Risks of financing innovation in public policies for economic grant

Purpose This study aims to develop a model to predict technological risks and manage innovation financing for a local economic grant program. Design/methodology/approach A study was carried out with a sample of 284 innovation projects approved in 14 public calls from a regional scientific and technological support foundation over 10 years. Findings The results indicated that the greater the innovative capital of subsidized companies, the lower the levels of different risks associated with the economic subsidy program. Practical implications It presents a practical contribution to the local economic grant program, as an alternative to increase knowledge of how to carry out this type of analysis to other institutions that foster innovation, in addition to establishing more understanding on how to measure the risks of these transactions and which variables are their determinants. Originality/value The proposal of this research can be used to estimate prediction models of different risk levels, which have demonstrated a certain capacity to carry out this prediction or it can be used to assist the decisions of financing institutions in the selection of projects to be financed.