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CORFO: Financial instruments


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There are several financing alternatives for developing innovation, R&D and applied research that can be used in different fields of entrepreneurship.

Existen variadas alternativas para desarrollar innovación, investigación y desarrollo y aplicar esa investigación en distintos campos del emprendimiento.

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CORFO: Financial instruments

  1. 1. August 2014 - Santiago, Chile Financial Government funds for companies This document is only for Innspiral’s exclusive use. It can not be quoted, distributed or used without Innspiral's written authorization
  2. 2. There are several financing alternatives for developing innovation, R&D and applied research that can be used in different fields of entrepreneurship CORFO and others programs to promote companies innovation capabilities Context National targets Scientific development Bioenergy Climate Change and Biodiversity Business Development Renewable energies Human Capital and workers’ s training Agricultural Innovation R&D Law 35% credit tax for First Category Tax on the amount invested in R&D duly certified activities Technological innovation business program Finances up to US$ 470,000 with limit of 50% in 36 months High Technology Business innovation Finances up to US$ 1,200,000 with limit of 45% in 60 months
  3. 3. It is a tax incentive law that seeks to promote research and development of enterprises and improve their competitiveness 4 Tax Incentive 35% credits tax / 65% recognized as an expense Benefit Limit Inferior: Invest over US$ 7,500 / Maximum annual tax credit limit: MUS$ 1.1 (That is, equivalent to a 3.3 MUSD/year project) Expenses included - Salaries - Operating expenses (materials and contracts with third parties, use of property and utilities) - Constitution of intellectual property - Acquisition and manufacturing equipment and instruments - Infrastructure (laboratories, buildings for prototype testing) Project or Contract? The activities of R&D, can be realized with the capacities of the company (Project) The activities of R&D, can be contracted by 100% to R&D center specialized, registered in CORFO (Contract) Other topics - This benefit is compatible and complementary with other public funding - The application process is via web and is open all year R&D Law Some examples - Research of new technologies for renewable energy projects - Development of a new automatic control system for mining process - New genetic research on plant varieties. - Development of techniques for investigating consumer habits - Development of new vaccines for salmon - Mathematical research on financial risk analysis - Operations Research
  4. 4. Technological innovation business program The objective is encourage innovation in local firms, through project co-financing that involves the development of new or significantly improved 5 products and/or processes Focus - Business innovation projects that present a "clear degree of novelty" compared to what exists in the market - The project represents a significant technological challenge that justifies public support - Have significant impact on the business - The origin is from a need identified by the company Line 1: Product and Process Innovation (Prototype) Finances up to US$110,000 with a limit of 50% in 12 months - R&D; integrating technology or applying existing technologies that allow the generation of new and/or significantly improved products and/or processes, to the prototype stage. - Development of laboratory testing - Activities of significant functional improvement and validation of a process - Design and construction of prototypes (minimum scale) - Expenses associated with the intellectual property Line 2: Validation and product packaging Finances up to US$360,000 with a limit of 50% in 24 months - Development activities related to the prototype functionality settings - Scaling up prototype (operate in real conditions) - Validate Prototype (Test with customers and standardization) - Adjusting the business model - Expenses associated with the intellectual property
  5. 5. High Technology Business innovation The objective is to support the development of high-tech projects with significant commercial potential. This support is provided for the development of early stage, high R&D, looking for risk reduction Finances up to US$ 1,200,000 with limit of 45% in 60 months 6 Focus Encourage the commissioning of projects looking for global problems solutions through the development of advanced technologies, capable to create businesses with high added value and new market niches Financed activities - Research, development and innovation aimed to reduce uncertainty and technical risk (until pilot phase) - Activities of intellectual property protection - Market research activities Not Financed activities - Scaling and go to market activities - Investment projects - Acquisition and construction Funding Evaluation process Evaluation criteria - International Analysis: The project will be analyzed by international experts, in response to the potential market, technical relevance, methodology and equipment capabilities to address the proposal - Panel of Experts: The proposal will be reviewed by a panel of experts - Innova Chile: Evaluate and communicate the approval or rejection of the project, and may establish conditions - Market analysis - Solution (technical and economic) - Research experience of the team - Business Model
  6. 6. Alcántara 44 piso 8, Las Condes, Santiago | (+56) 2 2440 82 00 |