SMART GRANTS: MAY 2020

1. Title: SMART GRANTS: MAY 20202. Awarding Authority: Innovate UK, part of UK Research and Innovation, GB Tel: 0300 321 4357. Email: support@innovateuk.ukri.org. (competition helpline)3. Contract type: Service contract4. Description: The Awarding Authority is investing up to £25 million in the best game-changing and commercially viable innovative or disruptive ideas. All proposals must be business focused.Applications can come from any area of technology and be applied to any part of the economy, such as, but not exclusively:the arts, design and mediacreative industriesscience or engineeringWhilst we welcome projects that overlap with the grand challenge areas this is not a requirement, as we are also keen to support projects in other areas.We may consider total eligible project costs over £2 million (but not exceeding £3 million), subject to the process set out under ‘Eligibility’.We may share application details with other public sector co-funders if appropriate.In this competition all projects awarded funding must upload evidence for each expenditure with every claim made. These might include invoices, timesheets, receipts or spreadsheets for capital usage. This is part of Innovate UK’s obligations under the Managing Public Money government handbook in relation to assurance, financial management and control.This competition closes at midday 12pm UK time on the deadline stated.Who can applyState aidAny UK registered business claiming grant funding must be eligible to receive state aid at the time we confirm you will be awarded funding. It is not possible to award grant funding to organisations meeting the condition known as undertakings in difficulty. If you are unsure please take legal advice. For further information, see our general guidance.Your projectYour application must include at least one micro, small or medium-sized enterprise (SME).Your project must start no later than 1 February 2021 and end no later than 29th February 2024.Your project must follow specific rules based on its duration:Projects with durations between 6 and 18 months must have total eligible project costs between £25,000 and £500,000. They can be single or collaborative projects.Project durations between 19 months and 36 months must have total eligible project costs between £25,000 and £2 million. They must be collaborative projects.Project exception requestIf you want to submit a collaborative project from 19 months to 36 months duration with total project costs of up to £3 million as a permitted exception, you must email support@innovateuk.ukri.org. You must provide full justification at least 10 working days before the competition closes. We will decide whether to approve your request.Unless you have already received our authorisation, any application submitted that does not meet the criteria will be marked as ineligible and will not be sent for assessment.Lead organisationTo lead a project you must:be a UK registered business of any size or a research and technology organisation (RTO)carry out your R&D project activity in the UKintend to commercially exploit the project results from or in the UKbe an SME if you want to work aloneinclude at least one SME if you are a large business or RTO and wish to collaborate with other UK registered businesses, research organisations, public sector organisations or charitiesAcademic institutions cannot lead or work alone.Find out which definition your organisation falls into.Single applicants must claim funding. If the project is collaborative, the lead and at least one other UK registered organisation must claim funding and enter costs as part of the application.Project teamTo collaborate with the lead organisation you must:be a UK registered business, academic organisation, charity, public sector organisation or RTOcarry out your R&D project activity in the UKintend to commercially exploit the project results from or in the UKbe invited to take part by the lead applicantenter your costs in the Innovation Funding ServiceThe lead and at least one other organisation must claim funding by entering their costs during the application. Each partner organisation must be invited into IFS by the lead to collaborate on a project. Partners must enter their own project costs into IFS. Your project can include partners that do not receive any of this competition’s funding. Their costs will count towards the total eligible project costs.Partners with no fundingYour project can include partners that do not receive any of this competition’s funding. Their costs will count towards the total eligible project costs but they will not count as collaborators.SubcontractorsSubcontractors are allowed in this competition and can be from anywhere in the UK. They must be based in the UK for the duration of the project and their portion of the project work must also be carried out in the UK. Without meeting these criteria, their contribution would be deemed ineligible. We would expect subcontractor costs to be justified and appropriate to the total eligible project costs.Multiple applicationsUK registered businesses or RTOs can only lead on one application. If more than one application is submitted with the same lead, only the first application will be considered for assessment.All partners can collaborate on any number of applications.Research and technology organisations (RTOs)If you are an RTO then the following rules apply:To lead you must have 2 or more business collaborators (one SME, and one other business of any size).There must be a credible route to market for the output of the project, and since the purpose of RTOs is to speed up the progress of those using their services, this is expected to be through the partners, rather than through the RTO itself.If you are a project partner, you can participate as either a research organisation, and receive 100% grant, or as