Funding innovation in 2026 is no longer a “local” exercise. For global businesses, the fastest route to better cashflow, reduced risk and accelerated scale is a joined-up strategy that blends grants, tax incentives and country-by-country delivery, without losing control of compliance.
At FI Group by EPSA, we see the same pattern across sectors: where R&D is genuinely global, the funding approach must be global too.
Innovation funding is expanding in both complexity and scrutiny. Tax authorities want better evidence, funders want clearer impact, and many schemes now include location rules, collaboration requirements and stricter reporting.
In the UK alone, the latest published HMRC statistics show £7.6bn of support claimed under R&D tax credits in 2023 to 2024. That scale explains why governance, documentation and “right first time” submission have become non-negotiable.
Meanwhile, businesses are increasingly expected to “stack” support intelligently, not just chase the biggest headline scheme.
“The finance edge comes from stacking non-dilutive funding from local and international schemes, making innovation risk manageable and more profitable.”
Fawzi Abou-Chahine, Funding Director, FI Group by EPSA UK
That is the mindset behind a global innovation funding operating model.
A global innovation funding strategy is a coordinated plan that matches your R&D roadmap to the best available support in each territory, then governs delivery so claims and applications work together rather than collide.
Two core building blocks:
The strategic aim is to combine both, where permitted, while managing interactions such as state aid, “double funding” restrictions and differing definitions of eligible costs.
FI Group’s approach is deliberately practical: align the funding plan to how the business actually runs, then execute locally with global coordination. Our teams support companies to identify and secure optimal financing conditions for R&D and innovation, from local tax incentives to national and international grants and loans.
1) Map the R&D footprint and funding “right to claim”
We start with a clear view of:
This matters because many regimes apply overseas restrictions or location tests. For example, the UK’s merged scheme notes restrictions on some overseas expenditure.
2) Define the “global project narrative”, then localise it
Your technical story must be consistent globally, but written to local tests.
A strong model is:
This becomes vital where administrations require extra disclosure. In the UK, HMRC introduced an Additional Information Form requirement for claims from 8 August 2023.
3) Build the funding stack by work package
We split the R&D plan into work packages, then assign the right funding pathway:
This is where funding innovation in 2026 becomes a portfolio discipline, not a one-off application.
4) Execute locally, govern globally
Local execution protects eligibility. Global governance protects consistency.
In practice this means:
This “local delivery, global control” model is central to successful cross-border R&D funding.
Snapshot: grants and R&D tax incentives across key jurisdictions
Below is a practical snapshot of major grant pools and headline R&D tax incentive rates, using the latest publicly available figures as at January 2026. Funding volumes and effective benefit vary by company profile, sector and project design.
Grant landscape, recent indicators
R&D tax incentive headline (2026 rules)
Grant landscape, latest published programme data
R&D tax incentive headline (2026 update)
Grant landscape
Grant landscape
R&D tax incentive headline
Grant and public R&D investment landscape
R&D tax incentive headline
Grant landscape
R&D tax incentive headline
Brazil offers both grant-style support (varying by call and agency) and tax incentives. One widely used incentive is Lei do Bem, which provides an additional deduction of 60% to 100% on eligible R&D spend, equating to a tax reduction of 20.4% to 34%. Activities must be carried out in Brazil.
Scenario (illustrative): A global industrial software company has:
A structured funding plan could look like this:
Define work packages that match each jurisdiction’s strengths
Align each work package to the right support
Create one evidence pack, three compliant outputs
Add a “global bet”
Where the innovation is truly collaborative and scalable, consider an EU route (EIC Accelerator or Horizon Europe consortia), especially where the Spanish entity can lead EU engagement.
The strategy improves cash runway, reduces reliance on a single funding source and increases certainty of delivery, because funding is attached to defined work packages rather than vague “innovation spending”.
Common CFO challenges in 2026 and how to mitigate them
FI Group by EPSA operates internationally with a dedicated incentives and grants capability, supporting businesses to access funding across geographies and industries. Our international team includes over 1,400 experts across 13 countries, supporting 15,000 clients worldwide and securing over €1.7bn in funding annually, which is why many multinational groups use FI Group to coordinate multi-country innovation funding strategies with consistent governance and local compliance.
Actionable steps for funding innovation in 2026
1) Can we combine grants and R&D tax relief on the same project?
