r&d incentive programs · 2020. 3. 13. · contact: yossi smoler - technological incubators...

R&D INCENTIVE PROGRAMS

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Table of Contents

About the OCS ................................................................................................... 3

Domestic R&D Programs ................................................................................. 5

Competitive R&D .................................................................................................................... 5

The R&D Fund.............................................................................................................................................................. 5

Traditional Industries Support within the R&D Fund Framework ............................................................ 5

Large Companies’ R&D Centers in Israel’s Periphery ..................................................................................... 6

Pre-Seed and Seed Programs ............................................................................................. 8

Technological Incubators ........................................................................................................................................ 8

TNUFA ............................................................................................................................................................................ 9

National Institute for Biotechnology in the Negev (NIBN) .......................................................................... 9

Technological Centers for Water and Renewable Energies Solutions .................................................... 9

Life Sciences Fund ...................................................................................................................................................10

Investment in VC-Backed Companies in The Field of Alternative Fuels for Transportation ..........10

Pre-Competitive and Long-Term R&D Programs .......................................................12

MAGNET Instruments .............................................................................................................................................12

MAGNET Consortia ..................................................................................................................................................12

MAGNETON ................................................................................................................................................................12

Users Association .....................................................................................................................................................12

NOFAR – Industrial application of Academic Research ..............................................................................12

KAMIN – Promotion of Selected Applied Research .....................................................................................12

TELEM FORUM ..........................................................................................................................................................13

TZATAM – Life-Sciences R&D Supporting-Equipment Purchase Grants ..............................................13

Basic and Applied Nano-Technology Research.............................................................................................13

National Bio-Bank ....................................................................................................................................................14

MEIMAD - Encouraging R&D of Dual Use Technologies ............................................................................14

Support for Israeli Research Institutions ........................................................................................................15

Long-Term R&D Support for large companies with substantial R&D investment ............................15

Special Programs ..............................................................................................................17Institutional investments in Israeli high-tech ................................................................................................17

Reversing the Brain Drain .....................................................................................................................................17

Development of Technological Solutions for People with Special Needs ..........................................18

Table of Contents

322 About the OCS

International Cooperation in R&D ............................................................... 20

MATIMOP - Israel Industry Center for R&D ...................................................................20

Industrial R&D Cooperation with EUROPE .................................................................................20

EUREKA ........................................................................................................................................................................21

Galileo ..........................................................................................................................................................................22

EEN - Enterprise Europe Network ......................................................................................................................22

Joint Industrial R&D Programs with Asia Pacific and Latin America ......................................................23

Joint Industrial R&D Programs with U.S. States .............................................................................................25

Bi-national Funds ..................................................................................................................25

BIRD - Bi-national Industrial R&D Foundation ...............................................................................................25

CIIRDF - Canada Industrial R&D Foundation ..................................................................................................26

KORIL-RDF - The Korea-Israel Industrial R&D Foundation .........................................................................27

SIIRD - The Singapore - Israel Industrial R&D Foundation .........................................................................28

US - Israel Science & Technology Commission and Foundation .............................................................28

EU Framework Programs for R&D operated by ISERD .............................................29

Cooperation with Foreign Firms ......................................................................................30

The Global Enterprise R&D Cooperation Framework .................................................................................30

Project Centers for Multinational Companies ...............................................................................................30

Program to Encourage the Establishment of R&D Centers in Israel for the Service of the International Financial Community ..................................................................................................................31

Research and Development (R&D) investment, while

recognized as a leading growth engine for modern world

economies, is nonetheless considered fairly risky. This makes

R&D investment by the private sector scarce, which is a

serious obstacle to the goal of maintaining Israel’s lasting

competitive edge: Applied Innovation. The Government’s

willingness to share the risk, greatly aids in reducing it and

in ensuring the process’ successful fruition. The Office of

the Chief Scientist (OCS) in the Ministry of Industry, Trade

and Labor (MOITAL), empowered by the “Law for the

Encouragement of Industrial Research & Development –

1984” (The R&D Law), oversees all Government sponsored

support of R&D in the Israeli industry. It operates through

the R&D Fund, as well as a gamut of domestic and

international programs, agreements and collaborations.

The OCS annually supports hundreds of projects, from

incipient concepts within a pre-seed framework, followed

by support of incubator and start-up companies, through

autonomous industrial R&D enterprises.

About the OCS

2 Table of Contents

4 5Domestic R&D Programs Domestic R&D Programs

■ The R&D Fund

The R&D Fund is the main instrument of The R&D Law. It gives grants to “Approved R&D Programs”, which are programs lasting one or more years, resulting in the development of a new product or in a significant improvement to an existing product. The development may also lead to a new industrial process or to a significant improvement in an existing industrial process.

A Research Committee, headed by the Chief Scientist, is the organ assigned with awarding the grants, according to a set of terms and conditions. Grants are from 20 percent to 50 percent of the total approved R&D expenditures of the approved projects. The annual budget of approximately NIS 1.5B is spent in the support of the R&D run by hundreds companies.

