Law for the Promotion and Development of Scientific, Technological, and Innovation Development

The State must promote, direct, and foster scientific, technological advancement and innovation; it is obligated to incorporate into the country's economic and social development plans and programs, as well as to formulate plans for science, technology, and innovation for both the medium and long term. Likewise, it must establish the mechanisms for reducing the activities of scientific, technological, and innovative development that universities, the scientific community, and the private sector carry out in the same fields.

The State must create favorable conditions for: the generation of scientific, technological knowledge and innovation; stimulating the innovative capacity of the productive sector; directing the selective importation of technology applicable to national production; strengthening support services for scientific research and technological development; organizing a national system of scientific, technological, and innovation information; consolidating the National System of Science, Technology, and Innovation; and, in general, providing incentives to activity by taking advantage of its outputs in improving the life and culture of the Honduran population. CHAPTER II REGARDING RIGHTS AND DUTIES IN MATTERS OF SCIENCE, TECHNOLOGY, AND INNOVATION

The rights of citizens and the duties of the State regarding the development of scientific knowledge, technological development, and innovation are:

• 1)

  To strengthen a culture based on the generation, appropriation, and dissemination of knowledge and scientific research, technological development, innovation, and lifelong learning;

• 2)

  To define the bases for the formulation of the National Plan for Science, Technology, and Innovation;

• 3)

  To incorporate science, technology, and innovation as a cross-cutting axis in comprehensive development strategies and economic and social policies of the country;

• 4)

  To strengthen the impact of the National System of Science, Technology, and Innovation in the social and economic, regional, and international environment to develop the productive, economic, social, and environmental sectors in Honduras through the management of a focused institutional framework and the formation of comprehensive citizens who are creative, critical, proactive, and innovative, capable of making transcendental decisions that promote entrepreneurship and the creation of companies that constructively influence economic, cultural, and social development;

• 5)

  To define the instances and administrative and financial instruments through which the allocation of public and private resources for the promotion of Science, Technology, and Innovation are directed.

• 6)

  To articulate and optimize the instances of leadership, coordination, and execution of the Government in the development and monitoring of the policy and development of Science, Technology, and Innovation;

• 7)

  To strengthen regional development through comprehensive policies of decentralization and internationalization of scientific, technological, and innovation activities, in accordance with international dynamics;

• 8)

  To operate the promotion of scientific, technological, and innovation activities toward increasing productivity to achieve improved competitiveness; or 9) To establish general provisions that contribute to the strengthening of scientific knowledge and technological development and innovation for the effective fulfillment of this Law. CHAPTER III REGARDING THE POLICIES, PRINCIPLES, AND CRITERIA OF THE STATE

The public policies regarding the stimulus and promotion of science, technology, and innovation are directed by the following purposes:

• 1)

  To increase scientific, technological capacity and innovation to raise the country's competitiveness and provide new added value to products and services of national origin and increase the well-being of the population in all its dimensions;

• 2)

  To incorporate scientific research, technological development, and innovation to improve comprehensive productive processes, increase productivity, and improve the competitiveness of the national productive apparatus;

• 3)

  To establish mechanisms to promote the modernizing transformation of the national productive apparatus, stimulating productive reconversion of services based on the creation of companies with high technological content and placing greater priority on the national supply of innovations;

• 4)

  To integrate efforts of the scientific and technological development actors in different productive and service sectors to promote strategic areas of knowledge for the country's development;

• 5)

  To strengthen the capacity of the National System of Science, Technology, and Innovation of the country to act comprehensively in the international sphere in aspects relating to science, technology, and innovation.

• 6)

  To promote the quality of formal and non-formal education in all areas of education: basic, secondary, technical, and higher; to stimulate the participation and development of new generations of researchers, entrepreneurs, technological developers, and innovators, as well as to strengthen current generations;

• 7)

  To promote the development of regional strategies for the promotion of Science, Technology, and Innovation, taking advantage of potential in renewable and non-renewable natural resources, human capital, and biodiversity, taking advantage of the initiatives received for their use, to achieve greater equity among the regions of the country in competitiveness, productivity, and general well-being.