Often yes, but you must manage interaction rules, particularly whether the grant is considered state aid or restricts claiming on the same cost base.
2) Which countries are best for innovation hubs in 2026?
It depends on your footprint and sector. The UK, Ireland, Spain, Singapore and the US each offer distinct mixes of grants and tax incentives.
3) What is the biggest failure mode in cross-border funding?
Treating each application or claim as a standalone activity, rather than as part of one governed portfolio.
4) How do we avoid double funding issues?
Separate work packages, track funding sources per cost line, and maintain auditable links between technical deliverables and financial records.
5) What should we do first if we have never built a global funding strategy?
Start with a footprint map and a shortlist of projects, then design a two-track plan: quick wins (tax incentives) and strategic bids (grants).
Innovation stands as one of the most valuable assets an organization can possess. In the contemporary business landscape, intangible assets such as ideas, inventions, designs, and brands have gained paramount importance. This marks a significant shift from the 1970s when tangible goods like real estate, machinery, and automobiles dominated market value. Today, intangible assets, including innovation, are indispensable for generating competitive advantages.
Intangible or immaterial assets, despite lacking a physical form, hold substantial economic value. Innovation, as one of these intangible assets, plays a pivotal role in an organization’s success. Estimates suggest that in the 1970s, tangible goods constituted eighty percent of a company’s market value, with intangible assets making up the remaining twenty percent. Currently, this ratio has reversed, underscoring the growing significance of intangible assets.
While these figures are generalizations, they highlight the critical role of intangible assets in driving competitive advantages for businesses. Among these, innovation is particularly valuable due to its high risk of being copied. Innovation can be broadly defined as a novel change that adds value to a product, process, service, or the operations of a company.
Various forms of innovation include:
Innovations serve as significant differentiators, providing companies with considerable competitive advantages.
Beyond the previously discussed points, there is a deeper understanding of the significance of innovation for humanity. Innovation in technological development is not merely an accessory mechanism in human life; it is absolutely essential. Without technique or technology, the human species would have already faced extinction.
The history of humanity is replete with examples of how humans, through their intelligence, imagination, and creativity, have generated innovations to face environmental adversities, achieve greater well-being, and ultimately not only adapt to their surroundings but create a «human world.» This involves adjusting the environment to meet the needs and desires of the human species.
In the pursuit of technological development, increasingly sophisticated objectives have been set:
In general terms, the process by which humans generate the technology to meet these needs consists of three stages:
Humans are innovators by nature, and these innovations drive their development. Although it is not the primary focus of this discussion, it is worth mentioning that such development must be sustainable and integral, satisfying the needs of the present without compromising the capabilities of future generations, while being respectful of the environment.
Having explained the great importance of innovation for humanity and provided a notion of it, it is time to delve into its definition to understand what truly constitutes an innovation and what ways exist to protect it.
A global reference for innovation is the Organisation for Economic Co-operation and Development (OECD), which has been working in this field since the mid-20th century.
The OECD has developed various instruments dedicated not only to innovation but also to Research and Development, encompassing the famous acronym R&D. Among the most important documents from the OECD are the Frascati and Oslo Manuals.
The Frascati Manual states that R&D (research and experimental development) «comprises creative and systematic work undertaken with the aim of increasing the stock of knowledge (including knowledge of mankind, culture, and society) and devising new applications based on the existing knowledge.”
To be considered R&D, the activity must meet five basic criteria:
The term R&D includes three types of activities:
The concept of innovation is provided by the Oslo Manual, which defines it as the introduction of a new or significantly improved product (good or service), process, marketing method, or organizational method in internal practices of the enterprise, workplace organization, or external relations.
Information, much like innovation, represents one of the most valuable resources within any organisation. It forms the foundation upon which decisions, strategies, and development processes are built. Without reliable, timely, and properly safeguarded information, innovation loses momentum and investment in research and development is undermined. In the context of information security, recognising information as a critical organisational asset means treating it with the same level of care and protection as other strategic resources, ensuring its integrity, availability, and confidentiality. In this way, information not only sustains competitiveness but also enables knowledge to be transformed into innovation and sustainable progress.
Everything that has been discussed highlights the importance of recognizing, encouraging, and rewarding the efforts made by private enterprises in research, development, and innovation (R&D), without which sustainable human progress is unthinkable. This is to ensure that society can benefit from the creativity, ingenuity, and effort of those enterprises.
