Scottish Funding Council Follow-on Innovation Voucher Scheme
Frequently Asked Questions
These frequently asked questions are designed to give an overview of the Follow-on
Innovation Voucher Scheme, establish if your company is eligible and help with completing
an application form.
We recommend that you read through these FAQs before filling out the application form.
What are Follow-on Innovation Vouchers?
The purpose of a Follow-on Innovation Voucher award is aimed at building sustained
relationships between small and medium sized companies (SMEs), from all industry sectors,
and universities in Scotland who have previously worked together and jointly received
funding. The proposed collaborative project should lead to new products, services and
processes that will benefit the company, the university and the Scottish economy.
The academic partner is responsible for checking with the company before the application is
submitted as to whether any funding has been granted previously. If in doubt a pre-submission
form should be completed and sent to applications@interface-online.org.uk.
The SFC will take into account the outcome of the previous project (what has/has not been
delivered) when considering the application, thus reserving the right to decline an application
on this basis.
The value of a Follow-on Innovation Voucher is between £5,000 and £20,000, which covers
the academic project costs only and is paid directly to the university. The company must
contribute an equal value in cash. The total value of any individual project can therefore be
between £10,000 and £40,000.
In some cases we may ask for proof of the cash match funding. All expenditure must be clearly
accounted for in a final report. The match cash from the company must not include any
element of European funding or public funding.
The funds for this award will be drawn from European Structural and Investment Fund
2014-20 Programmes, Scottish Funding Council, Scottish Enterprise and Highlands and
Islands Enterprise depending on the location and sector of the project. This joint working is
in line with the Scottish Government’s desire to have greater co-operation between public
agencies and to allow efficiencies of resource and business simplification of funding
schemes.
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Who can apply?
Companies who have previously received funding for a collaborative academic project are
eligible to apply.
If in doubt about the eligibility of the company please check with Interface before preparing
an application; applications@interface-online.org.uk
Can I apply for more than one voucher?
Companies can only be awarded one follow on voucher with a single Scottish university to
continue their partnership and progress the development of a project.
What will be funded?
Projects must be a continuation of the previous partnership, demonstrating further innovation
(i.e. demonstrating novel/pioneering ideas) and leading to new, or significantly enhanced,
products, services or processes that will benefit the company, the academic institution and
the Scottish economy. Only projects which cannot be delivered commercially and require the
technical expertise of an academic partner are eligible.
The university should outline the exact costs of all activities to be undertaken during the
project on the application form, Section A.3 – Project Costs. These include staff time,
materials or facilities. The daily rates allocated for staff costs – both academic and company –
must be appropriate for the skill set and sector. The total value of the award being claimed
must be at least £5,000 but not more than £20,000. As the company must contribute an equal
amount in cash the total value of the project will therefore be between £10,000 and £40,000.
The Scottish Funding Council will assess applications for value for money and appropriateness
of the project. Whilst universities are not expected to collaborate at a loss, they must justify
all costs to comply with the conditions set by European funders.
It is anticipated that strong proposals will:
 Demonstrate a strong opportunity to continue the research and development for a
novel market led product, service or process.
 Propose a demonstrable route to market for the product, service or process.
 Clearly show how the proposal builds on the initial collaboration.
 Provide compelling evidence that the project can be readily commercialized by the
company or if necessary, that the project will attract subsequent funding from other
sources to develop market led products or processes
 Clearly show value for money
Projects will not be funded if they are related to:
 Consultancy e.g. to study/evaluate current products, systems and practices
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Company and strategy planning, drafting business plans
Data gathering and literature reviews
Sales and marketing activities such as development of mobile apps or literature for
advertising
Design and production of advertising materials including websites
Skills development, continuous professional development and training courses
Activities that would promote/ subsidise the cost of exports
Software purchases
Internships for students – separate funding is available for this
Are the projects subject to VAT?
Whether or not VAT is charged on an innovation voucher is determined by the university. They
decide, according to their internal process, whether the project is classified as consultancy
(thus incurring VAT) or as research (not VAT liable).
The general advice from the Scottish Funding Council is that if the VAT can be recovered, by
whatever means by the company, then this is not an eligible cost. If the VAT cannot be
recovered by the company then it can be claimed as an eligible cost provided the claim is
substantiated by appropriate evidence from the company’s auditors or accountants.
Are Follow-on Innovation Vouchers considered State aid?
The European Commission has set out rules about state aid given to organisations and
companies, such as Follow-on Innovation Vouchers. It is important that companies as
recipients of state aid comply with the legislation.