The principles and criteria governing the actions of promotion, development, and strengthening of Science, Technology, and Innovation, as well as research activities carried out by organisms and entities of the Public Administration are the following: Continuity, opportunity, and sufficiency. Support for scientific, technological, and innovative activities must be continuous, timely, and sufficient to ensure their continuance and sustainability. Decentralization. Instruments of support for Science, Technology, and Innovation shall function within the framework of territorial and institutional decentralization, promoting the harmonious development of the country's scientific and technological potential and promoting the growth and consolidation of scientific communities in the regions, departments, and municipalities. Dissemination. Institutions belonging to the National System of Science, Technology, and Innovation that receive support from the Government of the Republic must disseminate the results of their research and technological development and innovation, without prejudice to the corresponding intellectual property rights and information that, by reason of its nature, is classified as reserved. Evaluation. The results of research and technological development activities that are subject to promotion, support, or stimulus, in the terms of this Law, shall be evaluated and taken into account for the granting of subsequent support. Review and updating. The policies and strategies for support to Scientific, Technological, and Innovation development shall be periodically reviewed and updated so that they continuously impact the national productive apparatus. Transparency. Institutions, programs, projects, and persons subject to support must be selected through public calls, based on scientific criteria and quality. Participation in decision-making. Scientific communities and social and productive sectors that are users or generators of science and technology must participate in the formulation and determination of general policies regarding Science, Technology, and Innovation, as determined by the National Secretariat of Science, Technology, and Innovation. Protection. The State shall promote and implement the development of policies and instruments to administer, protect, and recognize intellectual property of developments in science, technology, and innovation. TITLE II OBJECTIVES, COMPONENTS, AND SCOPE OF ACTION OF THE LAW CHAPTER I OBJECTIVE OF THE LAW

The objective of this Law is to create the National System of Science, Technology, and Innovation, develop the guiding principles regarding Science, Technology, and Innovation and its applications, define the instruments that operate policies and strategies for Scientific, Technological activity, Innovation, and its applications; the implementation of financial and operational mechanisms for the promotion, stimulus, and fostering of scientific research, social appropriation of technological knowledge, scientific research and research and technological development for innovation in productive and service sectors; organize the National System of Science, Technology, and Innovation in order to foster the capacity for the generation, connection, and circulation of knowledge and promote sustainable economic development and social welfare.

The National System of Science, Technology, and Innovation has the following specific objectives:

• 1)

  To promote the generation, modification, adaptation, and execution of knowledge through Scientific, Technological Development, and Innovation as essential activities to add value to national human, geographic, territorial, and natural (renewable and non-renewable) resources, create new companies based on research and technological development and innovation, achieve greater and sustained rates of economic growth, favor the accumulation and equitable distribution of wealth, with the aim of improving citizens' quality of life levels;

• 2)

  To foster and consolidate, with a long-term vision for national scientific and technological development, research centers and groups of private institutions and scientific and technological institutions of Higher Education, whether public or private, technological development centers, technological parks, productivity centers, institutions that socially appropriate Science, Technology, and Innovation, entities for knowledge management, administration, and promotion, incubators of technology-based companies and human capital development, academies and scientific, technological societies, as well as different knowledge networks and scientific and technological initiatives of organizations and individuals aimed at strengthening the system;

• 3)

  To promote and consolidate through different instruments and mechanisms of scientific and technological policy, accessible public and private investment in research, technological development, innovation, and human capital formation for science, technology, and innovation as instruments for the dynamism of economic, social, and environmental development;

• 4)

  To design contemporary and visionary models of economic and social development that use Science, Technology, Innovation, and knowledge intensively and extensively.

• 5)

  To perform foresight, make decisions, and undertake actions in matters of science, technology, and innovation to contribute to the joint and integrated construction of future scenarios that drive structural transformation and higher levels of development of Honduras in the global context.

• 6)

  To foster the coordination, monitoring, and evaluation of national policies and development of Science, Technology, and Innovation with the State's foreign policy to promote its linkages with strategic international initiatives and projects of Science, Technology, and Innovation that favor national development.