Consequently, the vast majority of countries and a good number of supranational organizations offer support for the financing of R&D.
At FI Group, we specialize in consulting for the application and management of such incentives. However, it is not only necessary to encourage investment in R&D but also to protect it. The way to protect it is by recognizing Intellectual Property to its creator. The legal protection of Intellectual Property allows companies, universities, public bodies, researchers, inventors, designers, artists, etc., to safeguard their innovative and creative developments and obtain a deserved economic benefit.
As previously mentioned, innovations can be classified as follows:
A preliminary approach regarding the protection of such innovations is the following: Industrial Property titles or registrations generally protect the first three types of innovations, both in Spain and across Europe and LATAM, while the fourth type can only be protected by patent in the US, provided that the new model is considered an invention, i.e., a non-obvious solution. In the rest of the world, new “business models” can only be protected by trade secrets.
However, Intellectual Property encompasses a much broader field.
There is no unambiguous definition of Intellectual Property, but the States that developed the Convention creating the World Intellectual Property Organization (WIPO) decided to establish a list of rights related to «literary, artistic and scientific works; performances of performing artists and broadcast; inventions in all fields of human activity; scientific discoveries; industrial designs; trademarks, trade names and designations; protection against unfair competition; and all other rights related to intellectual activity in the industrial, scientific, literary, and artistic fields» (Convention establishing the World Intellectual Property Organization, signed in Stockholm on July 14, 1967; art. 2, point VIII).
In summary, the objects that can be protected by Intellectual Property, which correspond to a category of Intellectual Property rights, can be grouped into the following tables, according to their configuration in Anglo-American law and European continental law:
|
Works |
Copyright |
| Performances of performing artists; and broadcast | Related rights |
| Inventions in all fields of human endeavours | Industrial property |
| Scientific discoveries | |
| Industrial designs | |
| Marks and commercial names and designations | |
| Protection against unfair competition | |
| All other rights resulting from intellectual activity in the industrial, scientific, literary, and artistic fields |
|
Works |
Copyright and related rights (continental law) |
| Inventions | Patents |
| Distinctive signs | Trademarks |
| Designs applied to objects | Industrial models and designs |
| Plant varieties | Breeder’s rights |
| Proprietary information — Know-how | Trade secrets |
At FI Group, we specialize in consulting for the management of funding incentives for R&D. With 25 years of experience, we operate globally, assisting over 15,000 clients in financing innovation. FI Group is part of EPSA, a leading player in global innovation financing, dedicated to supporting R&D activities.
Space-based technology has become one of the most powerful tools in tackling the global challenge of climate change and decarbonisation. From Earth observation satellites that monitor greenhouse gas emissions to advanced propulsion systems that reduce launch footprints, innovation in space technology is critical to achieving net-zero targets.
For SMEs and scale-ups in Europe and the UK, this sector offers a dual opportunity: driving technological breakthroughs while accessing substantial public and private funding. Yet navigating this landscape requires strategic insight. Each scheme has unique compliance demands, funding structures, and cross-border implications, and CFOs face increasing pressure to align innovation spend with decarbonisation goals while ensuring strong ROI.
This article provides a comprehensive roadmap of the funding available across Europe and the UK, from the European Space Agency (ESA) to Horizon Europe and national schemes. It also highlights the CFO pain points in financing innovation, and explains how FI Group’s “Global Reach. Local Expertise.” approach enables clients to maximise returns while reducing compliance risks.
| Programme | Budget (2021–2027) | Focus Areas | Typical Funding Size | Relevance to Space Decarbonisation |
| Horizon Europe | €95.5bn | Climate, Energy, Digital, Space | €500k–€15m | Collaborative R&D, space-enabled sustainability |
| EIC Accelerator | €10bn (subset of Horizon) | Deep-tech, disruptive innovation | Up to €2.5m grant + €15m equity | Hardware/software scale-ups in climate & space |
| ESA Clean Space | €180m+ since 2010 | Green design, debris mitigation | €50k–multi-million | Clean propulsion, eco-satellites, reusability |
| LIFE Programme | €5.43bn | Environment & climate action | €1m–€10m | Climate services, space-enabled adaptation |
| UK Space Agency | £100m+ annual calls | Space science, sustainability | £50k–£15m | National missions (e.g. CO₂ monitoring) |
| Innovate UK Net Zero | £1bn+ portfolio | Clean energy, mobility, data | £50k–£2m | Satellite data for net-zero mobility, energy |
Space technology for decarbonisation refers to the application of space-based tools and services to reduce carbon emissions, improve resource efficiency, and accelerate the transition to net-zero economies. Examples include:
This convergence of space, sustainability, and digital technology creates new commercial opportunities but requires significant upfront investment, hence the growing importance of grant funding and R&D tax incentives.
