New research has found that Scotland has received more than the national average of UK Government innovation funding, but almost half what some parts of the UK have claimed. 

In its study, innovation funding specialist Catax said that businesses across the UK have enjoyed £12.3 billion of grant awards from government innovation agency, Innovate UK, since 2003.  

In that time, Scotland has benefitted to a greater extent than all regions of the UK except the North East, West Midlands and London, once adjusted for business population.  

Over the time frame, 309,100 Scottish businesses have received £835.7 million in grants, equivalent to £2,704 each. This is slightly higher than the national average of £2,563. 

However, with businesses in the North East having received awards equivalent to £6,504 per business, Scottish businesses have received 58.4% less than the region. In gross terms, 132,220 businesses from the North East have received a total of £859.9m. 

Meanwhile, London saw 817,900 businesses share £2.5bn, or £3,131 each. 

For the other devolved regions, Welsh companies took £1,623 each and Northern Irish companies brought in £1,465 each, coming second and third from the bottom.  

Companies from the North West brought in the least grant funding, £1,039 each. 

The disparity has improved only slightly in the past five years and is still cause for concern. The North East was still the biggest recipient (£2,586 per business) between 2017 and 2022, while the North West continued to benefit the least (£473 per business).  

Grant funding nationally equalled £1,093 per business over the past five years.  

For Scotland, it was still above the national average and the third highest ranking destination, with 344,680 companies bringing in a total of £440.3m, or £1,278 each. 

In addition, the University of Strathclyde has been offered the biggest grant award in Scotland over the last five years. The £94m award went towards the Advanced Forming Research Centre aimed at growing UK manufacturing. 

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Meanwhile, the University of Glasgow received £31.7m for the Living Laboratory, which will realise the full potential and benefit of precision medicine, while also making healthcare savings. 

The University of Edinburgh received the third biggest grant, £22.5m to establish the Global Open Finance Centre of Excellence to unlock the potential of using customer data as a force to improve lives. 

The results of the study are a reminder that many firms need to take greater advantage of the funding opportunities on offer. Lack of awareness continues to hinder applications.  

Catax Group Head of Grants Karen Taylor commented: “Scottish businesses are making good use of government innovation grants compared to the UK average and this all bodes well for the research and development.   

“It suggests that the message about the availability of grant funding has really got through in Scotland. This is what we need more of in the rest of the country. Levelling up only comes through mass adoption of this kind of innovation funding.” 

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