COMMERCIALISING QUANTUM TECHNOLOGIES: CRD & TECH ROUND 2 – FUNDING

1. Title: COMMERCIALISING QUANTUM TECHNOLOGIES: CRD & TECH ROUND 2 – FUNDING2. Awarding Authority: Innovate UK, part of UK Research and Innovation, GB Tel: 0300 321 4357. Email: support@innovateuk.ukri.org.3. Contract type: Service contract4. Description: The aim of this competition is to advance the commercialisation of quantum technologies in the UK and increase private sector investment.Your proposal must exploit second generation quantum techniques.These are defined as those involving the generation and coherent control of quantum states, resulting in phenomena such as superposition or entanglement. Technologies involving single photon generation and quantum computing are regarded as being within scope.You must address one of two options:Option 1: Collaborative Research & Development (CR&D)Identify a clear market opportunity for a quantum product or service and an innovative project which exploits it.Option 2: TechnologiesDescribe a technological barrier to the commercial or industrial exploitation of quantum technologies in the UK and deliver a solution.In applying to this competition, you are entering into a competitive process. This competition closes at 11am UK time on the deadline stated.Your projectYour project must:have total eligible costs between £2 million and £20 millionstart by 1 April 2022end by 31 March 2025have a duration of 24 to 36 monthsIf your project’s total eligible costs or duration falls outside of our eligibility criteria, you must provide justification by email to support@innovateuk.ukri.org at least 10 working days before the competition closes. We will decide whether to approve your request.Lead organisationTo lead a project your organisation must:be a UK registered business of any sizecollaborate with other UK registered businesses, research organisations, public sector organisations or charitiesinvolve an SMEcarry out its project work in the UKintend to exploit the results from or in the UKIf a research and technology organisation (RTO) wishes to lead a project, you must provide justification by email to support@innovateuk.ukri.org. This must be at least 10 working days before the closing date. We will decide whether to approve your request.Academic institutions cannot lead or work alone.Project teamTo collaborate with the lead, your organisation must:be a UK registered business, academic institution, charity, not-for-profit, public sector organisation or research and technology organisation (RTO)carry out its project work in the UKintend to exploit the results from or in the UKThe lead and at least one other organisation must claim funding by entering their costs during the application.Each partner organisation must be invited into the Innovation Funding Service by the lead to collaborate on a project. Once accepted, partners will be asked to login or to create an account and enter their own project costs into the Innovation Funding Service.Your project can include partners that do not receive any of this competition’s funding, for example non-UK businesses. Their costs will count towards the total eligible project costs.SubcontractorsSubcontractors are allowed in this competition and must be selected through a participant’s normal procurement process. Subcontractors can be from anywhere in the UK. If an overseas subcontractor is selected, a case must be made as to why no UK-based subcontractor can be used including a detailed rationale, evidence of UK companies that have been approached and reasons why they were unable to do so.We expect subcontractor costs to be justified and appropriate to the total eligible project costs. A cheaper cost is not deemed as a sufficient reason to use an overseas subcontractor.Number of applicationsA business can only lead on one application per round.When a business leads on an application it can collaborate in a further 2 applications.If a business is not leading any application, it can collaborate in up to 3 applications.We will only give permission to exceed these limits by exception. A business that wants to, must ask us for permission first.If you want to exceed these limits, you must provide justification by email to support@innovateuk.ukri.org at least 10 working days before the closing date. We will decide whether to approve your request.An RTO can collaborate in any number of applications.An academic institution can collaborate on any number of applications.A public sector organisation or charity can collaborate on any number of applications.Previous applicationsYou can use a previously submitted application to apply for this competition.We will not award you funding if you have:failed to exploit a previously funded projectan overdue independent accountant’s reportfailed to comply with grant terms and conditionsSubsidy controlThis competition provides funding in line with the UK’s obligations and commitments to Subsidy Control. Further information about the UK Subsidy Control requirements can be found within the EU-UK Trade and Cooperation agreement and the subsequent guidance from the department of Business, Energy and Industrial Strategy (BEIS).Innovate UK is unable to award grant funding to organisations that are considered to be in financial difficulty. We will conduct financial viability and eligibility tests to confirm this is not the case following the application stage.European Commission State aidYou must apply under European Commission State aid rules if you are an applicant who is conducting activities that will affect trade of goods and electricity between Northern Ireland and the EU as envisaged by Article 10 of the Protocol on Ireland/Northern Ireland in the EU Withdrawal Agreement.In certain limited circumstances, the European Commission State aid rules may also apply if you are an organisation located in England, Wales, or Scotland and conduct activities that affect the trade of goods and electricity between Northern Ireland and the EU. For further information, please see section 7 of the BEIS technical guidance.For further information see our general guidance on state aid and BEIS guidance on the Northern Ireland Protocol.For applicants subject to the European Commission State aid rules, applicants will be required to prove that they were not an “Undertaking in Difficulty” on the date of 31 December 2019 but became a UID between 1 January 2020 and 30 June 2021. We will ask for evidence of this.Further InformationIf