CFOs in innovation-driven SMEs face three recurring challenges:
In a climate where venture capital funding has declined year on year since 2021, grants and tax incentives are becoming the most reliable growth levers for high-tech firms.
The ESA runs multiple programmes aligned with sustainability and space innovation:
ESA grants often require international collaboration, making FI Group’s network across 13 countries a decisive advantage in forming and managing consortia.
With a €95.5 billion budget (2021–2027), Horizon Europe is the EU’s largest funding programme for research and innovation. For space decarbonisation, key clusters include:
The European Innovation Council (EIC) Accelerator within Horizon Europe also offers up to €2.5 million in grants plus blended finance, particularly relevant for scale-ups in green and space technologies.
The UK’s national innovation agency Innovate UK regularly opens competitions relevant to space and decarbonisation, such as:
Through targeted calls, the UK Space Agency co-funds ESA projects and runs initiatives on space debris mitigation and low-carbon satellite technologies.
For UK SMEs, R&D tax relief remains a crucial complementary mechanism. Costs not covered by grants can often be claimed under the merged R&D Expenditure Credit (RDEC) scheme, offering a ~20% taxable credit on qualifying costs. CFOs must carefully structure projects to avoid “double-dipping”, where the same cost is claimed twice under different schemes, a compliance risk that FI Group’s integrated advisory model helps mitigate.
While venture capital remains the largest pool of growth finance, the market has cooled significantly since 2021. UK deal volumes have fallen, though average deal sizes remain larger than a decade ago, with deep-tech and life sciences attracting outsized interest.
For space decarbonisation, this means CFOs should see public funding as a hedge against VC volatility. Grants de-risk early-stage projects, making companies more attractive to private investors down the line.
For SMEs considering entry into the space decarbonisation ecosystem, a structured roadmap is critical:
At FI Group, we turn complexity into clarity for innovation leaders. With over 1,400 experts across 20 countries, we support more than 15,000 clients annually, securing over €1.7bn in funding.
Our advisory goes beyond funding applications. We help CFOs and executives:
As Dr. Fawzi Abou-Chahine, Funding Director at FI Group UK, explains:
“We support clients to navigate the most competitive EU and UK schemes. Our role is not just to write applications, but to align funding with strategic goals, whether that’s scaling internationally, strengthening IP portfolios, or accelerating net-zero innovation.”
Innovation does not stop at borders. Space and decarbonisation projects often require cross-continental collaboration, from launch facilities in South America to data analytics hubs in Europe and Singapore.
FI Group’s model ensures that:
This capability is critical during M&A, supply chain shifts, and expansions where funding incentives vary widely across jurisdictions.
The European Space Agency and Horizon Europe are the leading sources, with additional opportunities under LIFE, Clean Hydrogen JU, and Digital Europe.
Yes, but careful structuring is needed to avoid claiming the same cost twice (“double-dipping”). FI Group helps ensure compliance with HMRC and EU rules.
Horizon Europe success rates average 10–15%, but consortium-based applications led by SMEs with strong partners see higher success.
CFOs struggle with fragmented regulations, audit risk, and inconsistent reporting across jurisdictions. Integrated advisory support mitigates these challenges.
Because we combine global scale with local expertise, securing over €1.7bn in funding annually and offering tailored support for space and decarbonisation innovators.
IT innovation isn’t limited to the digital sphere. Increasingly, industrial applications of technology are pushing the boundaries of what’s considered R&D.
When businesses use technology to solve operational, logistical, or energy challenges in new ways, they’re often venturing into innovative territory.
Some examples might include:
In these cases, the technology isn’t just supporting the business, it’s reshaping how the business operates, opening the door to R&D qualification.
At its core, R&D is about creating value through new knowledge or novel applications of existing knowledge.
