10 February 2026
5 min read
European innovation grants remain accessible to UK companies. Learn how programmes such as Horizon Europe and the EIC Accelerator support high-risk R&D, where they fit within your funding strategy, and when applying makes strategic sense.
European innovation grants are still a great choice for UK businesses that want to fund ambitious R&D and grow into new markets. Even after Brexit, UK innovators can access major European programmes like Horizon Europe and the European Innovation Council (EIC) if they know where to find them and how to apply.
Read on to find out why these grants are important, how they fit into your funding options, and when they are worth pursuing.
01 | Context
Imagine a UK deep-tech founder who has just secured angel investment and is planning the next stage of product development. They might have heard that “EU grants are gone for UK companies” and think they must rely only on UK schemes or equity. In fact, the UK is now fully associated with Horizon Europe for the rest of the programme, so UK organisations can apply on nearly the same terms as EU companies.
By “European innovation grants,” we mean competitive, non-dilutive funding schemes like Horizon Europe collaborative projects, the EIC Accelerator, Eurostars, and similar programmes under the EU’s research and innovation budget. These grants support high-risk, high-impact innovation that private finance often cannot cover. For UK businesses with strong technology and global ambitions, they are still a valuable tool in 2026.
02 | The post Brexit funding landscape
Horizon Europe is the EU’s main research and innovation programme, running from 2021 to 2027 with a budget of over €95 billion. It funds projects ranging from basic science to near-market innovation through various work programmes and calls, including the EIC. In late 2025, the EU adopted the 2026–2027 work programme, making about €14 billion available to organisations in the EU and associated countries, including the UK.
The UK’s agreement to rejoin Horizon Europe in 2023 restored full participation rights for UK organisations in almost all parts of the programme, including leading consortia. UK businesses can now join or lead collaborative projects, apply to the EIC, and go through the same evaluation process as EU companies. Each call has its own rules, and some areas have specific eligibility conditions, so competition is tough. Still, access is based on published programmes and criteria. It is more complex than before, but it is definitely possible.
03 | Where European grants sit in a UK company’s funding mix
However, if the assets are used as part of an R&D project, RDAs may be available on all or a proportion of the investment, providing a faster tax relief of 100% first-year allowance (FYA).
European grants are just one part of a broader funding strategy, along with equity, venture debt, bank loans, and revenue-based finance. Grants from Horizon Europe and the EIC usually support high-risk R&D and early commercialisation, often at stages where private investors are cautious. These grants are non-dilutive, so they do not reduce founders’ equity.
These grants are especially useful for deep-tech companies with long development cycles, like those working in advanced materials, climate tech, MedTech, or complex industrial systems. For these businesses, moving from lab to market is costly and uncertain, and grants can help bridge the gap to later investment. If your project is just a small product update, a basic service, or a minor process change, it probably won’t be competitive. In those cases, bank loans, customer revenue, or smaller national schemes may be better options. The main point is to use grants for truly risky innovation that creates or transforms markets, not for routine business
04 | EIC Accelerator in the bigger picture
In this landscape, the EIC Accelerator is the EU’s main tool for start-ups and SMEs developing breakthrough innovations with strong potential to scale up. It supports companies that are past the pure research stage but still face big technical or market risks as they move toward commercialisation. The EIC Accelerator can provide several million euros in grant funding, along with equity or quasi-equity from the EIC Fund when needed, to help bridge the gap from prototype or pilot to large-scale deployment.
For UK businesses, the EIC Accelerator works alongside national schemes like Innovate UK grants by offering larger, later-stage, and more international support. A typical funding path might start with Innovate UK for early feasibility or proof-of-concept, then seed investment for a prototype, followed by EIC Accelerator funding to finish development and test markets at scale, and finally growth capital from VCs or strategic investors. The EIC Accelerator is more than just a grant. It helps companies enter European markets and shows investors that your business meets high standards.
05 | Strategic benefits for UK companies
The first obvious benefit is de‑risking. By covering a significant share of R&D and early commercialisation costs, European grants allow UK companies to pursue bolder innovation projects than their balance sheets or investors might otherwise tolerate. This is especially valuable when targeting regulated markets, infrastructure‑heavy solutions or platform technologies that require heavy upfront investment.
Second, winning programmes like the EIC Accelerator sends a strong message to investors and partners. EIC projects are chosen through tough, expert-led evaluations, so companies that succeed are often seen as more credible by VCs, corporates, and international customers. The EIC Fund is also designed to attract other investors by sharing the risk in high-potential ventures.
Third, companies that receive these grants join the EIC community, which offers business acceleration services, coaching, mentoring, and connections to global partners. This network is often overlooked but can lead to new customers and partnerships across Europe, beyond just the grant funding.
06 | When European grants are NOT the right path
European grants are powerful, but they are not a solution for every business. If your business model is simple, your technology is fairly standard, and you can scale quickly with paying customers and local finance, then the time and effort needed for a Horizon Europe or EIC bid may not be worth it. The application processes are demanding, success rates are competitive, and funded projects come with reporting and delivery commitments.
Stage and ambition are important too. Programmes like the EIC Accelerator are meant for companies aiming for significant international growth and major market or societal impact, not just small local improvements. You need the internal capacity to shape a strong project, coordinate partners if needed, manage cash flow, and deliver on ambitious milestones under close review. It is better to recognise when a project is not ready for this level of scrutiny and to build evidence through smaller pilots, customer validation, or national schemes first.
07 | What to do next
If your UK business has a real technological advantage and wants to grow across Europe or globally, you should consider European innovation grants as part of your 2026 funding plans. Begin by comparing your current and planned projects to the types of innovation Horizon Europe and the EIC support. Then, honestly assess your readiness in terms of technology, market proof, and team. After that, talk with an experienced partner to decide if you should apply for the EIC Accelerator, join a Horizon project, or focus on other options that fit your stage better.
At ABGi, we help companies decide if the EIC Accelerator is a good fit, develop strong proposals, and prepare for the whole process, including interviews and post-award support. This gives your application the best chance of success.
If you want personalised advice on finding funding at any stage of your innovation journey, contact the ABGI Team. We are happy to talk about your goals and explain how we can help.