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. Find out more  

The R&D grant aims to support our priority areas for economic transformation. These are:

• Creating an internationally competitive energy transition industry in Scotland: We will support the projects that best help position Scotland as a leader in clean energy by attracting investment, scaling supply chains, selling globally and accelerating commercial deployment
• Scaling the impact of Scotland’s innovation strengths into high-growth industries of the future: Turning cutting-edge R&D into world-leading businesses of scale in key future industries, from life sciences to quantum, FinTech and space
• Driving capital investment to deliver a step-change in Scotland’s productivity: Ensuring Scottish businesses can unlock capital investment to boost company productivity and supporting our ambitions to make Scotland a high-wage economy

Funding is discretionary, so even if your project meets all the minimum requirements, it does not mean your project will be funded. We support the projects that, in our view, deliver most strongly against our strategic ambitions. 

Different levels of funding are available, depending on the size of your business. The level of support we'll offer depends on how much support your project needs and on the economic benefits of your project.

To deliver the scale of economic transformation that we seek, we are looking for projects that represent at least £1 million of company spend. 

To qualify for funding, your project needs to meet all of the scheme criteria below, as a minimum. If you do meet all of the criteria it does not mean your project will be funded, we will only select the projects that we view as having the highest impact.

 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. This includes demonstrating that alternative funding options have been explored and that our contribution is required to realise the full commercial and economic 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

If your project is located in the Highlands and Islands or the South of Scotland, you should contact to your local enterprise agency in the first instance for funding advice.

Contact Highlands and Islands Enterpriseopens in a new window 

Contact South of Scotland Enterpriseopens in a new window 

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. In certain cases, the support rates for these projects might be slightly higher than the support stated. 

The minimum grant considered is £250,000.

Please note that, under certain circumstances, some or all of the grant may be repayable.

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, such as trade union recognition
• Payment of the Real Living Wage to all employees over the age of 16, including apprentices 
• Investment in workforce development
• No inappropriate use of zero hours contracts
• Take action to tackle the gender pay gap and create a more diverse and inclusive workplace
• Offer flexible and family friendly working practices for all workers from day one of employment
• Oppose the use of fire and rehire practice
• A credible plan in place to reduce operational 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.