With the maritime sector facing unparalleled macroeconomic challenges, it is vital to make the most of the economic support on offer, particularly for innovation.
Economic disruption from Covid-19 has hit the supply and demand side of all industries, and this has been felt acutely in shipping.
Pressure on the industry to deliver vital goods across the world has increased during the pandemic, but government and maritime businesses can work in partnership to ensure growth.
In the UK, shipping is significantly underutilising government grant funding — in particular those firms working on energy and sustainability-based developments.
The grant system is set up to reward companies that want to undertake projects to improve sustainability or help the British economy more broadly.
The best bet for companies looking to apply for such support, or investigating whether they are eligible, is via the Innovate UK portal.
For more specific industry challenges that require collaborative research, such as the development of non-destructive material and testing of maritime assets, many funding options are promoted via Innovate UK's Knowledge Transfer Network.
'Build back better'
Given the commitment to “build back better”, there is likely to be an increase in funding for shipping innovation as the government plans for £22bn ($30.6bn) of grants spanning the next five years, across multiple sectors, including offshore energy and maritime.
Government and industry can work in conjunction to deliver a more innovative, greener maritime sector.
One method that encourages this collaborative approach is fiscal funding through research and development (R&D) tax credits. The scheme is available to any maritime company that is liable for corporation tax and meets the R&D criteria.
Innovation recognised under the scheme includes engines that run on cleaner fuels, improving the efficacy and sustainability of marine coatings and new vessel designs to reduce fuel consumption.
Tax credit schemes are likely to be expanded as the government looks to hit its goal of spending 2.4% of national GDP on R&D investments by 2027, compared with its current rate of 1.7%.
In the light of the sustainability agenda and legislative changes, an expansion of R&D programmes is inevitable.
Shipping is a hot bed of R&D and there are several pockets of innovation, with marine architects, for example, striving to make ships lighter, stronger, and faster, while maximising the use of sustainable materials. This needs to be recognised and encouraged by the government.
It is vital that the government does its part in enhancing growth with grants and tax credits as one way to spur innovation, protect jobs and promote a sustainable agenda. Marine firms must make the most of these opportunities.
Matilda Hayward is a science consultant at Leyton UK, an innovation funding consultancy
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