a business entity, and be reimbursed a percentage of your eligible costs, depending upon your size and the nature of the work.If participating as a business, you must show that the match funding you are providing comes from entirely private sector sources, across all projects you are involved in. You must also be able to show how you will exploit the results of the project to grow the wider sector.Previous applicationsResubmissionsYou can make a maximum of 2 submissions to Innovate UK with any given proposal. If Innovate UK judges that your proposal is not materially different from your previous proposal, it will be classed as a resubmission.If your application goes through to assessment and is deemed unsuccessful, you can reapply with the same proposal once more, taking into account the feedback received from the assessors.Failure to exploitIf you applied to a previous competition as the lead or sole organisation and were awarded funding by Innovate UK or UK Research and Innovation, but did not make a substantial effort to exploit that award, we will award no more funding to you, in this or any other competition. You will not be able to contest our decision. We will:assess your efforts in the previous competition against your exploitation plan for that projectreview the monitoring officers’ reports and any other relevant sources for evidencedocument our decision, which will be made by 3 team members, and communicate it to you in writingPrevious projectsUnder the terms of Innovate UK funding, you must submit an independent accountant’s report (IAR) with your final claim. If you or any organisation in your consortium failed to submit an IAR on a previous project, we will not award funding to you in this or any other competition until we have received the documents.Your proposalYour proposal must demonstrate:a clear game-changing, innovative and/or disruptive and ambitious idea leading to new products, processes or servicesan idea that is significantly ahead of others in the field, set for rapid commercialisationa strong and deliverable business plan that addresses (and documents) market potential and needsa clear, evidence based plan to deliver significant economic impact, return on investment (ROI) and growth through commercialisation, as soon as possible after project completiona team, business arrangement or working structure with the necessary skills and experience to run and complete the project successfully and on timeawareness of all the main risks the project will face (including contractor or equipment failure, recruitment delays, etc) with realistic management, mitigation and impact minimisation plans for each riskclear, considerable potential to significantly impact the UK economy and/or productivity in a positive waysound, practical financial plans and timelines that represent good value for money, which will always be a consideration in Innovate UK funding decisionsSpecific themesWe give preference to applications that demonstrate realistic, significant potential for global markets.Proposals from innovation-based businesses with significant ambition and potential for growth or scale-up are welcome.Where possible, projects should take customer and user needs into account to deliver more desirable and useful solutions.Research categoriesWe will fund innovative research and development (R&D) projects across a variety of technologies, markets and research categories, including:feasibility, including market researchindustrial researchexperimental developmentProjects can be at different levels of technological maturity, up to but not including commercialisation.Read the general guidance for further information.Projects we will not fundWe will not fund proposals that do not:meet the competition eligibility or scopeaddress the size, potential and access to market for the innovationevidence the potential for their idea or concept to lead to significant return on investment (ROI), positive economic impact, growth and scale-up of the business5. CPV Code(s): 73110000, 731000006. NUTS code(s): UKK, UKK1, UKK147. Main site or location of works, main place of delivery or main place of performance: South West (England), Gloucestershire, Wiltshire And Bristol/Bath Area, Swindon.8. Reference attributed by awarding authority: Not provided.9. Estimated value of requirement: Opportunity to apply for a share of up to £25 million to deliver ambitious or disruptive R&D innovations that can make a significant impact on the UK economy.Project sizeDuration between 6 and 18 months and total eligible project costs between £25,000 and £500,000: can be single or collaborative. Duration between 19 and 36 months and total eligible project costs between £25,000 and £2 million: must be collaborative.FundingWe have allocated up to £25 million to fund innovation projects in this competition.Organisations whose main activity is commercial or economic must make sure that the outcomes of the project such as intellectual property do not help gain a selective advantage in the market. This includes organisations that typically act non-economically but for the purpose of this project will be undertaking commercial or economic activity.For feasibility studies and industrial research projects, your organisationcould get funding for eligible project costs of:up to 70% if you are a micro or small organisationup to 60% if you are a medium-sized organisationup to 50% if you are a large organisationFor experimental development projects which are nearer to market, you could get funding for your organisations eligible project costs of:up to 45% if you are a micro or small organisationup to 35% if you are a medium-sized organisationup to 25% if you are a large organisationThe research organisations in your consortium undertaking non-economic activity as part of the project can share up to 30% of the total eligible project costs. If your