6 months.
• We will expect the applicant to work at least twice as many days as the mentor and expert consultants on the project.
• Mentors and expert consultants must possess the relevant expertise (eg successful mentoring role in other projects or in previous Innovation Capability grant work, or satisfy SBS they have the skills)
• The grant will fall under de-minimis requirements. The applicant must receive no more than 100,000 euros (£65k) de-minimis aid in any 3-year period.

21. Q: What are the grant terms and conditions?

A: The grant product operates on a reimbursement basis and successful applicants are therefore required to pay the mentor all other consultancy costs on satisfactory completion of the project before seeking payment of grant from the SBS.

The grant we will pay will be 75% of all mentor and consultancy costs (up to a maximum of £12,000) on receipt of a fully documented claim. The claim documents required are:

• the action plan;
• a receipted invoice from the mentor confirming he has been paid by the /applicant for his work on the project;
• both the applicant’s and consultant’s confirmation of the number of days they have worked on the project; and
• a completed feedback questionnaire (this is Schedule 2 attached to the grant offer letter).

22. Q: How often can a business apply?

A: Some businesses may wish to reapply after having undertaken a previous Investigating an Innovative Idea project. These businesses will need to explain what the results are from their earlier project and why they need support again. Part of the rationale behind the grant is to improve a business’ capability to innovate. Businesses that have worked on a previous project should be more innovation capable and would, perhaps, have learnt how to undertake this type of project themselves. We would especially seek reasons from an applicant if an area of work from an earlier project is repeated in a later application.

23. Q: Will there be monitoring of mentor and expert consultant performance?

A: We will undertake monitoring visits to a number of successful applicants during projects where the performance of the mentor/consultants will be discussed. In addition, feedback will be sought from all successful applicants about their Investigating an Innovative Idea projects, including the performance of the mentor/consultants.

24. Q: How is it planned to obtain the feedback?

A: We will seek feedback from successful applicants as part of the documentation to be submitted with their claim for grant on completion of the Investigating an Innovative Idea project.

25. Q: What proof will be required that SMEs have worked two days for every one day’s consultancy in projects?

A: We will require a statement of time spent on the project from both the applicant and the mentor/expert consultants to be provided at the claim stage after completion of the project. Also, we will undertake monitoring visits to a number of projects where evidence of time spent on the project will be sought.

26. Q: Is this product a mandatory precursor to Grant for R&D (Smart)?

A:  The product is not a mandatory precursor to Grant for R&D (Smart), but applicants may identify an Investigating an Innovative Idea project as a useful first step prior to a main Grant for R&D application, particularly if there are weaknesses/barriers that may result in the larger Grant for R&D project not being implemented successfully.