Innovation is not just about having ideas that disrupt markets and amaze people. Being innovative in your day-to-day life can involve new systems, equipment and even processes within your company.

But one thing connects both worlds, from the entrepreneur to the corporate manager, the need to obtain investment at a low cost.

The current scenario is favorable to scientific and technological development with the aim of disseminating innovation in Brazil. By understanding your own objective, some promotion options become available, such as the granting of tax incentives, economic subsidies, financing instruments and training of human resources.

You can look for normal channels, such as commercial banks, but these are certainly more expensive places and less understanding of the effects of an innovation.

The search for financial resources is strategic

A good option is development banks, in this case, one of the main ones is FINEP, with credit lines and specific programs to support R&D activities and programs of innovative companies in the Brazilian market.

There is a belief that the government does not help, but this can no longer be considered the rule or a standard. Thus, in recent years, the most diverse government spheres have changed their legal frameworks and expanded the mechanisms for promoting innovation in companies, such as financing and subsidies.

Innovation is the basis of new global economies. Through it, we have a relevant axis that adds technological value to processes, products and markets for the most diverse business organizations.

The competitive advantage of innovation is certainly the subject of other materials, but it is important to note that through a consistent plan we have a differentiation strategy that needs sustainability and time to deliver results.

Basic tips for seeking funding

And, in this context, the use of official funding to support financial planning (and, of course, support new ideas) helps projects survive and create more participation in new markets, generating not only more revenue and profits, but also encompassing social functions such as employment, income and economic movement.

When deciding to seek fundraising, some points are essential, such as:

• Have a well-written project, explaining how the required innovation is beneficial to your business (yes, an ERP system is considered innovation and falls under this type of funding).
• Keep your tax documentation (balance sheet and income statement) up to date, as well as your corporate documentation.
• Analyze the notices and prerequisites to present the mechanism that best suits the activities and reality of the companies.
• Identify and map financing opportunities in Brazil.
• Be aware of technological partners for carrying out projects (ICT/Universities).
• Refine the project (as we said, leaving it well written is essential) and submit the financing/subsidy demand project.
• Be efficient in managing and monitoring projects while reporting to the respective funding source.

Promotion models

To make your life easier regarding financial support mechanisms for innovation, they can be divided into two types: indirect support and direct support. In simpler terms, the division is clearer as follows:

Indirect: based on tax incentives (reduction of the tax burden on legal entities), such as the Lei do Bem, the Lei da Informática and Rota 2030.

Direct: direct financial resources, such as financing and loans provided by government agents, which can be subdivided into reimbursable and non-reimbursable financing, and human resources for RDI&E.

Non-reimbursable resources are generally made available at the federal level, through calls in the form of Economic Subsidy (such as the Sesi Senai Innovation notice). Reimbursable resources are loans with excellent conditions, as in the case of those granted by Finep.

Incentives for innovation

In today's market, innovation is not only a differentiator, but a requirement for survival. With innovation and a structured project, it is possible to generate competitive advantage and break new ground and achieve new achievements. However, as everyone knows, the paths to access the financial resources that can facilitate this path are not always clear, or rather, accessible.

There is a feeling of lack of content and even lack of funding for many of the entrepreneurs and companies that are working with innovation. As difficult as it may seem, Brazil is quickly moving towards more financial incentives for the development of innovation and technology.

We, at 4C Innovation, are a company focused on implementing the innovation process, executing the project and supporting the search for funding resources. Check out our model that takes entrepreneurs on this journey of innovation, guiding them through important issues such as the market, technology and the finances of their project. With this, the product project begins with fundamental information for success, making your dream come true!

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