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Good practice Imported

PROINNÓVATE — Peru's IDB-Backed National Programme for MSME Innovation and Digital Transformation

Peru · Lima · See the Peru profile · See the Lima profile

Evidence: Descriptive / self-reported Top 74% 57/100 · Ask Evidence Copilot about this practice

Peru's PRODUCE ministry relaunched its national MSME innovation and digitalisation programme in January 2026 with a $122M IDB-backed 10-year plan ($100M loan plus $22M state funds), targeting 135,000 MSMEs and 5,000 startups, building on 8,900+ projects financed since 2007.

122 USD million over 10 years
New IDB-backed financing package
135,000
Target MSMEs reached
S/1,000 million+
Cumulative co-financing portfolio value since 2007
PROINNÓVATE — Peru's IDB-Backed National Programme for MSME Innovation and Digital Transformation

Details

Maturity
Scaling
Promoter
Ministerio de la Producción (PRODUCE) / PROINNÓVATE, with Inter-American Development Bank (IDB) co-financing
Period
2007–present (relaunched Jan 2026 as a 10-year, IDB-backed programme)
Keywords
SME support, innovation policy, digital transformation, economic development

Context

Peru's Ministry of Production (PRODUCE) has run a national MSME innovation-support programme since 2007, historically branded ProInnóvate, financing non-reimbursable co-financing grants for innovation, quality-improvement and, since around 2018, digital-transformation projects.

Results

On 25 January 2026, PRODUCE relaunched the programme as the Programa Nacional de Innovación y Desarrollo Productivo, backed by a new US$122 million, 10-year financing package (US$100m IDB loan plus US$22m state counterpart funding), targeting 135,000 MSMEs and 5,000 startups nationwide, aiming for roughly 30,000 firm interventions a year. PRODUCE reports that, cumulatively since 2007, the wider co-financing portfolio has financed more than 8,900 projects worth over S/1,000 million, attributing approximately S/200 million in additional firm sales to funded projects.

Conclusions

The headline 8,900-project and S/1,000 million figures describe PRODUCE's entire co-financing portfolio, not the digitalisation line in isolation, and the sales-increase estimate is self-reported. A related PRODUCE-commissioned review of the broader 'Tu Empresa' initiative found formalisation persistence fell from 35.4% to 28.5% in the following year -- a reminder that headline reach figures do not always translate into durable behaviour change.

Implementation
Indicative cost
Very high (> €5M) — US$122 million package (US$100m IDB loan, US$22m state counterpart).
Time to results
Long (> 3 years) — Running since 2007, relaunched January 2026 with a 10-year financing horizon.
Staffing & skills
PRODUCE programme staff, subsidised digital-skills training centres

Conditions for success

  • co-financing grant ('bono') model paired with training centres
  • multilateral development-bank financing

Common failure modes

  • a related sister digitalisation programme showed formalisation persistence falling from 35.4% to 28.5% within a year

Where it fits

Governance type
national government with multilateral co-financing
Scale
national
Income level
upper-middle-income

Commonly funded by

National / regional programmes

Indicative funding routes for practices of this type — always check each programme's current calls and eligibility rules.

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Data sources

Where this practice's information was retrieved from, and when.

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