SUSTAINABLE INNOVATION FUND: ROUND 3 (TEMPORARY FRAMEWORK AGREEMENT) – FUNDING

1. Title: SUSTAINABLE INNOVATION FUND: ROUND 3 (TEMPORARY FRAMEWORK AGREEMENT) – FUNDING2. Awarding Authority: Innovate UK, as part of UK Research and Innovation, GB Tel: 03003214357. Email: support@innovateuk.ukri.org. (competition helpline)3. Contract type: Service contract4. Description: The Awarding Authority is investing up to £10 million to fund single and collaborative research and development projects as part of the Sustainable Innovation Fund.The aim of this competition is to help all sectors of the UK rebuild after the effects of COVID-19.All projects must be led by a business and include at least one micro, small or medium-sized enterprise (SME). Proposals can either be from a single business or a collaboration.This competition is round 3 of 3.Round 1: temporary framework (closed 29 July 2020)Round 2: de Minimis (closed 2 September 2020)Round 3: temporary framework (this competition)This competition closes at 11am UK time on the deadline stated.Who can applyState aidThese grants are a form of state aid under the COVID-19 Temporary Framework for the UK.Aid may be granted to organisations that were not in difficulty (within the meaning of Article 2(18) of the General Block Exemption Regulation) on 31 December 2019, but that faced difficulties or entered into difficulty thereafter as a result of the COVID-19 outbreak. Micro and small companies are exempt from this test unless they:are in insolvency proceedingshave received rescue aid that has not been repaidorare subject to a restructuring plan under state aid rulesUnless you are exempt as a micro or small company, you must complete a state aid declaration in question 1 to confirm that your organisation was not an undertaking in difficulty on 31 December 2019.The cumulative aid that any organisation may receive under the Temporary Framework must not exceed 800,000 euros in total. Any aid provided under de minimis is in addition to this allowance. All applicants must provide a simple declaration to this effect. This will be uploaded as an appendix to question 1.If you have been awarded a continuity grant or any other funding under the Temporary Framework, then any money awarded through this competition funding will count towards your 800,000 euro limit. If you are unsure if any previous funding fell under the Temporary Framework, please contact the funding body that issued you with your award.If you wish to carry out R&D activity in the agricultural sector you cannot use your grant to pay primary producers of agricultural products. Some examples of activities of primary producers are: farming, fishing and livestock rearing.Primary producers of agricultural, fishery and aquaculture, as defined by Regulation No 1308/2013 and Regulation No 1379/2013 of the EU, can participate as a project partner in this competition but cannot claim more than £75,000 per organisation. A failure to adhere to this limit will result in the entire proposal being deemed ineligible for funding.It is your responsibility to make sure that your organisation is eligible to receive state aid. We strongly recommend that you seek independent legal advice before applying into, and accepting the terms of, this funding award.Your projectThere is no minimum or maximum limit on your total project costs.Each funded partner can claim up to 80% of their eligible project costs, up to a maximum of £175,000. This amount cannot exceed their cumulative aid total of 800,000 euros if they have received other funding as part of the COVID-19 Temporary Framework.You must sign and return your grant offer letter by 14 December 2020, and be ready to start by 1 January 2021. Projects can last up to 3 months.Lead organisationTo lead a project or work alone your organisation must:be a UK registered business of any sizeinvolve at least one micro, small or medium-sized enterprise (SME) if the lead is not onecarry out its project work in the UKbe able to carry out project work under the current restrictions of COVID-19intend to exploit the results from or in the UKAcademic institutions and research and technology organisations (RTOs) cannot lead or work alone.Sole traders are not eligible to apply for this competition.Project teamTo collaborate with the lead organisation your organisation must:be a UK registered business, academic institution, charity, public sector organisation or research and technology organisation (RTO)carry out its project work in the UKbe able to carry out project work under the current restrictions of COVID-19intend to exploit the results from or in the UKbe invited to take part by the lead applicantenter your costs in the Innovation Funding ServiceIf you are a collaborative project, the lead and at least one other organisation must claim funding through the Innovation Funding Service Each partner organisation must be invited by the lead to collaborate on this project.The 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.Subcontractors 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. A cheaper cost is not deemed as a sufficient reason to use an overseas subcontractor.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.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.Multiple applicationsAny one business can lead on one application and collaborate in a further 2 applications.If a business is not leading an application, they can collaborate in up to 3 applications.Academic institutions and RTOs can collaborate on any number of applications.Previous applicationsResubmissionsYou can use a resubmission to apply for this competition.A resubmission is a proposal Innovate UK judges as not materially different from one you’ve submitted before. It can be updated based on the assessors’ feedback.If you submit a new proposal this time you will be able to use it in no more than one future competition that allows resubmissions.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 are required to submit an independent accountant’s report (IAR) with your first and final claim. However, if the grant funding you receive is less than £100,000, you must submit an IAR with your final claim only. 