£1.9m to be pumped into SME innovation scheme
A SCHEME which helps West Midlands businesses boost their innovation and R&D activities is set to continue for another three years.
Innovation Networks Phase 2 seeks to raise the levels of innovation amongst West Midlands small and medium sized businesses by providing grants to groups of companies that can work together and collaborate on the development of innovative new products, processes or services.
The second phase of this project is supported by just under £1.9m from the European Regional Development Fund, which is managed by the Department for Communities and Local Government and matched by investment from the supported businesses.
Communities minister Baroness Hanham CBE said: “It is vital that we continue to help support projects that have shown real benefits to local businesses and with innovation and R&D activities remaining key to future business development, this truly is an important investment.
In phase 1 nearly 90 SMEs were supported through grants, with an estimated £1m of new sales generated for the participating companies.
One business to have benefited from the scheme is Stafford-based B&G Products – a company manufacturing handles for reusable cool bags used for protecting chilled and frozen foods.
After redesigning its handles, B&G used an Innovation Networks grant to purchase new tools to start production reducing the cost of raw materials used by 15% and without sacrificing product quality.
By cutting costs it was able to agree to new contracts with major supermarket chains and within six months of launching the new handle B&G had £126,000 of new sales.
