Key Features
UK academic institutions and education providers can apply for funding to develop initiatives that build industry ready AI professionals aligned to local skills demand. Funding of £7.8 million is provided by DSIT.
Programme: Innovate UK
Award: Share of up to £7.8 million
Opens: 4th Feb 2026
Closes: 18th Mar 2026
Innovate UK are working with the Department for Science, Innovation and Technology. They are investing up to £7.6 million in innovation projects to resolve barriers for tech talent across the UK.
The aim of this competition is to develop impactful local initiatives that enable tech talent to secure entry level tech jobs.
Projects must be demonstrate and deliver impact in one or more of the specified geographic areas. They should align with the national and local economic growth plans and skills strategies, while contributing to the overall TechLocal target of creating 1,000 new tech jobs.
The 6 frontier technology sectors are as follows:
Projects must request between £100,000 and £225,000 in grant funding with projects lasting between 6 and 9 months. Projects must not start before 1st July 2026 and end on 31st March 2027. Projects must not start before your Grant Offer Letter has been approved by Innovate UK.
Lead: To lead a collaborative project your organisation must be a UK registered business of any size, Research and Technology Organisations, academic institution, charity, not for profit or public sector organisation.
Project team: To collaborate with a lead, organisations must be a UK registered: business of any size. Academic institution, charity, not for-profit, public-sector organisation or research and technology organisation
Non funded partners: Projects can include organisations that do not claim funding for their work on the project. Their costs will be covered by their own resources.
Subcontractors: Subcontractors are allowed in this competition and can be from anywhere in the UK. Overseas subcontractors can be used, but you must make a case as to why subcontractors from the UK could not be used.
Number of applications: Business, research and technology organisations, academic institutions, charities, not for profit or public sector organisations can only lead on one application but they can collaborate on a further 2 applications. Organisations not leading an application can collaborate in 2 applications.
Previous applications: Previously submitted applications can be used in this competition
The following projects are not being funded:
Innovate UK are offering up to £7.6 million to fund innovation projects. Funding will be in the form of a grant. If your organisation’s work on the project is commercial or economic, funding requests must not exceed the limits below. These limits apply even if your organisation normally acts non-economically but for the purpose of this project will be undertaking commercial or economic activity.
You can receive the following funding for Industrial research project costs:
Category 2 Industrial research projects
Funding available for your eligible project costs of:
Streamline Scheme Information
This scheme supports research or critical investigation to gain new knowledge and skills. It also funds projects that make significant improvement to existing products, processes or services. This includes digital projects, processes or services in any technology, industry or sector.
Research participation
Research organisations undertaking in non economic activity as part of the project can share up to 50% of the total eligible project costs.
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