The Technology Strategy Board has reduced the cost of its UK-wide Knowledge Transfer Partnerships (KTP) programme for SMEs, to encourage more businesses to take part despite financial uncertainty.

Starting from today, organisations participating in the KTP programme will receive a cash payment, reducing their contribution from 33 per cent to 25 per cent for one year.

The KTP programme gives organisations access to the knowledge and skills base in the UK’s universities, colleges and research bodies.

As part of the programme, recent graduates undertake a project working in an organisation aiding staff, while building themselves the foundations for a career in business.

Pete Munday, national programme manager for KTPs at the Technology Strategy Board said: “Organisations that participate in KTPs have been shown to derive great benefit from their participation. The current economic conditions are making participation in KTPs more difficult for SMEs.

“Government and the Technology Strategy Board is therefore prepared to cover a bit more of the risk so that these companies or organisations are better placed to exploit the upturn when it arrives.”