Source · Select Committees · Science, Innovation and Technology Committee
Recommendation 26
26
Rejected
In its response to this report, the Government should set out how it intends to...
Recommendation
In its response to this report, the Government should set out how it intends to ensure the Catapult network is more effectively targeted at addressing regional disparities, including its assessment of whether removing the imperative for Catapults to raise private funds would increase their impact in the UK’s regions. (Recommendation, Paragraph 83)
Government Response Summary
The government explicitly rejects the recommendation to remove the requirement for Catapults to raise private funding, arguing that the current mixed funding model ensures market responsiveness, prevents displacement of private activity, and provides flexibility to address regional contexts.
Government Response
Rejected
HM Government
Rejected
The government disagrees with the recommendation that removing the requirement for Catapults to raise private funding would enhance their impact in regions. The current funding model, combining core public grant with competitively won public R&D funding and private sector revenues, ensures Catapults remain responsive to both public policy priorities and real market demand. This balance prevents displacement of private activity and keeps Catapults focused on helping businesses scale, rather than competing with them. Removing private funding requirements risks making Catapults more reliant on public funding, weakening their engagement with businesses, and reducing industry pull, the very mechanism that drives commercial adoption, scaling of firms, and inward investment across regions. The existing model already provides the flexibility to adjust funding levels to reflect sector maturity, regional context, technology trends, and the availability of alternative funding sources such as collaborative R&D. Some of the catapults most successful at attracting private investment are in lower-productivity regions.