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Funding Guide

Funding for this framework is now open. Click Here to find out more and apply today

Priority 2 - Action Area 2 (AA2-2)

Encouraging Innovation to Improve Productivity in All Companies

Funding for projects which provide support to raise SME competitiveness by: improving the exploitation of Intellectual Property; accelerating the implementation of new processes; expanding the development of new products for market; using new technologies; and new leadership and management capabilities and approaches.

AA2-2 focuses on: target regional sectors; and businesses in any eligible sector with growth potential, a competitive edge in the market, and a commitment to new ways of working

Target regional sectors

  • Advanced Engineering & Materials: chemicals, aerospace, automotive, and advanced flexible materials
  • Biomedical: biotechnology, pharmaceuticals, and medical devices
  • Digital & Creative
  • Energy & Environmental Technologies
  • Business & Professional Services
  • Food & Drink

Rationale

Innovation is key to business development. Global competitiveness has increased the need for businesses to continually innovate in their products and processes.

The 2000 DTI UK Innovation Survey found that 43% of businesses in the Northwest were “innovation-active”. The 2005 DTI UK Innovation Survey found that 58% of businesses in the Northwest were “innovation-active”. But more improvement is needed, especially in small firms – as the bulk of R&D in Northwest businesses is concentrated in a few major companies.

Evidence shows that Northwest businesses have been slow to maximise opportunities associated with e-commerce. The 2005 DTI UK Innovation Survey found that: 16% of small businesses bought online; 17% sold online, and 4% provided an online after-sales service.

Lack of leadership & management skills is a critical factor in the low numbers of “innovation-active” SMEs. The under-performance of Northwest businesses can be partly attributed to the levels of leadership & management skills the region’s businesses.

Eligible Activities

There are four types of project eligible for funding under AA2-2

  • Strand 1: Innovation Brokerage
  • Strand 2: Manufacturing Advisory Service/Agenda for Change
  • Strand 3: Knowledge to Innovate
  • Strand 4: Other Advice Services

For more information on each of these strands, download the Investment Framework.

AA2-2 Strand 3 and 4 are currently open to new bids. To discuss your project idea please contact Hazel Catt.

Notes

There is scope for a small number of inter-regional projects in AA2-2, provided the project has developed from the region’s participation in a Fast Track network, or inter-regional or trans-national networks of regional significance. Such projects should influence programme delivery.