AHRC Creative Industries Cluster Grants 2026: Get 80% FEC Over Five Years to Grow Regional Creative Economies

If you work at a UK university, arts organisation, or research partner with a plan to kick a regional creative sector up a gear, this AHRC cluster funding is built for you. This is round two of the Arts and Humanities Research Council’s Creative Industries Clusters programme: a five-year commitment that covers 80% of the full economic cost (FEC) to form place-based or sub-sector clusters that use applied research and development to create new products, services, or experiences with commercial potential.

Think of a cluster as a purpose-built collaboration: academics, creative businesses, local authorities, cultural organisations and tech providers working together around a clear, geographically-defined problem — say, improving regional games production pipelines, making heritage tourism more immersive with new tech, or building resilient supply chains for creative manufacturing. If you want long-horizon funding to prototype, test, and translate creative R&D into economic growth in a named place or sub-sector, this is the call to answer.

Below I’ll walk you through what the opportunity offers, who should apply, what reviewers will be looking for, how to time your application, and practical, tactical tips to make your outline stand out. Read this and you’ll have a clear plan for next steps — and a sense of what to avoid.

At a Glance

What This Opportunity Offers

This funding is not a quick pilot purse; it is a five-year investment intended to create a self-sustaining ecosystem that generates new commercial activity from applied research. The AHRC will cover a large portion of costs — 80% of the FEC — which is generous compared to many programmes. The remaining 20% typically needs to be met from co-investment by partner organisations or in-kind contributions such as staff time, facilities, or matched private investment. Expect the programme to fund a mixture of staff (researchers, project managers, business development roles), capital for prototyping and equipment, industry placements, market testing, and activities to build relationships across the cluster.

Beyond money, being funded brings credibility. A named AHRC cluster attracts attention from local government, investors, creative companies and other funders — and it can act as a magnet for talent and follow-on investment. Over five years you can test ideas, iterate prototypes, run pilot commercial launches and demonstrate measurable economic outcomes: new products, revenue streams, jobs, spin-outs, or licensing deals.

Crucially, the cluster model expects applied R&D that feeds commercial outcomes. That means you’ll need clear pathways from research activity to market readiness: proof-of-concept work, user testing, business development, and an exploitation strategy. This is not a pure theoretical programme; it wants tangible, monetisable outputs tied to regional benefit or sub-sector growth.

Who Should Apply

Clusters are for teams that can show both research excellence and practical routes to commercial impact. If you are a UK university, research institute, or eligible AHRC research organisation that can convene a broad partnership — industry, local authorities, cultural organisations, SMEs, VC or accelerators — then you should consider applying. The ideal lead has:

• Demonstrable research capacity in arts, humanities, design, digital technologies or combined fields relevant to creative industries.
• Strong industry connections and partners prepared to commit cash or substantial in-kind support.
• A clear regional or sub-sectoral case: you’ll need evidence that the location or niche faces a definable challenge that cluster activity can address.

Here are three realistic examples of potential cluster themes to make this concrete:

• A regional screen production cluster focused on green production practices: universities provide research on decarbonisation methods for set build, local studios pilot low-carbon workflows, and suppliers test new materials — all aimed at reducing production costs and attracting sustainable productions.
• A cultural heritage XR cluster in a coastal city: academics in digital heritage partner with local museums and games studios to create immersive visitor experiences, prototype commercial products, and train local freelancers in XR production.
• A creative manufacturing cluster in a post-industrial region: designers, engineers and local SMEs collaborate to develop localised small-batch manufacturing for craft-led products, integrating new digital fabrication workflows and business support to scale exports.

If your plan resembles one of these — with clear partners, commercial trajectories, and regional intent — you’re in the right ballpark.

Insider Tips for a Winning Application

Winning a cluster grant is part science, part politics, and plenty of relationship work. Here are specific, practical strategies that separate successful outlines from window-dressing.

1. Tell a crisp story about the problem. Start with a short, compelling problem statement. What is the single, specific challenge the cluster addresses? Back it with hard facts: employment figures, market gaps, or supply chain failures. Avoid vague claims like “we’ll boost creativity”; name the market failure and show how cluster activities will fix it.

2. Nail the partnership narrative. Reviewers want to see partners who are already committed. Secure written statements of intent from industry partners that say what they will contribute (cash, procurement commitments, testbeds, staff time). Generic letters of support are a red flag. If a local council will commit co-funding or offer facilities, get a named officer and an explicit pledge.