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 proposalCOVID-19 has affected R&D across all sectors, and the aim of this competition is to help all sectors of the UK recover, grow and create new opportunities from the aftermath of the global health pandemic.Your proposal must show evidence of key challenges as a direct consequence of COVID-19, including the sudden shortage or availability of finance, and how your project can help solve them.In addition, your proposal must consider its impact on climate change and/or environmental sustainability.We would also like you to address where necessary equality, diversity and inclusion in relation to your project, the partner organisations and your approach to innovation.We are looking to fund a portfolio of projects, across a variety of technologies, markets, regions, technological maturities and research categories, including the themes listed below.Specific themesYour project can also focus on:decarbonisation, circular economy and/or biodiversityclimate change and environmental sustainabilitygeographic or regionally targeted innovationinnovation that is aimed at commercial or residential usersinnovations that work across more than one sectorfollow-on international opportunities that help the UK lead the worldResearch categoriesWe will fund feasibility studies, industrial research projects and experimental development projects, as defined in the general guidance.Projects we will not fundWe are not funding projects that:are not related to an impact on a business due to COVID-19 disruptionhave a negative impact on the environment and/or societyhave a detrimental effect on equality, diversity and inclusionwould duplicate other UK government activities or EU-funded initiatives already underway, such as the testing or manufacture of vaccines and ventilatorsdo not involve any research and development or innovation, for example the creation of information-only websites5. CPV Code(s): 73110000, 73100000, 732100006. 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: UK registered businesses can apply for a share of up to £10 million for new projects focusing on sustainable economic recovery from COVID-19Funding type GrantProject sizeThere is no minimum or maximum total project size. Each organisation working alone or in a collaboration can claim grant up to a maximum of £175,000.FundingWe have allocated up to £10 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.Under the COVID-19 Temporary Framework your organisation could get up to 80% funding for your eligible project costs, up to a maximum of £175,000 per organisation, regardless of size.Research organisations working in collaboration undertaking non-economic activity will be funded as follows:universities: 80% of full economic costsall other research organisations: 100% of eligible costsWe will provide up to £50,000 to each grant-claiming organisation as an advance on grant payment 10 working days after the return of a fully-signed grant offer letter (GOL). This will be taken off the first and any subsequent claims.This competition provides state aid funding under the COVID-19 Temporary Framework for the UK. It is your responsibility to make sure that your organisation is eligible to receive state aid.Please refer to the:frameworkamendments to the framework from 3 April 2020 and 8 May 2020 and 2 July 20203 April 2020 press release summarising theseThere are specific terms and conditions under the Temporary Framework, including potential clawback, so it is important that you review these and satisfy yourself that this is the best route for your business.Your proposalCOVID-19 has affected R&D across all sectors, and the aim of this competition is to help all sectors of the UK recover, grow and create new opportunities from the aftermath of the global health pandemic.Your proposal must show evidence of key challenges as a direct consequence of COVID-19, including the sudden shortage or availability of finance, and how your project can help solve them.In addition, your proposal must consider its impact on climate change and/or environmental sustainability.We would also like you to address where necessary equality, diversity and inclusion in relation to your project, the partner organisations and your approach to innovation.We are looking to fund a portfolio of projects, across a variety of technologies, markets, regions, technological maturities and research categories, including the themes listed below.Specific themesYour project can also focus on:decarbonisation, circular economy and/or biodiversityclimate change and environmental sustainabilitygeographic or regionally targeted innovationinnovation that is aimed at commercial or residential usersinnovations that work across more than one sectorfollow-on international opportunities that help the UK lead the worldResearch categoriesWe will fund feasibility studies, industrial research projects and experimental development projects, as defined in the general guidance.Projects we will not fundWe are not funding projects that:are not related to an impact on a business due to COVID-19 disruptionhave a negative impact on the environment and/or societyhave a detrimental effect on equality, diversity and inclusionwould duplicate other UK government activities or EU-funded initiatives already underway, such as the testing or manufacture of vaccines and ventilatorsdo not involve any research and development or innovation, for example the creation of information-only websites10. Competition closes: 30.9.2020 (11:00:00).11. Address to which they must be sent: For further information regarding the above contract notice please visit: 12. Other information: Competition opens: Tuesday 1 September 2020Competition closes: Wednesday 30 September 2020 11:00am1 September 2020 Competition opens7 September 2020 Online briefing event: register here30 September 2020 11:00am Competition closes6 November 2020 Applicants notified14 December 2020 Signed grant offer letters returned byBefore you startInnovate UK is unable to award grant funding to organisations meeting the condition known as undertakings in difficulty on 31 December 2019, unless you are an exempt micro or small company.Data protectionBy submitting an application, you are providing authority for Innovate UK (and any subsidiary or agency appointed to evaluate your application) to do checks on the financial standing of your organisation. This might include, but will not be limited to, checks with credit reference agencies (which might be recorded on your record) to determine your credit standing, identity, beneficial ownership and control, and source of existing funds.The principles that Innovate UK follows when we collect, hold or use your personal information and how you can check what details we hold are set out in Innovate UK’s personal information charter.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?Equality, diversity and inclusionPlease complete the EDI survey. We 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.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.