Ricardo, thank you for your insightful presentation on mechanisms to support innovation for SMEs in Colombia. I appreciate you sharing your experiences and the programs implemented by the Ministry of Commerce, Industry and Tourism. This was a very informative session.

1. / PRESENTATION /
INTERNATIONAL SEMINAR ON MECHANISMS TO SUPPORT
INNOVATION FOR SMES IN SURINAME
*
DESIGN &
INNOVATION

2. *
DESIGN &
INNOVATION
for competitiveness
Ricardo Mejía Sarmiento, Msc. / R&D+i consultant
@ Ministry of Commerce, Industry and Tourism of Colombia.
e - jrmejias@pktweb.com / w - www.pktweb.com / b - jrms.pktweb.com

3. Objectives (seminar)
Disseminate successful experiences to promote innovation
in the context of the ongoing technological revolution, as
strategic tools to support the improvement of
competitiveness and productivity of SMEs in Suriname.
Provide working methods to promote knowledge
management and innovation.

4. *
INNOVATION
in Colombia

5. NATIONAL
DEVELOPMENT PLAN
2010 ‐ 2014
“Prosperity for all”
...more jobs, less poverty, and more security...

6. A country integrated into the world economy with the
infrastructure and within a competitive environment
that transforms ideas into businesses, the businesses
into jobs, jobs into higher income, and, thus, less
poverty and greater wellness and social progress.

7. The State is the entity that clears the path, lays down
the rules, and resolves the conficts but it is the
private sector and society in general that builds the
road and traverses it.

8. Good government
Innovation International relevance
Environmental sustainability
Pillars for the National Development Plan 2010‐2014

9. SUSTAINABLE GROWTH AND COMPETITIVENESS
The goal is now to defne the guidelines required so
the economic growth will continue scaling upwards , be
sustainable over time, and likewise be socially and
environmentally sustainable .

10. In order to reach these sustainable economic growth
objectives, the NDP 2010 ‐ 2014 has defned three
large pillars:
innovation + policies on competitiveness
and productivity + stimulation of the growth and job‐
generation engines.

11. Innovation for prosperity
...innovation should be part of all of the
economic sectors and extend to all of the links within
the chain...

12. Innovation becomes the optimum mechanism to
guarantee long‐term sustainability of growth and
competitiveness of the country.

13. Innovation does not only mean development of new
products and transformation of existing products.
Innovation consists in creating new ways of
organizing, executing, producing, delivering,
merchandising, selling, and relating clients and
suppliers, while achieving the generation of added
value throughout the production chain.

14. Innovation does not only mean development of new
products and transformation of existing products.
Innovation consists in creating new ways of
organizing, executing, producing, delivering,
merchandising, selling, and relating clients and
suppliers, while achieving the generation of added
value throughout the production chain.

15. Colombia currently evidences considerable lagging
compared to countries with similar characteristics in
the development of science, technology, and
innovation. To illustrate, total investment in research
and development in Colombia is 0.2% of GDP which is
a very low level compared to countries such as
Argentina which invests 0.5%; Chile 0.7%; Brazil
0.8%; or South Korea 3.2%.

16. WHY?

17. (i) institutional weakness, (ii) insuffcient use of the
mechanism for the protection of intellectual property,
(iii) limited access to f nancial instruments for
innovative enterprises, (iv) low use of the TIC, (v)
insuffcient human resources qualifed in pertinent
areas, (vi) small number of mechanisms to attract
Colombian residents from abroad, (vii) technical
limitations and multiplicity of functions by the
authority of competence.

18. ...knowledge and innovation + intellectual property:
instrument for innovation + promotion of competition
in the marketplace...

19. **
INNOVATION
...in practice...

20. HOW?

21. **
THROUGH
INSTITUTIONS

22. ***
MINISTRY OF COMMERCE, INDUSTRY, AND
TOURISM
REPUBLIC OF COLOMBIA

23. MAIN GOAL
The Ministry of Commerce, Industry and Tourism
(Spanish: Ministerio de Comercio, Industria y
Turismo) or MinCIT, is the national executive
ministry of the Government of Colombia
concerned with promoting economic growth
though trade, tourism and industrial growth.

