The Structural Problem
of Innovation in Colombia
In Colombia, small and medium-sized enterprises (SMEs) represent most of the business fabric, generate a substantial share of employment, and contribute significantly to formal GDP. However, they face major challenges in integrating research, technological development, and advanced solutions into their operations.
Innovation studies show that SMEs tend to invest very little in R&D due to financial constraints, human-resource limitations, and lack of institutional capabilities to manage complex innovation processes — creating a gap between available scientific knowledge and practical application.
Although SMEs are present in the digital economy, their adoption of advanced technologies such as AI, advanced analytics, and automation is still early-stage, which limits their competitiveness at regional and global levels.
Structural need: SMEs require access to applied R&D capabilities and advanced technological tools that allow them to model, optimize, and scale production processes with higher efficiency and lower uncertainty — something that cannot be solved exclusively with internal investment given current financial and knowledge barriers.
[1] Valencia-Arias A et al. (2025). Dynamics and challenges of technology transfer in Colombia. Front. Res. Metr. Anal. 10:1628141.
[2] Romero-Alvarez YP et al. (2025). Exploring funding channels and innovation in Colombian SMEs. Journal of Open Innovation, Vol. 11(4), 100691.
[3] Center for International Private Enterprise. (2024). Characterization of MSMEs in Colombia and their Digital Adoption.