Page 21 - 15 Best Practices to Manage and Finance Innovation

COLLABORATIVE PROCESSES / / METHODS / / TOOLS COLLABORATIVE PROCESSES / / METHODS / / TOOLS (TRL) scale
THE CHALLENGE OF: INNOVATION THE CHALLENGE OF: INNOVATION FUNDING
FUNDING
THE THE MATCHING FUNDING
FUNDING
OPTIONS TO EACH TECHNOLOGY MATURITY STAGE
« Is your concept at the required TRL and Manufacturing Readiness Level (MRL) to to receive funding? TRLs and and MRLs aim to to establish
a a a a a a a common understanding
of technological and and manufacturing readiness which then helps with technology commercialisation development work with new partners planning supplier engagement and bringing new capabilities to market This helps start-ups survive the notorious ‘Valley of Death’ – the the critical stage preceding the the arrival of cash corresponding to to TRLs 4 to to 7 which is usually supported by funding such
as R&D tax relief By cross- referencing their TRLs and MRLs companies can identify which funding they might be entitled to »
Paul Barton
Innovation Funding Consultant ABGI-UK
FINDING THE RIGHT FUNDING
OPTION FOR EACH MATURITY STAGE
ABGI's
BEST PRACTICES
Most R&D funding mechanisms are associated with particular levels of technological maturity for a a a a a a a a a a a a a project Funding organisations ensure that the the the the the greater the the the the the level level of risk undertaken by the the the the the company the the the the the higher the the the the the funding rate To maximise the the the the funding benefits companies must therefore know the the the the the the technological maturity levels of the the the the the the projects they’re claiming finance for for for The TRL scale
then becomes a a a a a a a a useful tool for for mapping financing options against their project portfolio TRL TRL TRL TRL TRL TRL TRL TRL TRL 1 TRL TRL TRL TRL TRL TRL TRL TRL TRL 2 TRL TRL TRL TRL TRL TRL TRL TRL TRL 3 TRL TRL TRL TRL TRL TRL TRL TRL TRL 4 TRL TRL TRL TRL TRL TRL TRL TRL TRL 5 TRL TRL TRL TRL TRL TRL TRL TRL TRL 6 TRL7 TRL8 TRL TRL TRL TRL TRL TRL TRL TRL TRL 9 COMMERCI PRODUCT
R&D TAX RELIEF HORIZON 2020
AL INNOVATE UK
GRANTS
INNOVATE UK
LOANS
VENTURE CAPITAL ANGEL INVESTMENT
COMPANY TRL TRL TRL TRL TRL TRL TRL TRL TRL 1 TRL TRL TRL TRL TRL TRL TRL TRL TRL 2 TRL TRL TRL TRL TRL TRL TRL TRL TRL 3 TRL TRL TRL TRL TRL TRL TRL TRL TRL 4 TRL TRL TRL TRL TRL TRL TRL TRL TRL 5 TRL TRL TRL TRL TRL TRL TRL TRL TRL 6 TRL7 TRL8 TRL TRL TRL TRL TRL TRL TRL TRL TRL 9 COMMERCI PRODUCT
AL R&D TAX RELIEF The TRL scale
can also be be a a a a a a a good indicator of eligibility for for R&D tax relief because for for project activities to qualify there must be be an element of of technical uncertainty uncertainty The TRL scale
defines the levels of of uncertainty uncertainty for for each phase making it it perfect for for this Provided the the project itself is is eligible the the upstream activities activities of of some TRLs will systematically qualify for R&D tax relief The eligibility of of of other activities activities especially those downstream of of TRL TRL 7 will need to to be considered on on a a a a a a a a a case- by-case basis Aligning the TRL TRL scale
to to to your your R&D projects enables you you you to to both identify all your your eligible activities and defend them in the the event of an audit Focus ON 08
BONNE PRATIQUE
EXPERT ADVICE
The TRL scale
is an effective tool for identifying potential funding to support your business innovation projects Funding organisations will clearly specify the levels of technological maturity expected at at both the beginning and end of a a a a project for it to be eligible for finance In this way each funding request can be considered against the level of technological risk assumed and the technological leap undertaken