Innovation is, by nature, a medium- to long-term investment. Meaningful results rarely emerge in the short term – especially when it comes to Research, Development, and Innovation (R&D&I). This mismatch between maturation time and pressure for returns is one of the main reasons why many innovation areas lose momentum… or simply cease to exist.
When innovation is perceived merely as a cost center, its survival depends entirely on the budgetary goodwill of senior management. In times of financial constraint, it is often one of the first areas to face cuts. The problem is not innovation itself, but how it is structured from the very beginning.
The mistake of treating innovation as a “money drain”
It is still common to find innovation areas created without a clear financial model. They start with dedicated budgets, teams, and high expectations – but without a consistent strategy for economic sustainability.
Because results take time to materialize – and are often indirect – investments soon begin to be questioned. The narrative repeats itself: “innovation is important, but it’s expensive”. Gradually, budgets shrink, projects lose scale, and the innovation area fails to fulfill its strategic role.
In this scenario, innovation loses internal legitimacy and begins competing for resources with areas that deliver more immediate results.
Sustainable innovation is possible… and necessary
There is a clear alternative to this model: structuring innovation from the outset with funding and resource-capture mechanisms. This completely changes the logic of the area.
Instead of relying exclusively on internal budgets, innovation begins to:
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access non-repayable funding;
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structure projects supported by incentivized financing;
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connect to public calls, grant programs, and funding instruments;
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enable projects that benefit not only the innovation area itself, but other business units as well.
When properly structured, the innovation area stops being just a consumer of resources and becomes a generator of financial leverage.
The “1-to-1” logic in innovation
A core concept for financial sustainability in innovation is bringing the equation closer to 1-to-1: for every unit of internal investment, securing one unit (or more) of external funding.
This can happen in several ways:
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co-funded innovation projects;
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initiatives that subsidize technological development in strategic business areas;
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use of funding instruments to reduce R&D&I risk and cost;
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creation of project portfolios with different maturity levels and funding sources.
Of course, in many cases, the innovation area may not yet have defined projects eligible for funding. That’s not a problem. The innovation team can support fundraising efforts for other areas of the company, effectively creating an internal “funding pool”.
In practice, the innovation area positions itself as financially self-sufficient through an internal offset: the area costs x, but enables funding, savings, or value generation of y for other areas. As long as y is greater than or equal to x – and guided by sound judgment – there is little room to question investment in innovation.
When innovation starts bringing resources into the organization – or significantly reducing the cost of innovating – the narrative changes. The area is then seen as strategic, efficient, and financially intelligent.
The impact of funding on the longevity of innovation
Innovation areas that master funding mechanisms are able to:
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maintain investments even in adverse scenarios;
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expand the scope and ambition of projects;
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reduce pressure for immediate results;
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sustain a long-term vision without losing short-term relevance.
More than that, they help spread innovation throughout the organization, enabling projects in other areas and strengthening the overall innovation culture.
Strong innovation is financially structured innovation
If innovation relies solely on internal budgets, it remains vulnerable. If it depends only on long-term results, it loses internal political strength. But when it is born with a clear funding and financial sustainability strategy, it gains autonomy, scale, and legitimacy.
At Helix, this vision guides how we structure innovation areas and projects with our clients. Innovation does not need – and should not – be a money drain. It can be sustainable, strategic, and financially smart from day one.
Because innovating is essential. Financially sustaining innovation is even more so.