A new Innovate UK funding competition will support UK SMEs to develop and commercialise advanced materials innovations, combining grant funding with private investment to help promising technologies move closer to market.
The Investor Partnerships – National Materials Innovation Programme 1 competition opened on 2 November 2026 and will close at 11am on 19 January 2027. Up to £5 million has been allocated to support innovation projects through the competition.
Part of the National Materials Innovation Programme, announced through the UK Government’s Advanced Manufacturing Sector Plan, the competition is designed to support the translation and adoption of advanced materials innovations across the eight growth-driving sectors identified in the UK’s Modern Industrial Strategy, as well as associated frontier and foundational industries.
Innovate UK, as part of UK Research and Innovation (UKRI), has selected investor partners with aligned investment interests and capacity to lead investments.
Combining innovation funding and investment
The competition takes an investor partnership approach bringing together Innovate UK’s expertise in supporting innovation with private investors able to provide aligned investment and commercial expertise.
Its aim is to give businesses both R&D support and access to the capital needed to develop and commercialise materials innovations.
David Knowles, CEO of the Henry Royce Institute, welcomed the launch, highlighting its potential to attract more private capital into UK materials innovation:
“This is a fantastic route to getting more private investment into the sector, one of the principal aims of all the work involved in the Henry Royce Institute National Materials Innovation Strategy work from the outset. It is intimately linked with the ambitions of the Industrial Strategy.”
What types of materials innovation are eligible?
The competition focuses on materials innovation that can overcome significant technical barriers and deliver enhanced performance, functionality or efficiency, helping to strengthen UK industrial security and competitiveness or deliver environmental benefits.
Projects should focus on one or both of the following:
- Improving the functionality of existing materials to address major technical barriers to their use, including metals, composites, ceramics and polymers.
- Developing and deploying new materials innovations, including emerging advanced materials.
How much funding is available?
Project costs depend on the type of research being undertaken:
- Feasibility studies: £50,000 to £300,000
- Industrial research: £100,000 to £1 million
- Experimental development: £250,000 to £2 million.
Importantly, businesses need to engage with an approved UKRI investor partner before applying and establish a strong level of investment traction. Successful projects must be independently assessed by Innovate UK as fundable and receive aligned investment led or catalysed by the investor partner named in the application.
Eligible SMEs may also be offered fully funded support through Innovate UK Business Growth, including help with strategic decision-making and investment readiness. Innovate UK Business Connect and the UK’s Catapult network can also help businesses make connections with relevant investors.
Key dates
- Competition opens: 2 November 2026
- Competition closes: 19 January 2027, 11am UK time.
Businesses should be aware that the competition remains open over Christmas, but UKRI and Innovate UK will have limited capacity to answer queries during the holiday period and will not respond between 23 December 2026 and 4 January 2027. Applicants are therefore encouraged to raise questions well in advance.