A project that received an R&D grant from another government source is not eligible for a grant under the R&D Law.

Assistance at the Beta Site stage is eligible for grants under the R&D Fund and is recognized as an important and integral part of the R&D process. Its aim is to test the product under real operating circumstances by selected end-users, who supply technical feedback and suggestions for the modification of product features and specifications.

Approved Projects in the Nano-Technology and Biotechnology sectors may receive the maximal 50 percent of grant support. R&D projects conducted in geographical areas designated as Development Area A are eligible for grants of 60 percent of the total approved R&D budget.

A company is obligated to pay royalties when a government-assisted R&D project results in a commercially successful product. Royalties are used to fund future grants that encourage and support industrial R&D. Normally, royalty payments are a specified percentage of the total annual revenues derived from the sale of a developed product. These are 3 percent of revenues during the first three years and 3.5 percent from the third year onward. Total royalty payments may not exceed the amount of the grant plus interest, except in cases involving the transfer of production rights abroad, which carry different conditions.

■ Traditional Industries Support within the R&D Fund Framework

A special track is dedicated to Traditional Industries (industries characterized by relatively low investment in R&D). This track offers separate evaluation and discussion for projects. Private consultation is offered to Traditional Industry companies applying to the OCS for the first time. The Fund supports Traditional Industry R&D projects at the maximum level of 50%.

Contacts:

Applications

Ruth Ben-Avi

Telephone: +972-2-6662516

Email: [email protected]; [email protected]

Domestic R&D Programs | Competitive R&D

Competitive R&D

6 Domestic R&D Programs

Royalty payments (TMURA)

Aviram Zolti, Director Royalties Fund

Telephone: +972-2-666-2456

Email: [email protected]; [email protected]

■ Large Companies' R&D Centers in Israel's Periphery

Operated since 2010, this track aims to bridge the gap between the Israel's Center and Periphery, by convincing large companies to bring their R&D centers to areas with lesser economic growth. This creates a mechanism of increased quality employment and economic activity within the target geographical area.

Budgetary framework of this program is NIS 300 million for a period of three years. This track is designed for large companies, with an annual turnover of USD 100 million, generated from business activities in Israel, also meeting the following requirements: a. 50% of the project's production will be made in Israel. b. the project demonstrates a high level of innovation, meeting existing OCS guidelines. c. The company commits to hiring a substantial number of employees living in the periphery, reaching in its 3rd year up to 60% of total manpower budgeted through the grant. The OCS' Research Committee is the authorizing entity of programs within this framework.

Contact: Aviram Zolti, Director

Telephone: +972-2-666-2456

Email: [email protected]

Pre-Seedand Seed Programs

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Domestic R&D Programs | Pre-Seed and Seed Programs

■ Technological Incubators

The Technological Incubators Program was established in 1991 and is administrated by the Office of the Chief Scientist (OCS) of the Ministry of Industry, Trade and Labor.

The primary goal of the program is to transform innovative technological ideas, that are too risky and in too early stage for private investments, into viable startup companies that after the incubator term are capable of raising money from the private sector and operate on their own.

Secondary goals of the program are as follows:1. Promote R&D activity in peripheral and minority areas.2. Create investment opportunities for the private sector, including venture

capitalists.3. Transfer technologies from research institutes and implement them in the

industry.4. Create an entrepreneurship culture in Israel.

For a period of up to two years (Biotech and Cleantech projects up to three years), the program provides entrepreneurs, whose projects were approved by the Incubators Committee, with R&D and marketing grants, infrastructure, technological & business guidance, legal & regulatory advice, and administrative assistance.

The program is subject to the R&D law with regards to manufacturing, royalties and know-how rights.

Contact: Yossi Smoler - Technological Incubators Program Director

Telephone: 972-3-511-8127


Website: www.incubators.org.il

■ TNUFA

TNUFA is a national pre-seed fund. It assists individual inventors and nascent start-up companies during the earliest stages of their projects. This includes evaluation of the technological and commercial potential of a project, filing for a patent, building a prototype, drafting a business plan and initial business development. Grants of up to 85 percent of approved expenses are available to a maximum of approx. USD 65,000 per project.

Contact: Jacob Fisher, Director

Telephone: +972-3-516-5044


Website: www.tnufa.org.il (Hebrew)

■ National Institute for Biotechnology in the Negev (NIBN)

The NIBN was established within Ben-Gurion University in 2005, with the co-investment of several government entities, including the OCS, to create a more effective multi-disciplinary bridge between basic and applied research in biotechnology, for the emergence of a successful Biotech industry in Israel and the Negev.

The focus of the institute’s research includes Structural Biotechnology, Computational Biotechnology, Human Genetics, Functional Genomics, Nano-medicine and Immune System Biotechnology.

The OCS is part of the NIBN's Steering Committee.

Contact: Smadar Taieb

Telephone: +972-2-6662468


■ Technological Centers for Water and Renewable Energies Solutions

The Government of Israel, having decided that enhancing Israel's abilities in the fields of Water and Renewable Energies Technologies is of strategic importance to the country, has declared the creation of two Technological Centers, one for Water technologies and the other for Renewable Energies solutions, to be founded in the South of Israel.

