http://www.nwda.co.uk/pdf/BSSP_ProductSummaries

Solutions for Business Portfolio – Product Summaries Export Credit Insurance.....................................................................................2 Grant for Business Investment (GBI).................................................................3 Maximising Foreign Direct Investment..............................................................5 Accessing International Markets........................................................................7 Developing your International Trade Potential..................................................9 Train to Gain....................................................................................................11 Business Collaboration Networks....................................................................13 Business Premises..........................................................................................15 Business Growth: Specialist Facilities and Environments...............................16 Starting a Business..........................................................................................18 Intensive Start-Up Support..............................................................................19 Starting a High-Growth Business....................................................................20 Manufacturing Advisory Service......................................................................21 Designing Demand..........................................................................................23 Innovation Advice and Guidance.....................................................................25 Coaching for High-Growth...............................................................................27 Enterprise Coaching........................................................................................29 Support to Lenders..........................................................................................31 Small Loans for Business................................................................................32 Understanding Finance for Business...............................................................33 Finance for Business.......................................................................................34 Improving Your Resource Efficiency...............................................................35 Environmental Land Management Funding....................................................36 Environmental Land Management Advice.......................................................37 Grant for Research & Development................................................................38 Collaborative Research & Development.........................................................39 Networking for Innovation................................................................................41 Knowledge Transfer Partnerships...................................................................43 Innovation Vouchers........................................................................................44 Low Carbon Energy Demonstration................................................................45

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Export Credit Insurance Helping UK exporters secure overseas contracts and invest overseas, by providing guarantees, insurance and re-insurance.

Purpose To benefit the UK economy by helping exporters of UK goods and services win business, and UK firms to invest overseas, by providing Governmentbacked guarantees, insurance and re-insurance against the risk of nonpayment when such support is unavailable from the commercial market.

Why offer public sector support?

To complement the commercial market by taking on the medium and long term payment risk due to commercial and political factors in markets where the private market is unwilling to take on those risks or has insufficient risk appetite.

Such risks are generally unattractive to the private market because they are long duration and correlated.

Government has greater leverage to maximise recoveries in the event of default and can wait longer for such recoveries, compared with private sector agents.

The rationale therefore, is that Export Credit Insurance is more efficient than the private sector.

In line with World Trade Organization requirements, the guarantees and insurance will be granted at premium rates that are not below those rates available to borrowers in the international capital market.

What will be offered?

Helps UK exporters to compete against foreign competitors by • • •

insuring export contracts for the supply of capital goods and services; providing loan guarantees to financial institutions so that they can finance exports; insuring investments in overseas projects.

Eligibility criteria Any person operating in the UK, who is exporting capital goods and services or is investing overseas, is eligible to apply for cover. Acceptance is subject to rigorous risk assessment of the exporter and buyer.

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Grant for Business Investment (GBI) GBI provides a grant to a business to support investment or job creation projects by a business that help it expand, rationalise, modernise or diversify.

Purpose GBI is designed for businesses that are looking at the possibility of investing in a deprived area, but need financial help to go ahead.

GBI has the aim of embedding sustainable improvements in the economies of the English regions by supporting investment projects by businesses currently operating in disadvantaged areas and by encouraging businesses to set up new establishments in these areas.

Why offer public sector support?

GBI seeks to address the current disparity in the economic performance of the English regions by promoting growth in disadvantaged areas.

GBI can also be used more widely to facilitate the economic activities of SMEs. This support reflects both the key role SMEs play in job creation and generating economic activity and the inherent difficulties they face in the market place.

What will be offered?

Typically, a grant is offered to support the acquisition of key assets, such as buildings, plant and machinery and to support the creation of new jobs or to safeguard existing ones. Financial support is also available in some cases to meet the costs of running a new small enterprise in its early years.

Successful applicants typically receive around 10-15% of a project's total eligible capital expenditure but support can vary depending on the need and quality of the project, its location and size and the size of the applicant. There is a minimum application threshold of ÂŁ10,000 assistance. Grant is normally calculated as a proportion of eligible capital investment or the cost of the jobs directly created by the project.

Funds are normally payable in instalments on reaching fixed capital expenditure and job targets, which are set out in a formal offer of support Eligibility criteria GBI is open to companies of all sizes operating within the Assisted Areas and to SMEs operating outside the Assisted Areas in areas designated as Tier 3 regions by the RDAs. Most businesses can apply for GBI, including businesses in the service sector that supply a national rather than local market, though projects in a number of specific sectors (e.g. primary agriculture, defence, steel, coal, shipbuilding, synthetic fibres, and health services) are ineligible for support. Applicants can

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be companies, partnerships or sole traders.

Large businesses can get GBI if their operations are located within an EU designated Assisted Area.

In order to obtain GBI support projects must deliver a positive contribution to the regional and national economies, must deliver an improvement in the productivity of the business and create or safeguard good quality jobs.

The business undertaking the investment project must be viable and the project must have a good chance of being self-sustaining by the completion of the investment.

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Maximising Foreign Direct Investment Information, advice and tailored help for potential and existing inward investors to help them with the decision to invest in the UK and, once invested, to develop their UK based business Purpose To increase the contribution of foreign direct investment to economic activity in the UK, including research and development (R&D) Why offer public sector support?

This product helps overcome potential barriers of critical importance to some investors, including understanding legal requirements, recruiting staff, obtaining visas for overseas staff, and finding suitable local suppliers.

What will be offered?

Support to overseas owned companies looking to set up or expand in the UK by providing a fully integrated advisory service, delivering the latest business intelligence through a global network of commercial teams.

Specific services include: •

Provision of value propositions tailored to the overseas headquartered company’s own development plans seeking to persuade the company of the benefit of locating in and growing from a UK base internationally

•

Key information on regulatory factors

•

Sector information and introduction to key sector networks

•

Support to build collaborative partnerships with UK businesses and centres of excellence

•

Assisting overseas entrepreneurs to develop innovative UK business opportunities

•

Continued support to companies once they have established

•

Links with a wide range of professional advisors to help businesses coming to the UK. Companies can search for lawyers, accountants, property consultants and a wide range of partner organisations on the UK Advisory Network for Inward Investors database.

Delivery of inward investment projects is lead by UKTI working closely with the R/DAs. UKTI Business Group (Sales Teams) is responsible for making the national proposition – with input from the RDAs in providing the regional

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proposition. Contact UKTI’s sales teams for more information.

The product also provides support to an existing inward investor looking to expand its business, open new offices, considering closure, relocation or export to new overseas markets. UKTI can help with: • new UK business opportunities • choosing a new UK location • represent business concerns within Whitehall • trading overseas Investor development (aka ‘aftercare’) is a tailored activity offered by UKTI and the RDAs to assist key companies and help them to operate effectively in the UK - identifying opportunities to help retain and grow their UK entity - and to compete globally This ongoing strategic discussion with companies is key to helping existing inward investors develop and grow. Advice is provided on the regulatory framework in the UK, and how best to work with legislative bodies; as well as selective 'trouble-shooting' to help investors with specific UK operational, regulatory or legislative concerns that are impacting adversely on their competitiveness.

