Source of Innovation is funded by the Government of Switzerland through its State Secretariat for Economic Affairs (SECO), by the FEMSA Foundation, by the Republic of Korea through its Ministry of Environment, and by the Government of Israel. The alliance is also complemented by direct contributions from IDB Lab and the Water and Sanitation Division of the IDB, and coordinates directly with the Aquafund, the fund created with IDB capital and to which a wide range of public and private sector partners contribute.

Its implementation is co-led by the Water and Sanitation Division and IDB Lab, the Bank's innovation laboratory, and involves the Knowledge and Innovation Department (KIC), the Office of Outreach and Partnerships (ORP), IDB Invest and the Competitiveness, Technology and Innovation Division (CTI).

The objective of Source of Innovation is to generate the conditions for the development and integration of innovative solutions in the water, sanitation, and solid waste sector so that quality access to these services and their benefits are within reach of the entire population in Latin America and the Caribbean. 

Specifically, Source of Innovation directly addresses the challenges identified in the regional diagnostics previously carried out by the Bank to assess the barriers and opportunities for innovation in the sector in the region.

1. Strengthening the demand for innovative solutions - empowering service providers by providing them with tools, methodologies, and opportunities to test innovative solutions.
2. Strengthening the supply for sectoral innovation - identifying and supporting in a dynamic and interactive way the supply of innovative solutions and products developed by the private sector and the innovation ecosystem.
3. Promote the formation of alliances between emerging companies and entrepreneurs, service providers and investors, strengthening the regional innovation ecosystem and its key players, as well as creating and strengthening spaces for dialogue.
4. Foster a culture and environment conducive to innovation in the water, sanitation and solid waste sector, facilitating a cultural shift towards innovation in the sector in Latin America and the Caribbean.

This alliance builds on the legacy of innovation activities and products promoted by the Bank through the Bank's Water and Sanitation Division in recent years, including AquaRating, HydroBID; lessons learned from previously executed operations to foster and drive sector innovation; as well as IDB Lab's extensive experience in developing pilot innovation projects for vulnerable groups in water, sanitation and waste management; the use of innovative private financing instruments such as impact bonds and microfinance as well as a dense network of connections involving innovators, startups, entrepreneurs and civil society organizations among others.

Source of Innovation will finance concrete innovation projects with the public and private sectors. Some examples of previously financed projects are available below. 

If you have an innovative proposal aligned with the goal of the alliance to be implemented in one of the 26 countries members of the IDB Group and that:

• Bring a solution that presents a clear path to scale and attract more investors interested in joining forces to deploy resources.
• Have a model that makes sustainability possible once the project with the IDB Group is completed.  

You can contact us at fuentedeinnovacion@iadb.org

The evaluation of proposals will include other guiding principles such as impact potential, knowledge generation, and demonstration effect, among others.