The centers will support technological entrepreneurship from the initial R&D stage until actual production and marketing. They will also encourage cooperation between academia, research institutes and the industry, on the development of water and renewable energy technologies, and will serve as focal points for applied research in these sectors.

The State of Israel has allocated a budget of NIS 35 million for the Water Technologies Center and a budget of NIS 57 million for the Center for Renewable Energy Technology to be spent over a 5 year period. Each center will be operated under a concession agreement by a business entity consisting of a strategic investor and academic research center. The concessionaire will be required to at least match the Government's investment.

Pre-Seed and Seed Programs Pre-Seed and Seed Programs

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Contact: Gil Shaki, Director Cleantech Initiatives

Telephone: +972-2-6662664 / +972-3-5118142


■ Life Sciences Fund

The goal of the Fund is to promote and accelerate the growth of the Israeli biotechnology industry, in which Israel has many competitive advantages, but the private sector globally considers as being high risk.

On April 6, 2011, the Government selected in an open tender, Orbimed Partners Israel, a private healthcare investment firm, to become the Fund's General Partner and its manager. The Fund is structured as a standard venture capital fund. The capital commitments to the Fund, around 220 million USD in total, will be made in a minority part by the Israeli government, as a Limited Partner. The rest of the Fund's investments are private, and are raised by the General Partner. The lifetime of the Fund shall be 10 years, extendable by three more years, and the investment period may last up to 5 years. The Fund must allocate a certain portion of its capital commitments to investments in companies developing Bio-Pharmaceutical Technologies.

■ Investment in VC-Backed Companies in The Field of Alternative Fuels for Transportation

On January 2011 The Government of Israel passed a Resolution to carry out a national program to encourage the development of technologies, which will reduce the global dependency on petroleum-based fuels for transportation, and to boost knowledge-based industries in this field. Within the framework of that resolution, it was also decided to create a program for the encouragement of investments in venture capital-backed companies in the field of alternative fuels for transportation. The objective of The Investment Encouragement Program is to establish a market of private investments in venture capital-backed Israeli companies active in the field of alternative fuels for transportation.

A team led by the Chief Scientist of Ministry of Industry, Trade & Labor, and comprising additionally of representatives from the Prime Minister's Office, the Budget Department of Ministry of Finance and the Accountant General Department of Ministry of Finance, was put in charge of the Program's execution. A total budget of NIS 400 million was allocated to The Program, to be utilized during 2012-2020.

The Program is expected to be launched during 2012.

Contact: Gil Shaki, Director Cleantech Initiatives

Telephone: +972-2-6662664 / +972-3-5118142

E-mail: [email protected]

Pre-Seed and Seed Programs

Pre-Competitive and Long-Term

R&D Programs

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Domestic R&D Programs | Pre-Competitive and Long-Term R&D Programs

■ MAGNET Instruments

MAGNET (The acronym in Hebrew for Generic Pre-Competitive R&D) programs encourage collaboration among industrial companies, and between the companies and researchers from academic institutions, through several instruments that deal with innovative technologies. Those instruments seek to develop Israel's industrial infrastructure by supporting the R&D activities and sharing technological knowledge between the participants.

MAGNET ConsortiaSupports the formation of consortia made up of industrial companies and academic institutions, in order to jointly develop generic, pre-competitive technologies. The duration of a MAGNET Consortium is 3-5 years. Grants are up to 66% of the approved budget for industry and up to 80% for the academic institution. No royalty payments are mandated.

MAG ETONThe MAGNETON program promotes technology transfer from academia to industry via mutual cooperation between an individual company and specific academic research group, in order to reduce the uncertainty before using the technology by the firm in new developments. It is designed for projects of up to USD 800,000 and has a duration period of up to 24 months. Grants are up to 66% of the approved budget. No royalty payments are mandated.

Users AssociationA "Users Association" is an association of industrial companies involved in the dissemination and assimilation of generic advanced technology, and the sharing or utilizing of a common technology. This instrument also enables the creation of a demonstration site, for the service of the association's members in their development activity. Grants are up to 66% of the approved budget. Subsidy is given only to the Association as a group, and not to the individual members. No royalty payments are mandated.

NOFAR – Industrial application of Academic ResearchDesigned to support applied academic research in specific technological areas (biotechnology, nanotechnology, medical devices, water & energy storage), in order to adapt it to relevant applications in the industry, and promotes the transfer of these technologies to the industry. Project's budget is up to USD 130,000 for a period of 12 months. Grants are up to 90% of the approved budget, to be complemented by the industrial company accompanying the project. No royalty payments are mandated.

KAMIN - Promotion of Selected Applied Research The KAMIN program is designed to be an additional bridge between basic and applied research that is not yet ready for commercial investment. KAMIN offers an opportunity for academic research groups whose research program having reached an applied phase is no longer eligible for basic research funds and may now be enabled to continue in the applied direction for up to two years at a level of support of 85-90 %. The remainder of the R&D costs to be borne by the research institute. No royalty payments are mandated.

