Section Menu

Support for Business R&D

Government has taken a number of steps to provide greater R&D support for business. This page provides details of the support available and information on how to apply

R&D Tax Credits were introduced for small and medium-sized companies in 2000, and for large companies in 2002. The R&D tax credits were designed to act as an incentive to increase the levels of business expenditure on R&D. Information on eligibility for the tax credit, along with guidance on how to claim them is available on the HM Revenue & Customs website. The new guidelines on the meaning of R&D for tax purposes developed by the DTI in conjunction with the HM Revenue & Customs are intended to provide businesses with a simpler and more straightforward definition of R&D for tax purposes. Click here to view Frequently asked questions about the R&D Tax Credits.

The Technology Strategy is part of the Government's Science and Innovation ten-year framework (2004 - 2014) published in July 2004. It identifies new and emerging technologies, critical to future business success, into which government funding and activities can be directed. The Technology Programme is the combination of business support products and information that DTI are offering business in response to the Technology Strategy. The programme will be delivered through open competitions for funding using two business support products -

Collaborative Research and Development offers part funding to encourage businesses to explore ideas that are at an early stage of development with a view to eventual commercialisation;

Knowledge Transfer Networks offers financial support given to organisations that have the capability to establish or enhance Networks.

Funding received under the Technology Strategy is classified as a notified State Aid, which means a claim for the SME tax credit cannot be made for a project for which Technology Strategy support has been awarded. However, a claim can be made under the large company R&D tax credit scheme for the whole of a company's eligible R&D costs - whether paid for by its own contribution or by Technology Strategy funding.  For further information see Technology Strategy Board (TSB).

Grant for Research & Development is available to help individuals starting up businesses and SMEs already based in England, carry out research and development work on technologically innovative products and processes.  Applications for funding should be made to the Regional Development Agency responsible for the region in which you intend to carry out the project.

Knowledge Transfer Partnerships are about forging partnerships between industry and an academic establishment. The aim is to promote businesses gaining access to the knowledge and expertise available in the UK's Universities, Colleges and research organisations that might be needed to develop new products, services and processes. Part funded by the government, Knowledge Transfer Partnerships can help firms gain access to expertise that can potentially result in increased business profitability.