Innovation grants are a powerful tool for advancing research and development projects within businesses of all sizes. However, numerous misconceptions circulate about how these grants work, their accessibility, and their usage. Here is a brief excerpt of what one of our experts  Dr Chloe Sharp Head of Grants said about some of the common misconceptions about innovation grants taken from our webinar: Unlocking Opportunities: What are Innovation Grants and are you eligible?

Grants as Revenue

Many assume that grants are a form of revenue. However, grants are specifically aimed at funding designated projects and are not intended as direct income for general business use. They must be used strictly according to the project plan approved during the application process, with a clear allocation of funds to specific project-related expenses.

Grants Can Be Used for Any Expense

Contrary to the belief that grants are a carte blanche for any expense, there are specific costs that are eligible under a grant. Typically, eligible costs include labour and subcontracting up to a certain threshold, while capital expenditure on expensive equipment may be restricted. Grant applications require a detailed justification for each expense, ensuring that every dollar is spent towards direct project activities.

Grants are Only Accessible in Financial Difficulty

Innovation grants are not emergency funds to be accessed only in times of financial distress. Instead, they are designed to support businesses in achieving growth through innovation. These grants aim to stimulate technological advancements and operational improvements, irrespective of a company’s financial health.

Grants Require Political Connections or Lobbyists

Another myth is that grant approval requires political influence or hiring lobbyists. In reality, entities like Innovate UK use a blind assessment process conducted by multiple assessors to eliminate bias. This process ensures that grants are awarded based on the merit of the project and the thoroughness of the application, without external influence.

Innovation Grants are No Longer Available

Contrary to the belief that grant programs have dried up, there are numerous innovation grant opportunities available. These grants cater to a variety of industries and innovation stages, reflecting ongoing support for research and development across sectors.

Conclusion

Understanding the realities of innovation grants can significantly impact your ability to secure funding and successfully manage a grant-funded project. By dispelling these common myths, businesses can better navigate the complexities of grant applications and use these funds to propel their innovative projects forward. If you’re interested in exploring whether grants are suitable for your business and wish to discover the available options, please reach out to our grants team below or learn more about the tailored Grants services we provide.