■ TELEM FORUM

TELEM is a voluntary partnership between the four organizations that support public R&D in Israel: The Office of the Chief Scientist of the Ministry of Industry, Trade and Labor, The Office of The Chief Scientist of the Ministry of Science & Technology, The Planning and Budgeting Committee of the Council for Higher Education and The Ministry of Finance. Through TELEM there are several projects aimed at establishing a national infrastructure for R&D in specific areas that are of common interest to most of the TELEM members. The financing of the projects is done with the TELEM members' own resources.

TZATAM – Life-Sciences R&D Supporting-Equipment Purchase Grants This TELEM instrument is designed to assist experienced companies specializing in providing research services in the field of Life Sciences by enabling them the purchase expensive equipment, thus strengthening the domestic Life Sciences R&D capabilities. Entities both in Industry and Academia are able to broaden the scope of the research they conduct. OCS equipment-purchase grants assist in the validation of scientific and technological feasibility of discoveries and in the receipt of approvals to perform clinical trials.USD 10 million has been allocated for the project, over a three year period. An additional USD 10 million has been allocated specifically for stem-cell research equipment.

Basic and Applied Nano-Technology Research During the years 2005-2012 six Academic research centers in the field of Nano-technology have been founded and put into operation in Israel, first at the Technion and then at the Tel Aviv University, the Hebrew University, Bar-Ilan University, Ben-Gurion University, and the Weizmann Institute. These six centers were funded by collaborative private and public resources, and received a total budget of USD 220 million. The program established strong

Pre-Competitive and Long-Term R&D Programs Pre-Competitive and Long-Term R&D Programs

1514

capabilities in design and fabrication of nano-devices, which aided the research in the academy and the development in the Industry. The program's notable achievements were the return of over 50 scientists to Israel, as a result of the new research opportunities created in the new centers, as well as several impressive success stories of discoveries that were commercialized. Hundreds of scientific papers were published and tens patent were claimed.

For the years 2012-2016 a follow-up program has been devised. The main goal of the second period is establishing a strong Nanotechnology industry, by transferring technologies from academia to industrial companies, and by providing skilled manpower that will graduate with a Ph.D. and an MSc in Nano-Science. A budget of USD 150 million, not including cost of new personnel will be allocated for this phase, at a 1:1.5 ratio of government to private investment. The budget will be equally divided between investment in infrastructure and focused investment - "Focal Technological Areas".

The Program is expected to be launched during the 1st half of 2012.

National Bio-BankA bio-bank is an organized collection of human biological material and associated information stored for one or more research purposes. Bio-banks allow researchers to analyze data representing larger numbers of individuals than they could have had access to before, thus profoundly improving the efficient use of biological information and hastening new medical discoveries. The state of Israel, having realized the importance of such a repository to the advancement of medical innovation, has decided on a foundation of a national bio-bank. The government, via The Office of the Chief Scientist of the Ministry of Industry, Trade and Labor, The Office of The Chief Scientist of the Ministry of Science & Technology and The Planning and Budgeting Committee of the Council for Higher Education and The Ministry of Finance, has decided to allocate NIS 35 million for the project, over a period of up to 5 years. The Ministry of Health will be responsible for the logistical set-up and operation of the bio-bank. Samples are to be collected and distributed by selected medical institutions around the country. The biological material will be available for academic researchers at a subsidized cost. Local for-profit entities will be able to obtain the materials at cost. Foreign organizations will be able to purchase samples on a limited basis, according to established standards.

The Program is expected to be launched during the 1st half of 2012.

■ MEIMAD - Encouraging R&D of Dual Use Technologies

MEIMAD is a collaborative program between the Ministry of Defense, the OCS at the Ministry of Industry, Trade and Labor and the Ministry of Finance, to jointly promote new ideas and new technologies that can serve both commercial applications and military needs. Each project may receive support for up to 30 months, and funding of up to NIS 5 Million. The Program is expected to be launched during the 1st half of 2012.

Contact: Ilan Peled, Director of the MAGNET Programs and PoC for the TELEM projects

Telephone: +972-3-5118110; Email: [email protected]

Website: www.magnet.org.il

■ Support for Israeli Research Institutions

This program is designed for research institutions with clear links to industry, to strengthen their technology infrastructure and develop relevant technologies and products for industry. For a research institute to be entitled for support must be an independent legal entity, employ a team of researchers with a proven scientific & technology abilities, have equipment for conducting and testing R&D in industry, and earn 30% of its revenue from industry. Grants are up to 90% of approved budget and up to two years. At least 10% of the budget must be provided by industry.

Contact: Edna Badichi

Telephone: +972-2-6662492


■ Long-Term R&D Support for large companies with substantial R&D investment

This program is designed to encourage long-term R&D, which is normally riskier and more costly, at companies with more than 200 R&D employees or an annual R&D budget of USD 20 million and yearly revenues exceeding USD 100 million. Grants of up to 50% percent of the approved R&D budget are available. No royalty payments are mandated.

