Research and development (R&D) grants

Am I eligible for R&D funding?

All sectors are eligible. 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
• 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
• Your project is located in the Highlands and Islands or southern Scotland – you should apply to your local enterprise agency for funding instead

What level of funding is available?

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. The same levels of support can be provided as stated above. 

Project assessment

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.

Fair work and net zero criteria

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 and employee engagement, such as trade union recognition
• Investment in workforce development
• Action to tackle the gender pay gap and create a more diverse and inclusive workplace
• No inappropriate use of zero-hours contracts
• Payment of the Real Living Wage
• Flexible and family-friendly practices
• No fire and re-hire policies
• Actions to ensure your business has a credible plan in place to reduce its greenhouse gas emissions to net zero by 2045, at the latest

Get Real Living Wage guidance from the Living Wage Foundation

Read about our net zero ambitions

How to get started

First, you'll need to download and complete an enquiry form to give us an overview of your project.

We’ll review your information and provide feedback.

If appropriate, an appraisal specialist will contact you to set up a meeting and take you through the application process.

Download an enquiry form (Word, 30.1kB)

Confidentiality

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.