3. Show a credible route to commercial outcomes. Lay out at least three near-term commercialization milestones (e.g., prototype tested with 50 users; pilot sales to 3 retailers; licensing agreement). Describe the support you will provide for business modelling, IP management, and market testing. Concrete KPIs make your proposal feel doable.

4. Budget the 20% gap realistically. The AHRC will cover 80% of FEC, but that remaining 20% must be plausible. Mix cash and in-kind: partner cash contributions, university pump-priming, investor pledges, and in-kind facilities or staff time. Make the arithmetic explicit in the outline stage so reviewers don’t have to guess.

5. Build governance and delivery detail into the outline. Even at the outline stage, describe your delivery structure: a project director, an industry advisory board, a steering group with decision roles, and a clear line of accountability. Clusters are complex; funders want to see that you can manage them.

6. Plan for sustainability beyond year five. Funders prize clusters that aim not to collapse when grants end. Propose income-generating activities (membership fees, licensing, consultancy, training), a phased handover to local partners, or an investor engagement strategy.

7. Prepare for inclusion, ethics and environmental impact. Have brief notes on equality, diversity and inclusion (EDI) in staffing and participation, plus a short environmental sustainability plan. These are often quick checks in review and can tip marginal cases in your favour.

8. Prototype communication and impact metrics. Describe how you will measure economic benefit: jobs created, firms engaged, revenue generated, follow-on investment, or licensing deals. Include a public-facing communications plan for local stakeholders.

These steps add time to your project setup, but they lower review risk. Reviewers fund plans that look executable.

Application Timeline (Work Backwards from 3 March 2026)

Start at least 12 weeks before the deadline. Cluster proposals need partner-building, institutional costings, and legal sign-offs.

• Week -12 to -10: Convene core partners. Agree the single challenge the cluster addresses and draft the problem statement. Secure letters of intent from key partners.
• Week -10 to -8: Work with your Research and Enterprise Office to generate an accurate full economic cost. Identify likely sources for the 20% co-funding gap and request confirmation from partners.
• Week -8 to -6: Draft the outline application. Get an early read from internal reviewers — finance, legal, knowledge exchange. Prepare a one-page governance diagram and a short commercial pathway with KPIs.
• Week -6 to -4: Circulate the draft to external partners for feedback. Secure final versions of partner letters and any formal memoranda of understanding. Run a light-risk assessment and EDI note.
• Week -4 to -2: Final polishing. Check formatting, word limits, and institutional approvals. Upload to the portal well before the deadline and confirm receipt.
• Final 48 hours: Don’t leave submission to the last day. Technical issues happen. Submit at least 48 hours early where possible.

Most institutions require internal sign-off before external submission; factor in their lead times early.

Required Materials (What to Prepare for the Outline Stage)

While the exact outline submission requirements are on the official page, you should prepare a comprehensive pack that you can adapt quickly into the portal. The outline should be concise but convincing. Typical items to prepare:

• Executive summary / project vision (clear, 1–2 paragraphs).
• Problem statement with supporting evidence (labour market stats, business surveys, local strategy references).
• High-level objectives and three concrete outcomes/KPIs.
• Short description of proposed activities and work packages (what will happen in years 1–2 vs 3–5).
• Partnership map and indicative letters of support stating commitments (cash, in-kind, testbeds).
• High-level budget summary showing FEC, the AHRC 80% request, and proposed co-funding for the 20% gap.
• Governance and delivery plan (roles, decision-making, advisory board).
• Sustainability/exploitation plan: how the cluster will continue to deliver value after funding ends.
• Brief risk register with mitigation strategies.
• EDI and environmental impact statements.
• CVs or short bios for the proposed PI or leadership team (demonstrating relevant experience).
• Data management and intellectual property approach (how results will be shared, commercialised and protected).

Draft these as short documents you can compress into the outline form. For partner letters, ask collaborators to be explicit about commitments — not just “we support this”, but “we will contribute £X or provide facility Y for Z months”.

