Government pledges to halve the time it takes for businesses to get innovation grants

Innovate UK, the government agency providing funding to innovating businesses, is aiming to halve the average time it takes companies to go from application to receiving grant funding.

Delivering a speech in east Lodon, science and technology secretary Michelle Donelan said Innovate UK is also aiming to reach a million innovators by the end of the year.

The move is part of a new “declaration" by UK Research and Innovation (UKRI), of which Innovate UK is part, "to support firms of all sizes to invest in the innovation they need to scale into the success stories of tomorrow".

Other UKRI pledges include increasing the opportunities for scale-ups to sell their innovations to public sector organisations, and working with the British Business Bank and UK Export Finance to improve access to finance for scaling businesses.

'A scale-up powerhouse'

The pledges about innovation funding were included in Donelan's speech about how the government plans to boost the support it provides to high growth businesses and make the UK "a true scale-up powerhouse".

Donelan said she believes the UK should be home to at least 50% of Europe's new unicorns, the term used to describe businesses valued at more than $1billion. The UK currently accounts for a third. They include Gymshark, Deliveroo, Zoopla and Brewdog.

The technology secretary announced a series of measures to support fast growing companies.

A scale-up forum, made up of tech companies, business support organisations, investors and regulators, will be created to advise the government.

The forum will drive a pilot for a new science and technology focussed scale-up support service with an initial 20 businesses taking part. Donelan said:

"We will guide businesses around the obstacles and help them burst through any barrier that stops them reaching their potential. Connecting them to the best possible advice, whether that's help with generating innovative IP, creating skilled employment, or expanding into overseas markets."

The pilot will include events with the British Private Equity and Venture Capital Association to connect business owners with investors.

In other measures, Donelan said the government will:

• set up a "scale-up policy sprint" to deliver more support for scale-ups. This is an idea recommended by trade body TechUK "to identify, within six months, new investment vehicles and regulatory changes that could create new investment opportunities into critical technologies such as green tech, AI, quantum and semiconductors".

• improve access to government data "to fuel even faster growth in scale-ups".

• create a regulatory support service to help science and technology companies to navigate rules and regulations.

Donelan concluded her speech with:

"The reason I am so passionate about scale-up beyond the obviously economic benefits is simple. Scale-up means new jobs. New jobs mean new skills. New skills means innovation and innovation means economic growth.

"Our communities, our businesses and ultimately our country is richer with every successful scale-up.

"So, let's work together to ensure that 2024 is the year that the UK begins to solidify its place as a long-term scale-up superpower."

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