Enhancing SMEs' Success in Innovation Competitions: A Framework for Methodological Support in Project Formulation

Peruvian small and medium-sized enterprises (SMEs) show low approval rates in ProInnóvate's competitive grant calls. Using a mixed-methods design, this study analyzes 3,763 project evaluations from 2017-2022 and triangulates them with interviews and questionnaires of experienced formulators. Three persistent bottlenecks emerge: limited and inconsistent use of structured formulation methods; weak alignment with the program's evaluation criteria; and scarce access to market and technology intelligence. In response, a practical support framework is introduced that combines targeted capacity-building, the Logical Framework Approach, pre-submission peer/mock review, and partnerships with universities and R&D centers. The framework is mapped to ProInnóvate's evaluation scheme to strengthen design coherence, budget logic, and market justification, thereby improving proposal quality and approval prospects. The results inform firm-level practice and program design, suggesting concrete adjustments to advisory services and complementary supports to increase the effectiveness of public innovation funding.