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Transforming UK Manufacturing

The Made Smarter Innovation (MSI) Challenge, funded by the UK Government and delivered by Innovate UK, the Engineering and Physical Sciences Research Council (EPSRC), and the Economic and Social Research Council (ESRC), has been pivotal in driving the digital transformation of UK manufacturing. 

Over the past five years, it has highlighted both the sector’s potential and a stark divide between digitally advanced frontier firms and the 99.3% of manufacturers that are SMEs. Addressing this gap requires better segmentation of SME needs, affordable digital technologies such as Artificial Intelligence and Machine-Learning, and a focus on resource and energy efficiency. 

By supporting smarter, data-driven manufacturing, the MSI Challenge is helping UK firms reduce emissions, boost productivity, and build resilience—laying the foundations for a more competitive, sustainable, and digitally enabled manufacturing future.

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Celebrating our impact

Explore Made Smarter Innovation Celebration Brochure to discover the people, technologies, and success stories powering digital innovation across the sector.

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MSI Evaluation Report (May 2025)

Read the Evaluation of the Made Smarter Innovation Industrial Strategy Challenge Fund to explore the programme’s impact, from job creation and increased R&D to new collaborations and digital innovation across UK manufacturing.

Read the report

Announced in 2020, the Made Smarter Innovation Challenge aimed to boost productivity, sustainability, and employment across UK manufacturing.

The challenge built on the 2017 Made Smarter Review led by Juergen Maier, which envisioned the UK as a global leader in digital manufacturing by 2030 through the adoption of advanced digital technologies. 

As of April 2025, over five years, MSI engaged more than 800 organisations, invested £112m grant funding and secured an additional +£200m in industry co-investment. The programme supported the creation of 459 jobs and upskilled over 8,000 people in Industrial Digital Technologies (IDTs). It helped develop 356 IDT solutions, with 601 companies adopting new technologies, while 113 providers delivered 447 demonstrators and over 947 business cases, showcasing practical applications of digital innovation in manufacturing.

Made Smarter Innovation
  • Made Smarter Innovation Network

    ​Over the past five years, the Made Smarter Innovation Network has cultivated a dynamic community of industrial digital technology (IDT) providers, developers, and users, fostering cross-sector collaboration to drive innovation within UK manufacturing. Delivered by Innovate UK Business Connect, the network offers access to funding, partnerships, innovation support, and test beds, enabling stakeholders to connect and co-create transformative digital solutions. Through free webinars and exclusive case studies, members gain early access to cutting-edge technologies and insights, enhancing R&D investment and informing future funding strategies. By uniting diverse participants across the manufacturing ecosystem, the network has played a pivotal role in advancing productivity, sustainability, and resilience in the sector.

    Discover more about Innovate UK Business Connect

  • Research Centres

    InterAct

    InterAct, an Economic and Social Research Council-led network is an ESRC network+ initiative that unites economic and social scientists, UK manufacturers, and digital technology providers to address the human issues posed by modern technological advancements in the industry. By fostering a collaborative and interdisciplinary community, InterAct provides funding to researchers, generating actionable insights that benefit UK businesses.

    Discover more about InterAct

     

    Centre for People-Led Digitalisation

    The future of manufacturing might be driven by technology, but it will be powered by people. The Centre for People-Led Digitalisation (P-LD) has worked with industry to generate and implement human-led solutions that enable UK manufacturers to embrace digitalisation with confidence. The research and resources created help industry adopt new technologies effectively, ethically and sustainably, giving it a competitive advantage in the global marketplace.

    Discover more about P-LD

     

    Smart Cobotics Centre

    The Smart Cobotics Centre, led by Loughborough University in partnership with seven academic institutions and 87 businesses (including 26 SMEs), focused on boosting productivity, growth, and workplace health by tackling key barriers to human-robot collaboration in manufacturing. The centre advanced intuitive human-robot interaction, dexterous robotic manipulation, streamlined system deployment, and addressed social, regulatory, and legal challenges. Through targeted research and industry-academic feasibility studies, the centre contributed to accelerating the adoption of smart collaborative robotics and Industrial Digital Technologies.

    Discover more about the Smart Cobotics Centre

     

    Research Centre for Connected Factories

    The Research Centre for Connected Factories, led by the University of Nottingham, is advancing the concept of “connected morphing factories” to create resilient, adaptable, and reconfigurable manufacturing systems that can rapidly respond to changing market demands. Informed by the challenges of the Covid-19 pandemic and the push for greener, localised production, the centre is developing new architectures, sensing systems, and AI-based controls to enable autonomous, digitally aware factories. Through five industrial application studies and extensive collaboration with partners, the centre is demonstrating how flexible production units can support future-ready manufacturing, while actively engaging industry and the public to drive impact and adoption.

    Discover more about the Research Centre for Connected Factories

     

    Digital Medicines Manufacturing Research Centre

    Led by the CMAC centre at the University of Strathclyde, the DM² initiative is transforming pharmaceutical manufacturing by accelerating the adoption of Industrial Digital Technologies (IDTs) such as AI, digital twins, and collaborative robotics. Working with over 30 partners, including major pharma companies and universities, DM² tackles challenges in Chemistry, Manufacturing, and Controls (CMC) by improving how data is generated and shared. Innovations like the Tableting Data Factory enable rapid, low-volume, personalised medicine production, cutting development times by up to 90%, reducing waste and costs. To support industry adoption, DM² also offers online IDT training through its Skills Factory.

