Contracts for Innovation: Quantum Sensors and PNT Missions Primer

Key Features

Organisations can apply for a share of £14 million, inclusive of VAT, to accelerate the development and adoption of quantum sensors and quantum position, navigation, and timing products and services.

Programme:    

Award:     Share of up to £14 million

Opens: 19th May 2025

Closes: 2nd Jul 2025

Overview

This is a Contracts for Innovation, formerly known as SBRI, competition funded by Innovate UK.

Scope

The aim of this competition is to accelerate the development and adoption of quantum sensors (QS) and quantum position, navigation, and timing (QPNT) products and services. These will prime the National Quantum Strategy Missions 3, 4, and 5. Examples include sensing-enabled solutions for healthcare, navigation systems and clocks, and sensors for critical infrastructure in the transport, telecoms, energy, and defence sectors.

Your phase 1 project must deliver:

  1. A Product Maturity Plan which includes plans or roadmaps describing your future product development activities, investment needs, and how they address your intended market.
  2. A Product Performance Report which shows the results of a test, a demonstration, modelling, or a trial from which you derive your confidence in being able to meet the technical requirements of your chosen market.

The above deliverables will be used to evaluate the performance of your phase 1 project. Based on performance in phase 1 and the availability of budget, you may be invited to apply to a separate phase 2 competition. We expect that you will enact some or all of the development activities in your Product Maturity Plan, if you are selected for a phase 2 project.

Your product or service must use second generation quantum technologies, or your product roadmap must include a plan for the incorporation of second generation quantum technologies.

Second generation quantum technologies are defined as those involving the generation and coherent control of quantum states, resulting in phenomena such as superposition or entanglement. We consider technologies involving single photon generation and detection to be in scope.

Software and hardware are both in scope as a product or service. However, in the case of software, the product or service must be aligned with a specific hardware device or platform. The hardware provider can be a collaborator or subcontractor.

Your project must:

  • be fundamentally about the development of an innovative product or service
  • demonstrate the current status of the technology
  • outline future plans for developing the maturity of the product or service, that are founded on a mature product concept and market knowledge
  • identify technical, commercial, and regulatory barriers to adoption

You must define your goals in your application and outline your plan for phase

You must demonstrate a credible and practical route to market, so your application must include a plan to commercialise your results.

At this stage contracts will only be given for phase 1.

In phase 2 we will ask successful applicants from phase 1 to develop your proposed product or service based on the plans generated in Phase 1. We expect this will include delivering some or all of the development activities in your Product Maturity Plan.

Portfolio approach

Contracts will be awarded to successful applicants for a variety of projects across different technologies and markets. We call this a portfolio approach.

Specific Themes

Your project can focus on one or more of the following:

  • quantum sensors (QS)
  • quantum position, navigation, and timing (QPNT)

Research Category

Phase 1: Product maturity studiesThis means planned research or critical investigation to gain new knowledge and skills for developing new products, processes or services.

Eligibility

Projects must:

  • start on 1 September 2025
  • end by 31 March 2026
  • last up to seven months
  • have total costs of between £500,000 and £1.5 million, inclusive of VAT

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:

  • be an organisation of any size, including those based in the EU, EEA or internationally
  • work alone or with the subcontracted skills and expertise of others from business, research organisations, research and technology organisations, or the third sector (charities, social enterprises and voluntary groups)

Contracts will be awarded to a single legal entity only. The majority of the project work and key deliverables must be completed by the applicant and be carried out in the UK. Subcontractors can be used, but only for specialist skills.

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.

Exclusions

Innovate UK will not fund projects that:

  • are not original in scope and duplicates someone else’s work
  • do not cover a product or service that uses second generation quantum technologies
  • are covered by existing commercial agreements to deliver the product or service
  • do not generate product or service plans
  • are only paper or desk based studies
  • are based on immature technologies

Funding Costs

A total of up to £14 million, inclusive of VAT, is allocated to this phase 1 feasibility study research and development (R&D) competition. Contracts will be up to £1.5 million, inclusive of VAT, for each project for up to seven months. We expect to fund between 10 and 15 projects.

The total funding available for the competition can change. The funders have the right to:

  • adjust the provisional funding allocations
  • apply a ‘portfolio’ approach

The contract is completed at the end of phase 1.

The decision to proceed with phase 2 will depend on the outcomes from phase 1 and budget availability. There will be an assessment of a separate application into a subsequent phase 2 competition. Successful delivery of phase 1 will not guarantee a contract for phase 2.

Successful organisations are 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 £1.5 million.

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 £1.5 million.

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:

  • commercial development activities such as quantity production
  • supply to establish commercial viability or to recover R&D costs
  • integration, customisation or incremental adaptations and improvements to existing products or processes

Innovate UK may revoke our decision to provide funding without notice if government commitment for this initiative is withdrawn.

Interested in applying for this competition?

Book an appointment to speak to one of our advisors to discuss your eligibility to apply for this Grant Funding opportunity.