• 7)

  To articulate the system and its actors with other Honduran and international systems and instances that exist in order for each of the system's components to perform the specific role that corresponds to it in the process, creating synergy and optimization of resources;

• 8)

  To conduct monitoring and evaluation of the national policy of Science, Technology, and Innovation; and 9) To promote and evaluate the strategic alliance university-enterprise-government in order to continuously develop Science, Technology, and Innovation in sectors strategic for the country's economic and social development. The fulfillment of the objectives must be carried out respecting the competencies of the entities that form part of the National System of Science, Technology, and Innovation and the coordination and complementarity established in the national plans for science, technology, and innovation. CHAPTER II COMPONENTS

The National System of Science, Technology, and Innovation is an open system, of which the following form part: Public, private, or mixed organizations and microenterprises that carry out or promote the development of scientific, technological, and innovation activities as well as policies, strategies, programs, methodologies, and mechanisms for the management, promotion, financing, protection, and dissemination of scientific research, technological development, and innovation. The public, private, or mixed organizations referred to in this Article may be subject to support from recognized institutions that promote and foster Science, Technology, and Innovation. This promotion commission must establish the nature of such support and the conditions under which it may be obtained, in accordance with policy guidelines and the national plan for Science, Technology, and Innovation that guide the system's actions, in compliance with the rules that govern in the field. Municipalities and regions may create regional units of scientific research and innovation with their own resources through strategic alliances or by managing funds with national or foreign institutions. CHAPTER III SCOPE OF ACTION

In accordance with this Law, actions in matters of Science, Technology, Innovation, and its applications are directed to:

• 1)

  Formulate, promote, and evaluate national plans in matters of Science, Technology, Innovation, and its applications designated for the short, medium, and long term;

• 2)

  Stimulate and promote the training programs necessary for Scientific, Technological Development, and Innovation in the country;

• 3)

  Establish incentive programs for research and development activity and technological innovation;

• 4)

  Agree and execute favorable international cooperation policies to support the development of the National System of Science, Technology, and Innovation;

• 5)

  The intersectoral coordination of other public entities and organisms dedicated to research, scientific and technological training and development required to support the development and adaptation of the National System of Science, Technology, and Innovation;

• 6)

  To drive the strengthening of adequate infrastructure and equipment for support services to research and development institutions and technological innovation;

• 7)

  To stimulate the technological innovation capacity of the productive, business, and academic sector, both public and private;

• 8)

  To stimulate the creation of financing funds for the activities of the National System of Science, Technology, and Innovation;

• 9)

  To develop programs for the assessment of scientific and technological research to facilitate the transfer and appropriate technological innovation;

• 10)

  To promote the establishment of national and regional networks of scientific and technological cooperation;

• 11)

  To promote mechanisms for the dissemination, diffusion, and exchange of results of research, development, and technological innovation activities generated in the country;

• 12)

  To create a National System of Scientific, Technological, and Innovation Information;

• 13)

  To promote the creation of legal instruments and others of different nature to optimize the development of the National System of Science, Technology, and Innovation; and 14) To stimulate the participation of the private sector through mechanisms that allow the investment of financial resources for the development of scientific, technological, innovation activities and their applications.

The activities of Science, Technology, Innovation, and its applications as well as the utilization of the results must be aimed at contributing to the well-being of Honduran society, the reduction of poverty, respect for human rights, and the preservation of the environment. TITLE III OF THE INTEGRATION, PURPOSE, AND INSTITUTIONS OF INTEREST OF THE NATIONAL SYSTEM OF SCIENCE, TECHNOLOGY, AND INNOVATION CHAPTER I OF THE INTEGRATION AND PURPOSE OF THE SYSTEM

The National System of Science, Technology, and Innovation is composed of the National Secretariat of Science, Technology, and Innovation (SENACIT) and the Honduran Institute of Sciences, Technology, and Innovation (IHCIET). The System also counts on the National Council for the Promotion of Science, Technology, and Innovation (CONFOCIT), the National Financing Fund for Science, Technology, and Innovation (FONAFICIT), whose actions are within the framework of the National Plan for Science, Technology, and Innovation.

