Abstract

BARONA-ZULUAGA, Bernardo; RIVERA-GODOY, Jorge Alberto; AGUILERA-CIFUENTES, Carlos Iván  and  GARIZADO-ROMAN, Paula Andrea. Funding for innovation in Colombia. Entramado [online]. 2015, vol.11, n.1, pp.80-93. ISSN 1900-3803.  https://doi.org/10.18041/entramado.2015v11n1.21126.

The objective was to obtain a better understanding of the investments made by Colombian businesses in innovation, research and development, as well as the manner in which they are financed. Based on the economic theory of business financing, an econometric analysis was performed of the information about funding for innovation contained in the Survey of Development and Technological Innovation in the Manufacturing Industry (Spanish acronym: EDIT IV) prepared by the National Administrative Department of Statistics, whose Spanish acronym is DANE. The main findings were the following: i. Investments in innovation were mainly represented by machinery and equipment: 68.3% of the resources in the period; and ii. The businesses' own resources were the main source of funding for these investments, a mounting to 76.3%, while private bank loans made up another 18.2%. The importance of debt correlates with the results of recent research in developing countries and in some developed countries, such as Germany. Evidence was also found of the very low relevance of public resources in the funding for innovative activity. The recommendations include the development of mechanisms that would facilitate the use of bank loans and the leverage of private capital funds, as well as the increase of public resources directed towards stimulating the innovative activity of businesses.

Keywords : Entrepreneurship financing; innovation; financing of intangible assets; corporate finance; mixed financing.

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