Eligibility criteria New investors • • •

Overseas owned UK based companies Overseas owned companies potentially considering the UK as a location for investment or partnership Overseas based entrepreneurs attracted to the UK to do business

Investor Development •

Inward Investors established in the UK.

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Accessing International Markets Tailored information and other help in specific markets, for individual companies and for sectors or other groups of UK business for collective benefit, drawing on the commercial sections in UK Consulates, Embassies, and High Commissions overseas.

Purpose To strengthen UK productivity growth and future economic prosperity by overcoming barriers faced by UK businesses and sectors in specific overseas markets, which would otherwise limit the benefits gained from international trade.

Why offer public sector support?

Access to potential opportunities in markets for differentiated products and services depends significantly on information flows mediated through social networks, and in some sectors also through government to government networks. Firms or sectors seeking to enter a new market face barriers in gaining access to the relevant networks and information if they do not have support from a trusted intermediary who can facilitate access to appropriate contacts. Reputation benefits of promoting and showcasing UK capability are not fully internalised by individual firms, and warrant public subsidy.

What will be offered?

Most companies will either be brokered to or contact an International Trade Team (ITT) operating in each of the English regions or an individual International Trade Adviser (ITA) working in the ITT. For sector-based activity they are likely to approach UK Trade and Investment via a trade association or other multiplier.

Suitability for participation will be checked by UKTI, usually an ITA or UKTI sector team. Company will be told terms of participation including information on conforming to de minimis regulations for state aids purposes.

Company will participate in activity, which will help them break into new overseas markets, provide initial feedback and be paid grant where relevant.

Company details and service delivery will be placed on UKTI’s CRM system.

Eligibility criteria

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Eligibility is dependant on the tailored support being sought: •

Support for market introductions is open to all UK registered companies.

•

Support for market visits or for exhibiting at overseas trade shows is open to businesses falling within the EU definition of an SME and which are working with one of UKTI’s International Trade Advisors, or equivalent, and which are engaged in a trade development activity.

•

Support for sector events and for group delegations to overseas exhibitions is prioritised in accordance with high level strategic priorities identified, and in accordance with strategic marketing plans for individual sectors.

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Developing your International Trade Potential Information and advice to businesses who are considering exporting or entering new overseas markets, or who have limited experience in exporting or other aspects of international business development.

Purpose To strengthen UK productivity growth and future economic prosperity by ensuring that UK businesses, especially high productivity, innovative, and research and development (R&D) intensive businesses, are able to identify and exploit opportunities in overseas markets successfully, and to respond rapidly and effectively to changing international opportunities.

Why offer public sector support?

Companies may not necessarily realise the benefits of exporting. Public sector intervention is justified by the wider benefits from the dissemination of knowledge about exporting that are not necessarily internalised by companies, and hence warrant some subsidised public support to ensure these accrue to wider business community and the UK economy.

What will be offered?

Companies will either be brokered to or contact an International Trade Team (ITT) operating in each of the English regions or an individual International Trade Adviser (ITA) working in the ITT. Suitability for participation will be checked by an ITA. Company will be told terms of participation including information on conforming to de minimis regulations for state aids purposes.

Company will participate in the activity which will provide advice tailored to individual needs including review, to support the company in understanding its export capabilities, or its export readiness if not yet exporting and to identify priorities for further support and potential business development.

Company details and service delivery will be placed on UK Trade and Investment’s CRM system.

• UK registered companies of all sizes can receive information and advice on beginning to export or seeking to do business in new overseas markets.

•

Small-medium sized enterprises seeking to enter new markets can access co-funding for agreed export capability development projects.

•

Small-medium sized enterprises who are either ‘new to export’ or innovative and between 1 and 5 years old can access support for general export capability.

Eligibility criteria

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Train to Gain Train to Gain supports employers of all sizes and in all sectors to improve the skills of their employees as a route to improving their business performance.

Purpose To improve productivity, business performance and individual achievement through investment in the skills and competencies of the workforce and potential entrepreneurs, helping the UK to become a world leader in skills by 2020.

Why offer public sector support?

The UK’s workforce is poorly skilled compared to major competitor countries.

This contributes to our relatively poor productivity, the underperformance of many businesses and poor outcomes for low-skilled individuals in terms of social inclusion, employment and earnings.

Businesses do not invest enough in skills to overcome this problem and ensure that the UK workforce has world class skills. There is a lack of demand for skills from business, with a substantial proportion of employers not training their staff at all, citing barriers around finding and organising suitable training and cost as contributing causes. When they do train the length of courses compares unfavourably to other EU countries and tends to focus on the more highly skilled.

The principal argument for government intervention in supporting businesses train their staff is that some of the benefits of employer investment in training is captured by others, particularly when investing in the training of the least skilled and qualified. Part of the solution is for employers to be supported in realising the business benefits in investing in skills solutions, but also in being supported to the right solution through brokerage.

UK entrepreneurial activity is also low in the UK compared to that in other countries in part due to lack of practical skills for business, particularly amongst certain social groups resulting in the under-performance of many businesses and poor outcomes for low-skilled individuals in terms of social inclusion, employment and earnings. There is, therefore, a strong equity case to improve the skill levels of those who are economically inactive or from disadvantaged groups – and for whom a lack of basic skills acts as a barrier to start up.

What will be offered?

Train to Gain is the national skills service that support employers of all sizes and in all sectors to improve the skills of their employees as a route to improving their business performance. The service offers skills advice on everything from Investors in People, basic skills through to leadership and management training. This solution will include access to any public funding or subsidies available to the business. Public funding and subsidies are

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available for: • Low skilled employees to help them gain their first full basic skills qualification, first full level 2 qualification (equivalent of 5 GCSEs at A-C) and, depending on sector and geographical location of organisation and chosen provider subsidies for subsequent level 2 qualifications; • Fully-subsidised level 3 qualification (equivalent to 2 A-levels) if a level 2 qualification is not held. Depending on sector and geographical location of organisation and chosen provider, subsidies for subsequent qualifications to update skills or gain a more technical and specialised qualification, including first level of management; • Employees needing higher level skills subsidised support to achieve first full level 4 (equivalent to first degree), depending on sectoral and geographical location of business and chosen provider; • Subsidies for apprenticeships which includes key skills, technical skills, and level 2 and level 3 qualifications depending on sector and geographical location of business and chosen provider; and • Businesses with 10 to 250 employees, subsidised support for owners/managers to develop their leadership and management skills at various levels.

Eligibility criteria All employers, including the self-employed

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Business Collaboration Networks Bringing businesses together to address business/commercial opportunities or challenges which they could not address alone.

Purpose Business Collaboration Networks will bring together businesses to work on common challenges in fields of commercial activities that are essential for developing and strengthening regional economies.

Why offer public sector support?

This product will encourage collaboration between businesses operating in key regional sectors and markets to exploit opportunities that stimulate and accelerate economic growth.

