The document outlines various financing options available in Chile for innovation, research and development (R&D) projects, particularly highlighting support from CORFO. It details tax incentives and financial programs aimed at companies for projects related to technological and product innovation, with varying funding limits and eligibility criteria. Additionally, it emphasizes the evaluation process for applications and numerous examples of funded projects in renewable energy, agriculture, and biotechnology.

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August 2014 - Santiago, Chile
Financial Government funds
for companies
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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
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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. It is a tax incentive law that seeks to promote research and
development of enterprises and improve their competitiveness
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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. 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
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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. 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
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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

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