Introduction to Market Readiness Levels in Grant Funding 

Funding, Innovation
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Brilliant innovations fail to reach the market every day – not because the science is wrong, but because the commercial foundations were never built. A working prototype is not a business. A validated technology is not a customer. And a grant application that can’t answer the question “who will buy this, and why?” is unlikely to succeed, regardless of how impressive the R&D is.

Market Readiness Level answers a simple question: can this technology succeed commercially?

MRL assesses how ready your product or service is to be taken to market as a viable commercial offering. It evaluates market fit, customer validation, competitive positioning, scalability, and your organisation’s capacity to deliver and grow. Where TRL measures technical maturity, MRL measures commercial maturity.

It is not interchangeable with TRL, you can sit at TRL 7 and MRL 2 and many do. That mismatch is precisely why technically strong companies fail to commercialise – or fail to convince funders that they will.

Why MRL Matters for Funding and Commercialisation

Grant funders – whether Innovate UK, Horizon Europe, or UK Research and Innovation more broadly – are not simply investing in good science. They are investing in impact: economic impact, societal impact, scalable outcomes. A compelling MRL narrative directly addresses what assessors are looking for.

Beyond funding, MRL serves as a genuine de-risking tool for commercialisation. It forces early confrontation with the questions that kill businesses after the R&D phase: Is there a real customer? Will they pay? Can we reach them? Can we scale without the model breaking?

The MRL Stages: A Practical Breakdown

MRL frameworks typically run on a nine-point scale, grouped into three broad phases:

MRL 1–3: Concept Stage

You may have a hypothesis about who the customer is, but you haven’t yet tested it with real people. Crucially, you haven’t validated whether the problem you think exists is the problem customers actually experience.

MRL 4–6: Validation Stage

You’ve tested assumptions, perhaps built a Minimum Viable Product, and gathered early signals on product-market fit. There may be early letters of intent, pilot agreements, or paying customers.

MRL 7–9: Scale Stage

You’ve proven the model. There’s demonstrated demand, a repeatable go-to-market motion, and evidence of scalability. The business can grow without the commercial foundations collapsing.

The Takeaway

For SMEs and R&D teams building their grant applications, MRL is a practical framework that helps to show how your innovation has a viable future. To find out more, check out Innovate UK Business Connect.

If you’re preparing a UK or EU grant application and looking for some advice or guidance then get in contact with us.

Oliver Cressall

I help businesses unlock grant funding to fuel groundbreaking research and innovation. With expertise in both UK and European grants including Innovate UK (IUK), Eureka, Horizon Europe, UKRI, CINEA, and the European Research Council – I specialise in guiding research teams and innovation-led businesses through every stage of the grant process.

Get in touch

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