Business collaboration networks provide participants with the opportunity to work collaboratively to develop and pursue opportunities that they are unable or unwilling to exploit alone. These opportunities are likely to have positive impacts on the longevity, productivity and turnover of participating businesses.

Businesses may be prevented from participating in collaborations because: • • •

participants may be unaware of the benefits of collaboration; there may be problems internalising the benefits of the collaboration; participants may not know or be able to agree how benefits will be divided up, because they are not clear in which part of the value chain the benefits will occur, or what the benefits will be.

What will be offered?

Funding will be provided to procure intermediaries to establish and operate business collaboration networks. The intermediaries will facilitate access to a range of collaborative support activities.

The exact range of support provided via the intermediaries to the businesses participating in the networks will depend on the focus of the collaboration network and the size and attractiveness of the opportunity but may include the following: • •

Awareness campaigns about the direct and non-direct economic benefits of collaboration; Collaborative work groups and consortia working on developing and exploiting specific opportunities such as: Market exploitation; Supply chain development; Commercial exploitation of processes, technologies and products; Sharing of best practice; Marketing and distribution channels; Image; Environmental impact and sustainability; Encouraging start-ups, spin-outs and other means of strengthening the network; and Bespoke higher level, technician, leaderships and specialist skills needs and challenges.

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These opportunities need to be effectively linked together to produce solutions which meet the needs of businesses in the network.

• Meeting based discussion forums on specific topics such as future proofing the businesses within the network; • Disseminating the discussions and conclusions of the forum and other network specific information; • Facilitating inter-linking of similar collaborative groups in other parts of Europe; and • Facilitating cross-sector collaborations by inter-linking with collaborative groups in related sectors within the same region or elsewhere in Europe.

Eligibility criteria Intermediaries who have a proven track record of successful facilitation of business collaboration, or could demonstrate the ability to undertake the facilitation of business collaboration, and who will be private or public sector firms or organisations led by individuals with relevant experience.

Network participants will primarily centre around small and medium sized firms. The definition of a small and medium sized firm adopted is the European definition of a firm having <250 employees, a turnover of up to €50 million or balance sheet total of €43 million.

For businesses to participate in a business collaboration network they must also meet the following criteria: • • • •

Be in a priority sector, market, technology or other area identified as critical to the successful delivery of the relevant regional or local economic strategy; Looking to diversify into a priority sector market, technology or other area identified as critical to the successful delivery of the relevant regional or local economic strategy; Face opportunities that are more effectively addressed through collaboration Be willing and able to collaborate with related businesses

The exact composition of the network will depend upon the sector(s) it is representing. Some business collaboration networks will have more large firm participants than others.

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Business Premises Provision, via intermediaries, of cost-effective, managed workspaces and business parks in priority localities to help new & existing businesses grow.

Purpose This product is designed to facilitate growth for businesses (in areas critical to the delivery of regional or local economic strategies) by providing supportive physical environments to help new and existing businesses prosper and grow.

Why offer public sector support?

Business premises could be provided as a part of local/regional economic strategy to regenerate a deprived area - as the locality and types of business to which it would provide services would be particularly unattractive to the private sector if located in such areas.

Business premises will enable businesses to benefit from a mix of facilities that they would not be able to access in the market place in order to improve business growth and business survival rates.

Business premises provide a supportive environment in which to nurture and grow sustainable businesses which will help the growth of the local economy in which they are located.

What will be offered?

Funding will be provided to intermediaries to establish and operate costeffective, managed workspaces and business parks in priority localities where such facilities are not provided by the private sector.

Eligibility criteria The target customers for business premises are potentially wide and will include: • New businesses looking to start-up within the local area; • Small and medium sized firms. The definition of a small and medium sized firm adopted is the European definition of a firm having <250 employees, a turnover of up to €50 million or balance sheet total of €43 million; and • Large companies will be able to act as an anchor tenants within limitations determined when the project is initially approved. Business parks which operate as mixed use sites will only attract funding for those elements occupied by new and/or small and medium sized firms.

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Business Growth: Specialist Facilities and Environments Provision, via intermediaries, of cost-effective, supportive shared premises (with specialist facilities e.g. specialist knowledge, equipment and technologies) to help new & existing businesses grow.

Purpose This product is designed to facilitate growth for businesses in priority sectors by providing supportive physical environments with appropriate specialist knowledge and facilities to help new and existing businesses prosper and grow.

This product differs from the property based shared business support environment in that it offers access to specialist support, knowledge and equipment as well as a physical environment for businesses to operate.

Why offer public sector support?

Specialist business growth facilities will be provided on a regional or local level where there is an identified market failure in that the market will not provide this type of facility, or where there is an equity rationale for this type of business support intervention.

Direct access to facilities will enable businesses to benefit from a mix of specialist equipment, facilities, knowledge and support which they would not be able to access in the market place. The mix of physical and specialist business support will allow businesses to improve and accelerate business growth and improve business survival rates.

Specialist business growth facilities provide a supportive environment in which to nurture and grow sustainable businesses (including through access to new ideas and technologies) within the highest priority sectors and areas of the relevant economic strategy.

What will be offered?

Funding will be provided to intermediaries to establish and operate costeffective, supportive shared premises which include a range of specialist facilities such as access to specialist knowledge, equipment and technologies.

Eligibility criteria These premises will be targeted at businesses from within the priority sectors as set out in regional and local economic strategies.

To be eligible for support by a shared business support environment or to access specialist equipment businesses must display entrepreneurial and growth potential and match the purpose and entry criteria of the facility.

The target customers for specialist business growth facilities are potentially wide and will include: â&#x20AC;˘ New businesses looking to start-up in a local area which have specialist needs or display growth potential;

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•

• • •

Small and medium sized firms. The definition of a small and medium sized firm adopted is the European definition of a firm having <250 employees, a turnover of up to €50 million or balance sheet total of €43 million.

Large companies will be able to act as an anchor tenant on a large business/science park but these companies within limitations determined when the project is initially approved.

Inward investors which are likely to be existing firms of various sizes looking to enter a particular local market and must be a priority business for the regional and/or local economic strategy.

Spin-outs or spin-in businesses needing specialist help.

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Starting a Business Free access to clear information and advice for anyone thinking about starting a business in England.

Purpose To achieve an increase in enterprise activity leading to a higher rate of business start-up and survival and an increase in new business PAYE (Pay As You Earn) and VAT (Value Added Tax) registrations.

Why offer public sector support?

The creation of dynamic businesses is a key driver of economic prosperity.

Only a small percentage of people thinking about starting a business go on to do so. There are market failures, particularly information failures, which prevent some of those with an interest in starting a business from doing so.

This product aims to achieve a higher rate of business start-up and survival.

What will be offered?

(1) Web based information - the www.BusinessLink.gov.uk website (2) Telephone information and support - Business Link (3) Self help materials-guides, diagnostic tools and skills development (from the website and from Business Link providers) (4) One-to-many workshop programmes (5) In certain, limited, circumstances, one-to-one diagnostic support from Business Link (managed or sub-contracted by Business Link). The information and expertise can cover: (a) Compliance and regulatory reform (b) Business strategy and business planning (c) Finance - including getting paid (d) Business idea development, market research and market understanding (e) Employing people (f) Managing and running a small business (g) Advice on premises and Health & Safety and (h) Information Communication Technology (ICT).

