Businesses can now apply for a share of up to £1.5m to support real-world testing of new medical devices, diagnostics and technologies in the NHS.
The funding comes from a partnership between Innovate UK and the Office for Life Sciences who are working together to support the development and design of plans for collection of data on clinical performance and cost effectiveness.
It is aimed at small and medium-sized companies that have developed and manufactured innovative healthtech, have gained a CE marking for it and have marketed it in the UK for less than 5 years.
To be considered, projects must also be led by an SME working alone or with others as only the lead SME can claim for the funding.
The scheme expects planning and preparation projects to have costs of up to £50,000 and actual studies to have costs of up to £250,000.
It is also anticipated that projects will last between 3 and 12 months.
According to the government, the life sciences sector has a £70bn turnover and employs nearly 235,000 people which makes it one of the most important for the UK economy.
Due to the small size of most companies in the sector, it is often difficult to find funding to provide enough real-world evidence to support the use of its innovations within the NHS, something the new scheme is hoping to change.
The competition opens on November 26 and closes at midday on January 30.