The National System of Science, Technology, and Innovation has as its purpose creating an institutional structure that allows for coordinating, organizing, promoting, fostering, and directing the development of science and technology in the country. CHAPTER II OF THE INSTITUTIONS OF INTEREST OF THE SYSTEM

Part of the National System of Science and Technology and Innovation are public or private institutions that generate and develop scientific and technological knowledge as innovation processes and persons dedicated to the planning, administration, execution, and evaluation of activities that enable effective linkage between research, innovation, technology, and the country's comprehensive development. For such purposes, the subjects that form part of the System are:

• 1)

  The institutions mentioned in Article 11 of this Law;

• 2)

  Institutions of higher education and technical training, national academies, professional associations, scientific societies, libraries, and research and development centers, both public and private that carry out scientific and technological research and activity;

• 3)

  Organisms of the private sector, technology-based companies, technological institutes, and technology-based capital goods present, information networks, and technological systems that are incorporated into the System for its capacity in scientific, technological, and innovative research;

• 4)

  Research and scientific and technological development units as well as information technology and communication units of all public organisms;

• 5)

  Persons who form part of public or private institutions that carry out science, technology, innovation, and their applications activities; TITLE IV OF THE ORGANIZATIONAL STRUCTURE, FUNCTIONS, AND BUDGET OF THE NATIONAL SYSTEM OF SCIENCE, TECHNOLOGY, AND INNOVATION CHAPTER I OF THE ORGANIZATIONAL STRUCTURE OF THE SYSTEM

The National Secretariat of Science, Technology, and Innovation (SENACIT) is created, headed by a National Secretary with the rank of Secretary of State, having the attributions and functions conferred through Decree by the General Law of Public Administration and other laws. The organization of the National Secretariat of Science, Technology, and Innovation (SENACIT) must respond to a modern, simple, and efficient structure for its agile and effective functioning, having for this purpose a Secretary of State without assignment of a specific office to advise the President of the Republic on matters of its competence. The National Secretariat of Science, Technology, and Innovation acts as coordinator of the National System of Science, Technology, and Innovation in actions of Scientific, Technological Development, and Innovation. The mechanisms of communication and participation in the National System of Science, Technology, and Innovation must be defined in the Regulation of this Law.

The Honduran Institute of Sciences, Technology, and Innovation is created, hereinafter called IHCIET, as an entity of public law, of permanent character, with legal personality and its own assets, with administrative and financial autonomy. The highest authority of the Institute is the Executive Director, a position that must be held by the same National Secretary of Science, Technology, and Innovation. The legal domicile of the Institute is the city of Tegucigalpa, Municipality of the Central District, and may create and establish offices in other cities of the country as well as abroad through strategic alliances or other mechanisms. The purpose of the Honduran Institute of Sciences, Technology, and Innovation (IHCIET) is to promote, develop, and strengthen the structures for the functioning of the system of science, technology, and innovation for the country's development; contributing as a permanent technical instance with qualified personnel through a selection process in accordance with merit. CHAPTER II OF THE FUNCTIONS OF THE NATIONAL SECRETARIAT AND THE HONDURAN INSTITUTE OF SCIENCE, TECHNOLOGY, AND INNOVATION

The functions of the National Secretariat of Science, Technology and Innovation (SENACIT) and of the Honduran Institute of Sciences, Technology and Innovation (IHCIET) must be established in the Regulation, in accordance with what is provided in the different chapters and articles that make up this Law.