Eligibility criteria Anyone at the point of starting a business in England can access this product.

Clients should possess entrepreneurial aspirations and be committed to active exploration of starting a business. Support is available to all types and sizes of new business and those interested in starting a business regardless of sector.

(One-to-one diagnostic support is available in some limited circumstances where SAB has already been accessed but next steps or eligibility for further support remains unclear or where client confidentiality means that effective diagnosis can only be achieved with a one-to-one discussion).

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Intensive Start-Up Support Free advice and mentoring (in addition to that offered by Starting A Business) for individuals and groups actively exploring starting businesses in England who are targeted by their RDA as underrepresented in self-employment and business ownership.

Purpose This product should lead to the creation of additional businesses and improved survival rates. The additional support provided is intended to overcome specific barriers and address current inequities.

Why offer public sector support?

This intervention is justified on equity and economic grounds. Start-up is a transition from interest to start-up and trading. The support is therefore not exclusively limited to the moment of start-up. There will be early stage, tailored support for those in target groups to improve the chances of their businesses surviving (social, financial and structural issues mean that for certain groups surviving this early stage is made more difficult. This is about compensating for wider disadvantages not propping up poor businesses and/ or bad management). The product will contribute to improved business creation and survival rates and thereby help to drive economic prosperity.

What will be offered?

This product builds on the 'Starting A Business' product through: (1) Additional one-to-many workshops covering the range of business issues encountered at start-up - these may be delivered in appropriate settings and with suitable methodologies to meet the needs of the client group; (2) Personalised support from an adviser, coach or mentor who can work with the individual or business to overcome particular barriers; (3) Support from up to 6 months before start-up to 18-36 months after start-up - and continuity from any pre-start support through the coaches delivering the Enterprise Coaching product; Eligibility criteria The product is targeted at individuals and groups - such as women, people with disabilities and certain ethnic groups - who are thinking of starting a business in England. Within an annually negotiated cash cap, each Regional Development Agency (RDA) will determine - using its Regional Economic Strategy (RES) - which individuals or groups to assist through this product.

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Starting a High-Growth Business Extra help for new businesses (and people developing a business concept) identified as having high-growth potential.

Purpose This product gives businesses with high-growth potential access to sophisticated, multi-faceted support packages to enable them to navigate the above average lead-in time to profitability and the increased complexity of business issues they experience e.g., through supporting businesses to create capacity for high growth. Without this support, some of these businesses will not be created, and others will achieve sub-optimal growth rates.

Why offer public sector support?

There is a strong relationship between business creation and high levels of economic growth. Businesses eligible for this product will potentially have an above average impact on productivity, employment and economic growth.

High growth businesses are often likely to under invest in business support.

More high growth businesses maturing to their full size potential, without delay, will help improve our long term economic performance.

What will be offered?

In addition to the information and advice offered by Starting A Business, a dedicated person will provide free mentoring, coaching and/or advice and work with the business to bring together a package of support - from business concept to launch and for 18-36 months after trading starts. The free package of support includes mentoring, coaching and/or advice on: (1) The appropriate business model (2) Identifying the funding requirements and funding sources (3) Raising finance for getting the business started and thriving (4) Putting together the business plan (5) Customers and supplier contacts (6) Putting a team together with complimentary skills (7) Managing the growth of the business (8) Intellectual property and protection (9) Maximising international opportunities (10) Access to external expertise.

Eligibility criteria The product is aimed at start-up businesses with high growth potential in England; specifically, firms with the potential to achieve turnover of £500k £1m or higher within 3 years of starting trading will be targeted. No business sectors are excluded. The criteria to identify businesses (designed to spot growth potential and not “pick winners”) include: (a) Aspiration and ambition for the business (b) Capacity and capability of the owner/manager or start-up team (c) information on markets and on products and services (d) Financial projections and indicators.

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Manufacturing Advisory Service The Manufacturing Advisory Service aims to address the practical needs of British manufacturers by delivering hands-on advice and assistance from experts in a wide range of manufacturing disciplines.

Purpose The aim of MAS is to deliver a service that results in increased productivity and competitiveness for manufacturing businesses, particularly SMEs, using a modern definition of manufacturing. (The definition is that used by the Institute for Manufacturing, Cambridge University, it covers the full cycle of activities from research, design and development, production, logistics, and service provision to end of life management).

Why offer public sector support?

For a generation, the United Kingdom’s manufacturing sector has accounted for a smaller share of the economy than other economically advanced countries - including countries with higher labour costs than the UK. The under representation of the manufacturing sector, relative to other advanced economies, is a missed opportunity for two reasons: • First, the manufacturing sector has a higher productivity level in the UK than the rest of the economy, therefore the overall productivity level of the UK would be higher if we had a larger manufacturing sector. Higher average productivity standards result in higher economy wide output and living standards.

•

Second, manufacturing businesses are buyers of a number of local services including transportation and equipment servicing and maintenance, therefore a larger manufacturing sector will create new opportunities for the development of service businesses which support a larger manufacturing sector.

What will be offered?

The product is the provision of specialist manufacturing advice provided by an external person or organisation.

This offer is designed to respond to individual business circumstances, eg. businesses may have specific manufacturing problems, be facing a declining market share or be experiencing difficulties in maximising their potential to grow. Evidence suggests that there are a number of recurring business issues which businesses will need to address (in particular in order to achieve growth) and these are addressed by support focusing on the kinds of business support comprising the elements under this product.

Eligibility criteria This product is available to: •

Manufacturers who are primarily SMEs;

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â&#x20AC;˘ â&#x20AC;˘ â&#x20AC;˘

Large businesses (employing over 250 people) may apply, but are expected to pay the full cost of the service; Businesses owned or controlled by people from groups who are underrepresented in business ownership; Social enterprises.

RDAs may decide to support businesses with lower growth potential in some instances.

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Designing Demand Designing Demand is a national support programme developed by the Design Council to help businesses use design to improve performance.

Purpose The aim of Designing Demand is to help businesses to become more competitive, increase their profits and boost their performance through the strategic, effective use of design.

Design Council research shows that design is a proven business tool, but that not enough SMEs are using it as well as they could. More than four out of ten businesses don’t invest in design at all and more than six out of ten of those who do invest give it only a limited role.

Why offer public sector support?

The Cox Review of Creativity in Business: Building on the UK’s Strengths (2005) identified five main barriers which prevented SMEs from accessing the UK’s creative sector: 1. Lack of awareness and experience (of the UK’s creative talents).

2. Lack of belief in the value of, or confidence in, the outcome.

3. Not knowing where to turn for specialised help.

4. Limited ambition or appetite for risk.

5. Too many other pressures on business.

The Designing Demand programme was created and launched by the Design Council in partnership with RDAs in response to the Cox review. Designing Demand sets out to improve the performance of UK businesses by harnessing design. The programme’s overarching objective is to embed effective processes for the management of design in SMEs (and specifically in technology start-ups).