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 500 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 500 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 500 words long.2. Application questionsThe assessors will score your answers for questions 2 to 8. You will receive feedback from them for each one.Your answer to each question can be up to 500 words long. Do not include any website addresses (URLs) in your answers.Question 1. Declarations (not scored)You must state in your answer:how this funding will ensure that you will be able to complete your portion of the projectthat you were not an undertaking in difficulty on 31 December 2019, unless you are exempthow you will manage the staff needed to continue this project (including returning staff from furlough)Using the attached template you must tell us about any other awards you have received under the temporary COVID-19 framework. The maximum amount of cumulative aid you can claim under the temporary framework is 800,000 euros. You do not need to tell us about any furlough payments you may have received under the Coronavirus Job Retention Scheme. If you are unsure whether you need to declare any award you have received, you should contact the body who provided the award to clarify which scheme you were awarded under. We are unable to give advice on individual awards given out by other awarding bodiesPlease download the declaration provided. All partners must complete and sign their own declaration and the lead must upload them all as a single PDF to this question.Question 2. Need or challengeWhat is the challenge you are trying to solve, as a result of the COVID-19 pandemic?Describe or explain:the main motivation for the projectthe impact COVID-19 has had on businesses or sectors that are a focus of your projectthe 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 3. Your ideaWhat 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 evidence to support the impact of your idea and how it will be measuredany potential changes to your approach should the current COVID restrictions either continue or increasethe 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 must submit one appendix to support your answer. 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 4. Climate change and environmental sustainabilityWhat impact on climate change and environmental sustainability will your idea have?Describe or explain:any climate change and/or environmental sustainability impacts your project might have, and include any evidence or justification, even if there are no impactshow you intend to accelerate or minimise the relevant climate change and/or environmental sustainability impacts you’ve identifiedany decarbonisation, circular economy and/or biodiversity challenges relevant to your idea as a result of COVID-19how your idea can positively contribute towards a clean environment and sustainable growth within the UK (if at all)your sustainability-specific plans, if appropriatewho will be responsible for measuring the sustainability outcomes and impact, what they will measure and how it will be reportedQuestion 5. Team, resources and deliveryWho is in the project team, what are their roles, and how will you deliver the project?Describe or explain:the roles, skills and experience of all members that are relevant to the approach you will be takingany roles you will need to recruit forthe 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 projectthe 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 linesYou must submit one appendix describing the skills and experience of the main people working on the project to support your answer and any supplementary project management information such as a Gantt chart or project plan. It must be a PDF and can be up to 4 A4 pages long and no larger than 10MB in size. The font must be legible at 100% zoom.Question 6. Equality, diversity and inclusionHow are you ensuring that your organisation and idea do not discriminate?Describe or explain:any equality, diversity or inclusion challenges related to your idea, if appropriatehow you will consider equality, diversity and inclusion in the development of your innovation (for example unintended exclusion of minority groups, recognising bias)any policies or approaches to equality, diversity and inclusion your organisation might havehow you will promote equality, diversity and inclusion for any roles you are recruiting for in this projectQuestion 7. 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 markets, including their sizesthe 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 8. Outcomes and route to marketHow are you going to stabilise and grow your business following COVID-19 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 consolidating, 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, particularly if COVID-19 has changed market dynamics·how 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 9. 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 risksways to mitigate future risk arising from COVID-19 restrictions and other possible national and global factorsany project inputs that are critical to completion, such as resources, expertise, data sets and if they are affected by COVID-19any output likely to be subject to regulatory requirements, certification, ethical issues and so on, and how you will manage thisYou can submit one appendix to support your answer. It can include a risk register, 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 10. Costs, added value and value for moneyWhat impact would an injection of public funding have on the businesses involved?Describe or explain:the total eligible project costs and the grant you are requesting in terms of the project goalshow 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 projectif 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 spend3. 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 informationYou can find more information on climate change, net zero and global warming on the Committee on Climate Change (CCC) website. The CCC is an independent, statutory body established under the Climate Change Act 2008.Equality, diversity and inclusion resources that companies may find helpful include:Diversity VC and Atomico – Diversity and Inclusion in Tech: A Practical Guidebook for EntrepreneursThe approach to Gender Equality in Horizon 2020Extra helpThe Knowledge Transfer Network’s (KTN’s) Good Application Guide aims to help you prepare the best application for Innovate UK competitions. This guide has been produced by KTN to supplement the official Innovate UK guidance for applicants. You can also contact KTN for support in finding project partners and providing independent, objective feedback on your application.In working towards a more sustainable future, the Horizon tool can help test your strategy, inform commercial decisions and drive new innovation within a sustainable economy. Contact KTN to discuss the big trends and issues in your marketplace.Enterprise Europe Network (EEN)If 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 to grow and scale. It is only available to SMEs. Please engage actively with your Adviser so that, working together, you can determine and the most appropriate growth support for your business.Contact us If you need more information, email us at support@innovateuk.ukri.org or call the competition helpline on 0300 321 4357. Our phone lines are open from 9am to 11:30am and 2pm to 4.30pm, Monday to Friday (excluding Bank Holidays).# funding opportunity# COVID-19