The National Secretariat of Science, Technology and Innovation shall promote and coordinate inter-institutional efforts in this matter, developed by other governmental agencies. CHAPTER III OF THE BUDGET OF THE NATIONAL SECRETARIAT AND OF THE HONDURAN INSTITUTE OF SCIENCE, TECHNOLOGY AND INNOVATION

The necessary resources for the organization and operation of the National Secretariat of Science, Technology and Innovation (SENACIT) and of the Institute of Sciences, Technology and Innovation (IHCIET) must be included in the General Budget of Income and Expenditure of the Republic. TITLE V OF THE NATIONAL PLAN OF SCIENCE, TECHNOLOGY AND INNOVATION CHAPTER I OF THE NATIONAL PLAN OF SCIENCE, TECHNOLOGY AND INNOVATION

The National Plan of Science, Technology and Innovation is the instrument for planning and guiding the management of the State, to establish the guidelines and national policies regarding Science, Technology and Innovation, as well as for the estimation and mobilization of the necessary resources for its execution. CHAPTER II OF THE PREPARATION OF THE NATIONAL PLAN OF SCIENCE, TECHNOLOGY AND INNOVATION

The National Secretariat of Science, Technology and Innovation must prepare the National Plan of Science, Technology and Innovation provided for by the National Council for the Promotion of Science, Technology and Innovation (CONFOCIT) under the terms provided in this Law and its Regulation. Science, Technology and Innovation prior to approval by the National Council for the Promotion of Science, Technology and Innovation (CONFOCIT) under the terms provided in this Law and its Regulation. CHAPTER III OF THE OBJECTIVES OF THE NATIONAL PLAN OF SCIENCE, TECHNOLOGY AND INNOVATION

The National Plan of Science, Technology and Innovation defines a concerted vision that the matter of Science, Technology, Innovation and its applications must achieve in the public sector, complemented according to its needs and available resources. A high-priority objective that the national plan must establish for scientific and technological development is the continuous generation of Science, Technology and Innovation as a priority economic factor for the development and structural change of the country.

The National Plan of Science, Technology and Innovation must contain objectives to be achieved in prioritized and defined areas in such a way as to allow their monitoring, evaluation, control and regulation: a process that is the responsibility of the Honduran Institute of Sciences, Technology and Innovation (IHCIET). The National Plan of Science, Technology and Innovation must fundamentally guide according to the following lines of action:

• 1)

  Research and technological development, in constant evolution, to improve the quality of life of Hondurans;

• 2)

  Generation of knowledge and promotion of talent;

• 3)

  Promotion of quality and productive innovation.

• 4)

  Development and strengthening of technological and scientific capacities in general;

• 5)

  Strengthening and articulation of networks of scientific cooperation and technological innovation, and;

• 6)

  Innovation of public management and social articulation of science and technology. CHAPTER IV OF THE EXECUTION CRITERIA OF THE NATIONAL PLAN OF SCIENCE, TECHNOLOGY AND INNOVATION

The development and execution of the National Plan of Science, Technology and Innovation, and the operational mechanisms of the National System of Science, Technology and Innovation, that request to participate in the financing programs offered by the National Secretariat of Science, Technology and Innovation for the execution of the National Plan of Science, Technology and Innovation, and that are selected for such purposes, may be required to provide resources to co-finance these programs. The respective contributions must be set by mutual agreement, taking into account the possibilities and economic conditions of the parties involved. CHAPTER II OF THE SELECTION OF PROJECTS OF THE NATIONAL SYSTEM OF SCIENCE, TECHNOLOGY AND INNOVATION

The National Secretariat of Science, Technology and Innovation must evaluate and select programs and projects susceptible to financing, based on the priority areas or those necessary for the social and economic progress of the country that had been determined and ranked. Without prejudice to the fact that such technical evaluations may be carried out by any of the specialized agencies or entities attached to the Secretariat that it has selected for such purposes. CHAPTER III OF THE FINANCING CONTRACTS OF THE NATIONAL SYSTEM OF SCIENCE, TECHNOLOGY AND INNOVATION

Everything concerning financing, operational and contractual aspects relating to programs and projects to be granted by the National Secretariat of Science, Technology and Innovation to its attached agencies must be determined in the Regulation of this Law. The penalties stipulated in the contracts for non-compliance must be deposited in the National Fund for Financing Science, Technology and Innovation (FONAFICIT). CHAPTER IV OF THE INTERNATIONAL COORDINATION OF THE NATIONAL SYSTEM OF SCIENCE, TECHNOLOGY AND INNOVATION