The provision of best practice design advice or information is not easily accessible without government funded advocacy and intervention. Design is the kind of service whose value can be best understood after it has been consumed, but because it is relatively expensive it cannot be tried before purchase.

Even where SMEs may be aware of the strategic value of design to their business, or be willing to pay to experience the value of design, the majority do not have the requisite skills or experience to engage external designers.

SMEs often lack the ability to write a design brief, to choose the best pitch from a design agency, or to project manage a design intervention.

The market failure which Designing Demand was created to address still exists: there remains an economic case for subsidising initial design consultancy and business support programmes for SMEs. What will be offered?

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The programme consists of a selection of one-day workshops for businesses, followed by a set of intensive growth services offering practical support in using design to improve business performance. Workshops for Business Advisors and Intermediaries are also run as part of raising awareness and understanding of design-related business issues. This supports effective channel management and recruitment of appropriate clients onto the programme.

Workshops â&#x20AC;&#x201C; fast-paced and practical one-day workshops showing businesses what design investment could do for them.

Designing Demand Generate â&#x20AC;&#x201C; a service to help businesses identify one design project to overcome specific business challenges and get it moving.

Designing Demand Immerse â&#x20AC;&#x201C; the most intensive service, aimed at mature businesses with the appetite for strategic change. Services provide a mixture of workshops and one-to-one mentoring from Design Associates experienced in managing design and tackling business issues.

Designing Demand Innovate - the product also contains service for technology ventures, providing intensive support for technology start-ups, helping them use design to reduce time to market and attract investment.

Eligibility criteria Designing Demand is for businesses with ambition to grow, appetite for change and the resources and management time to invest in running strategic design projects. Businesses range from micro through to 249 employees.

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Innovation Advice and Guidance The product is the provision of innovation advice and guidance.

Purpose The purpose of this product is to provide businesses with expert knowledge and highly specialised, technical and advanced skills, enabling them to innovate and hence improve the performance of the business.

Why offer public sector support?

Innovation is defined as the successful exploitation of new ideas. It requires intensive and expert management input to turn internal and external ideas into successful products for the market. The internal capabilities of firms, including the ability to access and use new knowledge and to manage their innovation process is a major factor in enabling, or possibly inhibiting successful innovation.

Information asymmetry is the form of market failure that can inhibit firms from using the expertise on product, process or organisational innovation available in the specialised consultancy sector. In particular, small firms are reluctant to invest funds and scarce management time in acquiring and using specialist advice that might turn out to not be fitted to their immediate business needs.

So, a subsidy mechanism to reduce the initial costs of engagement can strengthen the innovation system through raising the competencies of the many SMEs that are vital suppliers of final and intermediate goods and services.

What will be offered?

This offer is demand led. It is designed to respond to individual business circumstances. The aim of the intervention is to open up the thinking within the business and use innovation in its broad sense as a platform for continuing growth.

Through the offer, firms will be able to access support focusing on issues such as: • • • • • • • • • •

Help with testing new ideas/viability Looking for analogies in other business sectors Information concerning new technologies and processes Information on new markets How to source particular technical expertise Investigating innovative marketing strategies and methods Identifying funding requirements and funding sources to bring new ideas to market Introduction to other support under the Business Support Simplification programme portfolio Use of tools to encourage new ways of problem solving or ideas generation Intellectual property and know-how protection/ legal advice

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• • • •

Where to access other external expertise including: regulatory compliance; sectorally specific expertise Accessing the knowledge base (HE, FE and Research Institutes etc) Help with collaborative ventures under Open Innovation arrangements Specialised technical help to assist the introduction and take up of new technologies, techniques and processes is also included in the product.

Eligibility criteria The product is targeted at businesses (including social enterprises) experiencing challenges that are holding back the potential to grow significantly and which are open to seeking innovative approaches to surmounting these. Large businesses (employing over 250 people) may apply, but are expected to pay the full cost of the service.

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Coaching for High-Growth To assist firms to build their inherent capabilities and achieve accelerated growth through a structured coaching programme, meeting short and medium term business goals within a strategic context.

Purpose The aim is to increase the stock of strongly growing SMEs in each region through the provision of a structured programme of intensive coaching and assistance. An independent coach or mentor will support organisation development and management capability with the objective of enhancing the business readiness for high growth.

Why offer public sector support?

Between 1992 and 1996, just 3 percent of the fastest growing firms generated 70 percent of jobs created by new firms1. In addition, less than 10 percent of businesses are responsible for 80 percent of job creation2. It is clear that a small minority of entrepreneurs have the desire to grow and create additional economic output and employment - therefore there is scope to address market failures and in the process expand the national economy by concentrating support on expanding the number of high growth companies.

There are a number of market failures which may prevent a business owner achieving optimal growth. For example, small business owners with high growth aspirations but lacking in internal expertise may need access to external expertise to execute their plans. However, quality and price information on external management consultancies is not easily available.

Without government intervention there is likely to be an underinvestment in business expertise. A combination of high-risk aversion among cash-poor businesses and uncertainty concerning the estimated return from investment in business expertise will lead to under-investment in acquiring knowledge and a significant proportion of businesses being unable to realise their growth aspirations.

What will be offered?

Coaching for High Growth includes three stages - goal orientated action planning (developing a strategic growth plan), coaching and leadership development.

Coaching for High Growth involves the coach or mentor helping businesses to assess their performance against and then set action plans on 7 core themes as part of the growth process. These core themes include: • Performance Benchmarking • Market Understanding • Innovation • Intellectual Property • Investment Readiness 1 2

Birch et al. (1997) Global Entrepreneurship Monitor “High Expectations Entrepreneurship” (2005)

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â&#x20AC;˘ Skills of the Workforce â&#x20AC;˘ Leadership and Management This offer is demand led. It is designed to respond to individual business circumstances. The range of expertise needed will vary but will be advanced business management input related to managing the totality of the business in a drive for high growth.

Eligibility criteria The product is targeted at businesses with the potential to achieve high growth that would not achieve such growth without intervention. Large businesses (employing over 250 people) may apply, but are expected to pay the full cost of the service.

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Enterprise Coaching One-to-one coaching to cultivate interest in enterprise amongst people who would not otherwise consider setting up in business or selfemployment as an option.

Purpose To increase enterprise in targeted areas and amongst under-represented groups of people who are otherwise unlikely to consider self-employment or starting a business. To do this by coaching and referral to mainstream business support services. Where enterprise isnâ&#x20AC;&#x2122;t the right option to help customers find alternative routes into economic activity.

Why offer public sector support?

Levels of enterprise are significantly and persistently lower than average amongst some ethnic minority groups, women facing barriers to participation, the disabled, and generally amongst residents of deprived areas.

The economic costs of this enterprise gap are significant, with less businesses being formed, less consequent wealth and employment generation, and less tax receipts than would otherwise be the case. It is also socially and economically inequitable, with a lack of enterprise being a contributing factor to inter-generational cycles of deprivation in some communities.

