Q2: Who are the Knowledge Providers involved in the Innovation Voucher scheme?

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1 INNOVATION VOUCHERS FAQs Q1: How does the Innovation Voucher Programme work? An Innovation Voucher is worth up to 5000 (or the equivalent amount if used in the ROI) and it allows small and medium* sized businesses to access academic skills and expertise from one of the registered knowledge providers throughout Northern Ireland and the Republic of Ireland listed at The aim is to improve the innovation capability of your business and to build links between public sector knowledge providers and the business community. The innovation voucher may be used by businesses in need of external expertise to help with an innovation project, for example to develop innovative products, processes or services. Businesses may use the innovation voucher to get help where they themselves do not have the expertise, technology or facilities needed to progress a project or solve an issue. Please note that innovation vouchers are there to introduce you to a public sector Knowledge Provider for example a University, College, Institute of Technology or other research body and to avail of their specialist knowledge. Vouchers may not be used to help you buy equipment or training for your business. Please see full list of ineligible activities at question 4. *Note: Medium sized businesses (more than 50 employees) are not eligible if they have received assistance through Invest NI s R&D Programme in the past five years. Q2: Who are the Knowledge Providers involved in the Innovation Voucher scheme? The Knowledge Providers involved in the Innovation Voucher scheme are listed at They are the publicly funded Universities, Colleges, Institutes of Technology and other research organisations in Northern Ireland and Republic of Ireland. Q3: Why was the Innovation Voucher scheme developed? Whilst innovation is widely recognised as an essential condition for business growth, sustainability and competitiveness, Northern Ireland has historically lagged behind other leading European countries and UK regions in terms of its levels of innovation activity. The latest UK Innovation Survey for 2015 (based on data for ) shows that NI is now 11th out of the 12 regions in terms of regional variation for rate of innovation activity. The main objective of the Innovation Voucher scheme is to increase the level of innovation in SMEs via the interaction between publicly funded research organisations such as the Universities, Colleges and Institutes of Technology and small and medium-sized businesses in Northern Ireland. 20 December

2 Q4: What can you use an Innovation Voucher for? Innovation is about doing things differently or doing different things to make your business better. An Innovation Voucher can help you take a creative approach to tackling specific business issues. Typical projects are: Ideas for new or improved products, processes and services Validation trialling of new/enhanced products/services* Access to specialist information and expertise on new materials Tapping into research and scientific expertise *Note: A voucher may not be used to test products that are not within the ownership of the applicant s business. Q5: What can t you use an Innovation Voucher for? In general a voucher will not be awarded if an existing solution is readily available. While the Innovation Voucher programme is very flexible, there are some activities that we can t support: Achieving compliance with statutory regulations or legislation Standard training Software purchases and basic software development Aid that would promote/subsidise the cost of exports Internships for students of knowledge institutions General marketing activities Sales activities Website development and online optimisation Standard mobile apps Business plans and economic appraisals Standard business advice Activities that might be supported by other Invest NI mainstream assistance 20 December

3 Q6: Who is eligible? You can apply if: You are a small enterprise - with fewer than 50 employees and either an annual turnover and/or an annual balance sheet not exceeding 10m. You are a medium-sized enterprise - with fewer than 250 employees and either an annual turnover not exceeding 50m or balance sheet total not exceeding 43m. You should also not have received assistance through Invest NI s R&D Programme in the past 5 years. Companies in the transport and agricultural sectors are excluded in line with State Aid guidelines. Note: Due to the continuing high demand for innovation vouchers, priority will be given to commercial enterprises and social enterprises that have most potential to further develop their business particularly outside Northern Ireland. Q7: Do I have to be a customer of Invest NI to apply? No, the scheme is open to all businesses that meet the eligibility criteria. Q8: I am a sole trader, can I apply for an innovation voucher? Yes, the scheme is open to sole traders, partnerships and limited companies. The scheme is also open to new start-ups and those businesses at pre-trading stage. Note: Innovation vouchers are non-transferable and must be used for the Innovation Project outlined in the original application form. Q9: Can a group of businesses apply together? Yes, up to 5 businesses can apply together to pool their vouchers to solve a common business issue, with one business acting as the lead. There is a separate application for pooled projects, You can download the pooled application form at 20 December

