Grant for Research and Development (GRD)

Technological innovation is key for many businesses to improve productivity and competitiveness and to stimulate business growth.

The DTI’s Grant for Research and Development (GRD) is aimed at individuals planning to start up businesses in England and at small and medium-sized enterprises (SMEs) already operating in England.

The grants are offered, at the discretion of government, to help businesses carry out research and development work that will lead to technologically innovative products or processes. Businesses can apply at any time of the year. Project proposals are assessed against selection criteria which include the level of technological innovation, technical risks, commercial prospects, the need for the grant and so on. Not all applicants will be offered a grant.

There are four types of grant aimed at supporting different types of research and development projects with different levels of assistance:

From 1 January 2008 the level of grant that can be offered under the Grant for R&D will change. This applies the whole of England and to grant offers made after that date not applications received before it.

These changes are set out in more detail below:

	Current level of assistance	Post January 1st 2008
Micro Projects**	50% grant rate with grant minimum of £2,500 and maximum of £20,000	45% grant rate with grant minimum of £5,000 and maximum of £20,000
Research Projects	60% grant rate rising to 65% in Tier 2 assisted areas. Grant range £20,000 to £75,000	60% grant rate with a grant range of £20,000 to £100,000
Development Projects	35% grant rate rising to 40% in Tier 2 assisted areas. Grant range of £20,000 to £200,000	35% grant rate with a grant range of £20,000 to £250,000
Exceptional Development Projects	Grant rate is negotiable up to a maximum of 35%. Grant range is £200,000 to £500,000	Negotiable grant up to a maximum of 35% and a grant range of £250,000 to £500,000

**Micro Project grant are currently classed as de-minimis aid, which means that it is not notified to the EC. From 1 January 2008 Micro Project grants will lose de-minimis status and become notified State Aid.The key changes are the removal of the 5% uplift for Research and Development projects in Tier 2 assisted areas to comply with the European Commission State Aid Framework.

The increase in the grant ceilings for Research projects and Development projects is the other key change.

A decision on whether your application has been successful will be made within 30 working days of receiving a full application with all the required information.

If your application is successful and you are receiving funds from any other public sector source for the same project, we will reduce the grant on a pound-for-pound basis (which means, for example, that if you have received £5,000 from another public source, we would reduce your grant by £5,000).

Further details are available by contacting the Grant for Research & Development Team (GRD) within One NorthEast.

For more information on further government support to invest in R&D, please visit the DTI Innovation website.

If you think you have a project that might qualify for a Grant for Research and Development please complete a Registration of Interest form, available below, to enable us to reach an initial view as to whether we might be able to help. Before doing so please refer to the Guidance Notes, available below, or speak to your local Business Link Innovation Advisor on 0845 600 9 006.

The list of advisors below offers technical advice when appraising Grant for R&D applications. If, however, for any reason you would prefer us not to seek advice on your project from any of the organisations listed below, please tell us (with a short note explaining why) as soon as possible.