The causes of the enterprise gap centre around a lack of enterprise culture (including role models, knowledge and confidence) in some areas and communities, as well as more direct barriers to individuals such as a lack of affordable childcare or of working capital to start a business. The market itself has not tackled these barriers.

What will be offered?

Enterprise Coaching is a one-to-one service for those with the interest and potential to develop a career in enterprise, be it through self-employment or starting a small business. Coaching is: â&#x20AC;˘

â&#x20AC;˘

a proactive service that stimulates interest and take-up by members of communities and groups who otherwise tend not to get involved in enterprise or present a need to enterprise support bodies. It serves a latent rather than expressed need, and involves outreach that is tailored to the area or group of people being targeted. a relationship between coach and customer, centred on the individual needs of the customer. As such, the coaching relationship can persist beyond the point of referral to specialist services. For example, whilst a coach will not duplicate the services of Business Link or other BSSP products, a client may fruitfully receive ongoing support from a coach following a referral to other service providers. Ongoing contact of this nature lessens attrition and fall-out from referred-to services, increasing the sustainability and value for money of intervention.

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•

based on the aspiration of an enterprise outcome for all customers, but also values alternative outcomes for customers who are not yet ready for Business Link or need a different path into economic activity, eg learning, training or finding employment.

Eligibility criteria There is no central government funding for enterprise coaching. Regional and local bodies that wish to fund BSSP-compliant enterprise coaching will need to ensure that it meets the following eligibility criteria: •

residents of deprived areas: defined here as communities within which at least half the population live in Lower Super Output Areas that fall within the 15% most deprived nationally, or in areas classified as deprived in regional or local plans that have been agreed with Government Office; or

•

people from groups who are under-represented in enterprise: at national, regional or local level, based upon sex, race, disability or other relevant characteristic; or

•

individuals who are economically inactive, regardless of place of residence or social/demographic characteristics.

Coaching is not a substitute for people who are ready to access Business Link services successfully, and is designed specifically for people for whom other products in the BSSP portfolio are not appropriate.

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Support to Lenders Government acting as a guarantor to lenders to encourage them to be • less risk averse when considering marginal lending decisions (particularly where there is limited collateral and/or the service/product is new to market) and • more consistent in their lending strategies across the economic cycle (to ensure consistent deal flow) Purpose Economic growth by providing an environment where opportunities for business start-up and growth are maximised and deal flow is consistent over time.

Why offer public sector support?

Up to 25,000 businesses with viable business plans are rejected by more than one finance provider each year. Rejection is typically related to lender perceptions of risk, and their deployment of rigid risk assessment tools. A lack of collateral, sector type and/or new business areas can mean that businesses with viable business plans cannot access the finance they need.

What will be offered?

Currently limited to the Small Firms Loan Guarantee - a guarantee to (approved) lenders covering 75 per cent of the loan amount, for which the borrower pays a premium direct to BERR of ½% of the outstanding loan value every quarter.

Eligibility criteria The Guarantee can be offered by the lender to businesses: • with a business plan which would attract commercial lender support were it not for a lack of sufficient collateral or track record; • in the United Kingdom (England, Scotland, Wales and Northern Ireland); • with less than 250 employees and a turn-over of up to €50 million or a balance sheet of up to €43 million (EU definition of a medium sized company); • seeking a loan of at least £5k; • for a maximum duration of ten years; and • in most sectors subject to exclusions principally in transport, agriculture, coal and steel sectors (in the main to comply with European State Aid legislation).

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Small Loans for Business The provision of loan finance up to £50,000 to entrepreneurs from disadvantaged groups or communities excluded from raising all the finance they need from commercial sources.

Purpose Tackling inequality in start-up and business ownership.

Why offer public sector support?

Entrepreneurs in deprived areas are twice as likely to have no bank account and less likely to have any personal collateral and therefore find it difficult to access mainstream lenders. Delivery costs mean that mainstream lenders typically don’t provide small loans to business.

What will be offered?

Access to loans and ongoing support for individuals unable to raise finance from mainstream lenders, typically linked to flexibility in repayment terms, balanced by higher lending rates.

Eligibility criteria The loan can be offered by the lender to businesses (including social enterprises): • in England; • with less than 250 employees and a turn-over of up to €50 million or a balance sheet of up to €43 million (EU definition of a medium sized company); • up to a maximum value of £50,000 for individual businesses (and up to a total cumulative loan value of £50,000 at any time - that is, no business can have a total outstanding loan value of more than £50,000 at any time); • for the sole purpose of business creation, development or expansion – thereby excluding the provision of loans to clear existing debts and/or existing loans from the lender (as a mechanism for managing bad debt on the part of the lender); • for a maximum duration of five years; and • targeted at women, under represented black and minority ethnic groups identified in the SR2004 PSA10 and businesses operating in the 15% most deprived wards in England according to IMD 2000 thinking of starting a business in the next three years (as per the “Intensive Start-Up Support” product).

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Understanding Finance for Business A minimum national service level for support on understanding ways of financing business start-up and growth, acquiring the skills to become “investor ready” and effecting introductions to potential investors.

Purpose Encouraging economic growth by providing an environment where businesses are aware of the potential that finance can have upon their business and can readily access potential investors.

Why offer public sector support?

Lenders and investment managers regularly report on the inadequacy/lack of preparedness of businesses seeking finance. A quarter of businesses failing to attract finance believe it is because they are not investor ready.

What will be offered?

A five-stage programme supporting entrepreneurs from a basic understanding of finance options through to facilitated introductions to potential investors.

Eligibility criteria Support will be available to businesses: • in England; • with less than 250 employees and a turn-over of up to €50 million or a balance sheet of up to €43 million (EU definition of a medium sized company); • seeking guidance on finance options; and • seeking guidance/up-skilling to refine their approach to finance providers (lenders and fund managers).

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Finance for Business The provision of debt, equity and mezzanine finance to small and medium sized businesses unable to raise all the support they need on the commercial market but having viable business plans.

Purpose Bridging the finance gap for businesses seeking finance.

Why offer public sector support?

There is a market failure because of perceived risk, the economies of deal size, expected commercial rates of return and the deployment of rigid risk assessment tools.

What will be offered?

Loans up to £250,000, equity investment up to £2 million (two-thirds public supplemented by a minimum one third private investment) and mezzanine arrangements across the spectrum.

Eligibility criteria Funding is available to businesses • with less than 250 employees and a turn-over of up to €50 million or a balance sheet of up to €43 million (EU definition of a medium sized company); • demonstrating failure to secure finance in the commercial sector; • with viable business plans.

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Improving Your Resource Efficiency The Improving Your Resource Efficiency product is aimed at helping business to adopt low-carbon, resource efficient products, processes, services and business models.

Purpose The product is designed to enable businesses to contribute to a low carbon resource efficient economy whilst achieving cost savings.

Why offer public sector support?

