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Minister comments on business research figures
31/01/2008
Changes to the system of grant support will help to boost levels of commercial research and development and improve Scotland's competitveness, Enterprise Minister Jim Mather said today.
He said the general R&D Grant, which will be available from Scottish Enterprise from April, will provide support for innovative projects across Scotland.
Three existing grant schemes are being consolidated into one general grant to simplify the process of securing Government support for research and development.
It comes after statistics published today show that Scottish business research and development expenditure decreased by four per cent between 2005 and 2006.
Mr Mather said:
"Enhancing the quality and focus of support for business and innovation will have a direct and positive impact on competitiveness and growth.
"Today's Business Enterprise Research and Development 2006 (BERD) figures show that Scotland's public and private sectors must work together to increase the level of research and development activity.
"The Government Economic Strategy recognises that responsive, accessible business support services will be crucial to generating increased, sustainable economic growth.
"That's why we have brought together three previous schemes to create a consolidated R&D grant that will make it easier for innovative firms across Scotland to secure grant support and grow their businesses."
The General R&D Grant consolidates three previous schemes - Scottish Enterprise's Small Company Innovation Support (SCIS), R&DPLUS and the Scottish Government's SCORE scheme.
Phase one of the Scottish Government's drive to simplify the business support landscape saw small and medium sized enterprises (SMEs) able to access a new tier of Regional Selective Assistance (RSA) grant across large parts of the south, east and west of Scotland.
Phase two saw the launch of the SMART:SCOTLAND programme, which helps small and medium-sized businesses improve their competitiveness by developing new, highly innovative and commercially viable products or processes to the benefit of the national economy.
When it is available in April 2008, the general R&D grant will accept applications for innovative developments at any level and will be open to small, medium and large firms alike. There will be no upper ceiling for grants to SMEs and no lower ceiling for grants to large firms.
SMEs will be able to attract grant support at up to 35 per cent if the overall grant is less than £40,000 and at up to 25 per cent if the grant is above £40,000. Larger grants (£40,000+), whether to SMEs or to large firms, must demonstrate a positive impact on R&D jobs in Scotland.
Scottish Enterprise will be responsible for the delivery and administration of the general R&D grant across the Scottish Enterprise area. Highlands and Islands Enterprise will continue to administer its own support for business R&D.
The latest Business Enterprise Research and Development (BERD) Scotland figures, released today, show that BERD expenditure in Scotland in 2006 was £579 million - four per cent of the UK total of £14.3b. This is a decrease of four per cent in real terms from 2005 at a time when UK BERD expenditure increased by five per cent.