The grants for research and development are intended to encourage companies to drive forward the development of innovative new products, which will help them to grow and become more competitive, by mitigating some of the financial risk associated with the new product development.
Of the funding available, £18.5m will support innovation within regional SMEs, which form over 99% of the region’s business stock. The Grant for Research and Development (GRD) will provide up to 60% of a compay’s R&D costs, with the other 40% being met by themselves. It is anticipated the funding will be able to support at least 185 projects across the region over the next five years.
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Yorkshire Forward's Head of Enterprise, Alex McWhirter, explains: "Innovation is vital to business growth and this funding comes at a particularly apt time for small businesses.
"We are finding that in the face of the 'credit crunch' innovative small businesses have the opportunity to thrive because the economic climate is affording them to be more competitive in the global marketplace and further contribute to the growth of our regional economy."
A second fund, worth £25 million has been established for large companies in the region, aimed at accelerating the development of innovative new products.
This will be the second round of funding for the region's IRD Programme, which has previously supported 19 companies in the region, including Pace and AH Marks.
Speaking about the scheme for large company R&D grants, Alex McWhirter added: "In a climate when companies of all sizes are struggling to access finance for new developments, these grants should help our regional businesses retain their competitive edge."
(JM)
