» 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; 

  Support projects intended to effectively introduce innovations in the market; and 

  Encourage the arrangement of projects combining different supportive instruments (such as other products, credit facilities or programs provided in BNDES Operating Policies) which counts on FUNTEC (State Fund for Scientific and Technological Development) funding.


» Allocation of funds

The following technological development and innovation projects are eligible to receive financial support:

Renewable energies, including: 

I - Bioenergy, focused on:

a) Technologies to produce energy biomass targeted at increasing energy density and agricultural productivity in the following crops: sugar cane for ethanol, oilseeds for biodiesel, eucalyptus and other species for energy forests, fodder for energy production and microalgae; 

b) Improvements to the efficiency of industrial processes, aiming to increase productivity, cut down on costs and mitigate environmental impacts, as well as cleaner and cost-efficient technological routes related to the following processes: production of ethanol (distillation/fermentation/hydrolysis), biodiesel (transesterification), charcoal (pirolysis), gasification of biomass, combustion, biodigestion and extraction of vegetal oils; and

c) Technologies designed to re-use agricultural, forest and cattle-raising waste, including processes for waste collection, logistics and treatment (compacting, bricketing, drying and others).

II - Hydroelectricity, focused on technologies designed to increase the efficiency of energy generation.


Environment, including: 

I - Treatment of solid urban waste, focused on technological innovations in biodigestion processes, recycling or incineration;

II – Reduction and control of solid waste in the industrial sector and construction, with special focus on technological innovations enabling the reduction and the re-use of solid waste;

III – Recovery of contaminated and/or degraded areas, with special attention to biotechnology solutions for the recovery of soils and water resources contaminated by hydrocarbons, organochlorinated chemicals or heavy metals; and

IV – Reduction and control of liquid sewage, with special focus on technological innovations enabling the reduction of organic and toxic contents;


Health, including: 

I – Development of biopharmaceuticals for the following therapeutic areas: Oncology, nervous system, cardiovascular system;

II – Development of diagnosis equipment and diagnosis kits not produced in Brazil, based on state-of-the-art biotechnology; and

III – Development of vaccines not yet produced in Brazil.


Electronics, including: 

I - Projects involving delivery of solutions based on microelectronics and/or nanotechnology; and

II – Designs of displays, involving the development of solutions based on emerging technologies not yet commercially available (for example, organic light emitter diodes (OLEDs), flexible displays, etc.).


New metal materials and advanced ceramics, including: 

I – Materials that are technologically new, involving new technologies, or a combination of existing technologies applied in new fields, or deriving from new expertise; and 

II – Technologically improved materials, that is, materials with considerably improved performance, as far as efficiency and/or costs are concerned.


Chemistry, including: 

I – Development of technologies, products and/or innovative applications related to foliar, potassium-based and nitrogen-based fertilizers;

II – Development of innovative products and/or applications for resins, plastics, elastomers and composites and related technologies; and

III – Development of chemicals deriving from hydrolysis of biomasses (biorefineries), as well as developments connected to the production of ethanol by-products (alcohol chemistry).


» Clients

Technology Institutions (TI) and Supporting Institutions (SI) for carrying out research projects, technological development and innovation, with the intervention of companies participating in the project.

The following definitions can apply:

i) Technological Institution (TI): Legal entities governed by Brazilian public law or other entities controlled by such legal entity on a direct or indirect basis, or non-profit legal entities governed by private law with the institutional mission of carrying out basic or applied research activities for scientific or technological purposes, as well as technological development. 

ii) Supporting Institution (SI): Institutions set up to provide support for research, education and institutional, scientific and technological development projects within the concern of higher education institutions controlled by state governments, as well as scientific and technological research and institutions set up under Law Nº. 8,958, of December 20, 1994, for the same purposes; and 

iii) Intervening company: Legal entity governed by public or private law exercising economic activities directly connected with the development of research, technological development and innovation projects. 

The engagement of intervening companies in financing operations involving project stakeholders may be waived in the following events:

- When the Corporate Object of Technology Institutions and Supporting Institutions covers research activities, as well as production and marketing of products or processes resulting from the projects funded by FUNTEC.

Applications must meet the following requirements:

- Projects submitted by Supporting Institutions must include a Technology Institution as a project executor.

- The intervening company, except when this is a micro or small-sized company, must inject an amount representing 10% of the project’s lump sum.

- Should there be any changes to the effective, direct or indirect control of the intervening company, such company must transfer the ownership of any intellectual property rights related to the project deliverables to the Technology Institution. 


» Eligible items

The BNDES will only fund investments made to the benefit of the Technology Institution and expenses incurred by it for the specific purposes of delivering the project outputs. The eligible items include:

 Purchase of new imported research equipment, whenever these are not produced in Brazil, which must be duly proven; R, D & I projects must be conducted; 

 Purchase of software developed with Brazilian technologies or foreign technologies, if such technologies are not available in Brazil, which must be duly proven; R, D & I projects must be conducted; 

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

 Investments in construction works, physical facilities and infrastructure; R, D & I projects must be conducted; 

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

 Expenses with R, D & I team’s wages, when allowed by law; 

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

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

 Expenses with experiments, 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; 

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

 Expenses incurred with registration of patents in Brazil and abroad; 

 Purchase, transfer and absorption of technology to be used in the project. Projects solely concerned with purchase of technology will not receive any financial support; and

 Operational and administrative expenses related to R, D & I, limited to 5% of the loan.


» 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

The FUNTEC Advisory Committee (CCTEC) is comprised of staff employees of the BNDES, a Federal Government representative and external experts. The members who are not part of the BNDES staff are required to sign a Confidentiality Agreement and keep all information received as CCTEC members confidential. 



» Application

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. 


» Disclosure of Results

Any information on applications, as well as on the CCTEC analyses, will be provided by Department of Priorities (DEPRI) to the relevant applicant within 3 months as of the submission deadline.


See:

Innovation