£43.5 Million Made Available to Help Yorkshire Businesses Grow

Regional Development Agency Yorkshire Forward has today announced that it is to make over £43 million available to businesses across Yorkshire and Humber to help them develop innovative new products over the next six years.

The grants for research and development are intended to encourage companies to drive forward the development of innovative new products, which will help them to grow and become more competitive, by mitigating some of the financial risk associated with new product development.

Of the funding available, £18.5 million will support innovation within regional SMEs, which form over 99% of the region’s business stock. The Grant for Research and Development – or GRD – will provide up to 60% of a company’s R&D project costs, with the other 40% being met by themselves. It is anticipated that the funding will be able to support at least 185 projects across the region over the next five years.

Yorkshire Forward’s head of enterprise, Alex McWhirter explains; “Innovation is vital to business growth and this funding comes at a particularly apt time for small businesses.

“We are finding that in the face of the ‘credit crunch’ innovative small businesses have the opportunity to thrive because the economic climate is affording them the opportunity to be more creative in their markets.

“The grants for R&D will allow these companies to access some of the finance required to bring innovative new products to market, enabling them to be more competitive in the global marketplace and further contribute to the growth of our regional economy."

A second fund, worth £25 million, has been established for large companies in the region, aimed at accelerating the development of innovative new products. This will be the second round of funding for the region’s IRD programme, which has previously supported 19 companies in the region, including Pace and AH Marks.

Speaking about the scheme for large company R&D grants, Alex McWhirter adds; “In a climate when companies of all sizes are struggling to access finance for new developments, these grants should help our regional businesses retain their competitive edge.

“The purpose of the IRD scheme is to provide an injection of finance for a project that will accelerate its progression to market, allowing the company to expand or access new markets.”

 He concludes; “There is a great level of entrepreneurial spirit in Yorkshire and Humber, and a very strong knowledge base that is able to support new innovations.

“Our job is to help create an environment where innovation can thrive, and where possible, provide support to get ideas off the ground. “In the current economic climate, this is a role we take very seriously, and we will continue to support our regional businesses.”

Small companies wishing to apply for R&D grants can do so via the regional Business Link whilst the large company scheme will be open for applications in the Autumn.