The IMF's global economic outlook projects a decline in growth, with a rate of 3.9% between 2018 and 2019. This is the result of increasing trade tensions between major economies, domestic problems in emerging countries, and rising oil prices, posing a significant challenge for countries like the Dominican Republic. These countries are compelled to consider export innovation strategies to capitalize on the opening of international markets to which they now have greater access.
We note these elements convinced that, among the challenges to be addressed, export innovation is one of the most urgent. Consumers in these advanced or emerging economies, which, even under pressure, have high demands for goods and services, are increasingly informed and therefore increasingly demanding.
According to the Organisation for Economic Co-operation and Development (OECD), companies will be considered innovative from an export perspective when they adopt changes towards new products, improve existing ones based on consumer trends and demands; achieve administrative improvements by deploying new and more efficient processes to increase productivity; use internal organizational methods that improve the quality of processes and the products or services they offer; and update marketing systems to achieve greater efficiency. ( OECD Oslo Manual ).
Innovating to export requires financing
Although all sectors are convinced of the need for funds and mechanisms to promote export innovation, research by ECLAC experts reveals that there are still few suitable organizations and instruments aimed at financing or incentivizing export innovation.
The traditional approach has been financing by public and private banks for production issues or pre- or post-shipment management and other elements linked to export. But this support requires less bureaucracy, better rates, longer terms, guarantees, among other elements.
Support for export innovation requires, on the one hand, non-reimbursable instruments for training and coaching, development of commercial intelligence, advice for business internationalization, training for compliance and certification of international standards, among others. The Dominican Government has been developing these instances, providing them with funds for this support, as well as reimbursable instruments such as financing for participation in international fairs, the adaptation of the product to the demand in the destination or the optimization of distribution channels, etc. .
This reference study by ECLAC on support and financing programs in Latin America for export innovation in small and medium-sized enterprises concludes that export promotion should be more linked to support for the innovative process, through greater coordination between trade promotion organizations, development banks and other innovation support institutions. Finally, it is also necessary to expand the funds of the programs and instruments, in order to intensify support for the innovation of SMEs, especially those that export non-traditional goods and services with greater added value.
BANDEX is working on creating a portfolio of innovative special products to promote exports.
BANDEX among those support mechanisms
BANDEX has funds available to support producers in their export innovation processes directly, or through its second-tier banking, through which the entrepreneur can access their funds using the private commercial bank of their choice.
BANDEX is working on creating a portfolio of innovative special products to promote exports. The bank's lines of action are aimed at privileging financing that impacts export innovation in companies.
BANDEX is ready to support companies in an export innovation process that involves working capital, development of projects to increase their export capacity; investments in computer systems and equipment; specialized consultancies such as improvements in manufacturing processes and market studies abroad, as well as economic feasibility, organization and administration studies of companies associated with the export sector.
