Alonso Mujica, Beatrice Dellepiane, Dennis Vivas Zelada, Emilio Navarro, Julia Gonzales Zegarra, Lourdes Uzuriaga, Rosa María Orellana.

On October 18, the Chilean people began a campaign of social protests that have begun to question whether the economic growth and development model that they led for many years throughout the Latin American region is the best path for the advancement of nations.

Some financial variables such as the exchange rate, the selective stock price index (SP IPSA) of the Santiago Stock Exchange and the growth expectations of the Gross Domestic Product (GDP) have already warned about the current situation in the country .

Since that day, the exchange rate depreciated against the dollar reaching a record high of almost 800 pesos / dollar, up 12.5% from the 711 pesos / dollar observed. Likewise, the SP IPSA index of the Santiago Stock Exchange has fallen from 5,194 points to 4,412 points, 17.7% less in what will be almost 1 month after the protests began. On the other hand, according to the latest report of the Central Bank of Chile, the projections for the expansion of GDP for this year has decreased to 1.9%, while for 2020 it will be 2.3%, and 2.8% for 2021, lower figures to those observed in the previous macro economic expectations report.

The variations in the economic variables due to the current social and political crisis in the country would generate losses in the results by the companies that are already anticipating the financial markets. But, in times of uncertainty, how to finance innovation in new businesses in companies?

According to the Peruvian case, in times of political crisis experienced during 2019, the government has issued Emergency Decree No. 010-2019 “Urgency Decree that modifies Law No. 30309, Law that promotes scientific research, technological development and innovation technological ”, which makes a tax reform for the deduction of up to 215% of the expenses in scientific research projects, technological development and technological innovation, with an annual limit applicable to the additional deduction of five hundred Tax Tax Units (500 UIT) or USD 600,000 dollars / year approximately effective as of January 2020.

Law No. 30309, Law that promotes scientific research, technological development and technological innovation should encourage companies to finance their new businesses through "Open Innovation" mechanisms in partnership with technology companies.

A clear example of open innovation between technology companies and financial companies is the recent alliance between Google and Citibank to offer current accounts to customers who access through the Google Play application. Another regional example is the consortium between the Santiago Stock Exchange, the Central Securities Depository (DCV) and the GTD Group to develop blockchain in the financial market.

To conclude, in moments of economic, social and political volatility; Companies are beginning to take strategies to apply Law 30309 for their investments in new businesses, generating alliances with companies specialized in technology and innovation to better address the challenges of the fourth industrial revolution.

Special thanks

We would like to thank the following people for their help in discussing the content of this document and for their comments.: Alonso Mujica, Beatrice Dellepiane, Dennis Vivas Zelada, Emilio NavarroJulia Gonzales ZegarraLourdes Uzuriaga, Rosa María Orellana.