What Makes an Application Stand Out

A standout outline blends clarity with ambition. Review panels reward plans that solve a specific market failure with practical steps and strong partners. The elements that make reviewers sit up are:

• A laser-focused problem statement supported by evidence. Reviewers hate fuzzy aims. If you can point to one quantifiable gap and say “we will address X by doing Y”, you gain credibility.
• Tangible partner commitments. Cash pledges or procurement commitments (e.g., a local cultural organisation agreeing to pilot a product) show real-world demand.
• Clear commercialization milestones. Describe the route from prototype to market with near-term milestones and expected revenue or adoption metrics.
• Realistic budgets and co-funding sources. If your 20% match is only “we hope to secure it”, that undermines trust. Show confirmed or highly probable match.
• Strong leadership and governance. Demonstrate that the team can manage multi-stakeholder projects, including commercial negotiations and IP management.
• Measurable regional economic impact. Quantify jobs, supply chain benefits, export potential or local incomes.
• A sustainability model that reduces dependency on grant funding after year five.

If your outline includes these things, you’ll be invited to the full stage with a much clearer brief.

Common Mistakes to Avoid

Even the best ideas stumble because of avoidable errors. Here are pitfalls and how to fix them.

• Mistake: Vagueness about the challenge. If you describe broad aspirations without measurable need, reviewers will be unconvinced. Fix: Use data and a single, measurable problem statement.
• Mistake: Weak partner commitments. Don’t include partners who only say they “support” you. Fix: Get letters that specify financial or in-kind contributions and named contacts.
• Mistake: Ignoring the 20% match. Leaving the match unspecified is a fatal ambiguity. Fix: Secure commitments or a credible plan to raise the match before submission.
• Mistake: Overambitious delivery for five years. Proposing too many simultaneous pilots without resources flags risk. Fix: Phase work packages with clear milestones and realistic staffing.
• Mistake: No route to sustainability. Funders ask how the work continues after the grant. Fix: Present income models or institutional adoption strategies upfront.
• Mistake: Poor governance or unclear roles. Multi-partner projects need tight accountability. Fix: Publish an organogram and a decision-making matrix in the outline.

Avoiding these missteps turns a promising idea into a fundable project.

Frequently Asked Questions

Q: Who can be the lead applicant? A: The lead must be a UK research organisation eligible for AHRC funding — typically universities or recognised research institutes. If you’re unsure about eligibility, contact AHRC via the listed support email.

Q: Can non-UK partners participate? A: Yes. International partners can be collaborators but funding flows to UK institutions. Make sure any non-UK role is clearly justified and manageable within the project’s delivery plan.

Q: Is the 80% FEC fixed? A: The AHRC will fund 80% of the full economic cost. The remaining 20% should be met through co-funding, institutional support, or in-kind contributions. Clarify the sources of that 20% in your outline.

Q: What exactly counts as applied R&D for this programme? A: Applied R&D here means research activities designed to develop new products, services, processes or experiences that can be commercialised. That includes prototyping, user testing, business model development, and market trials.

Q: Can small companies receive direct funding as partners? A: Direct funding to for-profit partners is usually limited; the primary recipient is the lead research organisation. However, cluster activity can subcontract or partner with SMEs, and you can include support mechanisms that directly benefit them (e.g., paid placements, procurement of services).

Q: How many clusters will be funded? A: The exact number depends on the AHRC budget and the quality of submissions. Expect the competition to be strong; present a distinctive regional or sectoral case.

Q: Will successful outline applicants get feedback? A: Successful outline applicants are typically invited to submit full proposals. For those not invited, funders often provide summary feedback, but the level of detail varies.

Next Steps — How to Apply

If this aligns with your ambitions, act now. Convene your core partners and institutional leads, and start building the short, evidence-based narrative that will form your outline. Use the timeline above as your project plan: secure partner commitments, produce a clear problem statement, work with your Research and Enterprise Office to cost the proposal fully, and prepare brief but concrete letters of commitment.

Ready to apply? Visit the official opportunity page for full application guidance, submission details and the outline-stage portal:

Apply now: https://www.ukri.org/opportunity/creative-industries-clusters-round-two-outline-stage/

Questions or need clarification? Email the AHRC programme contacts: [email protected] or [email protected]. Tell them you are preparing an outline for Round Two and ask about any scheme-specific formatting requirements or page limits.

If you want an early sanity check on your problem statement or partnership approach, I can help you draft a tight two-paragraph summary that sells the challenge and the cluster solution. Send me your idea and a one-line partner list — we’ll sharpen it into something reviewers can’t ignore.