4 Q10: How can I apply? Applications are made during open calls using the application form available at You will need to answer a few basic questions on the website to determine if you are eligible to apply. If so, you will then be able to access the application form. There are generally four open calls for applications per year and dates are highlighted on the website. You should ensure that you allow sufficient time for your application to be submitted and received in advance of the closing date as late applications will not be considered. If you have a disability and are therefore unable to submit electronically please contact us on Q11: What happens after my application has been submitted? Applications are assessed after a call has closed and Invest NI aims to notify applicants of decisions by post within 4 weeks of a call closing. If your application was successful, you will receive your voucher with this letter. Unsuccessful applicants will receive a letter and are welcome to contact the Innovation Vouchers Team for specific feedback on their application. Q12: Can I apply again if I am unsuccessful the first time? Yes. If you have been unsuccessful you may contact the Innovation Voucher Team to request specific feedback on your unsuccessful application. Please take this feedback into account before re-submitting the application. Q13: What happens if a voucher is awarded? The Voucher may be exchanged for advice and expertise from any of the Knowledge Providers listed on our website The Voucher may be used to access advice and expertise provided by the Knowledge Provider in addressing the issue outlined in the Innovation Project section of the applicant s original application to Invest NI. The application form should be shared with the Knowledge Provider and should form the basis of discussions between the business and the Knowledge Provider leading to the development of an agreed work programme. The Knowledge providers are publicly funded research organisations and will offer services from within their resources. 20 December

5 Q14: How do I start the process of working with a Knowledge Provider? The company initiates the process by making contact with one of the Knowledge Providers through the contact points for each knowledge provider listed at The contact point will assist the company in identifying and locating the required knowledge and expertise within their organisation, if it exists. The Innovation Voucher Team at Invest NI can also offer help if needed. Some voucher applicants will have identified a Knowledge Provider in advance of applying for an innovation voucher but it is not essential to do so. In the application form we will ask if you agree that Invest NI can share your information with Knowledge Providers. From time to time we may share information where a Knowledge Provider has not been identified. Q15: Can I use my voucher with a private sector company or research provider? No, the voucher cannot be used to fund services provided to the company by a private sector company or research provider. In certain instances, in agreement with the Knowledge Provider and Invest NI, up to 20% of the voucher may be subcontracted to an external party outside of the pool of approved providers if the necessary skills/expertise is not available from the Knowledge Provider. In such instances, the Knowledge Provider will lead and manage such a situation and ensure that Invest is made aware prior to work commencing. It is also possible for a number of Knowledge Providers to collaborate on a project, with one acting as the lead provider in terms of paperwork, invoicing, reporting, etc. Q16: What should be agreed before the project activity commences? The business and the Knowledge Provider must agree a Terms of Reference for the project and this should broadly reflect the Innovation Project as outlined on the original application form. The Knowledge Provider will complete the Invest NI Letter of Notification template which includes the scope, timeframe, deliverables and costs of the project. When agreement has been reached by both parties (the client and the Knowledge Provider), the Knowledge Provider will forward the Letter of Notification to Invest NI for approval following which a purchase order will be issued to the Knowledge Provider. Work on the project can then commence. Q17: Should I expect a finished commercial product as a deliverable? No, a finished commercial product should not be expected as a deliverable. The innovation voucher covers up to 5000 worth of work. Examples of the type of deliverable you might expect are reports, technical design drawings, technical specifications, technology roadmaps, rough product or process prototypes or maybe the results of specific analysis. The deliverables will be agreed at the outset and highlighted in the Letter of Notification. 20 December

