Key Features
Organisations can apply for a share of up to £4.7 million inclusive of VAT, across four themes to develop a prototype, conduct field testing and demonstrate their solution. Projects can last between 3 and 7 months and must be completed by 31 March 2026.
Programme: Innovate UK
Award: Share of up to £4.7 million
Opens: 7th Apr 2025
Closes: 28th May 2025
Innovate UK and the Department for Transport (DfT) are collaborating with the rail industry to accelerate and increase the adoption of innovation to improve UK railways. This is through the DfT’s First of a Kind (FOAK) Programme.
The FOAK Programme addresses industry challenges by running innovation competitions. The competitions focus on collaboration with industry and deliver high maturity demonstrations, enabling efficient integration into the railway system. This competition aims to support innovative suppliers for market readiness.
This is a Contracts for Innovation competition funded by the DfT.
Proposals into this competition must already be high maturity at Rail Industry Readiness Level (RIRL) 5 or above. You must show evidence of this as part of your application.
The aim of the competition is to develop innovative solutions which address the following themes:
You must select a single theme to apply for. If a project covers multiple themes, choose the one in which the majority of the work will be undertaken.
Your project must:
Although software for mobile devices (also known as applications) may be in scope, only a limited number of these projects will be supported to ensure a range of solutions are developed.
Contracts will be given to successful applicants.
Demonstration event and trialling
A key project deliverable, that must be included in your milestones, is a demonstration event and trial.
The demonstration and trialling must take place in an environment representative of where the solution will be deployed, allowing for effective evaluation.
You must invite potential customers from the railway industry, along with other industry representatives, to your demonstration event.
You will be expected to include an integration supporter in your project to help facilitate the demonstration and trialling of your solution. In their role as potential future customers, they will be well placed to propose an appropriately representative environment.
The demonstration and trial must take place in a setting where railway customers and industry representatives can witness the solution as a compelling business proposition. It should be as close to a live railway environment as possible. You will be expected to collaborate with your integration supporter to achieve this, securing all necessary permissions and approvals.
Example environments include:
This list is not exhaustive, and other environments may be more appropriate to demonstrate certain types of solutions.
Where necessary, the demonstration event may be held online to reach a wider range of stakeholders. However, in this case, it must be supplemented with evidence from a trial demonstrating the effectiveness of your solution.
You should de-risk all aspects of your project before submitting a bid to this competition, ensuring it can be delivered in line with the requirements of the DfT and Innovate UK.
Evaluation activity
Projects must include an evaluation activity at the end, measuring data to assess the anticipated impact of the solution on the railway network.
This should compare baseline data related to the competition theme and outline the improvement from your solution using data from the demonstration or trial.
This could be a measurement of the time taken to complete a task, or the costs incurred before and after adoption of the technology. Alternatively, the activity might take the form of a survey of railway staff or customers to solicit feedback and to anticipate cost benefit.
In all cases the collection of objective data where possible is preferred over the collection of subjective feedback.
This evaluation activity is a key deliverable and must be included as part of your milestones.
Portfolio approach
Innovate UK want to fund a variety of projects across different technologies, markets, technological maturities, strand, location and research categories. Innovate UK call this a portfolio approach.
This competition theme focuses on Artificial Intelligence (AI) for complex processes in rail. We are seeking innovative solutions that leverage AI technology to automate and optimise complex processes, improve decision making, enhance productivity, sustainability and minimise waste.
High Speed Two (HS2) is one of Europe’s largest rail and infrastructure projects, involving many complex processes. Similarly, Network Rail has a significant renewals and enhancement program, which also presents considerable complexity for teams to manage.
This process complexity is driven by several factors, including multiple stakeholders, a complex data landscape comprising both structured and unstructured data from disparate sources across the supply chain, and a highly regulated, safety critical environment.
Several processes in the delivery of large projects and programmes have been identified that could benefit from AI technology, helping to reduce costs, improve efficiency, and minimise passenger disruption.
