The Importance of R&D and innovation in companies: funding opportunities and the Prudêncio case

In an increasingly competitive market, where technology and environmental and social demands shape the future of economic sectors, Research and Development (R&D) plays a central role in ensuring the sustainability and differentiation of businesses.

In Portugal, the innovation ecosystem has been expanding, with structured support systems encouraging companies to test, innovate, and grow responsibly. In this article, we explore this evolution and share Prudêncio’s strategic vision in this field.

What is R&D and why it matters

R&D encompasses all scientific, technological, and experimental activities aimed at increasing knowledge or applying it to new solutions. This may include the development of new materials, construction techniques, digital systems, or energy efficiency solutions.

In the business context, R&D takes on a strategic function:

Accelerates process modernization and operational efficiency;
Improves the quality and performance of production processes, products, and services;
Enhances responsiveness to legal, environmental, and social requirements;
Creates internal value and strengthens competitive market positioning.

Strategic benefits of investing in innovation

Investing in R&D translates into multiple advantages with a direct impact on business performance:

Continuous innovation: ability to create unique, differentiated solutions;
Attracting qualified talent: teams motivated by technological challenges;
Internationalization: innovation as a passport to new markets;
Risk reduction: more sustainable solutions aligned with regulations;
Creation of intellectual property: development of patents or exclusive technical know-how;
Access to niche markets and increased customer loyalty.

R&D is, therefore, a powerful lever for sustainable growth and long-term value creation.

Funding opportunities in Portugal

Portugal has been strengthening its R&D support mechanisms through both direct financial incentives and tax benefits. Here are some of the main tools available:

Direct financial incentives

PT2030, a program that embodies the Partnership Agreement between Portugal and the European Commission, allocates €23 billion in European funds from 2021 to 2027 to support projects that stimulate and develop the Portuguese economy. Through PT2030, companies can apply for funding (with varying non-repayable grant percentages) for product development, prototypes, pilot tests, and other value-added outputs.

Horizon Europe, the successor to Horizon 2020, is the EU’s Research and Innovation Framework Programme with a €95.5 billion budget for 2021–2027. It is the largest EU funding program for R&D and innovation, covering a wide range of scientific and technological fields. Among its funding formats are collaborative projects between companies and European scientific entities, offering significant funding opportunities for R&D and innovation.

Tax incentives

The SIFIDE (System of Tax Incentives for Business R&D), in effect since 1997, allows companies to recover up to 82.5% of R&D investments through corporate income tax deductions. Between 2006 and 2024, 9,783 companies benefited from this program, totaling around €6 billion in tax credits. Of those, 6,778 were Small and Medium Enterprises (SMEs), highlighting SIFIDE’s relevance to Portugal’s business landscape—particularly in encouraging SMEs to invest in R&D.

The role of the National Innovation Agency (ANI)

ANI is the body responsible for bridging the gap between the scientific and technological system and the business sector. Its mission is to support the design, evaluation, and monitoring of public policies that promote R&D.

Key functions include:

Managing tax incentive tools (like SIFIDE) and direct funding programs (like those under PT2030);
Promoting Portuguese participation—especially by companies—in international funding programs such as Horizon Europe;
Stimulating cooperation programs between businesses and scientific institutions;
Supporting the technological validation of new products;
Promoting innovation literacy and culture.

ANI is thus a key player in operationalizing R&D and innovation incentive mechanisms in Portugal, helping bring scientific and technological knowledge closer to businesses and the economy.

The Prudêncio case: innovation in waterproofing systems

At Prudêncio, innovation isn’t just a concept – it’s a daily practice. We are constantly investing in the development of advanced and sustainable technical solutions for the waterproofing and roof rehabilitation sector.

One of our most significant projects is the Fiber Cement Encapsulation System, a distinctive solution that combines safety, durability, and reduced environmental impact. This project was recognized under SIFIDE, enabling Prudêncio to benefit from tax incentives for its innovative character.

Under the PT2030 program, Prudêncio submitted three project applications. In January 2025, one of these was approved for funding, while the others are still awaiting a response. The project focuses on developing a new line of eco-sustainable thermal insulation products with a lower carbon footprint than currently used foams and materials. The project prioritizes renewable and/or bio-based raw materials and incorporates eco-design strategies and life cycle analysis. This external validation highlights the technical potential of our projects and reinforces our commitment to R&D and innovation.

More than simply benefiting from support mechanisms, we view R&D as a core pillar of our company. We are already structuring a continuous approach to internally developing proprietary solutions based on project experience, technical expertise, team training, and partnerships with knowledge and excellence-driven institutions.

The importance of collaboration between companies and scientific institutions

One of Portugal’s greatest innovation challenges is fostering strong connections between businesses and scientific, especially academic, institutions. However, this collaboration is essential to accelerating the development of practical, applicable technological solutions and creating a more competitive, sustainable economy.

Companies like Prudêncio recognize the value of knowledge transfer and creating synergies with universities, laboratories, and research centers, particularly in the areas of:

Durability and performance of waterproofing materials;
Sustainable and circular rehabilitation methods;
Development of new application techniques and quality control on construction sites.

Based on this recognition, Prudêncio has established partnerships with non-business entities in the R&I system such as CeNTI (Centre for Nanotechnology and Smart Materials), ISQ (Welding and Quality Institute), Itecons (Institute for Research and Technological Development in Construction, Energy, Environment and Sustainability), as well as with higher education institutions like ISEP, IPB, and NOVA University Lisbon, and international laboratories like the International Iberian Nanotechnology Laboratory (INL).

Integrating science into practical engineering is the path to more robust, tested, and reliable solutions.

How to get started: practical steps to incorporate R&D in a company

Identify critical areas with innovation potential;
Establish partnerships with scientific institutions and other companies;
Evaluate available funding programs (PT2030, Horizon Europe, SIFIDE);
Consider submitting applications through ANI, with or without support from specialized consultants.

Innovating is growing with purpose

Investing in R&D is not just a competitive advantage. It’s a responsibility and a commitment to economic growth, sustainability, and society. In Portugal, there are solid mechanisms supporting innovation, from tax benefits to EU funding, that make this journey more accessible.

For companies like Prudêncio, innovation is more than a goal: it’s a way of doing business, of building better, and of making a lasting difference. Because only those who invest in knowledge create truly future-proof solutions.