you are unsure about your obligations under the UK Subsidy Control regime or the State aid rules, please take independent legal advice.You must make sure at all times that the funding awarded to you is compliant with all current Subsidy Control legislation applicable in the United Kingdom.This aims to regulate any advantage granted by a public sector body which threatens to or actually distorts competition in the United Kingdom or any other country or countries.If there are any changes to the above requirements that mean we need to change the terms of this competition, we will tell you as soon as possible.FundingWe have allocated up to £46.8 million to fund innovation projects in this competition.If your organisation’s work on the project is mostly commercial or economic, your funding request must not exceed the limits below. These limits apply even if your organisation normally acts non-economically.For feasibility studies and industrial research projects, you could get funding for your 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 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 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.The aim of the competition is to advance the commercialisation of quantum technologies in the UK increase private sector investment.Your proposal must address one of the following two options.Option 1: CR&DIdentify a clear market opportunity for a quantum product or service and describe how your innovative project exploits it.Your project must:demonstrate a commercially viable solutionprovide evidence of performanceinclude an end-user assessmentprovide a roadmap of future exploitationOption 2: TechnologyDescribe how you will deliver a solution that overcomes barriers to the commercial or industrial exploitation of quantum technologies in the UK, for the benefit of UK quantum businesses.Your project must:outline the technological barrier’s implications to businessesdescribe a credible solution and how it is innovative and competitiveevaluate the value it will add to the UK quantum industryprovide a roadmap of future exploitationCommon requirements for both optionsYou must also exploit second generation quantum techniques. These are defined as those involving the generation and coherent control of quantum states, resulting in phenomena such as superposition or entanglement. Technologies involving single photon generation and quantum computing are regarded as being within scope.You must describe how you will collect project metrics, including:investment in addition to the project partner matched fundingadditional capital investment aligned to or dependent on the project outcomesWe want to fund a portfolio of projects, across a variety of technologies, markets, technological maturities and research categories.Your project must focus on one or more of the following themes:Connectivity: techniques for securing data in storage and in flight.Situational Awareness: autonomous systems. Sensors and detectors for the built environment, transport and infrastructure. Imaging and sensing “seeing things currently invisible”.Computing: Transformational computers for solving currently intractable problems.Specific themesWe encourage applications that:focus on maximising UK return from the quantum technology research undertaken by the UK academic basebring significant new investment and businesses into the UK’s growing quantum technologies sectorResearch categoriesWe will fund feasibility studies, industrial research projects and experimental development projects, as defined in the guidance on categories of research.Projects we will not fundWe are not funding projects that:do not exploit second generation quantum techniquesare dependent on export performance – for example giving a subsidy to a baker on the condition that they export a certain quantity of bread to another countryare dependent on domestic inputs usage- for example if we insisted that a baker use 50% UK flour in their product5. CPV Code(s): 73110000, 73000000, 73210000, 73200000, 732200006. NUTS code(s): UKK, UKK1, UKK147. Main site or location of works, main place of delivery or main place of performance: UK8. Reference attributed by awarding authority: Not provided.9. Estimated value of requirement: Innovate UK, part of UK Research and Innovation, will invest up to £46.8 million in innovation projects.Project sizeYour project’s total eligible costs must be between £2 million and £20 million.10. Competition closes: 28.4.2021 (11:00:00).11. Address to which they must be sent: For further information regarding the above contract notice please visit: 12. Other information: 8 March 2021 – Competition opens10 March 2021 – Online briefing event28 April 2021 11:00am – Competition closes11 June 2021 – Invite to interview28 June 2021 – Interviews start2 July 2021 – Interviews end16 July 2021 – Applicants notifiedYou must read the guidance on applying for a competition on the Innovation Funding Service before you startWhat we ask youThe application is split into 3 sections:Project details.Application questions.Finances.InterviewsIf your online application is successful you will be invited to attend an interview, where you must give a presentation. Your interview will take place online.Before the interview, by the deadline stated in the invitation email, you:must send a list of who will attend the interviewmust send your interview presentation slidescan send a written response to the assessors’ feedbackList of attendeesAgree the list with your consortium. Up to 9 people from your project can attend, ideally one person from each organisation. They must all be available on all published interview dates. We are unable to reschedule slots once allocated.Presentation slidesYour interview presentation must:use Microsoft PowerPointbe no longer than 30 minuteshave no more than 40 slidesnot include any video or embedded web linksYou cannot change the presentation after you submit it or bring any additional materials to the interview.Written response to assessor feedbackThis is optional and is an opportunity to answer the assessors’ concerns. It can:be up to 3 A4 pages in a single PDF or Word documentinclude charts or diagramsInterviewAfter your presentation the panel will spend 45 minutes asking questions. You will be expected to answer based on the information you provided in your application form, presentation and the response to feedback.1. Project detailsThis section provides background 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.Research categorySelect the type of research you will undertake.Equality, diversity and inclusionWe collect and report on equality, diversity and inclusion (EDI) data to address under-representation in business innovation and ensure equality, diversity and inclusion across all our activities.You must complete this EDI survey and then select yes in the application question. The survey will ask you questions on your gender, age, ethnicity and disability status. You will always have the option to ‘prefer not to say’ if you do not feel comfortable sharing this information.