Through the Made Smarter Innovation (MSI) programme Innovate UK, part of UK Research and Innovation (UKRI), will invest up to £15.5 million across the two strands of this competition. This is subject to a sufficient number of high quality applications being received.
These awards will be for feasibility studies or industrial research projects.
The aim of this competition is to explore new industrial digital technologies (IDTs) for manufacturers. The IDTs will improve the sustainability, resilience and productivity of UK micro, small or medium sized enterprise (SME) manufacturers by improving energy or resource efficiency.
Your project
Your project must focus on the innovation of digital solutions relating to one or more of the energy or resource efficiencies listed in the Specific Themes section, and must be:
- affordable
- easy to use
- scalable across SMEs
There is no limit to the number of processes or technology solutions you may address in your proposal and there is no advantage in using more than one.
Energy or resource efficiency innovations that use processes other than that listed will also be considered.
This competition is split into two strands:
- MSI: SME resource and energy efficiency – Feasibility Studies (project costs of £25k to £150k, 3-6 months, projects can be single or collaborative)
- MSI: SME resource and energy efficiency – Industrial Research (this strand: project costs of £200k to £1m, 6-12 months, projects must be collaborative)
Strand 2 – Industrial Research
To lead a project your organisation must be a UK registered micro, small or medium sized enterprise (SME) operating as a technology developer.
The consortium must contain at least two UK registered SMEs operating as a manufacturer claiming grant funding on this application.
It is your responsibility to ensure you submit your application to the correct strand for your project. You will not be able to transfer your application and it will not be sent for assessment if it is out of scope.
Our experience from similar competitions suggests that you could have 30% chance of success.
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To lead a collaborative project your organisation must be a UK registered SME operating as a technology developer.
The consortium must contain at least two UK registered SMEs operating as manufacturers claiming grant funding on this application.
Your project team can also include organisations that must be one of the following UK registered:
- academic institution
- research and technology organisation (RTO)
- research organisation
No one partner can account for more than 70% of the project costs.
Number of applications
Across the two strands, an eligible business can lead on two applications and can be included as a collaborator on a further one application. Successful applicants will be asked to confirm they have the capacity to run multiple projects simultaneously.
If an eligible business is not leading any application, it can collaborate in up to three applications.
All other eligible organisations can collaborate on any number of applications.
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Your project must:
- have total costs between £200,000 and £1 million
- last between 6 and 12 months
- start on 1 April 2026
- end by 31 March 2027
We encourage projects that include multiple SME manufacturers and manufacturing sectors within the consortium.
Any funded organisation needs to carry out their project work in the UK and must intend to exploit the project results from or in the UK.
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The aim of this competition is to explore new industrial digital technologies (IDTs) for manufacturers. The IDTs will improve the sustainability, resilience and productivity of UK micro, small or medium sized enterprise (SME) manufacturers by improving energy or resource efficiency.
Your project must focus on the innovation of digital solutions relating to one or more of the resource or energy efficiencies listed in the Specific Themes section, and must be:
- affordable
- easy to use
- scalable across SMEs
There is no limit to the number of processes or technology solutions you may address in your proposal and there is no advantage in using more than one.
Energy or resource efficiency innovations that use processes other than that listed will also be considered.
Within the scope section of your submission you must state the theme, industrial digital technologies (IDT), manufacturing industrial sector, what the resource or energy efficiency link is, and summarise how this is innovative or novel.
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Your project must carry out activity that develops and tests innovative digital solutions.
Planned outputs from the project must:
- increase the understanding of the problems faced by SME manufacturers
- test the proposal for digital solutions to address these problems
- validate that the proposed solution is at or close to adoption ready
- compile a case study outlining the proposed digital solution, the results of the project, and qualitative and quantitative evidence of benefits identified
In addition, where possible provide open access to the set up of the project as a demonstrator of the digital solution.
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Your project must focus on one or more of the following.
Resource efficiencies:
- raw material waste
- production process waste
- packaging waste, including in-process single-use materials
- maintenance or servitisation waste, including fluids and components
- utilities waste
- end of life waste
Energy efficiencies:
- boilers and steam
- air compressors or vacuum
- motors, drivers, pumps or hydraulics
- induction or welding
- chilling or freezing
- spray, extraction or dryers
- ovens, kilns or furnaces
- heavy machinery or presses
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We are not funding projects that:
- do not support the challenges outlined in the scope of this competition
- do not evidence the potential for your proposed innovation to generate positive economic or societal impact
- duplicate other UK government or EU funded initiatives already funded
- are covered by existing commercial agreements
- are not focussed on processes related to manufacturing activities
- are not within a controlled manufacturing environment for example, a permanent factory setting
- mainly installing currently available technologies and involve minimal innovation
- where the main exploitation route is not within manufacturing
- activities mainly focused on goods in or warehousing
- activities focussed on distribution centres or flying factories
- construction, other than manufacturing activities carried out off site within a permanent fixed factory
- offsite repair and overhaul
- focussed on product design for manufacture and assembly (DfMA)
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Innovate UK will hold an online briefing on Monday 27 October at 11am: click here to register for a place. A recording and slides will be available afterwards.
If you would like help to find a project partner, contact Innovate UK Business Connect’s Manufacturing team.
Innovate UK's application and funding process
If you need more information about how to apply, please read our funding support pages. For additional support, reach out to our team of innovation experts who are ready to help you navigate the application process and maximise your chances of success.
For more information
Accessibility and Inclusion
Innovate UK welcome and encourage applications from people of all backgrounds and are committed to making our application process accessible to everyone. This includes making reasonable adjustments, for people who have a disability or a long-term condition and face barriers applying to us.