24. Vice Ministry of Vice Ministry of
Foreign Trade Business Development
Vice Ministry of Tourism

25. & LINKED INSTITUTIONS

26. ***
BUSINESS DEVELOPMENT SERVICES
FOR MICRO, SMALL, AND MEDIUM
ENTERPRISES IN COLOMBIA

27. COLOMBIAN LAW CLASSIFIES BUSINESSES AS FOLLOWS
M S M L
Micro Small Medium Large
< 10 employees < 50 employees < 200 employees >200 employees
< 500 MMLW < 5000 MMLW < 30,000 MMLW > 30000 MMLW

28. BUSINESSES IN COLOMBIA
MSME Vs LARGE
96% of Establishments 0.1% of Establishments
81% of Employment 19% of Employment
40% of GDP 60% of GDP

29. BUSINESSES IN COLOMBIA
MSME Vs LARGE
621.447 MSMEs 8.858 Large
Enterprises

30. THE STRONG PRESENCE OF
MSMES IN THE COLOMBIAN
ECONOMY CALLS FOR THE
DEVELOPMENT OF
DIFFERENTIATED TOOLS.

31. OUR MSME DEVELOPMENT
PROGRAMS INCLUDE:
+ Instruments for creation and
strengthening (nonfnancial).
+ Instruments of Financial
Support.

32. INSTRUMENTS FOR CREATION
AND STRENGTHENING
(NONFINANCIAL)

34. Establishes relations with all nonfnancial
business development services for the
creation and strengthening of MSMEs
Search for capacity development within the company:
Managerial and Administrative aspects
Accounting and Financial Management
Market Access
Innovation within the company
(among other things)

35. National Prize for MSME innovation
This aims to recognize and encourage talent, applied research, and
business attitudes that have positive impacts on competitiveness.

36. Micro & Small Enterprises (as vendors)
Medium & Large Enterprises (as buyers)
Boosting sales within the domestic
market:
Business Matchmaking Events
Trade Missions
Market Research

37. National Entrepreneurship Policy,
More companies in the country
…a systemic approach that seeks to foster and
strengthen an integrated ecosystem through the
Regional Networks of Entrepreneurship and the
joint support of all institutions in the country.

38. Vision of the Ecosystem
This administration aims to create an ecosystem for
entrepreneurship that is tailored to the region and
type of enterprise.

40. Advantages for MSMEs
Decree 734 of 2012
Open calls exclusively for Micro and Small
Enterprises, as well as MSMEs
●
Micro and Small < 75,000 USD
(141’334.500)
●
MSMEs <125.000 USD (235’558.000)
Preferential Conditions
●
Goods and services produced by MSMEs
Advantageous Factors
●
Preferences for domestic MSMEs
 The TRM for these purposes in 2012 is $ 1,884.46

41. By 2014, we will have 14 treaties in force
with more than 50 countries, which
provide preferential access to 1.5 billion
consumers
Proexport carries out activities to make best use of MSMEs:
Market Analysis
Seminar
Advice on Exporting
Trade Missions
Business Matchmaking events
(among others)

42. For MSMEs, we have Export Route.
http://www.colombiatrade.com.co/ruta-exportadora

43. The Intellectual Property Classroom
Superintendent of Industry and Commerce
Created with the aim of fostering a culture of safety and
protection of industrial property in Colombia through the
registration of trademarks, patents and utility models.
There have been developed at national level workshops, public
lectures, meetings, fairs and regular courses in industrial property
issues, with the participation of over 1,000 people, including
businesspersons, students, and researchers.

44. INSTRUMENTS OF FINANCIAL
SUPPORT

45. Refers to fnancial services for the creation and
strengthening of MSMEs
Financial Services
Credit Credit Capital
Lines Guarantees Funds
Angel Start-up Seed
Investor Fund Capital
Networks

46. Facilitating access to credit is one of the main
tools provided by the Ministry of Commerce,
Industry and Tourism through its member
institutions.
Best rates, terms and payment (grace periods)
Bancoldex credit lines
Guarantees on FNG Lines

47. Discounts
During 2012, Bancoldex disbursed COL $1.6
billion in loans (USD 865 million), reaching 486 of
the country’s 1102 municipalities.
About 58% of the funds were granted in loans to
MSMEs and over 34% of the funds were used to
modernize enterprises.

