» Purpose

Fundo Tecnológico - FUNTEC (Technology Fund) is intended to provide financial support to projects aiming to foster technological development and strategic innovations in Brazil, in compliance with the Federal Government Public Programs and Policies.


» Guidelines

FUNTEC’s planning and operation must fulfill the following guidelines:

  Speed up solutions for problems detected and recognized by Research Institutes and economic agents; 

  Place greater focus efforts and funds on specific themes, aiming to be an active player in areas or matters where Brazilian companies may play an outstanding or leading role at worldwide level, avoiding investment of funds in non-related activities; 

  Ensure continuous efforts on selected areas to speed up delivery of research results and join the efforts of Research Institutes and companies, using BNDES’ capacity to assemble and put partners together; and 

  Support projects intended to effectively introduce innovations in the market. 


» Destination of funds

 Technological development and innovation projects with the following goals may be financially supported: 

  Renewable energy, in particular the technological developments able to get, in the long-run, an outstanding or leading position for Brazil in this area;
 
  Environment, focused on solutions for the control of pollutant vehicle and industry emissions; and 

  Health, specifically active ingredients and medicines for neglected diseases; medicines using the recombinant DNA technique; and support to the building of an innovative health care infrastructure, involving animal colonies, pre-clinic and clinic surveys.

The projects referring to the items above must absorb 85% of FUNTEC funds. The remaining portion will be used for other matters, in compliance with the Fund's guidelines.


» Funds

FUNTEC’s income comes from:

  Allowances annually consigned through Board resolution in BNDES investment budget; and 

  Funds from income earned through the investment of cash equivalent, minus expenses related to taxes and management fees arising from financial investments.


» Clients

Technology Institutions - IT and Support Institutions - IA, for the development of research, technological development and innovation projects, with the participation of companies taking part in the research. 


Definitions of terms:

i. Technology Institution - IT: government controlled legal entity or any entity directly or indirectly controlled by this entity or a private non-profit legal entity, with an institutional mission of, including but not limited to, carrying out scientific or technological basic or applied research activities, as well as technological development. 

ii. Supporting institutions - IA: institutions founded to support research, education and extension and institutional, scientific and technological development projects for state college education institutions and scientific and technological research and institutions founded under Law no. 8.958, of December 20, 1994, working towards this goal; and 

iii. Companies taking part in the research: state or private legal entities engaged in economic activities directly related to the scope of research, technological development and innovation projects.


The participation of companies taking part in the research may be exempted in the following cases:

i. When the corporate object of ITs and IAs include, in addition to the research activities, production and trading of products or processes resulting from researches conducted with FUNTEC funds; 

ii. When it is found that, in considering the public interest: 

a. the knowledge produced by the research must be kept in public domain; 
b. the intellectual property right must be owned by the state entity; and 
c. the intellectual property right must be negotiated with third parties at the end of the research. 


» Items to be supported

The items that can be supported, required to the development of Research, Development and Innovation projects - R, D & I, are the following:

  Purchase of new research equipment, produced in Brazil, required to R, D & I projects; 

  Purchase of new research equipment, imported, when no similar equipment is produced in Brazil, required to R, D & I projects; 

  Purchase of software developed with national technology or, when there is no similar technology developed in Brazil, with foreign technology, required to R, D & I projects; 

  Expenses with foreign products brought from Brazilian foreign trade zones related to R, D & I projects; 

  Investments in construction works, physical facilities and infrastructure required to R, D & I projects; 

  Purchase of inputs and permanent materials used in R, D & I projects; 

  Expenses with R, D & I staff employees’ wages, when allowed by law; 

  Expenses with technological training and qualification related to R, D & I projects; 

  Expenses with trips related to R, D & I projects; 

  Expenses with assays, tests, certifications, and others, in Brazil and abroad, related to R, D & I projects; 

  Expenses with technical and specialized services and external consulting, related to R, D & I projects, limited to 30% of the financial support to the project ; and 

  Pre-operational expenses and other expenses required to the introduction of technological innovation produced by the R, D & I project in the market, limited to 30% of the financial support granted to the project.


» Specific Criteria

In research, development and innovation projects developed by companies, the stakeholders must set forth in contract the ownership of intellectual property rights, as applicable, and the profit-sharing of the exploration of partnership-derived projects, corresponding to the amount of the overall knowledge existing at the beginning of the partnership as well as human, financial and material resources provided by the contracting parties, as provided for in articles 5 and 9 of Law nº 10.973, of December 02, 2004.

During the analysis stage, BNDES will check aspects related to intellectual property rights of the research, development and innovation project aiming to avoid, as required, restrictive use and assignment of these rights. BNDES will also check, in this stage, the project’s profit-sharing criteria. 


» Types of Financial Support

FUNTEC’s operations take place in the form of direct support, non-reimbursable and limited to 90% of the project’s total amount. 

The investment of funds granted for other purposes than the one set forth in the instrument formalizing the operation, as well as breach of any liability set forth in this instrument will be deemed default and will require the return of funds granted, restated at the Selic Rate (Special System of Clearance and Custody) from the funding release date to the effective return to BNDES, plus a 10% fine.


» FUNTEC Advisory Committee

FUNTEC Advisory Committee - CCTEC is composed by BNDES’ staff employees, Federal Government representative and external specialists. Committee members who are not part of BNDES’ staff are required to sign a Confidential Disclosure Agreement and keep confidential all information they are told as CCTEC members. 

Support applications will be received on an ongoing basis at BNDES, which CCTEC will appraise on three distinct dates throughout the year, to be previously disclosed by BNDES. 


» Addressing

Financial support applications are addressed to BNDES through an Inquiry Letter - filled out as per instructions provided by Project Submission Guidelines, to be submitted by the applicant, to: 

Banco Nacional de Desenvolvimento Econômico e Social - BNDES
Área de Planejamento-AP
Departamento de Prioridades-DEPRI
Av. República do Chile, 100 - Protocolo - Térreo
20031-917 - Rio de Janeiro /RJ. 

Applicants must address, along with their applications, an Acceptance Agreement (to be disclosed shortly), authorizing the disclosure of information related to their financial support application to CCTEC members who are not part of BNDES’ staff. 

Note: The deadline for the submission of projects to BNDES, to be appraised by CCTEC in their second 2008 meeting, goes through August 15.


See:

Innovation