Contact: Smadar Taieb

Telephone: +972-2-6662468


Pre-Competitive and Long-Term R&D Programs Pre-Competitive and Long-Term R&D Programs

17

■ Institutional investments in Israeli high-tech

The program was launched in January 2011 in cooperation with the Ministry of Finance and addresses the need to encourage institutional investors to invest in Israeli high-tech companies, especially after the 2008 global economic crisis.

Government support is reflected by a partial protection of up to 25% of the losses, should such occur, of the institution's investment in knowledge-Intensive activities in Israel.

The State of Israel has allocated to the program a budget of NIS 200 million.

Contact: Gil Shaki, Director

Telephone: +972-2-6662664 / +972-3-5118142

E-mail: [email protected]

■ Reversing the Brain Drain

The State of Israel made a strategic decision to promote the return of researcherswho are israeli citizens and who are based outside of Israel to the academia and industry in Israel. In March 2010 the Israeli Government decided to establish a series of Academic Excellence Centers that would create appropriate professional opportunities for scientific researchers. At the end of 2011, the Government decided on another step by signing an inter-ministerial agreement, according to which the OCS will lead the efforts to promote the return of researchers to the business sector, thus helping the Industry deepen its competitive edge: applied innovation. The program that will be led by the OCS will include: creation of an information center, employment opportunity leads and work placement assistance, financial assistance to selected R&D projects, meeting the established OCS requirements. MATIMOP, serving as the international arm of the OCS at the Ministry of Industry, Trade and Labor, will be in charge the Program's execution. Other government entities involved are the ministries of Finance, Immigration Absorption and the Council for Higher Education.

The Program is expected to be launched 2012.

Contact: MATIMOP headquarters

Telephone: +972-3-511-8111


Domestic R&D Programs | Special Programs

Special Programs

Special Programs

1918 Domestic R&D Programs

■ Development of Technological Solutions for People with Special Needs

A new track of the OCS, designed to encourage the development of technological solutions for people with Special Needs, defined as "physical, psychological, mental or cognitive disability – temporary or permanent, resulting in a fundamental disruption of essential daily functions". An special committee will consider, on a case-by-case basis, applications of non-profit and for-profit organizations, with projects not meeting other OCS support programs' criteria. Approved projects by non-profit organizations will be eligible for 85% of the project's overall approved budget. Profitable corporations will be eligible for 65%. Grant is limited to NIS 600,000 per project per year, for no more than two years. Non-profit organizations are exempt from Royalty Payments.

Contact: Aviram Zolti, Director

Telephone: +972-2-666-2456


Special Programs

International Cooperation in R&D

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International Cooperation in R&D

MATIMOP - Israel Industry Center for R&D

MATIMOP is a governmental non-profit organization that aims to promote the development of advanced technologies in Israel and create fruitful international partnerships through industrial cooperation and joint ventures. MATIMOP acts on behalf of the OCS as the national agency in charge of encouraging and assisting participation of Israeli enterprises in international bilateral or multilateral cooperation programs for industrial R&D.

MATIMOP implements most bilateral R&D cooperation agreements on behalf of the OCS and thus serves as a contact point for various agreements. As such, MATIMOP is in constant contact with most Israeli high-tech companies and maintains a database of more than 4500 companies of all sizes, interested in international cooperation. The database can be searched by technology, application, keyword or alphabetically at: www.matimop.org.il/database.aspx

Contacts: Michel Hivert

Managing Director


Haya Miller

Deputy Managing Director

Tel: +972-3-5118-111

Email: [email protected]; Web: www.matimop.org.il

Via the OCS, the Government of Israel acts with other governments, provinces and organizations to actively support and encourage industrial R&D cooperation between Israel and overseas industry. There are currently more than 40 bi-national R&D cooperation agreements between Israel and countries around the world. These agreements facilitate access to know-how and technologies, as well as open up new markets.

Contact: Mina Goldiak

Head of International R&D Relations and Cooperation

Tel: +972-3-511-8175


■ Industrial R&D Cooperation with EUROPE

Europe is Israel’s main R&D partner. MATIMOP facilitates several cooperation platforms at European and bilateral level, generating a large number of jointly funded projects every year.

While these programs provide access to know-how, R&D platforms and funding sources in Europe, they also provide Israeli companies with their European partners' access to the global markets.

EUREKAEureka is the world’s largest initiative for cooperative industrial R&D and innovation projects. EUREKA incorporates 40 national funding schemes of virtually all European countries and the European Union. EUREKA facilitates every year around 400 projects mobilizing Euro 1.5B of public and private funds.

Being a pan-European network for market-oriented, industrial R&D, EUREKA’s objective is to bring high-quality R&D efforts to the market and to use the multiplying effects of cooperation. In Israel, the Office of the Chief Scientist supports Israeli companies participating in EUREKA projects.

Over 40 percent of EUREKA project participants are small and medium enterprises. SMEs are the prime target group for EUROSTARS - a EUREKA-EU joint program aiming to support R&D preforming SMEs (including start-ups) through improved support mechanisms. Eurostars announces 2 calls every year open for close to market projects led by SME’s in all industrial domains and funds approx. 150 projects each year.

