If you want to build genuine AI capability inside your business — not just buy a tool — a Knowledge Transfer Partnership is one of the most underused UK funding routes. “What is a knowledge transfer partnership?” is a common search, so here’s the practical answer, cited to UKRI. (dgm implements osFoundry as an independent partner; we are not a grant-writing service.)
What a KTP is
A Knowledge Transfer Partnership is a three-way Innovate UK partnership:
- your business;
- a “knowledge base” partner — a university, research organisation or Catapult; and
- a KTP Associate — a recently qualified graduate embedded in your business to deliver a strategic innovation project, supervised jointly by the company and the academic partner.
The model is designed to transfer expertise and embed it — the Associate often goes on to a permanent role, leaving the capability behind.
How it’s funded
The Innovate UK grant covers a percentage of eligible project costs depending on your organisation:
| Organisation | Grant covers |
|---|---|
| Most SMEs | up to ~67% |
| Large companies / eligible public bodies | up to ~50% |
| Eligible Welsh SMEs | up to 75% |
Total eligible project costs run at approximately £8,500 per month, over projects of 12–36 months (UKRI). The business pays the unfunded share.
Management KTP
There’s also a variant — Management KTP — focused on embedding management best practice. Notably, public sector organisations can apply only for a Management KTP, and these are capped at a maximum of 10 applications per competition round (UKRI).
Why it fits AI projects
KTPs frequently deliver data science, AI and software capability into a business via the academic partner. That makes them a strong route for genuinely building AI capability — developing models, data pipelines, or AI-enabled processes — rather than purchasing a tool. If your ambition is “we want to do this ourselves, properly, and keep the skills”, a KTP fits well.
How to apply
A practical point that catches people out: the knowledge-base (academic) partner applies, not the company directly, in regular competition rounds via the Innovation Funding Service. So the first step is usually to approach a relevant university or research organisation with a project idea.
Where osFoundry and dgm fit
A KTP builds capability around a project — and the project still needs a sound technical foundation. dgm helps you scope the AI project at the centre of a KTP and can implement it on osFoundry, which supports bring-your-own-key, usage pricing with no per-seat fees, and self-hosting in your own cloud. Because osFoundry is source-available with documented SDKs, it’s a workable platform for a capability-building partnership where your team needs to learn the stack, not just rent it. For UK data-sensitive work we’d use an EU region or self-hosted deployment (osFoundry publishes US/EU/JP regions, not a UK one).
How dgm helps
dgm is an independent integration partner; it has integrated zero companies so far and is not a grant-writing service. The KTP application runs through your academic partner and Innovate UK. dgm helps define and build the AI project so the partnership has something concrete to deliver. To scope an AI project that could anchor a KTP, book a consultation with dgm. General information only; confirm current KTP terms with UKRI.