$35 million IDB loan will help companies promote research and development to spur innovation

The Inter-American Development Bank (IDB) will support Peru in a $100 million program to boost scientific research, technological development and innovation for hundreds of firms, especially in the hi-tech industry.

The seven-year initiative, which will be executed by the Financing Innovation, Science and Technology (FINCYT) unit, will receive $65 million in funding from the Peruvian government as well as an IDB loan of $35 million.

Under the program, the Peruvian government will implement measures to increase exports of hi-tech goods and services as well as public expenditure on scientific research and technological development.

Almost 400 companies will receive funds to increase investment in research and development, and to bring innovation to new products and processes. Resources are awarded through a public bidding process, targeting emerging enterprises and service providers of technology outreach activities.

In addition, the project will provide funding for more than 170 research projects and 80 scholarships for postgraduate studies both in Peru and abroad, promoting research, development and innovation skills in Peru.

A national online library created as part of the program will facilitate access to specialized publications and funding will be provided for four accredited testing laboratories and fifteen studies for the promotion and development of the innovation market.

"This project is a strong commitment to invest in science, technology and innovation in Peru," said Juan Carlos Navarro, project team leader at the IDB. "It is a broad and diverse program that will boost scientific research in the country, promoting a culture of innovation and increasing Peru’s competitiveness at the regional and global level."

The loan has a 25-year term with a seven-year grace period and a variable interest rate based on LIBOR. This project builds on and consolidates the achievements of a 2007 IDB loan to Peru, which had a similar purpose and is nearing completion.