State aid, often in the form of financial assistance, given to companies from a public body, can
give a competitive advantage and therefore has the potential to distort industry competition
and affect trade between member states of the European Union.
De minimis aid is the term used for small amounts of state aid that do not require European
Commission approval. Innovation Vouchers are considered de minimis payments. There are
limits on the amount of de minimis payments made to a single recipient (€200,000 over any 3
fiscal years). It is the company applicant’s responsibility to make sure the EU limits have not
been exceeded. The company should make their university partner aware of any de minimis
aid they have received over the last three years from any source.
For the purposes of the de minimis regulation, the Follow-on Innovation Voucher award
confirmation must be retained for a minimum of three years and produced on any request by
the UK public authorities or the European Commission.
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How do I find the academic expertise I need?
Applications for the follow on scheme are designed to;
(i) Continue the partnership with the academic partner from the original Innovation
Voucher or other award; therefore you should contact the original university to discuss
your idea further with them.
(ii) Or to develop a new collaboration in a new area with a research group drawn from a
different department or institution. You can either contact the university directly to
seek a suitable academic partner or you can contact Interface applications@interfaceonline.org.uk. to help you find a suitable match.
How do I complete the application form?
Once you have chosen your academic partner, set up a meeting with them to discuss your
idea, how you will work together, the possible outcomes, milestones, timescales and costs
associated with the project and the contractual arrangements such as confidentiality, nondisclosure and intellectual property. The sections in the application form provide a guide to
the areas to be discussed during the meeting.
Once both partners have agreed how the project will progress, it’s time to complete an
application form and legal agreements. The company will be asked to complete one section
of the form and the university completes the rest.
As the company must pay an equal amount in cash to match the value of the Follow-on
Voucher award, the university and company should agree a schedule of payments over the
life time of the project if applicable.
If you are unsure if a company or project is eligible please complete and await the decision of
a pre-submission form before completing the application.
Guidance on the information to be included in each section is explained in the step by step
guide.
The application form is structured as follows:
Section A.1 – Company Details and Declaration: to be completed by the company
Section A.2 – Project Details: to be completed by the Lead Academic Partner
Section A.3 – Project Costs: to be completed by the Lead Academic Partner
You only need complete section A at this stage however the whole form; Parts A, B, and C
should be sent electronically to applications@interface-online.org.uk
As vouchers are often used to develop innovative ideas, occasionally outcomes may not be as
predicted, so it is important to identify and discuss any potential risks as early as possible to
help manage both partners’ expectations.
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How are applications submitted?
Completed applications are submitted by email from the university, (usually by their
commercialisation team), to applications@interface-online.org.uk. There are dedicated
deadline dates for submissions. Please check the website for these dates. The Interface team
will check the application before sending it to the funding panel (drawn from representatives
of Scottish Funding Council, Scottish Enterprise and Highlands and Islands Enterprise) for
review and to make a decision on whether it should be funded.
The assessors may ask for further information to support the application, request
amendments to the application, decline it or accept it within 3 weeks of submission.
How will the award/ no award decision be communicated?
The Scottish Funding Council will issue an email confirming the panel’s decision to the lead
academic and commercial team contact. It is the responsibility of the university to notify the
company of the decision.
This scheme is publicly funded therefore applications need to demonstrate some return for
the Scottish economy. The funding bodies reserve the right to turn down any application that
does not meet the required criteria or overall purpose of the scheme and may in some cases
ask applicants for further information to clarify applications.
If an application is declined you may submit a revised application only if the reasons for
rejection are fully addressed. If you do wish to proceed on this basis contact
applications@interface-online.org.uk.
How long will it take for the application to be approved?
Applications will take up to 4 weeks from the follow-on deadlines indicated, providing all the
information is correctly completed in the form. If additional information is required then
approval timescales may be longer so it is important that you read the guidance carefully.
How long will my project take?
The delivery of the outcomes and milestones depend on both partners’ input so it is important
to choose a period when sufficient time can be committed to the project.
Projects should start within 8 weeks of the voucher being approved and should be completed
within 6 months. The funders reserve the right to cancel the approved award for any projects
that have not commenced within 8 weeks of the nominated start date therefore it is important
to be realistic when submitting proposed dates.
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Can changes be made to the project scope or timescales?
Once an award has been approved by the funding body the university should contact the
company as soon as possible and commence the project as planned. If, for any reason, the
project timescales cannot be met or the project objectives change, the university must
complete a change request form as soon as possible and send it to applications@interfaceonline.org.uk for approval. Once the grant is approved no changes to the overall project costs
are expected. If changes are not notified, the funding body is under no obligation to make any
payment towards the project.