Projects generally fall into one of three key categories:
While these categories may sound academic, the reality is that many IT and digital transformation projects can fall within their scope.
Digital innovation is a fast-moving field, and many solutions that tackle complex challenges could meet the criteria for R&D recognition.
For instance:
These aren’t just examples of digital progress, they’re potential R&D projects with real business impact and tangible fiscal benefits.
In a world where innovation drives competitive advantage, research and development (R&D) is no longer a luxury, it’s a strategic position.
Around the globe, companies are investing in knowledge-based growth to stay ahead of the curve. In Peru, this global trend is taking on a particularly promising form: tax incentives designed to encourage and reward innovation.
But how do you know if your project qualifies?
Could your next technology initiative not only advance your operations but also reduce your tax burden?
The power of innovation to shape sustainable economic development must be recognised, and in the case of Peru, for example, a specific tax incentive has been introduced:
This innovative regulation offers additional income tax deductions to companies that invest in scientific research, technological development or technological innovation.
It’s not just about rewarding great science or complex engineering, it’s about promoting a culture of innovation in which experimentation, development and improvement are actively supported.
Do you have questions about whether your project can qualify for the R&D criteria?
Here are some questions we suggest you ask yourself:
– Are you solving a technical problem with no clear solution at the outset?
– Does it involve a significant advance in either what is being done or how it is being done?
– Are you experimenting with untested ideas or developing new methodologies?
– Is there a measurable element of uncertainty or technical risk?
– Will you generate knowledge that did not previously exist in your company, sector or region?
– Are you applying existing technologies in innovative ways?
If you can confidently answer ‘yes’ to several of these questions, there’s a good chance your project will qualify, and it may be time to explore your eligibility for R&D tax benefits or other innovation-centred incentives.
With a global vision and clients around the world, FI Group specialises in the technical and legal criteria of R&D classification, monitoring the entire process. Our teams of experts combine technical knowledge and strategic vision to ensure that your projects meet the necessary standards and have the best chance of success.
Remember: your innovation today can generate tax benefits tomorrow.
The European Commission has published the latest edition of the 2025 European Innovation Scoreboard (EIS), confirming a positive long-term trend in the EU’s innovation capacity. Since 2018, the European Union’s innovation performance has grown by 12.6%, reflecting efforts to strengthen R&D ecosystems, promote public-private collaboration, and accelerate digitalization.
Although the most recent data show a slight slowdown (with an average decline of 0.4 points between 2024 and 2025), the overall outlook remains positive. All Member States have improved since 2018, with especially notable progress in key countries such as Spain, Belgium, Italy, Germany, and Portugal, where innovation ecosystems have continued to strengthen alongside a sustained commitment to public-private collaboration and business-driven R&D.
In Spain, several regions stand out for exceeding the European average:
Catalonia, the Basque Country, Madrid, Navarre, and the Valencian Community, consolidating themselves as competitive innovation hubs at the European level.
The 2025 Regional Innovation Scoreboard (RIS) presents a mixed but converging picture. Between 2018 and 2025, 233 out of 241 European regions improved their innovation performance, narrowing the gap between the most and least advanced areas. However, 82 regions recorded a decline between 2023 and 2025, highlighting a recent slowdown in some territories and underlining the need to reinforce policies that enhance competitiveness across all regions.
The European Innovation Scoreboard is not just a statistical report; it is a strategic reference tool for guiding public policy, planning investments, and supporting business decision-making. Its integration into the New European Innovation Agenda further strengthens its strategic role, helping to reduce disparities among countries, promote collaboration, and accelerate the adoption of cutting-edge technologies.
It also supports initiatives such as:
In a context of growing global competition and the urgent need for sustainable transformation, companies must take advantage of the funding and innovation incentives available. The strengthening of the European innovation ecosystem creates a favourable framework for:
At FI Group, we have teams specialized in funding programs, offering comprehensive support that covers everything from idea conceptualization, project definition, to fostering collaborations and coordinating proposals.
We accompany our clients throughout the entire project lifecycle, up to the final closure by the administration, including:
We turn opportunities into tangible results. With a strong presence across Europe and deep expertise in EU funding programmes, we support businesses in identifying and securing resources for innovation-driven projects.
If your organisation is looking to enhance its competitiveness through strategic innovation, explore how we can assist you via the EU Grants.
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