How the Tax Incentive Law Has Made a Major Contribution to R&D in Chile
Opinion piece by Alejandro Donoso, Chief of Technological Management and Administration.
The R&D Tax Incentive Law promoted by Chilean economic development agency CORFO has benefitted 783 companies, and has made a major contribution to scientific development in Chile. Through its Center for Research and Innovation (CRI), Viña Concha y Toro is no exception. The company has received these benefits in some of its projects, and has also made significant progress in the development of its R&D&I strategy as a result.
Since the creation of the CRI, located in Chile’s Maule Region, in 2014, our efforts have been focused on strengthening the grapevine production area, developing new technological tools and promoting cutting-edge analytics capabilities, which enables us to develop lines of action that aid, for example, mitigating of the effects of climate change and implementing the vineyard of the future.
In our opinion, this law, which contributes to improving the competitiveness of Chilean companies through a tax incentive for R&D investment, is in line with the objective of promoting research and knowledge, which we consider to be the primary source of solutions to the challenges and changes that the wine industry is facing on a global level.
In order to accelerate and increase R&D processes and develop large-scale projects, in 2013 we decided to take the major step of carrying out research and development in-house and making use of this incentive. Our first application in 2013 included two projects: "Evaluation of production and quality parameters for Cabernet Sauvignon clones in the Cauquenes area", which enabled us to make decisions regarding which clones to plant in the region, and "The effects of defoliation and grape protection in the quality of Cabernet Sauvignon". The implementation of these projects required the creation of our Center for Research and Innovation, and the R&D law enabled us to receive this tax incentive by certifying part of the infrastructure, together with cutting-edge equipment and highly qualified human resources.
We have had a very good experience with the R&D Tax Incentive Law, having certified five projects with a further two registered for certification in the coming months. CORFO has always been willing to collaborate with Viña Concha y Toro to help us to maximize this benefit and answer all of our questions.
We’re convinced that the convergence of the public and private sectors to promote research and development is fundamental to manage new processes, systems and services, as well as to generate new scientific or technological knowledge and make progress in key sectors for the Chilean economy, such as the wine industry.
El Centro de Investigación e Innovación de Viña Concha y Toro es un importante compromiso de la Viña en el ámbito de la Responsabilidad Social Empresarial y la relación con la comunidad.