Innovate UK and Horizon Europe Grants
By Tom McCollum, ACA · Former KPMG Corporate Finance · Compass & Ledger
The short answer
Innovate UK is the UK's innovation agency and funds business-led research and development through open and themed competitions. Horizon Europe is the EU's research and innovation programme, open to companies in EU member states and associated countries, including the UK. Both are competitive, run on fixed deadlines and usually fund a share of project costs rather than all of them.
For UK and European companies, these programmes sit alongside national and regional schemes run by individual countries. Competitions open and close throughout the year, and their rules change, so check the current competition brief on the Innovation Funding Service or the EU Funding & Tenders Portal before planning an application.
Innovate UK
- Competitions for business-led innovation, from feasibility studies to larger collaborative projects.
- Applications are made through the Innovation Funding Service and scored by independent assessors.
- Grants typically cover a percentage of eligible project costs, depending on company size and the type of research.
Horizon Europe
- Many calls require a consortium of partners from several countries.
- The European Innovation Council (EIC) Accelerator supports single companies with high-growth, deep-tech innovations.
- Applications go through the EU Funding & Tenders Portal and are evaluated against excellence, impact and implementation.
National and regional programmes
Most European countries run their own innovation and growth grants through national agencies and regional development bodies. These can be less competitive than EU-wide calls and are often a better first step for smaller companies.
What a strong application needs
- A clear innovation, explained against what already exists.
- A credible route to market and evidence of demand.
- A capable team, with partners where the call requires them.
- A project budget that matches the work plan and the funder's cost rules.
- A plan for match funding, claims and reporting once awarded.
Frequently asked questions
Can UK companies still apply to Horizon Europe?
Yes. The UK is associated to Horizon Europe, so UK-based organisations can apply on broadly the same terms as those in EU member states.
Do Innovate UK grants cover all project costs?
Usually not. Most competitions fund a percentage of eligible costs depending on company size and project type, and you fund the rest.
Can you work with UK and European companies?
Yes. We have UK and European entities, can contract and invoice locally in GBP or EUR, and quote UK and European programmes on scope.
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