Globalization and the transition of economies and societies towards a system based on knowledge and information have intensified competition and interdependence among countries. We present an impact evaluation of funding programs, designed to promote innovation activities in the Colombian service sector. The incorporation of two novel panel data at firm level allows to control for unobserved heterogeneity. Results indicate that there may be a significant impact in terms of labour productivity for small companies and KIBS and of gross margins for large companies. This is especially true for projects of short (one year or less) duration.