Knowledge Transfer Partnership

A Knowledge Transfer Partnership usually starts with a business that has spotted an opportunity in the market to develop a new product or service.  If the idea for the new product or service is genuinely innovative, it’s unlikely that the business will have all the relevant skills and expertise inhouse that they need to develop the new product or service. For example, a financial services company might spot an opportunity to develop a new, automated financial product. The company has expertise in developing financial products but lacks expertise in data science and machine learning.

A KTP would enable the business to partner with a university to

1. develop the new automated financial product
2. embed knowledge of the underpinning data science and machine learning technologies required to build the new product in the business.

To apply for KTP funding, a partnership requires the participation of:

• a UK knowledge base: this is a university or research organisation which acts as lead organisation and submits the application.
• a UK registered business: the business partner must be a private sector company registered in the UK with sufficient funds and resources to support the KTP project.

According to Innovate UK rules, public sector and third sector companies are not eligible to apply for KTPs.

All projects must align with the Industrial Strategy’s eight sectors (IS-8).

A KTP project budget is typically in the ballpark area of £110,000 per year (although there are lots of variables to consider).

For small to medium enterprises (SMEs), the government would pay a grant rate of 67%, leaving the company to pay 33% in cash (i.e.: something like £36k per year). 

For large companies, the government would fund 50% of the project costs so a large company can expect to pay (in cash) somewhere in the region of £55k per year.

The KTP budget pays for:

• a KTP Associate to work full-time, project managing the KTP
• an academic supervisor (or PI) to spend 10% of their time (i.e.: ½ day per week) on the KTP project
• a small budget for consumables, training and travel costs
• standard university overheads

*KTPs are eligible for R&D tax credits.

The intention with KTP is that all partners benefit equally but the benefits are different for each partner.  

Benefits for the business partner:

• KTP financially de-risks the innovation process by providing up to 67% funding (or 50% for a large company). In real terms, this means that:
  • For SMEs, the government will contribute £2 for every £1 that you invest in your innovation project.
  • For large companies, the government will match every £1 that you invest.
• Every KTP has to be underpinned by a significant business case. The return on investment (ROI) to the company for participating in a KTP is typically on a ratio of 7:1.
• KTP provides subsidised access to academic ‘consultancy’ over a 1-3 year period which would be very expensive if costed as standard consultancy.
• KTP enables business partners to access and develop highly skilled graduates.
• Access to University facilities and resources (including assistance with bid writing).
• The University deals with the administration of the KTP project and provides secretarial support to the project team (thereby reducing the burden of ‘red tape’ on the business partner).
• Access to specialised business support and advice from Innovate UK.
• High grant success rate (currently >87% nationally).

Benefits for the University:

• KTP is great for delivering impact from research and for providing evidence for impact case studies.
• Fantastic vehicle for partnership-building with innovative, ambitious businesses.
• Good KTP projects tend to generate follow-on projects, papers and publications, case studies, student projects, placements, new research themes and commercialisation opportunities.
• High level of support from Innovate UK with the application process.
• High grant success rate (currently >87% nationally).

Benefits for the KTP Associate:

• Ownership of a key strategic project.
• Accelerated personal & professional development.
• Every Associate has a personal development budget (£2k per year).
• Tomorrow’s Innovation Leaders are KTP Associates today! Most Associates are offered a job post-KTP.

KTP is an ‘open’ funding programmes which means that applications can be submitted anytime. In order to collect and assess applications, application deadlines are set roughly every 2-3 months.

The University KTP team leads the application process. Application is a two-stage process:

Stage 1:

The project team completes an Expression of Interest form (which is called a ‘KTP Fact Find Form’) and sends this, along with the business partner’s recent accounts, to an Innovate UK representative (called the ‘Knowledge Transfer Adviser’) to review.

If satisfied with the Fact Find Form, the Knowledge Transfer Adviser will convene a meeting with the project team to discuss the project in more detail and to ensure that the project is a good fit for KTP. If satisfied with the meeting, the Adviser will give permission to the project team to advance to the second stage.

Stage 2:

The University KTP Team creates an online KTP grant application proposal via the Innovation Funding Service (IFS) portal and works closely with the business partner and academic team to develop the bid. The Knowledge Transfer Adviser acts a critical friend to the project team and provides detailed feedback to improve the bid. Once the Adviser deems that the bid is of sufficiently high quality, he/she gives permission to the project team to submit the application. The project is normally informed within 2-3 months whether their application has been successful.