Among EUREKA's activities are the industrial Cluster sub-programs that are initiated and managed by large multinational corporations in selected areas. Most clusters are active in ICT, Energy and Water fields and among their initiators are Philips, Siemens, Veolia, Alcatel, Thomson, Ericsson, Nokia, France Telecom, Telefonica, Deutsche Telekom and other market leaders.

Israel is the only non-European full member of EUREKA since 2000, along with South Korea and Canada, which joined as Associated Members. Israel is among the most active members: Currently, Israeli companies participate in more than 10 percent of all EUREKA's projects. Israel was chosen to chair the EUREKA Program in 2010-2011. The Israeli chairmanship of EUREKA was instrumental in strengthening the industrial and political links with Europe and in developing new instruments to support innovation and industrial growth through R&D cooperation, in particular the EUREKA Cleantech Action and E!nnovest financial instruments. The EUREKA 25th Anniversary Declaration adopted by all member states in Jerusalem in June 2011 asserts EUREKA’s position as the preferred, most relevant and largest platform in Europe for close to market R&D&I cooperation.

MATIMOP is the National Coordinator for EUREKA and several ERA-NET programs, on behalf of the Office of the Chief Scientist. At a bilateral level, MATIMOP implements a large number of R&D agreements with major European countries including France, Germany (with BMBF and BMWi), Italy, Scandinavian countries, Russia and more. MATIMOP also implements collaborative programs with European regions, clusters and industries, including Rusnano and Skokovo in Russia, Cap Digital, System@tic and Medicen in France , ISS in Italy, CDTI and Accio in Spain and British Water in the UK.

For details please visit: www.matimop.org.il/europe.html

International Cooperation in R&D International Cooperation in R&D

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Galileo Galileo is Europe's flagship program for the development of a global satellite navigation system composed of 30 satellites and nearly 50 ground stations worldwide. The program is managed by the European Commission and the European Space Agency. Israel is a members in the program following the agreement signed in 2005 with the EU. MATIMOP facilitates the Israeli participation in this program through the Galileo Israel Information Center: www.matimop.org.il/galileo.html

Contact: Israel Shamay, Executive Director Industrial Cooperation Programs, Head of EUREKA Israel Office

Telephone: +972-3-511-8100

Email [email protected]

EEN - Enterprise Europe NetworkMATIMOP is the national coordinator of the Enterprise Europe Network center in Israel. The Enterprise Europe Network is comprised of about 600 partner organizations in more than 40 countries in Europe, North America, Latin America and Asia Pacific promoting competitiveness and innovation services to SMEs. EEN offers a "one-stop shop" to meet all the information needs of SMEs and companies in and around Europe The EEN provides partnering and brokerage services, publication of technology offers and technology requests, access to European, national and/or regional support schemes and additional services supporting technological partnerships and internationalization of SMEs. It fully exploits the synergies between all support services and help desks for European businesses.Visit: www.matimop.org.il/eenisrael.html

Contact: Liron Eldar, Program Coordinator

Telephone: +972-3-511-8155


Joint Industrial R&D Programs with Asia Pacific and Latin America MATIMOP operates in the Asia Pacific and Latin America regions, implementing bilateral cooperation agreements with established and emerging leaders in the global economy, including: China, India, Australia, Brazil, Argentina and Uruguay. Such cooperation agreements and industrial R&D programs help facilitate cooperation between Israeli companies and foreign enterprises in these leading economies, providing access to funding and assistance in partner-matching for industrial R&D projects in all fields.

These countries – and the Asia Pacific and Latin America regions in general – offer enormous opportunities for industrial R&D cooperation to Israeli companies. Through R&D alliances, Israeli companies not only benefit from the unique strengths and skills of their partner company, but can also make the most of market opportunities unique to the Asia Pacific and Latin America region, both of which have shown unprecedented growth over the last decade. R&D cooperation can help companies wishing to expand their activities into these respective markets – which represent some of the largest in the world.

In addition, MATIMOP works to deepen its ties with countries emerging as leaders in global economy, and has in this vein established a partner-matching program with the Osaka-region of Japan.

Joint industrial R&D projects can be initiated in any technological field through one of the following frameworks:

Asia Pacific: Jiangsu (China) – Israel Industrial R&D Cooperation Program

MATIMOP, on behalf of the Office of the Chief Scientist (OCS) in Israel, together with the Jiangsu Science and Technology Department (JSTD), on behalf of the government of Jiangsu province, operate a cooperation agreement targeting industrial R&D projects between Israeli companies and Chinese companies from Jiangsu. This bilateral program is an outcome of a MOU between the State of Israel and China’s Jiangsu province in 2008.

