The Brazilian federal government, through the innovation agency Finep, announced a 50% budget supplement to its decentralized innovation call, increasing total funding to R$450 million. The initiative targets projects in the North, Northeast, and Center-West regions, where access to venture capital remains limited. The announcement was made by Minister Luciana Santos at the Sudene auditorium in Recife, capital of Pernambuco.
Expanded Budget Strengthens Regional Innovation
The Mais Inovação Brasil Subvenção Econômica call initially offered R$300 million in non-reimbursable resources, and the additional R$150 million will support 36 more proposals already recommended for contracting. With the supplement, 114 projects will receive funding, marking a 50% increase in the total budget. The resources are divided with R$150 million for the Northeast, R$100 million for the Center-West, and R$50 million for the North.
The effort seeks to reduce regional asymmetries and support businesses that operate far from major private investment centers. Finep’s president, Luiz Antônio Elias, said the call focuses on maturing productive vocations in these regions and promoting sustainable, inclusive economic growth. The initial distribution prioritizes territories outside the traditional Southeast-South investment axis.
Micro and Small Enterprises Lead Approvals
Of the projects approved in the original selection, 75% are microenterprises and small businesses, a segment that often faces barriers such as guarantee requirements and restricted cash flow. Among the first approved proposals, 44 companies will receive Finep subvention for the first time, representing 56% of the initial list. The program is designed to help smaller firms convert research into market-ready solutions and improve territorial competitiveness.
The call received 587 proposals from companies in the three regions, of which 400 were qualified for technical evaluation. The selection process involved Finep analysts working with specialists from Sebrae and the regional development superintendencies Sudeco, Sudene, and Sudam. Approved projects have subvention limits ranging from R$2 million to R$5 million, with an average value of R$3.8 million.
New Cities and Institutional Partnerships
Benefited companies are headquartered in 35 cities across the three regions, and seven municipalities will receive Finep support for the first time. These new locations include Inhumas in Goiás, Santa Bárbara do Pará in Pará, Salgueiro in Pernambuco, Campo Novo do Parecis in Mato Grosso, Luís Eduardo Magalhães in Bahia, Goiana in Pernambuco, and Agrestina in Pernambuco. All selected projects fit within one or more missions of the federal government’s Nova Indústria Brasil policy.
The initiative also strengthens collaboration between selected companies and scientific and technological institutions. According to Finep, 36 institutions are participating in the projects, with an expected 15% of the call’s total value committed to these partnerships. This connection aims to support applied research and accelerate the transition of technologies from laboratory stages to commercial viability.
Market Context and Innovation Gaps
The Brazilian innovation ecosystem remains concentrated in the Southeast and South, where most venture capital funds, accelerators, and corporate hubs are located. For companies in the North, Northeast, and Center-West, public subvention often becomes the main resource to finance early-stage research and development. By absorbing part of the technological risk, the Finep supplement helps smaller firms move from laboratory research to commercial products.
By expanding non-reimbursable funding for innovation outside the traditional investment hubs, Finep reinforces its role in sustaining Brazil’s national innovation flow. The supplement addresses the critical phase known as the valley of death, where promising technologies often stall for lack of capital. Ultimately, the measure seeks to boost productivity, strengthen local innovation networks, and promote more balanced technological development across Brazil.