The National Secretariat of Science, Technology and Innovation shall promote and develop policies and programs, intended to guide international cooperation for the strengthening of the National System of Science, Technology and Innovation. CHAPTER V OF THE RESEARCH CENTERS OF THE NATIONAL SYSTEM OF SCIENCE, TECHNOLOGY AND INNOVATION

The National Secretariat of Science, Technology and Innovation must conduct studies to create the research centers it deems necessary to promote scientific and technological research in the priority areas of economic and social development of the country. CHAPTER VI OF POPULAR INVENTION AND INNOVATION OF THE NATIONAL SYSTEM OF SCIENCE, TECHNOLOGY AND INNOVATION

The National Secretariat of Science, Technology and Innovation must create mechanisms for support, promotion and dissemination of popular inventions and innovations, facilitating their transformation into processes, systems or products that generate benefits for the population or achieve a positive economic or social impact. TITLE VII OF THE NATIONAL COUNCIL FOR THE PROMOTION OF SCIENCE, TECHNOLOGY AND INNOVATION CHAPTER I OF THE CREATION OF THE NATIONAL COUNCIL FOR THE PROMOTION OF SCIENCE, TECHNOLOGY AND INNOVATION

The National Council for the Promotion of Science, Technology and Innovation hereinafter referred to as CONFOCIT or The Council, is established as the superior body for the formulation and execution of Science and Technology plans, with its programs, projects and specific policies and annual operating plans, composed of representatives of the institutions established in Article 13 of this Law, organized as follows:

• 1)

  The National Secretary of Science, Technology and Innovation, with the rank of State Secretary, who presides over it or his legal substitute;

• 2)

  The State Secretary in the Office of the Technical Secretariat of Planning and External Cooperation or his legal substitute;

• 3)

  The State Secretary in the Office of the Secretariat of Agriculture and Livestock;

• 4)

  The State Secretary in the Office of the Secretariat of Industry and Commerce;

• 5)

  The State Secretary in the Office of the Secretariat of Natural Resources and Environment;

• 6)

  The State Secretary in the Office of Labor and Social Security;

• 7)

  The State Secretary in the Office of Education;

• 8)

  A representative of the National Autonomous University of Honduras (UNAH);

• 9)

  A representative of Private Universities accredited through the Association of Private Universities of Honduras (ANUPRIH);

• 10)

  A representative of the National Academy of Sciences;

• 11)

  A representative of the productive sectors and scientific-technological services designated by the Honduran Council of the Private Enterprise (COHEP); and,

• 12)

  Two (2) representatives of public or private persons who carry out activities of Science, Technology, Innovation and its applications. CHAPTER II OF THE POWERS OF THE NATIONAL COUNCIL FOR THE PROMOTION OF SCIENCE, TECHNOLOGY AND INNOVATION

The National Council for the Promotion of Science, Technology and Innovation (CONFOCIT) has the following powers:

• 1)

  Approve strategies and policies in priority areas of Honduran development;

• 2)

  Approve the national plan of science, technology and innovation, with its programs, projects and specific policies;

• 3)

  Approve the annual operating plan of the Institute, as well as its modifications upon the proposal of the Executive Director;

• 4)

  Approve the pluriannual and annual budget of income and expenditure of the Institute as well as its modifications upon the proposal of the Executive Director;

• 5)

  Approve the internal regulations prepared by the Executive Director for the organization and administration of the Institute;

• 6)

  Hold ordinary sessions preferably every three (3) months, and extraordinary sessions whenever necessary;

• 7)

  Approve contracts and agreements for technical and financial cooperation with national and international agencies to be celebrated by the Institute;

• 8)

  Review the reports of income and expenditure of the Institute;

• 9)

  Organize support committees for the work of the Executive Director;

• 10)

  Approve the annual financial plan presented by the Executive Director regarding the administration of the funds managed by the Institute;

• 11)

  Approve the establishment of trusts;

• 12)

  Approve the regulations necessary for the execution of this Law and submit them to the approval of the Executive Power, and,

• 13)

  Any others attributed to it in this Law and in the regulations that are issued. TITLE VIII OF THE FUND OF THE NATIONAL SYSTEM OF SCIENCE, TECHNOLOGY AND INNOVATION.