    Discover more about the Digital Medicines Manufacturing Research Centre

     

    Materials Made Smarter Research Centre

    The Materials Made Smarter Research Centre (MMSC), led by the University of Sheffield, is driving the future of manufacturing by harnessing the power of digital technology. As a hub for collaboration between academia and industry, the Centre transforms cutting-edge research into real-world applications that enhance efficiency, reduce costs, and improve product quality across various sectors, including aerospace, automotive, and material production.

    Discover more about the Materials Made Smarter Research Centre

  • Innovation Hubs

    Smart Manufacturing Data Hub

    The Smart Manufacturing Data Hub (SMDH) programme comprised £20 million of grant funding and a further £30 million of industry funding, delivered through a consortium of partners spanning all four UK nations. SMDH supports small and medium-sized manufacturers to become more competitive by harnessing the power of shared data. The Hub inspires innovation in factory data insights through accelerated sensor deployment, internet of things (IoT) connectivity and use of digital analysis approaches – through a mix of bespoke digital platforms and operated by a team of specialist technology and data science experts.

    Discover more about the Smart Manufacturing Data Hub

     

    Digital Supply Chain Hub

    The Digital Supply Chain Hub, led by Digital Catapult, is transforming UK manufacturing by enabling smarter, more efficient, resilient, and sustainable supply chains. It supports businesses in unlocking the value of digital technologies by improving data flow across supply chains, backed by a strong consortium including BAE Systems, Rolls-Royce, Sainsbury’s, and others from industry, academia, and government.

    Discover more about the Digital Supply Chain Hub

  • Digital Accelerators

    Three Accelerators were delivered through the MSI Challenge through the Digital Catapult:

    • Made Smarter Technology Accelerator
    • Sustainability in Manufacturing Accelerator
    • International Supply Chain Accelerator

    The Made Smarter Technology Accelerator connected UK manufacturers with innovative startups to tackle key industry challenges through emerging technologies. Startups responded to challenges set by Industry Challenge Owners, developing prototypes and Minimum Viable Products (MVPs) across five key themes: intelligent factory management, product verification, data-driven procurement, digitally enabled workforces, and resource analytics. The goal was to optimise operations, strengthen supply chains, reduce waste, and drive sustainability and productivity across UK manufacturing. 

    The programme delivered significant impact, fostering collaboration and growth for both industry and startups. Eight of the 14 startups continue to engage with their challenge owners, while others secured additional funding or advanced through further programmes. The initiative also accelerated innovation, raising Technology Readiness Levels (TRLs), creating 11 new jobs, and increasing specialist skills across participating businesses—highlighting its role in strengthening the UK’s industrial innovation ecosystem.

    Discover more about the Made Smarter Technology Accelerator

     

    Made Smarter Innovation Sustainability Accelerator (MSISA) was a programme designed to accelerate industrial sustainability and leverage cutting-edge technologies to drive environmental impact.

    Working in partnership with Industry Challenge Owners, the programme has explored and developed solutions that provide real-world benefits to UK manufacturing, speeding up their route to achieving net zero. The UK ecosystem of startup and scale-up technology innovators addressing sustainable manufacturing challenges were invited to apply, join the programme, and be at the forefront of digital adoption.

    Discover more about the Made Smarter Innovation Sustainability Accelerator 

     

    The International Supply Chain Accelerator aimed to support UK technology innovators and startups to identify and address operational inefficiencies in current trade processes. Leonardo UK and BAE Systems have set out the industry challenges with BT Group as a technology sponsor and ICC as an industry body emphasising the significant potential for optimisation and improvement of import and export processes used in cross-border trade.

    The UK ecosystem of technology innovators was invited to apply to the programme, to be at the forefront of digital transformation. Digital Catapult, as delivery partner, facilitated and guided the partnerships between the industry challenge owners, technology sponsor and the tech innovators, providing funding of up to £85,000 to address some of the UK’s most pressing supply chain challenges.

    Discover more about the International Supply Chain Accelerator

     

  • Collaborative R&D

    As a central pillar of the Made Smarter Innovation Challenge, four Collaborative Research and Development (CR&D) competitions were delivered to accelerate the development and adoption of Industrial Digital Technologies (IDTs) across UK manufacturing. These competitions were designed to foster partnerships between manufacturers, technology developers, and academic institutions.
     
    With £46 million in grant funding and £52 million in matched private investment, the CR&D programme supported 76 projects and engaged 272 unique project partners, including 138 SMEs and 79 large businesses.
     
    CR&D 1 – Fast Start

    This first competition focused on feasibility and proof-of-concept projects to quickly test and validate early-stage digital technologies. It was open to a broad range of technology areas and industries.

    • Public funding: £17.3 million
    • Private investment: £25.1 million
       

    CR&D 2 – Digital Supply Chain & Follow-on

    Split into two phases, this competition supported innovation in data sharing, visibility, and traceability within supply chains. It addressed real-world challenges in logistics, forecasting, and supply chain resilience.

    • Public funding: £18.66 million (combined)
    • Private investment: £13.8 million
       

    CR&D 3 – Sustainable Smart Factory

    This competition supported digital innovations aimed at reducing environmental impacts. Funded projects explored energy optimisation, waste reduction, and circular manufacturing.

    • Public funding: £13.72 million
    • Private investment: £11 million

    Read the full list of winners here
     
    CR&D 4 – Robotics

    The final CR&D competition addressed the UK's historically low adoption of robotics. It focused on collaborative and flexible automation systems suited to SMEs.

    • Public funding: £4.04 million
    • Private investment: £2.92 million

    Read the full list of winners here

Check out the Made Smarter Innovation Challenge case study shorthands at Discover UKRI:

Full versions of these case studies can be found below.

Innovation Case Studies

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