6 Q18: How are the full costs of the project covered? The value of the Voucher is 5,000 which is used to offset the final costs of the project activity as agreed between the company and the Knowledge Provider in the Letter of Notification. In the event that the final costs are greater than the voucher amount, this should be discussed and agreed between the business and the Knowledge Provider before any work starts. Please note: In awarding the Voucher, Invest NI is not commenting on the full cost, scope or deliverables of the project. The company should be aware that the full cost of their project may be considerably greater than 5,000 and this should be considered carefully when discussing the project with the Knowledge Provider. Q19: How does the company pay for the service(s) provided by the Knowledge Provider? When the work has been completed as per the Letter of Notification, the Knowledge Provider will invoice Invest NI for reimbursement of the 5000 covered by the voucher. In the event that the final costs are greater than the voucher amount, this will have been discussed and agreed between the business and the Knowledge Provider and outlined in the Letter of Notification. The client will be responsible for payment of any additional amounts over and above the 5000 voucher as well as the VAT associated with the entire project. Please note that the Innovation Voucher is EXCLUSIVE OF VAT. Q20: Are vouchers subject to VAT? Yes, and the company is responsible for the payment of VAT, irrespective of whether or not it is registered for VAT. The voucher is exclusive of VAT and cannot be used to cover the VAT. VAT is liable on the project cost of 5000* (or the total project cost if higher than 5000). If you are a VAT-registered business you might have the option of reclaiming through normal VAT procedures. On completion of the innovation voucher project, the Knowledge Provider will invoice the client direct for the VAT payment. A subsequent application for another innovation voucher will not be considered if the VAT has not been paid on a previous voucher. * 1, VAT is payable by the client on a project of 5, Information on VAT: 20 December

7 Q21: Can a company or individual have more than one Voucher? A company or individual may make use of a maximum of three Innovation Vouchers for different projects but may only have one active voucher at any point in time. A business will not be eligible for further vouchers until their account with the knowledge provider is settled in full (including the payment of VAT). Q22: What are the funding levels of vouchers? 1st voucher 5000 The business pays the VAT associated with the project and any project costs over and above the voucher value. First vouchers are designed to encourage businesses which have not teamed up before with a knowledge provider. Our aim is to nurture this type of collaboration, so Invest NI may give priority to enterprises that are new to working on a formal basis with a specific department within academic and research institutions. 2nd voucher 5000 The second voucher is worth 80% up to a maximum of 5000 of the total cost. Your business contributes the remaining 20% of the cost (and any other project costs if the total exceeds 6250) and all of the VAT. 3rd voucher 5000 The third voucher is worth 70%, up to a maximum of 5000, of the total cost. Your business contributes the remaining 30% of the cost (and any other project costs if the total exceeds 7143) and all of the VAT. Examples next page 20 December

8 Examples Based on a 5000 project Voucher Project cost Voucher value Client Contribution VAT* (20% of project cost) 1 st % up to nd % up to rd % up to Total Cost to Client Based on the client wishing to use the full 5k value of a second or third voucher Voucher Project cost Voucher value Client contribution VAT* (20% of project cost) Total Cost to Client 2nd % up to % = rd % up to % = *Note: VAT registered businesses may be able to reclaim the VAT through normal VAT procedures. Q23: What can the knowledge provider claim as eligible costs on voucher projects? All researchers employed by a Knowledge Provider may receive payment for the work undertaken in an Innovation Voucher project provided such payments are within the terms and conditions of the individual s contract with the Knowledge Provider. Salary costs for work undertaken by students recruited by the Knowledge Providers on short term contracts for the purposes of the Innovation Voucher project are also permitted. Small items of equipment and materials may be purchased as required and as agreed with the partner business. This should not be used to purchase equipment and materials that the knowledge provider would normally be expected to have available onsite. Small amounts of travel (i.e. mileage) as required and agreed with the partner company. Invest NI normally expect that at least 70% of the claimed costs of any voucher project should go towards paying for the skills and expertise of the Knowledge Provider. Q24: How long are the vouchers valid for? Vouchers are usually valid for up to 9 months. Each voucher issued includes a voucher number and expiry date. The project must be completed before the expiry date. 20 December

9 Q25: What happens if the expiry date is approaching and project work has not been completed? Please make contact with the Innovation Voucher team at Invest NI as early as possible in such a circumstance. Q26: Does the company own any foreground IP generated during the voucher project? Yes, any foreground IP developed as a result of an Innovation Voucher project will belong to/be assigned to the company unless the company and the knowledge provider have agreed otherwise. Q27: Is Innovation Voucher support State Aid? The financial assistance made available through the Innovation Voucher Programme is awarded under The Industrial Development (Northern Ireland) Order 1982 and is State aid (Innovation Aid for SMEs) under Article 28 of Commission Regulation (EU) No. 651/2014 of 17 June 2014 (the General Block Exemption ), notification no. SA Skills, Strategy and Innovation Solutions. 20 December