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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

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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

CORFO and others programs to promote companies innovation capabilities

Context

Bioenergy

Climate Change and Biodiversity

Business Development

Renewable energies

Human Capital and workers’ s training

Scientific development

Agricultural Innovation

National targetsR&D Law35% credit tax for First Category Tax on the amount invested in R&D duly certified activities

Technological innovation business programFinances up to US$ 470,000 with limit of 50% in 36 months

High Technology Business innovationFinances up to US$ 1,200,000 with limit of 45% in 60 months

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It is a tax incentive law that seeks to promote research and development of enterprises and improve their competitiveness

Tax Incentive 35% credits tax / 65% recognized as an expense

Benefit LimitInferior: 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

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The objective is encourage innovation in local firms, through project co-financing that involves the development of new or significantly improved 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

Technological innovation business program

- 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

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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

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

High Technology Business innovation

- Research, development and innovation aimed to reduce uncertainty and technical risk (until pilot phase)- Activities of intellectual property protection- Market research activities

Finances up to US$ 1,200,000 with limit of 45% in 60 months

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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