Uncertainty is an inherent element of the future and, in new contexts such as innovation or the creation of new products, there usually are no precedents or knowledge that allow accurate predictions of outcomes. This creates a need for non-predictive approaches that can be used to manage uncertainty in a more proactive way, hence the necessity to find tools that enable the evaluation of innovation projects, reducing risks and uncertainties.
There is a strong link between the level of investment in innovation and economic growth. Companies able to incorporate innovation in their strategic competencies have shown better performance than their competitors, calculated by market share and value, profitability, and growth index.
However, despite the level of investments in Research and Development (R&D), the objectives are not always achieved.
Innovation is the entire process of building a new product or process, which to be successful should be viable in a range of parameters, namely meeting the objectives of scientific and technological development, involving qualified professionals, being structured in organizational and financial terms, and having commercial potential.
Innovating involves presenting an idea that meets market expectations and needs, which provides results and economic return while also considering sustainability objectives and reducing environmental impact.
A Feasibility Study is fundamental as an evaluation and decision-support tool before initiating an innovation project. Not only to demonstrate its feasibility but also to reinforce the possibility of attracting investment.
What is a Feasibility Study?
A Feasibility Study is a data and research-based analysis to observe the possible outcomes of a new disruptive process or product. This study is extremely important for any segment, as it helps to avoid losses, reduce expenses, outline a precise strategy, and maximize gains.
It allows companies to easily understand the feasibility and risks associated with a new product idea or innovative production process,evaluating if the technology to produce it is achievable or even if it already exists through in-depth research with access to technical-scientific reports, which should include patent research, scientific articles research, and identification of competing companies.
What are the advantages of conducting a Feasibility Study?
- Provides crucial information for decision support
- Allows selecting the best alternatives and mitigating the involved risks
- Increases the success rate by evaluating various parameters
- Promotes confidence in the evaluation for investment allocation
What can it mean to present a Technical Feasibility Study in a project application for Incentive Systems (IS)?
At a time when many companies await the opening of applications for the next European funds program, Portugal 2030, a large number of appliers are expected for an allocation estimated at 23 billion. According to the Evaluation Report of the Implementation of the IS of the previous program, Portugal 2020, only 52% of applications with an evaluation were approved,with 9% of these projects being subsequently cancelled, and 70% of the fund value committed until 2017 was absorbed by the IS Innovation.
Several companies have already resorted to the Aid Request Registry, made available to start investment in projects with application processes to the Incentive System for Research and Technological Development (business R&D) and the Incentive System for Productive Innovation.
Given these factors, demonstrating feasibility by presenting scientific data corroborating the technological feasibility of a Project will certainly contribute to a more favourable assessment, increasing the probability of approval and providing companies with a knowledge base that will allow them to outline more objective strategies.
How to value Business R&D through SIFIDE?
The acquisition of new scientific or technical knowledge and the exploration of this knowledge for the discovery or substantial improvement of raw materials, products, services or manufacturing processes, is considered an R&D activity.
The Portuguese Fiscal Incentives System for Business R&D (SIFIDE) ) is a tax benefit created to encourage investments in Business Research and Development,which allows recovering up to 82.5% of the R&D investment value during the fiscal year, through the deduction of IRC collection to be paid.
IAPMEI, in partnership with the National Innovation Agency (ANI) provided an explanatory video about this incentive on its YouTube channel.
Science 351, with recognized suitability for R&D practice by ANI, promotes a collaborative culture with its clients, which translates into an increase in intrinsic advantages. Our goal is to provide insights, advanced research, and disruptive innovation, in various sectors that foster a circular and sustainable economy, adding value and competitive advantages to your business. insights, pesquisa avançada e inovação disruptiva, nos mais variados setores que fomentem uma economia circular e sustentável, agregando valor e vantagens competitivas ao seu negócio.
Let’s talk, schedule an evaluation meeting today via email at we.are@science351.pt or by phone at (+351) 927 524 469.
