Member Article

£25m R&D cash for UK aerospace SMEs

UK aerospace businesses are set to benefit from £25m of Government funding for collaborative research and technology projects.

Making the announcement at the Paris Air Show, Business and Energy Minister Michael Fallon, said the fund will be targeted at SME aerospace suppliers, and will be match funded by winning businesses.

Mr Fallon said: “We have a world-leading aerospace sector underscored by our ability to excel in areas like research & development. It’s this commitment to innovation through our Aerospace Industrial Strategy that will be a crucial driver for long-term growth.

“If we are to get ahead of the game we must create the right conditions now that incentivise businesses to invest in the UK and develop new, exciting products. This new funding will help to do just that and also ensure a high level of quality projects receive the support they need to get off the ground.

“The National Aerospace Technology Exploitation Programme (NATEP) is positive news for UK aerospace, and a further demonstration of Government and industry working together to strengthen our supply chains.”

The funding is the first part of the £2bn joint Government and industry fund aimed at supporting the Aerospace Technology Institute (ATI), announced in March.

A report published today by KPMG’s expert Aerospace team suggests UK market share could be worth £474bn by 2031.

The study, commissioned by aerospace defence trade organisation ADS, shows the UK sector comprises over 3,000 companies and around 230,000 direct and indirect employees.

Sarah Owen-Vandersluis, Director, KPMG Aerospace and Defense Strategy commented: “As one of the most dynamic sectors in the UK, civil aerospace is well positioned for strong future growth in the UK and overseas.

“Building from a position of strength, the UK Civil aerospace sector and the government have joined to develop a framework to support a long term industrial strategy.

“This makes the UK highly attractive for inward investment, whether it be through R&D, a proven supply chain or favourable tax environment. This is critical in an increasingly global supply chain.”

The £40m National Aerospace Technology Exploitation Programme, (NATEP), led by the Aerospace Growth Partnership to address skills shortages and improve R&D collaboration has also been launched today.

Iain Gray, chief executive of the Technology Strategy Board, said: “The creation of the Aerospace Technology Institute demonstrates the UK’s long term commitment to this key industrial sector. As the UK’s innovation agency, the Technology Strategy Board is well placed to manage this first open technology funding competition on behalf of the Aerospace Growth Partnership. The successful projects will help the UK to deliver the leading edge innovation envisaged in the Aerospace Industrial Strategy.”

This was posted in Bdaily's Members' News section by Tom Keighley .