consortium contains more than one research organisation undertaking non-economic activity, this maximum is shared between them.This competition provides state aid funding under article 25 Aid for R&D projects, of the General Block Exemption Regulation (GBER). It is your responsibility to make sure that your organisation is eligible to receive state aid.10. Competition closes: 26.8.2020 (12:00:00).11. Address to which they must be sent: For further information regarding the above contract notice please visit: 12. Other information: Funding type Grant28 May 2020 Competition opens5 June 2020 Online briefing event26 August 2020 12:00pm Competition closes30 October 2020 Applicants notifiedBefore you startYou must read the guidance on applying for a competition on the Innovation Funding Service before you start.Innovate UK is unable to award grant funding to organisations meeting the condition known as undertakings in difficulty.What we will ask youThe application is split into 3 sections:Project details.Application questions.Finances.1. Project detailsThis section sets the scene for the assessors and is not scored.Application teamDecide which organisations will work with you on the project. Invite people from those organisations to help complete the application.Application detailsThe lead applicant must complete this section. Give your project’s title, start date and duration. Is the application a resubmission?Research categorySelect the type of research you will undertake.Project summaryDescribe your project briefly, and be clear about what makes it innovative. We use this section to assign experts to assess your application.Your answer can be up to 400 words long.Public descriptionDescribe your project in detail, and in a way that you are happy to see published. Do not include any commercially sensitive information. If we award your project funding, we will publish this description. This could happen before you start your project.Your answer can be up to 400 words long.ScopeDescribe how your project fits the scope of the competition. If your project is not in scope it will not be eligible for funding.Your answer can be up to 400 words long.2. Application questionsThe assessors will score your answers. You will receive feedback from them for each one.Your answer to each question can be up to 400 words long.Do not include any links to websites or documents in your answers as the assessors will not click on them.Question 1. Need or challengeWhat is the business need, technological challenge or market opportunity behind your innovation?Describe or explain:the main motivation for the projectthe business need, technological challenge or market opportunitythe nearest current state-of-the-art, including those near market or in development, and its limitationsany work you have already done to respond to this need, for example if the project focuses on developing an existing capability or building a new onethe wider economic, social, environmental, cultural or political challenges which are influential in creating the opportunity, such as incoming regulations, using our Horizons tool if appropriate.Question 2. Approach and innovationWhat approach will you take and where will the focus of the innovation be?Describe or explain:how you will respond to the need, challenge or opportunity identifiedhow you will improve on the nearest current state-of-the-art identifiedwhether the innovation will focus on the application of existing technologies in new areas, the development of new technologies for existing areas or a totally disruptive approachthe freedom you have to operatehow this project fits with your current product, service lines or offeringshow it will make you more competitivethe nature of the outputs you expect from the project (for example report, demonstrator, know-how, new process, product or service design) and how these will help you to target the need, challenge or opportunity identifiedYou can submit one appendix including charts and diagrams to support your answer. It must be a PDF and can be up to 2 A4 pages long. The font must be legible at 100% zoom.Question 3. Team and resourcesWho is in the project team and what are their roles?Describe or explain:the roles, skills and experience of all members of the project team that are relevant to the approach you will be takingthe resources, equipment and facilities needed for the project and how you will access themthe details of any vital external parties, including sub-contractors, who you will need to work with to successfully carry out the projectif your project is collaborative the current relationships between project partners and how these will change as a result of the projectany roles you will need to recruit forYou can submit one appendix describing the skills and experience of the main people working on the project to support your answer. It must be a PDF and can be up to 4 A4 pages long. The font must be legible at 100% zoom.Question 4. Market awarenessWhat does the market you are targeting look like?Describe or explain:the markets (domestic, international or both) you will be targeting in the project and any other potential marketsthe size of the target markets for the project outcomes, backed up by references where availablethe structure and dynamics of the target markets, including customer segmentation, together with predicted growth rates within clear timeframesthe target markets’ main supply or value chains and business models, and any barriers to entry that existthe current UK position in targeting these marketsthe size and main features of any other markets not already listedIf your project is highly innovative, where the market may be unexplored, describe or explain:what the market’s size might to behow your project will try to explore the market’s potentialQuestion 5. Outcomes and route to marketHow are you going to grow your