Lack of awareness within business of the cost savings that can be achieved from adopting low-cost / no-cost resource efficiency measures (some ÂŁ6.4 billion annually or 1.9% of profit) can inhibit economic growth. The Government drive for a low carbon, resource efficient economy is reflected in national and regional PSA targets, Waste Strategy 2007, the Energy White Paper, Future Water, the Climate Change Bill, Regional Economic Strategies etc. - and there is a significant risk that this will not be achieved without the active involvement and contribution from business.

What will be offered?

A range of support services identify practical cost-effective actions that business can take to be more energy efficient, reduce, reuse and recycle materials, to cut waste, water use, discharges and pollution. Advice is provided freely via websites, publications, guides, case studies and online tools. Support also includes, for example, interest free loans of between ÂŁ5,000 and ÂŁ100,000 for small or medium-sized enterprises for energy efficiency and support for those in the recycling/ reprocessing business, also mostly for SMEs though with some financial services also available for larger businesses.

Eligibility criteria Most of the services, especially at initial level, are available to all businesses in England to help reduce their high collective environmental impact.

Specialist support will be targeted at businesses with significant potential to reduce their environmental impacts or those who have made public commitments through voluntary agreements or via sector initiatives (e.g.

Courtauld Commitment (retailers) and Federation House Commitment (food & drink)).

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Environmental Land Management Funding Businesses receive financial compensation for adopting different land management practices which deliver environmental benefit Purpose The product aims to enhance the environmental impact of farming and land management so as to deliver public benefit.

Why offer public sector support?

This product is a response to market failure in the provision of environmental land management. It forms part of the EU-Exchequer funded Rural Development Programme for England (RDPE). It aims to conserve and improve the farmland environment by encouraging and supporting environmentally friendly farming methods; and promote the expansion of woodlands in England in order to provide a wide range of public benefits.

There is no sign that market forces can yet ensure this will happen on a sufficient scale therefore large scale provision of incentives for positive environmental management is necessary to address this market failure.

What will be offered?

New applicants may apply for the English Woodland Grant Scheme (EWGS) and Environmental Stewardship (ES) encompassing Entry Level Stewardship (ELS); Organic Entry Level Stewardship (OELS) and Higher Level Stewardship (HLS). Future applicants can apply for the Uplands Environmental Stewardship (UES) from 2010. Delivery is through the Forestry Commission (EWGS) and Natural England (ES). The Environmental Land Management Advice product serves as a precursor to obtaining this product Eligibility criteria Open to farmers, foresters and land managers. The specific eligibility criteria are different for each scheme.

Existing Schemes: Entry Level Stewardship (ELS) is open to all conventional farmers in England; Organic Entry Level Stewardship (OELS) is aimed at organic farmers; Higher Level Stewardship (HLS) is targeted at the most valuable habitats and environmental features; English Woodland Grant Scheme (EWGS) is aimed at woodland owners.

A further scheme due to become operational in 2010 is the Uplands Environmental Stewardship (UES) aimed at upland farmers

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Environmental Land Management Advice The product offers advice and guidance to improve environmental land management Purpose The product aims to improve the rate of knowledge transfer and expertise of farm businesses resulting in environmentally sustainable land management; and promote participation in agri-environment schemes so as to maximise public benefit.

Why offer public sector support?

There is no market demand for land managers to deliver environmental public goods and services. Research has shown that the majority of farmers are not willing to pay for this type of advice because it will not deliver any direct income, so there is a clear market failure. Research has demonstrated that the provision of the advice is effective in changing land management practices to benefit both the natural environment and society.

What will be offered?

Advice and guidance to improve environmental land management is provided around 5 specific areas: 1) maintenance and enhancement of the natural environment and landscape; 2) conservation of biodiversity; 3) promotion of public access to and understanding of the countryside; 4) protection of the historic environment; 5) protection of natural resources.

Advice is provided through events, 1:1 visits, telephone and web. Natural England are the delivery agent.

Eligibility criteria The product is aimed at all farmers and land managers in England and their advisers

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Grant for Research & Development Finance to assist a business to develop and exploit new ideas.

Purpose This product is aimed at measures to increase business involvement in a range of R&D activity where there is a high risk and uncertainty around the expected results and ability to commercially exploit them is seen as a barrier.

Thereby encouraging a cultural change where businesses innovate more and in turn generate more spillover opportunities.

Why offer public sector support?

It is recognised that businesses, particularly SMEs may under-invest in innovation where there is a high degree of risk and uncertainty around the development and commercial exploitation of a new idea involving technology.

This can mean that some technologies in priority areas (e.g. low carbon technologies) will not be developed, at all or within the timescales necessary, without Government support.

What will be offered?

Grants will be available to a business to undertake pre competitive research and development of enabling technologies for innovative products, processes or services: â&#x20AC;˘ Planned research or critical investigation resulting in new scientific or technical knowledge that will subsequently be used to develop a new product, process. Work to explore the technical feasibility and commercial potential of a new technology, product or process. â&#x20AC;˘ Development of a pre-production prototype of a technologically innovative product, service or industrial process, including small demonstrators, IP protection, trials and testing (including clinical), market testing, marketing strategies, identifying routes to market, product design work and Phase 0 pre-clinical studies for medicines. â&#x20AC;˘ Use of third parties, such as knowledge partners, consultants, subcontractors and patent agents to undertake the above activities.

Eligibility criteria Pre start, start-ups, small and medium sized businesses from all sectors from across England except defence. Only commercially driven projects are eligible.

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Collaborative Research & Development Grant to businesses working together and with the knowledge base to develop and exploit new ideas.

Purpose This product is aimed at measures to increase knowledge exchange, business spend on R&D and encourage technological diffusion between businesses and knowledge base institutions (e.g. universities and research institutes) through collaborative research and development activities. Thereby, encouraging a cultural change where businesses share the risks and costs associated with innovation collaborations.

Why offer public sector support?

Innovation is a process that frequently benefits from inputs from a number of sources, such as suppliers, customers and knowledge base institutions that ‘spill over’ into the wider business community. It is recognised that many businesses experience a market failure arising from information asymmetry, where they often lack effective mechanisms for achieving this in the context of generating successful new products, processes or services. The barriers to developing collaborative working between businesses and between businesses and knowledge institutions can be particularly high, especially where technology is at the early stage of development.

What will be offered?

Grants will be available to businesses and knowledge base institutions to undertake collaborative pre competitive research and development of enabling technologies and large-scale demonstrator projects for innovative products, processes or services. Only commercially driven projects are eligible. The following elements may be offered: • Basic research – experimental or theoretical work undertaken to acquire new knowledge without a particular application or use in view, but likely to form the background to the solution of recognised or expected current or future problems, challenges or possibilities.

• Applied research – original investigation undertaken to acquire new knowledge directed primarily towards a specific practical aim or objective, which may include a simple prototype of a novel or innovative product or process to test or validate an idea or concept.

• In depth experimental development – systematic work, drawing on existing knowledge gained from research and practical experience, directed to producing new materials, products and devises; or to installing new processes, systems and services; or to improving substantially those already produced or installed.

And • Large-scale collaborative demonstrator projects that promote the potential of key technologies to a regional or national business audience.