What happens if a problem arises during the project?
There may be times when a problem or issue arises. We recommended that you initially raise
any concerns with the commercial contact in the university as soon as possible.
If, however, you are still dissatisfied, please contact applications@interface-online.org.uk
giving a brief outline of the reason for your dissatisfaction.
How will the ownership of the intellectual assets be agreed?
Developing new ideas and partnerships creates Intellectual Property (IP) and other intellectual
or intangible assets. Intellectual property is something unique that you physically create - an
idea alone is not intellectual property. For example, an idea for a book is not an intellectual
asset, but the words you’ve written are. Copyright, patents, designs and trademarks are all
types of intellectual property protection.
Before any application is submitted, the company and university must agree on the ownership
of intellectual assets and intellectual property – both existing (background IP) and what will
be produced as a result of the project (foreground IP), as well as confidentiality and data
sharing.
Standard legal templates for the Innovation Voucher schemes which clearly outline how the
new IP can be commercialised by the company have been agreed by all Scottish Universities.
The IP clauses set out in these legal templates should be used.
More information about IP can be found here or from the Intellectual Property Office (IPO).
What happens once the project is completed?
The company and academic team should hold a meeting at the end of the project to review
the findings and recommendations from the project.
This meeting should review the work undertaken, consider the next steps and compile the
information for the final report.
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Further funding support following a successful Follow-on Innovation Voucher project can be
sought to develop projects. More information can be obtained here.
What information is required for the final report?
The final report should be completed by both partners at the close out meeting within 4 weeks
of the specified project end date; confirming that the project took place, share whether it was
a success, the possible impacts and discuss options regarding the next steps which may be
taken. The final report should be submitted to applications@interface-online.org.uk.
The final report will help assess the success of the scheme and its impact on the Scottish
economy and may therefore be included in reports to the European funders. The scheme is
funded by the Scottish Funding Council and is part-financed by the European Structural and
Investment Fund 2014-20 Programmes. It is therefore important to ensure that all
requested information is included. Details on how to complete the form is in the step by
step guide to completing the final report.
How is the grant paid?
The final report must be completed and submitted to applications@interface-online.org.uk
within 4 weeks of the project end date. Once the completed final report has been reviewed
and approved by the funding body the award is paid directly to the university. If the report is
delayed beyond 4 weeks of the approved end date the funding body may not release the
funds. It is therefore important to submit a change request form for consideration if a delay
is anticipated.
It is the university’s responsibility to directly invoice the company for their contribution during
the lifetime of the project. The funding body are NOT liable for any costs incurred as a result
of the company withholding payments. As a condition of the award the funders may ask the
university to invoice the company at certain points during the project lifecycle.
If for any reason the project is terminated before it is completed, a claim can still be made.
Please contact applications@interface-online.org.uk for information if this occurs.
Will the outcome from the project be promoted?
All projects are followed up by Interface six months after completion with a survey so we can
evaluate the impact and outcomes of the scheme.
In addition, Interface occasionally includes case studies of successful projects funded by
vouchers to promote the scheme on its website and other media. These can be extremely
useful for promoting your company but you can let us know if you do not want a case study
produced.
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Our commitment to equality, diversity and environmental sustainability
The Scottish Funding Council, Interface and universities are committed to promoting equality,
diversity and environmental sustainability (also known as Horizontal Themes).
Further details about the Scottish Funding Council’s equality, diversity and environmental
sustainability policies can be found here.
As vouchers are an award of public funds, there is a duty to ensure that these funds are
reaching the widest possible pool of recipients. All partners may therefore be asked to
complete an anonymous survey in order that evidence can be gathered and recommendations
made to ensure these policies are being met. This survey will be sent separately.
We would also encourage all companies to promote the Scottish Company Pledge, a
partnership between the Scottish Government and companies to commit to shared ambitions
of fairness, equality, diversity and sustainable economic growth through progressive policies.
Freedom of Information
The Scottish Funding Council may share information about projects with the Scottish
Government, Scottish Enterprise, Highlands and Islands Enterprise and other appropriate
organisations in the interests of developing and promoting the Innovation Voucher Schemes.
The Scottish Funding Council is subject to the Freedom of Information (Scotland) Act 2002 and
may be requested to disclose information about the Innovation Voucher Scheme. Companies
and universities will be consulted before any decision to disclose information is taken.
However, refusal to disclose information may be appealed to the Scottish Information
Commissioner.
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