Welsh firms lagging behind UK as a whole in grant funding from Innovate UK

Wales is failing to secure a proportionate share of UK Government innovation grant funding seen as key to boosting productivity levels.

New research from innovation spending specialist Catax, shows that based on its business population, Wales has received around 66% of the UK average from the Westminster government’s innovation agency, Innovate UK, over the last decade- although the gap has narrowed over the last five years.

Businesses across the UK have drawn down £12.3bn of grant awards from Innovate UK since 2003.

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However, in that time, Welsh businesses have received less money than any other part of the UK except the North West and Northern Ireland, when adjusted for business populations.

Wales has secured an equivalent of £1,623 per business, while the North East has come out on top, netting four times that amount — the equivalent of £6,504 per company. Total grant funding from Innovate UK equates to £2,563 per business across the UK.

Applicants in Wales have been awarded £319m in total. The largest grant over the last five years was the £51.2m given to the Compound Semiconductor Applications (CSA) Catapult, in Cardiff, which aims to make the UK a global leader in compound semiconductors.

Other parts of the UK trailing the UK average are the North West (£1,039), Northern Ireland (£1,465), the East of England (£1,922), the East Midlands (£2,084) and Yorkshire & Humber (£2,204).

Grants awarded per region, adjusted for business population

ALL YEARS
Region	No. of Businesses	Total Grant Awards	Total Grant Award per Business
North East	132,220	£859,986,288	£6,504
West Midlands	373,840	£1,473,444,784	£3,941
London	817,900	£2,560,463,611	£3,131
Scotland	309,100	£835,779,637	£2,704
South West	460,760	£1,233,309,218	£2,677
South East	777,820	£2,014,084,747	£2,589
Yorkshire and the Humber	342,200	£754,227,131	£2,204
East Midlands	316,900	£660,542,048	£2,084
East of England	499,800	£960,702,163	£1,922
Wales	196,880	£319,441,097	£1,623
Northern Ireland	117,060	£171,495,283	£1,465
North West	465,640	£483,602,376	£1,039

THE LAST FIVE YEARS
Region	No. of Businesses	Total Grant Awards	Total Grant Award per Business
North East	154,860	£400,543,920	£2,586
West Midlands	461,240	£888,899,335	£1,927
Scotland	344,680	£440,383,535	£1,278
South East	909,940	£1,102,291,480	£1,211
London	1,085,520	£1,229,345,533	£1,132
Wales	209,200	£215,457,512	£1,030
South West	544,940	£504,154,437	£925
East Midlands	371,840	£328,607,391	£884
Yorkshire and the Humber	416,900	£350,109,770	£840
East of England	580,400	£480,273,571	£827
Northern Ireland	132,120	£97,392,043	£737
North West	548,640	£259,732,712	£473

However, Wales’ position has improved significantly over the past five years, rising to be the sixth highest recipient at £1,030 per business. Grant funding UK-wide has been £1,093 per business over the past five years.

Karen Taylor, group head of grants at Catax said: “There is great variation in the level of innovation funding being received around the UK, but the promising news for Wales is that its businesses are increasingly recognising the grants system. Their efforts to claim Wales’ fair share of grant funding now see it within touching distance of the UK average, though these firms still have some way to go before they challenge areas like the North East. Hopefully it can build on this success and encourage even more businesses to seek the innovation funding they need.”

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