Eligibility criteria

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â&#x20AC;˘

Businesses from all sectors across England that have the willingness and potential to collaborate on developing innovative products, processes or services.

â&#x20AC;˘

Knowledge base institutions in England who are willing to engage in an innovation collaboration activities with the primary purpose of assisting businesses to exploit knowledge through new products, services and processes.

â&#x20AC;˘

Businesses based in England seeking to join pan-European R&D projects.

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Networking for Innovation Support to help business contact and build relationships with the knowledge base to develop and exploit new ideas.

Purpose This product is aimed at measures to encourage businesses to build relationships with other businesses, intermediaries, knowledge base institutions (e.g. universities and research institutes) and government.

Thereby, improving knowledge exchange and linkages across business supply chains and leadings to more collaborative innovation activity, whether funded privately or with public sector support.

Why offer public sector support?

Innovation is a process that frequently benefits from inputs from a number of sources, such as suppliers, customers and knowledge base institutions that ‘spill over’ in to the wider business community. It is recognised that many businesses experience a market failure arising from information asymmetry, particularly SMEs, where they often lack the knowledge and resources to effectively identify and directly engage with other businesses and the knowledge base to innovate effectively and efficiently.

What will be offered?

Networks will be commissioned where there is the potential to access significant new markets in technologies or applications of regional, national and/or international importance as defined by organisations such as the Technology Strategy Body, the Energy Technologies Institute and The Carbon Trust on behalf of Government Departments, or regionally within the RDA Regional Economic Strategies. These networks will be encouraged to support broader innovation by engaging with knowledge base institutions in disciplines such as the arts, the media, and the social sciences in addition to the traditional engineering, physical and life sciences by sectors including the creative and service sectors.

Eligibility criteria Eligible Customers: • Intermediaries - Organisations and institutions that are capable of delivering networking activities on behalf of funding bodies, including Trade Organisations, Professional Institutions, in the specific technology areas or business applications.

Network membership: • Businesses from all sectors across England that are interested in developing innovative products, processes or services, or adopt new management, organisation or business models.

• Knowledge base institutions in the England who are willing to engage in networks with the primary purpose of assisting businesses to exploit knowledge through new products, services and processes.

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â&#x20AC;˘

Trade Associations and similar organisations that wish to promote the interests of their members in the context of innovation and regulatory frameworks.

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Knowledge Transfer Partnerships Grant to enable the placement of an under-graduate or graduate in a business, or the exchange of staff, to assist the transfer of knowledge between business and knowledge base institutions (e.g. universities and research institutes) to develop and exploit new ideas.

Purpose This product is aimed at measures to increase knowledge exchange between businesses and knowledge base institutions. Thereby encouraging a cultural change where businesses share the risks and costs associated with innovation collaborations.

Why offer public sector support?

Innovation is a process that frequently benefits from inputs from a number of sources, such as suppliers, customers and knowledge base institutions that ‘spill over’ in to the wider business community. It is recognised that many businesses experience a market failure arising from information asymmetry, where they often lack effective mechanisms for achieving this in the context of generating successful new products, processes or services. This ‘capability failure’ may result from a business’ lack of understanding, learning capability or ‘absorptive capacity’ to make use of externally generated knowledge.

People with a direct link to a knowledge base institution can embody the skills and often the real know how to effect innovative change but they do not spring up spontaneously. These barriers to developing collaborative working between businesses and between businesses and knowledge institutions can be particularly high, especially where technology is at the early stage of development.

What will be offered?

Grants will be available to promote and enable knowledge development and exchange between businesses and knowledge base institutions. This product specifically supports: • The placement of a recently qualified person (i.e. NVQ Level 4 in an appropriate subject, HND, foundation degree, degree and higher degrees, including Post-doc ) from a knowledge base institution, working in a business with company staff to embed both technical and business skills and expertise of value to the business via a strategic project.

• Exchange of staff between businesses and knowledge base institutions.

Eligibility criteria • Businesses from all sectors from across England that have the willingness and potential to develop innovative products, processes or services.

• Knowledge base institutions in the England who are willing to engage as delivery channels with the primary purpose of assisting businesses to exploit knowledge through new products, services and processes.

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Innovation Vouchers Voucher to enable a business to buy support from a knowledge base institution to explore potential opportunities for future collaboration to develop and exploit new ideas.

Purpose This product supports small innovation projects aimed at increasing knowledge exchange between businesses and knowledge base institutions (e.g. universities and research institutes) through collaborative activity.

Thereby encouraging a cultural change where businesses share the risks and costs associated with innovation collaborations.

Why offer public sector support?

Innovation is a process that frequently benefits from inputs from a number of sources, such as suppliers, customers and knowledge base institutions that ‘spill over’ in to the wider business community. It is recognised that many businesses experience a market failure arising from information asymmetry, where they often lack effective mechanisms for achieving this in the context of generating successful new products, processes or services. The barriers to developing collaborative working between businesses and between businesses and knowledge institutions can be particularly high, especially where technology is at the early stage of development.

What will be offered?

Vouchers will be available as part of a ‘pilot scheme’ to promote and enable an individual business (mainly SMEs) to build its innovation capabilities and buy support from a knowledge base institution chosen by the business, to explore potential opportunities for future collaborative innovation activity.

Support in the form of a demand led research project lasting no longer than six months, around a well-defined knowledge question is likely to include the development or continued development or testing of a technology, product or service as part of wider innovation within the business.

Eligibility criteria • Small and medium sized businesses from all sectors from across based in England that have the willingness and potential to collaborate on developing innovative products, processes or services.

• Knowledge base institutions in England who are willing to engage in a innovation project with the primary purpose of assisting businesses to exploit knowledge through new products, services and processes

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Low Carbon Energy Demonstration Finance to assist a business in a range of energy demonstration activity to commercially exploit R&D in low carbon technology.

Purpose This product is aimed at measures to increase single business involvement in a range of demonstration activity to commercially exploit R&D in low carbon energy technologies where the high risk and uncertainty around the expected results is seen as a barrier. Thereby encouraging a cultural change where businesses innovate more and in turn generate more spill-over opportunities through large scale low carbon energy demonstrator projects.

Why offer public sector support?

For low carbon technologies the nature of the market means that they will not be developed, at all or within the timescales necessary to reduce the risks of climate change, without Government support as highlighted in the Stern Report. A specific reason in the energy sector is the need to represent the real cost of carbon. The energy market is otherwise dominated by the leastcost sources, and based on fossil fuels which benefit from the economies of scale that follow from widespread deployment.

What will be offered?

Capital grants/ loans will be available to a business to develop technology based product (including components), process, or service innovations, to assist with the more expensive longer-term costs of: â&#x20AC;˘ Demonstration at scale in commercial /industrial setting. â&#x20AC;˘ Test of design and construction process and of construction and operating costs. â&#x20AC;˘ Early adoption of new technologies with a potentially significant environmental benefit.

Eligibility criteria Businesses based in England engaging in low carbon energy demonstration projects that will reduce energy demand and carbon intensity of energy production.

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