Research and development (R&D) grants

If your company is looking to research and develop a new product, process or service – or significantly improve an existing one – our R&D grants can offer a range of support for your project.

For this grant, we’re interested in new things. 

Your project must be new and innovative – something that your company hasn’t done before. It could be something you’re working on independently or with a commercial partner, or you could be carrying out technical work as part of a collaboration.

We offer funding for innovation that could improve business competitiveness, encourage further R&D for your company and benefit the Scottish economy.

We're also looking for projects that fit with our new focus on economic transformation. You can find out more about this here  

Examples of previous R&D grants

Some of our previous R&D grants include:

• £1.28 million to support a state-of-the-art salmon hatchery
• £97,200 to support a new virtual reality experience
• £2.6 million to support the world's first AI-based project management software

All sectors are eligible. You may be eligible if:

• Your business is based in or planning to locate in Scotland, in the area served by Scottish Enterprise
• Your project represents a significant innovation for your company
• You can demonstrate that your idea has commercial prospects
• You have the necessary management and technical expertise and resources, either in-house or brought-in, to make the project a success
• The project cannot go ahead without the R&D grant or would proceed on a slower timescale or with a significantly reduced scope, which would have a detrimental impact on the commercial opportunity
• Both the project and the business are financially viable

You may not be eligible if:

• You’re a sole trader or charity
• Most of the R&D activity is being undertaken by third parties
• Work has already started or commercial contracts are in place
• The project focuses on routine or periodic changes or updates to products, processes or services and other operations, even if such changes may represent improvements
• The end product will have a known adverse effect on the environment and/or society
• Your project is located in the Highlands and Islands or southern Scotland – you should apply to your local enterprise agency for funding instead

Small or medium-sized enterprises (SMEs) working independently on innovative projects may receive a grant to cover between 35% and 50% of their eligible project costs.

Large companies working independently on innovative projects may receive a grant to cover between 25% and 40% of their eligible project costs. 

We can also support consortiums (consisting of two to six companies) that are carrying out eligible R&D. The same levels of support can be provided as stated above.

During the selection process, we’ll consider:

• The nature of the R&D
• The creation or safeguarding of R&D jobs that pay the Real Living Wage, and the overall economic impact of the project 
• Links to other local companies, perhaps for materials or specialist knowledge
• Global market opportunity
• Intellectual property

We’ll ask for information, documents and evidence that demonstrate your project is suitable for grant funding. You’ll need to show that you meet the criteria, and you’ll need to make it clear why you need our support to make this activity happen, along with possible outcomes if support isn't available.

All companies that are awarded R&D funding need to meet the Scottish Government’s approach to Fair Work and net zero. This includes:

• Appropriate channels for effective voice and employee engagement, such as trade union recognition
• Investment in workforce development
• Action to tackle the gender pay gap and create a more diverse and inclusive workplace
• No inappropriate use of zero-hours contracts
• Payment of the Real Living Wage
• Flexible and family-friendly practices
• No fire and re-hire policies
• Actions to ensure your business has a credible plan in place to reduce its greenhouse gas emissions to net zero by 2045 (at the latest)

Get Real Living Wage guidance from the Living Wage Foundation opens in a new window  

Read about our net zero ambitions 

Your application for R&D funding may be referred to other Scottish Enterprise departments, government agencies and non-government bodies with sources of technical expertise for help in appraisal.

External technical, financial and intellectual property advisers will undertake due diligence checks on applications.

We have confidentiality agreements with each of the organisations to ensure that all material sent to them relating to grant applications is handled in strictest confidence.

The UK Intellectual Property Office has confirmed that R&D does not constitute public disclosure for patenting purposes. The information provided in confidence is not in the public domain.

We’ll ask for information, documents and evidence that demonstrate your project is suitable for grant funding. You’ll need to show that you meet the criteria, and you’ll need to make it clear why you need our support to make this activity happen, along with possible outcomes if support isn't available.