The National Fund for Financing Science, Technology and Innovation (FONAFICIT) is created, under the charge of the National Secretariat of Science, Technology and Innovation, whose resources are administered through an autonomous patrimony. For the purposes of the National Secretariat of Science, Technology and Innovation, a trust must be created prior to public licensing. The resources of the Fund may not be allocated to finance the operation of the National Secretariat of Science, Technology and Innovation, nor of any other public entity. The value of the fiduciary commission must be paid from the financial returns produced by the administered resources. The National Secretariat of Science, Technology and Innovation is the sole obligor of the autonomous patrimony called the National Fund for Financing Science, Technology and Innovation.

The acts and contracts executed by the Fund are subject to the State procurement regulations and are under the fiscal regulation of the Superior Court of Accounts (TSC).

The resources of the National Fund for Financing Science, Technology and Innovation are the following:

• 1)

  Resources from the General Budget of Income and Expenses of the Republic that are allocated to the financing of science, technology and innovation activities and that have been budgeted therein, to be executed through the Fund;

• 2)

  Resources from the private sector and international cooperation oriented toward the support of science, technology and innovation activities;

• 3)

  Financial contributions from members of the National System of Science, Technology and Innovation;

• 4)

  Donations or legacies made by natural or legal persons, national or foreign; and,

• 5)

  Financial returns from the investment of the Trust's resources.

The National Secretariat of Science, Technology and Innovation must include a Chapter within the Biannual Report to the National Council for the Promotion of Science, Technology and Innovation and to the President of the Republic, in which the allocation and use of the resources of the National Fund for Financing Science, Technology and Innovation are detailed.

With the resources of the National Fund for Financing Science, Technology and Innovation, only the following operations may be carried out: 1) Finance programs, projects, entities and activities of Science, Technology and Innovation, and, 2) Invest in venture capital funds or other financial instruments, for the support of programs, projects and activities of Science, Technology and Innovation. The resources of the National Fund for Financing Science, Technology and Innovation must be invested seeking optimal balance between security, profitability and liquidity; these investments must be carried out in accordance with the limits and other guidelines established in the Investment Regulations issued for such purposes by the National Secretariat of Science, Technology and Innovation.

The operations, investments and results carried out with resources of the National Fund for Financing Science, Technology and Innovation must be published on the website of the National Secretariat of Science, Technology and Innovation for transparency purposes, as well as for the supervision and control of the Council and the general public.

The National Secretary of Science, Technology and Innovation, as Executive Director of the Honduran Institute of Sciences, Technology and Innovation, must create and maintain updated an information system regarding beneficiaries, amounts requested, approved and all pertinent data that allows for having updated and reliable information.

The National Fund for Financing Science, Technology and Innovation requires that the National Secretariat of Science, Technology and Innovation, as the governing body, permanently preside over the programs and projects contemplated in the National Plan of Science, Technology and Innovation in the following manner:

• 1)

  Members of the National System of Science, Technology and Innovation that hold intellectual property of goods and services developed with resources coming partially or wholly from financing granted through the National Secretariat of Science, Technology and Innovation or attached organisms, must contribute from the additional items of such financing, an amount comprised between one-tenth of one percent (0.1%) and one-half of one percent (0.5%) of the gross income obtained from such commercialization;

• 2)

  Large companies in the country, as well as corporations incorporated abroad that are domiciled in Honduras and that carry out exploitation activities and other productive sectors in the national territory, must contribute annually an amount to be agreed upon with the National Secretariat of Science, Technology and Innovation (SENACIT) and legalized according to agreement executed between parties. Complementary activities among others include those of Hydrocarbons and Gaseous Hydrocarbons; mining exploitation in its processing and distribution; the generation, distribution and transmission of electricity; the sectors of production of goods and provision of services; and,

• 3)

  Those generated by fines established in Article 27 of this Law. The Regulations of this Law must establish the mechanisms, modalities and forms in which the subjects mentioned in this Article must make financial contributions to the National Fund for Financing Science, Technology and Innovation.