Shanghai (China) – Israel Industrial R&D Cooperation Program The government of the Shanghai Municipality, The People's Republic of

China, and the government of the State of Israel signed a bilateral agreement in April 2011 to form the Shanghai–Israel program for Industrial R&D, with the primary aim of supporting joint industrial R&D projects aimed at the development of products or processes leading to commercialization in the global market. The bi-lateral framework is jointly implemented by the Shanghai Science and Technology Department in Shanghai and MATIMOP, the Israeli Industry Center for R&D, on behalf of the Office of the Chief Scientist (OCS) in Israel.

India – Israel Industrial R&D Cooperation Framework (i4RD) The India - Israel Initiative for Industrial Research and Development is

a bilateral framework providing active support for collaborative R&D ventures between Indian and Israeli companies, implemented by the Department of Science & Technology (DST) of the Ministry of Science & Technology in India, and MATIMOP, on behalf of the Office of the Chief Scientist (OCS) in Israel. The India - Israel program supports joint commercially focused R&D


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projects between Israeli and Indian companies in all technological fields, with an emphasis on:· Biotechnology· Nanotechnology· Space science and technology· Water management· Non-conventional energy sources (particularly solar)

India-Israel-Europe: New Indigo Program New INDIGO is a consortium of European and Indian S&T organizations

involved in promoting research cooperation between Europe and India. It is intended to strengthen the international dimension of the European Research Area (ERA) and to provide a gateway to European S&T for networking with the Indian S&T Community.

Victoria (Australia) – Israel R&D Cooperation Program The Victoria-Israel Science and Technology R&D Fund (VISTECH) was launched

on December 7, 2005 to promote, facilitate and support jointly approved science and technology research and development (R&D) projects. The fund was established between the State of Israel’s Ministry of Industry, Trade and Labor (MOITAL), through the Office of the Chief Scientist (OCS) and the Government of Victoria, through the Department of Innovation, Industry & Regional Development (DIIRD). MATIMOP and DIIRD handle the administrative responsibilities of VISTECH.

Latin America: Argentina-Israel R&D Cooperation Program

An agreement on Bilateral Cooperation in Private Sector Industrial Research and Development was signed on 16.11.2006 between the State of Israel and Argentina, through the Ministry of Economy and Production (MECON), together with the Argentinean Ministry of Education, Science and Technology (MECT).

Brazil – Israel R&D Cooperation Program MoU signed between the Government of the Federative Republic of Brazil,

The Ministry of Development, Industry, and Foreign Trade of Brazil (MDIC), and the Government of Israel by the Ministry of Industry, Trade and Labor (MOITAL) on Bilateral Cooperation in Industrial Research and Development in the Private Sector of February 27, 2007.

Uruguay –Israel program for Industrial R&D The Uruguay –Israel program for Industrial Research and Development is a

governmental bilateral framework providing active support for collaborative R&D ventures between Uruguayan and Israeli companies. The bilateral framework is jointly implemented by ANII, The National Research and Innovation Agency of Uruguay and by MATIMOP, the Israeli Industry Center for R&D, on behalf of The Innovation Ministerial Cabinet in Uruguay and The Office of the Chief Scientist (OCS) in Israel.

Contact: Avi Luvton, Executive Director Industrial Cooperation Programs – Asia Pacific and Latin America

Telephone: +972-3-511-8197


Web: www.matimop.org.il/asia_pacific.html, www.matimop.org.il/latin_america.html

Joint Industrial R&D Programs with U.S. StatesIn order to expand the opportunities for Israeli companies to collaborate with American firms, the OCS has set a priority on reaching agreements with individual U.S. States. These agreements supplement and complement the BIRD Foundation (see below) program that has successfully supported US-Israeli R&D joint ventures for over 30 years. To date, Israel has entered into seven such agreements, with Massachusetts, New York, Wisconsin, Maryland, Virginia, Colorado and Oregon. Currently, negotiations are proceeding with Florida, California and Ohio.

OCS' proposes a flexible framework of "parallel support" based on each of the companies in a joint project having its R&D expenses supported by its own State according to their respective internal laws, regulations, rules and procedures.

The framework allows agencies of both States to work out appropriate arrangements for funding and the issuance of joint calls for proposals. MATIMOP implements the agreements on behalf of the OCS, and the US State agency may designate other organizations to do the same. Calls for proposals may be periodic or continuously open and target designated priority areas only or may be open to all technologies.

Contact: David Miron Wapner

Telephone: +972-3-511-8195

Email: [email protected]; Website: www.usistf.org

■ Bi-national Funds

In this framework, two nations contribute a pre-determined sum to a bi-national foundation intended to support cooperative projects. A board of directors is appointed by the two governments, and each fund establishes its own criteria and procedures. The funds are managed, and grant payments are administered by a non-profit organization. The bi-national foundations do not receive equity in the companies supported, nor do they receive intellectual property rights or interfere in formulating or managing relationships between partnering companies. In addition to providing R&D projects with financial support, foundations search for business partners in both countries for the purpose of collaboration in technology development projects.

