The main R&D assistance schemes are:
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R&D tax credits and allowances
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EUREKA
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LINK
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Foresight
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EU Fifth Framework Programme (FT5)
for research, technological development and demonstration
(RTD)
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Smart.
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The 2000 Budget introduced a new R&D tax credit
for SMEs, which came into effect on 1 April 2000. The
credit has been introduced to assist SMEs to undertake
R&D, either for the first time, or to encourage
them to increase their R&D effort. Guidelines have
been published by the UK government that outline what
constitutes R&D, for tax purposes. Spending on qualifying
R&D attracts relief for 150% of the expenditure.
This will reduce the cash cost by 30% for a company
benefiting from the small companies’ rate of tax.
Companies not yet making a profit can take the relief
up front and reduce their cash cost by 24%.
The Chancellor confirmed in the 2001 prebudget report
that the government would also be introducing a volume-based
R&D tax credit for large companies.
EUREKA is a Europe-wide network for promoting market-driven
collaborative RTD with the aim of strengthening European
competitiveness. It is a framework through which industry
and research institutes from twenty-one European countries
develop and exploit the advanced technologiescrucial
to global competitiveness and a better quality of life.
EUREKA exists to create transborder, market-oriented,
high-tech European RTD projects. A project meets the
EUREKA criteria if it:
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is a high-tech, market-oriented R&D
project • involves partners from at least two
EUREKA members
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aims to develop a cutting edge, civilian
product, process or service
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is funded by the partners themselves,
who may receive public financing from their governments.
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LINK is the UK government’s principal mechanism
for supporting collaborative research partnership between
UK industry and the research base. It provides financial
support to individual programmes of research. LINK focuses
on areas of strategic importance for the future of the
national economy. All new programmes address priorities
under the government’s Foresight Programme. It
aims to enhance the competitiveness of UK industry and
the quality Assistance with Research and Development
There are a number of schemes that exist in the UK offering
assistance to companies within the area of research
and development (R&D). Foreign companies wishing
to establish a business in the UK can apply for R&D
assistance under these schemes of life, through support
for managed programmes of pre-competitive science and
technology in market or technology sectors, and by encouraging
industry to invest in further work leading to commercially
successful products, processes, systems and services.
LINK programmes fall into five main categories:
To broaden the scope of LINK, the scheme has been franchised
to other government schemes run by the Biotechnology
and Biological Sciences Research Council (BBSRC) and
the Medical Research Council (MRC).
In addition, the Innovative Manufacturing Initiative
(IMI) run by the Engineering and Physical Sciences Council
(EPSRC) has also joined under a franchising arrangement.
These organisations now have the flexibility to fund
LINK projects across their own selected research areas.
Foresight is a government initiative that develops visions
of the future to guide decision makers. It is about
anticipating the future; identifying potential needs,
threats and opportunities; and taking action now to
ensure people and organisations in the UK are better
placed to respond effectively. Foresight is used to
improve collaboration between business, science and
government, bringing together knowledge and expertise.
Foresight is organised through 13 sector-based panels.
The programme is managed by the Office of Science and
Technology (OST) and is guided by a Foresight Steering
Group. Projects supported by the LINK programme must
respond to priorities identified under the Foresight
Initiative.
The European Union’s Fifth Framework Programme
(FP5) funds collaborative research, technological development
and demonstration activities (RTD) designed to promote
the competitiveness of industry and improve quality
of life in Europe. The programme runs for the period
1999-2002. For eligible projects, the EU offers funding
for up to 50% of allowable costs with the remaining
50% shared between project participants.
Participation is open to all types of organisations
that undertake research, have the potential to do so,
or could benefit from the results of research in the
15 Member States of the EU and certain other countries.
Projects must be collaborative and transnational.
Additional measures are available within FP5 to encourage
SMEs to take part in collaborative European RTD activities.
For example, CRAFT is a co-operative award intended
to enable groups of at least three SMEs with little
or no RTD capacity to solve technological problems.
The awards cover up to 50% of research costs. The final
date for submitting applications for CRAFT is expected
to be 17 April 2002.
Smart in England is the Small Business Service (SBS)
initiative that provides grants to help individuals
and small and medium-sized businesses make better use
of technology or research and develop technologically
innovative products and processes.
The scheme is available in England. Scotland, Wales
and Northern Ireland have their own initiatives.
Grants of up to £2,500 are available for individuals
and small- and medium-sized firms (those with fewer
than 250 employees) towards the costs of an expert review
of a business’s use of technology against best
practice for the sector.
Grants of up to £5,000 are available for individuals
and small and medium-sized firms to help identify technological
opportunities leading to innovative products and processes.
Information supplied by invest-UK
www.invest.uk.com
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