Government stumps up £75m to encourage SMB tech investment

Report published today reveals a multitude of initiatives to encourage innovation and help economic recovery

The government is dangling a £75m carrot in front of SMBs to encourage them to invest in technology.

Several incentives intended to spur companies to innovate and grow have been published as part of the government’s Innovation and Research Strategy, which reveals that funding to support technology innovation will be delivered by the Technology Strategy Board.

Iain Gray, chief executive of the Technology Strategy Board, said: “A good deal of the innovation that happens in the UK comes from SMEs and with innovation comes business growth.

“This new package of measures will help to put these businesses at the forefront of the country’s economic recovery. This package enables the Technology Strategy Board to do even more to stimulate business-led innovation in its leading role as the UK’s innovation agency.”

The Technology Strategy Board will extend its Launchpad initiative, following the development of the Tech City cluster in London, to other parts of the UK.

It is also planning a new innovation voucher programme to support collaboration between SMBs and external knowledge providers such as universities and the Catapult centres.

Additional funding will be made available for the Smart scheme – previously known as Grant for Research and Development – which offers funding to SMBs to engage in R&D projects from which successful new products, processes and services could emerge.

According to the announcement, the SBRI programme will also receive additional funding. The programme uses the power of government procurement to drive innovation by encouraging companies to engage with the public sector to solve specific problems and during the early stages of technology development.