These processes may include:
Data challenges are often complex to resolve, and there is rarely a single, definitive solution involving just one supplier. Therefore, applicants are encouraged to work with other suppliers to provide an end to end solution through multiple point solutions that can be integrated into a tech stack.
A live demonstration must be included that will allow HS2 or Network Rail and others to assess the solution.
Innovate UK encourage applicants to focus on AI powered solutions in the following areas:
Innovate UK discourage applicants from focusing on solutions in the following areas:
Prototype development and evaluation
This can include prototyping, demonstrating, piloting, testing and validation of new or improved products, processes or services in environments representative of real-life operating conditions. The primary objective is to make further technical improvements on products, processes or services that are not substantially set.
Your project
Projects must:
Projects must always start on the first of the month, even if this is a non-working day. You must not start your project until your Contract has been approved by Innovate UK.
You must only include eligible project costs in your application. See our overview of eligible project costs. For specific guidance, see the eligibility section in this competition.
Applicant
To lead a project, you can:
Contracts will be awarded to a single legal entity only. The majority of the project work and key deliverables including the project demonstration and trialling must be completed by the applicant and be carried out in the UK. Subcontractors can be used, but only for specialist skills.
Innovate UK expect you to include an integration supporter in your project to help facilitate the demonstration of your technology. The demonstration should be in a suitable railway environment to allow the effective evaluation of the solution.
Your project could involve, for example:
Innovate UK recommend approaching potential integration supporters as early as possible during the application process or early stages of your project. This ensures your industry relationships are well established before delivering the project demonstration. Innovate UK welcome projects that include an innovative startup supply company that is already delivering in another sector.
Previously funded projects
If you have previously been funded for the same or similar innovations, you will not be eligible for this competition. Applications for this competition need to be materially different from previously funded innovations. The decision of Innovate UK and the DfT on this matter will be final.
Sanctions
This competition will not fund you, or provide any financial benefit to any individual or entities directly or indirectly involved with you, which would expose Innovate UK or any direct or indirect beneficiary of funding from Innovate UK to UK Sanctions. For example, through any procurement, commercial, business development or supply chain activity with any entity as lead, partner or subcontractor related to these countries, administrations and terrorist groups.
Use of animals in research and innovation
Innovate UK expects and supports the provision and safeguarding of welfare standards for animals used in research and innovation, according to best practice and up to date guidance.
Any projects selected for funding which involve animals will be asked to provide additional information on welfare and ethical considerations, as well as compliance with any relevant legislation as part of the project start-up process. This information will be reviewed before an award is made.
Innovate UK will not fund projects that:
A total of up to £4.7 million, inclusive of VAT, is allocated to this competition across all four themes.
Contracts of up to £200,000, inclusive of VAT will be awarded to develop a prototype and undertake field testing between three to seven months and must be completed by 31 March 2026.
Innovate UK expect to fund a minimum of two projects per theme and up to 23 projects across all four themes.
The total funding available for the competition can change. The funders have the right to:
The contract is completed at the end of the project, and the successful organisation is expected to pursue commercialisation of their solution.
Value Added Tax (VAT)
You must select whether you are VAT registered before entering your eligible project costs.
VAT is the responsibility of the invoicing business. We will not provide any further advice and suggest you seek independent advice from HMRC.
VAT registered
If you select you are VAT registered, you must enter your eligible project costs exclusive of VAT. As part of the application process VAT will be automatically calculated and added to your project cost total. Your total eligible project costs inclusive of VAT must not exceed £200,000.
Not VAT registered
If you select you are not VAT registered, you must enter your eligible project costs exclusive of VAT and no VAT will be added. You will not be able to increase total project costs to cover VAT later should you become VAT registered. Your total project costs must not exceed £200,000.
Research and development (R&D)
Your application must have at least 50% of the contract value attributed directly and exclusively to R&D services, including solution exploration and design. R&D can also include prototyping and field-testing the product or service. This lets you incorporate the results of your exploration and design and demonstrate that you can produce in quantity to acceptable quality standards.
R&D does not include:
Book an appointment to speak to one of our advisors to discuss your eligibility to apply for this Grant Funding opportunity.
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