Innovate UK

Innovate UK published a new operating prospectus in April 2026 that replaced open-competition grant programmes with a portfolio management model more similar to DARPA or a venture fund than a traditional grant body. The centrepiece is the Velocity programme — a continuous, relationship-based account management service for high-potential businesses, replacing fixed application windows with ongoing engagement. Growth Sector Teams will actively scout deep-tech companies across six priority sectors rather than waiting for applications. A High Potential Business Framework evaluates companies on team capability, technical breakthrough, talent pipeline, and market readiness.

Innovate UK is part of UKRI (UK Research and Innovation) and has been the UK's principal government-backed business innovation funder since 2004. Over its history it has supported more than 200,000 businesses and deployed billions in grant and loan funding across sectors including aerospace, life sciences, clean energy, and digital technology. However, UK grant award counts fell to their lowest since 2016 in 2026 data, even as average grant sizes rose — indicating a structural shift toward fewer, larger awards. The Velocity model formalises this concentration.

In May 2026, Innovate UK opened £15m in defence-adjacent competitions: Counter UAS Technologies (up to £5m, grants £300k-£1.25m, SME collaboration mandatory, deadline 3 June) and Dual-Use Aviation Systems and Autonomy (up to £10m, same deadline). These competitions sit alongside the SAIU's Strategic Assets Grants Programme, DSIT's DAWN compute expansion, and earlier rounds: Contracts for Innovation FOAK26 (£4.3m), and the Defra Farming Innovation Investor Partnership 2026 (£5m, requiring matched private investment). The new portfolio model handles high-potential relationship-based engagement; open competitions remain for sectors where competitive tendering is more appropriate, including defence SMEs.