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Grants are financial awards provided by governmental or other entities to corporations to support R&D and various different projects that don’t necessarily have a commercial nature. Unlike loans, grants often do not need to be repaid, making them an attractive source of funding for recipients. Grants can be classified as intangible assets since they represent a future economic benefit derived from the grant-funded activities. For example, suppose a research institution receives a grant to research renewable energy technologies. The grant funds allow it to hire researchers, buy lab equipment and conduct experiments, leading to innovations and fresh intellectual property. The knowledge generated are generally owned by the corporation that conducted the research, creating competitive advantage. Similarly, businesses may receive government grants to support workforce training programmes or infrastructure development, thereby serving as intangible assets that contribute to the company’s growth and success.