The Honduran Institute of Sciences, Technology and Innovation (IHCIET) must promote and stimulate the formation and training of specialized human talent in matters of science, technology and innovation and their applications.

The Honduran Institute of Science, Technology and Innovation must create a specialized system of training, formation, treatment, follow-up and evaluation of human talent with special abilities and capabilities and as a result provide opportunities for children, adolescents and adults with exceptional performance in education in their academic career, advanced, in accordance with Citizen standards. Coniam and whose evaluations determine scientific, innovative and technological genius and abilities that allow for the preservation and development of this talent for the benefit of the country. The special Regulations shall provide treatment to this Program.

The Honduran Institute of Sciences, Technology and Innovation (IHCIET) must design and implement necessary incentives to stimulate the formation and insertion of specialized human capital in companies, academic institutions, research centers and services. Likewise implement incentives aimed at the exchange and mobilization of human talent between companies and academic institutions.

The Honduran Institute of Sciences, Technology and Innovation (IHCIET) stimulates the formation of specialized talent through the granting of incentives, such as: awards, scholarships, subsidies, or any other recognition that serves to promote scientific, technological and innovation production.

The Honduran Institute of Sciences, Technology and Innovation (IHCIET) stimulates early vocations toward research and development, in consonance with the educational, social and economic policies of the country.

The Institute must propose before the competent bodies a generalized framework of fiscal incentives to support investments of innovative companies with comparative advantages and their instrument as a fiscal result, in priority sectors for Honduran development, in the fields of basic and applied research, research and technological development and naturally innovation in companies.

To support the introduction of technological innovations, both in processes as well as in the areas of business organization, marketing, logistics, human talent formation, both for innovative companies with comparative advantages at the national level as well as for companies in Special Zones of Development and Employment (ZEDES), the Honduran Institute of Sciences, Technology and Innovation (IHCIET) must manage resources with sources of national and international cooperation, which must be deposited in the National Fund for Financing Science, Technology and Innovation, through a system of donations and credits under favorable conditions.

For the organization and operation of the National Fund for the Financing of Science, Technology and Innovation, the Central Government must contribute seed capital equivalent to the amount of FIFTY MILLION LEMPIRAS (L. 50,000,000.00) which must be included in the General Budget of Income and Expenses of the Republic for 2014.

The National Secretariat of Science, Technology and Innovation integrates into its organization the functions, assets, resources and budget that in matters of science, technology and metrology are assigned to the Technical Secretariat of Planning and External Cooperation (SEPLAN).

The budgetary resources, assets and liabilities assigned to the Presidential Office for the Scientific and Technological Development Program (PRODECYT) must be assigned to the National Secretariat of Science and Technology, as of the General Budget of Income and Expenses of the Republic that is formulated for the fiscal year 2014, for the financing of its scientific and technological development activities.

The Executive Power, through the National Secretariat of Science, Technology and Innovation, must issue the Regulations of this Law within the period of sixty (60) days counted from the date of publication of this Law.

This Law enters into force on the day of its publication in the Official Gazette La Gaceta. Given in the city of Tegucigalpa, municipality of the Central District, in the Session Hall of the National Congress, on the twenty-second day of the month of December of two thousand thirteen. MAURICIO OLIVA HERRERA PRESIDENT, BY THE LAW GLADIS AURORA LOPEZ CALDERON SECRETARY ELISEO NOEL MEJIA CASTILLO SECRETARY To the Executive Power. Therefore: Let it be executed. Tegucigalpa, M.D.C., January 24, 2014. PORFIRIO LOBO SOSA PRESIDENT OF THE REPUBLIC THE SECRETARY OF STATE OF THE PRESIDENTIAL OFFICE. MARIA ANTONIETA GUILLEN VASQUEZ