Pera Technology, which works with companies to reduce the risks involved in new-product development, has launched the Leap initiative; this is intended to give small and medium-size engineering and manufacturing businesses the chance to win up to £2 million worth of R&D funding.

The 10 innovative businesses chosen by Pera will apply to the European Union’s Horizon 2020 fund, which was established earlier this year to turn new product ideas into commercial prototypes.

Once a prototype has been developed, Horizon 2020 will give the SMEs access to potential investors from across Europe and further afield.

Pera has one of the highest success rates in accessing funding from the EU, having secured £70 million for UK businesses during Framework Programme 7 — the predecessor to Horizon 2020.

Marc Greatrex, head of business development at Pera, said: “Credit rationing during and after the recession has led to many promising ideas failing to make the move from paper to prototype, largely due to lack of available capital investment. With the economic recovery now underway, we are looking to encourage engineers and manufacturers who may have ideas gathering dust on the shelf to step forward and turn them into a commercial reality.”

Manufacturers can enter the competition by going to the company’s Web site (www.peratechnology.com/h2020comp).

Their submissions will be assessed on criteria that include feasibility, commercial potential and originality. For those that are not successful, Pera will provide detailed feedback on how best to take their innovation to the next stage.