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.ScopeState which one of the two options you have chosen to address:Option 1: CR&DIdentify a clear market opportunity for a quantum product or service and describe how your innovative project exploits it.Your project must:demonstrate a commercially viable solutionprovide evidence of performanceinclude an end-user assessmentprovide a roadmap of future exploitationOption 2: TechnologyDescribe how you will deliver a solution that overcomes barriers to the commercial or industrial exploitation of quantum technologies in the UK, for the benefit of UK quantum businesses.Your project must:outline the technological barrier’s implications to businessesdescribe a credible solution and how it is innovative and competitiveevaluate the value it will add to the UK quantum industryprovide a roadmap of future exploitationDescribe 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 for question 1 to 10, question 11 is not scored. You will receive feedback from them for each scored question.Your answer to each question can be up to 400 words long. Do not include any website addresses (URLs) in your answers.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 appropriateQuestion 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. It can include diagrams and charts. It must be a PDF and can be up to 2 A4 pages long and no larger than 10MB in size. 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 them, including in the light of any continuing COVID-19 restrictionsthe details of any vital external parties, including subcontractors, who you will need to work with to successfully carry out the projectthe 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. This can include a short summary of the main people working on the project to support your answer. It must be a PDF, can be up to 4 A4 pages long and no larger than 10MB in size. 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 market, including if COVID-19 has changed market dynamicshow 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 such as productivity increases and import substitution, to:external partiescustomersothers in the supply chainbroader industrythe UK economyDescribe, 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 milestones, taking into account the possible impact of further COVID-19 restrictionsYou must submit a project plan or Gantt chart as an appendix to support your answer. It must be a PDF, can be up to 2 A4 pages long and no larger than 10MB in size. 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 registerhow 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, can be up to 2 A4 pages long and no larger than 10MB in size. 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:whether this 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 spendwhat industry investment, in addition to the competition matched funding, would this project generate, in what timeframe, and how this will be evaluatedQuestion 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 the project goals, describe or explain:the total eligible project coststhe grant you are requestinghow 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 subcontractor costs and why they are critical to the projectQuestion 11: Project partners location (not scored)Where are the organisations within your project team registered?What should you include?Please name each organisation along with its full registered address. If you are working with an academic institution this doesn’t need to be included.3. FinancesEach organisation in your project must complete their own project costs, organisation details and funding details in the application. Academic institutions must complete and upload a Je-S form.For full details on what costs you can claim see our project costs guidance.This competition is funded through the Quantum Commercialisation programme of the Industrial Strategy Challenge Fund (ISCF) and builds on the ‘Commercialising quantum devices: innovation R&D’ competition launched in April 2018.There are three competition strands in round 2:Quantum ISCF Collaborative Projects Round 2 – Feasibility Studies R2.Quantum ISCF Collaborative Projects Round 2 – Germinator Projects.Quantum ISCF Collaborative Projects Round 2 – CR&D and Tech 2 (this strand).Contact usIf you need more information about how to apply email support@innovateuk.ukri.org or call 0300 321 4357.Our phone lines are open from 9am to 11:30am and 2pm to 4:30pm, Monday to Friday (excluding Bank Holidays).Innovate UK is committed to making support for applicants accessible to everyone.We can provide help for applicants who face barriers when making an application. This might be as a result of a disability, neurodiversity or anything else that makes it difficult to use our services. We can also give help and make other reasonable adjustments for you if your application is successful.If you think you need more support, it is important that you contact our Customer Support Service as early as possible during your application process. You should aim to contact us no later than 10 working days before the competition closing date.Finding a project partnerIf you want help to find a project partner, contact the Knowledge Transfer Network.Support for SMEs from Innovate UK EDGE If you receive an award, you will be contacted about working with an innovation and growth specialist at Innovate UK EDGE. This service forms part of our funded offer to you.These specialists focus on growing innovative businesses and ensuring that projects contribute to their growth. Working one-to-one, they can help you to identify your best strategy and harness world-class resources to grow and achieve scale.We encourage you to engage with EDGE, delivered by a knowledgeable and objective specialist near you.TKR-202138-EX-1569860# funding opportunity