48. So far in 2012, the National Guarantee Fund (NGF) has
benefted 296,057 users, contributing to business
development in Colombia.
In 2012, the goal for secured loans to support MSMEs
nationwide is COL 8.4 billion (USD 4.589 million).

49. A Seed Capital Fund to support business
initiatives from entrepreneurs who meet
the profle of benefciaries.
Entrepreneurs must submit a business plan that is feasible
through an Entrepreneurship Unit (419 Entrepreneurship Units
throughout the country).
Upon approval of the project, the new company receives grants
for the development of the approved project.
The fund will allocate resources for USD 40 million in 2012.
Since the Fund's inception (2005) to date, 2691 companies have
been funded by COL 160 billion (USD 87 million)

50. It is a program that promotes the creation of
Innovative and Dynamic Entrepreneurship
with seed capital grants.
Dynamic Entrepreneurship is one that grows proftably,
quickly, and steadily, where one is able to reinvest and to
achieve a fairly signifcant level of sales in one decade.
Capital contributions from COL 50 million to COL 350
million (USD 27,000 to USD 189,000)

51. Program that promotes the networking of
angel investors that invest in startups.
There are 7 networks in operation and 3 in structuring
The program supports:
Sponsorship for the formation of new networks.
Educates investors on how to facilitate interactions with
entrepreneurs during the selection and negotiation for
investment.
Creating incentives for investment in dynamic enterprises.

52. Venture Capital Funds
Venture Capital funds are vehicles that invest in startups
that have growth potential and require not only resources,
but also management.
Currently, there are fve venture capital funds operating in
Colombia and 6 in structuring.

53. Private Equity Funds
Private equity funds are vehicles that allow the movement
of capital to companies in the advanced stage of
development, which seek to strengthen the company with
a larger market potential.
Currently in Colombia, there are 24 private equity funds in
operation.
In Colombia, Industry Capital Funds mobilize over USD 2.6
billion.

54. ****
NATIONAL DESIGN PROGRAM

55. Design has been recognized at government
level in Colombia since 1994 and features in
the portfolio of the Ministry of Commerce,
Industry and Tourism. The Ministry, through
the National Design Program, promotes design
as a driver of innovation in Colombian industry.

56. Background

57. Conceptual Strategy

58. Conceptual model

59. Aproach

61. SME in terms of design knowledge

63. Levels of design insertion in MSMEs

64. Levels of design insertion in MSMEs

65. Promotes the use of industrial design as a
competitive tool for MSMEs
Strategic lines:
- Knowledge Transfer in design.
- Viewing and promoting success stories in design
- Public policies and strategic plan

66. Knowledge Transfer in design (main deliverables)
-- Design and Innovation Workshops for Business Competitiveness
(2011 – 17 workshops - 509 SMEs)
(2012 – 37 workshops – 3088 SMEs)
Spots:
Soacha, Santa Marta, Cúcuta, Girardot, Barranquilla, Pereira, Palmira,
Manizales, Tunja, Villeta, Villavicencio, Cartagena, Neiva, Armenia,
Bogotá, Tulua, Ibagué, Riohacha, Montería, Valledupar, Popayan,
Cali, Bucaramanga, Cali, Palmira, Soacha, Barranquilla, Bogotá,
Duitama, Bucaramanga, Villavicencio, Medellín, y Dosquebradas.
-- Manual of Design and Innovation in the development of MSMES

72. 72

73. 73

74. Viewing and promoting success stories in design (main deliverables)
-- Documentary Series Design Case Studies in Colombian
MSMEs. Success through design
-- Sample Design in Colombia (link)

77. PNDI 2012

81. Public policies and strategic plan
-- Event – seminar 2011 about Public policies and design
-- Design consultancy for SMEs

83. Design consultancy for SME

84. Ministry of Trade, Industry, and Tourism
Republic of Colombia
THANK YOU
J. Ricardo Mejia S.
jrmejias@gmail.com
Offce for Micro, Small, Medium Business
Viceministry of Business Development