business and increase your productivity into the long term as a result of the project?Describe or explain:your current position in the markets and supply or value chains outlined, and whether you will be extending or establishing your market positionyour target customers or end users, and the value to them, for example why they would use or buy your productyour route to markethow you are going to profit from the innovation, including increased revenues or cost reductionhow the innovation will affect your productivity and growth, in both the short and the long termhow you will protect and exploit the outputs of the project, for example through know-how, patenting, designs or changes to your business modelyour strategy for targeting the other markets you have identified during or after the projectIf there is any research organisation activity in the project, describe:your plans to spread the project’s research outputs over a reasonable timescalehow you expect to use the results generated from the project in further research activitiesQuestion 6. Wider impactsWhat impact might this project have outside the project team?Describe, and where possible measure, the economic benefits from the project toexternal parties, including customersothers in the supply chainbroader industrythe UK economy, such as productivity increases and import substitutionDescribe, and where possible measure:any expected impact on government prioritiesany expected environmental impacts, either positive or negativeany expected regional impacts of the projectDescribe any expected social impacts, either positive or negative on for example:quality of lifesocial inclusion or exclusionjobs, such as safeguarding, creating, changing or displacing themeducationpublic empowermenthealth and safetyregulationsdiversityQuestion 7. Project managementHow will you manage the project effectively?Describe or explain:the main work packages of the project, indicating the lead partner assigned to each and the total cost of each oneyour approach to project management, identifying any major tools and mechanisms you will use to get a successful and innovative project outcomethe management reporting linesyour project plan in enough detail to identify any links or dependencies between work packages or milestonesYou must submit a project plan or Gantt chart as an appendix to support your answer. It must be a PDF and can be up to 2 A4 pages long. The font must be legible at 100% zoom.Question 8. RisksWhat are the main risks for this project?Describe or explain:the main risks and uncertainties of the project, including the technical, commercial, managerial and environmental risks, providing a risk register if appropriatehow you will mitigate these risksany project inputs that are critical to completion, such as resources, expertise, data setsany output likely to be subject to regulatory requirements, certification, ethical issues and so on, and how you will manage thisYou must submit a risk register as an appendix to support your answer. It must be a PDF and can be up to 2 A4 pages long. The font must be legible at 100% zoom.Question 9. Added valueWhat impact would an injection of public funding have on the businesses involved?Describe or explain:if your project could go ahead in any form without public funding and if so, the difference the public funding would make, such as a faster route to market, more partners or reduced riskthe likely impact of the project on the businesses of the partners involvedwhy you are not able to wholly fund the project from your own resources or other forms of private-sector funding, and what would happen if the application is unsuccessfulhow this project would change the nature of R&D activity the partners would undertake, and the related spendQuestion 10. Costs and value for moneyHow much will the project cost and how does it represent value for money for the team and the taxpayer?In terms of project goals, describe or explain:the total eligible project costs for the proposalthe total grant amount you are requesting and how each partner will finance their contributions to the projecthow this project represents value for money for you and the taxpayerhow it compares to what you would spend your money on otherwisethe balance of costs and grant across the project partnersany sub-contractor costs and why they are critical to the project3. FinancesEach organisation in your project must complete their own project costs, organisational details and funding details. Academic institutions will need to complete and upload a Je-S form. For full details on what costs you can claim please see our project costs guidance.Background and further informationExtra helpIf you need more information, email us at support@innovateuk.ukri.org or call the competition helpline on 0300 321 4357 between 9am and 5:30pm, Monday to Friday.If you want help to find a project partner, contact the Knowledge Transfer Network.For successful applicantsIf you are successful in this competition, at least one member of your project team must attend a briefing webinar which will provide you with detailed information relating to setting up and starting your project. Details of this briefing will be made available in your notification letter.Enterprise Europe NetworkIf you are a UK SME and successful in receiving an award, you will be contacted by your local Enterprise Europe Network (EEN) Innovation Advisor. They act on behalf of Innovate UK to discuss the growth opportunities for your business.They offer bespoke business support services to help you maximise your project and business potential. This service forms part of your Innovate UK offer under our commitment to help UK SMEs grow and scale.Please engage positively with your EEN contact so that, working together, you can determine the most appropriate form of growth support for your business.# funding opportunity