BIRD - Bi-national Industrial R&D FoundationBIRD is a key catalyst for joint R&D between American and Israeli companies. BIRD brings together promising Israeli and US companies focusing on emerging industries and novel technologies. Any pair of companies, one Israeli and


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one American, may jointly apply for BIRD support as long as they have the combined capability and infrastructure to define, develop, manufacture, market, sell and support an innovative product based on industrial R&D. Typically, one of the two companies is involved in the development of cutting-edge technologies, while the other offers large-scale product development and commercialization. The BIRD Foundation offers conditional grants for joint development projects on a risk-sharing basis. The Foundation funds up to 50 percent of each company's R&D expenses associated with the joint project. Repayments are due only if commercial revenues are generated as a direct result of the project. If a project fails, BIRD claims no repayments. BIRD requires no equity in the companies supported and no intellectual property rights to their products. Nor does BIRD interfere in formulating or managing the relationship between the partnering companies.

BIRD's scope extends to communications, life sciences, electronics, software, Cleantech and other technology sectors. Cumulative sales of products developed through BIRD projects are about USD 8 billion. Since its inception 34 years ago, BIRD has approved over 800 projects.

In 2009, a new program, “BIRD Energy”, was initiated which funds renewable energy and energy efficiency industrial research and development between U.S. and Israeli companies or between a company and a university/research institution. The program is the implementation of a cooperation agreement between the U.S. Department of Energy’s Office of Energy Efficiency and Renewable Energy (EERE) and the Israel Ministry of Energy and Water Resources (formerly Ministry of National Infrastructures) and based on the Energy Independence and Security Act of 2007. “BIRD Energy” adheres to the same rules and procedures as BIRD. Areas of innovation include Solar Power, Bio-Fuels, Advanced Vehicle Technologies, Wind Energy, Smart Grid, or any other Renewable Energy/Energy Efficiency technology.

BIRD also manages TRIDE - a Tri-national Fund, bringing together Israeli, Jordanian and US companies for projects based on the BIRD model.

For more information on BIRD submission procedures, please refer to www.birdf.com. For regular updates, please refer to www.facebook.com/BIRDFoundation.

Contact: Dr. Eitan Yudilevich, Executive Director

Telephone: +972-3-6988301

Email: [email protected]; Website: www.birdf.com, www.tride-f.com

CIIRDF - Canada Industrial R&D FoundationThe Canada-Israel Industrial R&D Foundation (CIIRDF) was established in 1994 to promote and support collaborative R&D between firms in Canada and Israel. The CIIRDF offers grants for joint R&D projects, and searches for R&D partners in Canada and Israel to collaborate in technology development projects. CIIRDF is also entrusted with the implementation of the Ontario agreement, which focuses on projects connected to brain research and water technologies.

CIIRDF's support includes funding of both feasibility studies and full projects. Support can reach a maximum of 50 percent of the approved R&D costs of joint projects up to a ceiling of C$800,000. CIIRDF requires no equity in the companies supported and no intellectual property rights in their products.

It requires only that the nominal grant is repaid interest free on the basis of royalties if commercial revenues are generated as a direct result of the project.

Headquarters Address: 371A Richmond Road, Ottawa, Ontario, Canada

Contact: Henri Rothschild, President

Telephone: +1-613-724-1284


Israel office:

Contact: Les Abelson, Foundation Manager in Israel

Telephone: +972-9-749-4043; Mobile: +972-50-216-3144


KORIL-RDF - The Korea-Israel Industrial R&D FoundationThe Korea-Israel Industrial R&D Foundation (KORIL-RDF) was established by the Korean and Israeli governments in 2001 in order to promote and support industrial R&D joint ventures between companies in Israel and South Korea. Funding can be obtained for up to 50 percent of the joint R&D costs of a project to a maximum of USD 1,000,000. At least 30 percent of the R&D development must be performed in either Korea or Israel. KORIL-RDF assists companies in both countries with partner searches in order to develop R&D collaborations. The foundation's main office is in Seoul, Korea, with an Israeli manager based in Tel Aviv.


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Korea Contact: Han-Joo Kim, Chief Executive;


SooMee Chin, Program & Planning Coordinator


Telephone: +82-2-6009-8250

Israel Contact: Deborah Schabes, Israel Manager

Telephone: +972-3-511-8183

Email: [email protected]; Website: www.koril.org

SIIRD - The Singapore - Israel Industrial R&D FoundationThe Singapore - Israel Industrial R&D Foundation (SIIRD) is a cooperative undertaking between the Singapore Economic Development Board (EDB) and the Office of the Chief Scientist (OCS) in Israel to promote, facilitate and support joint industrial research and development projects between companies from Singapore and Israel. SIIRD can fund joint R&D projects up to 50 percent of approved R&D project costs. Total grants may reach a ceiling of USD 750,000 but may not exceed USD 500,000 in any one year. Benefits of SIIRD include assistance in locating suitable R&D partners in both countries, risk sharing in R&D projects, absence of requirements for equity or collateral, and retention by the companies of full intellectual property rights. SIIRD has, to date, approved some 90 joint projects with a total budget of over USD 100 million.

Singapore Contacts:

Chan Eng Chye, General Manager;

Email: [email protected];

Jackson Phang, Manager;

Telephone +65-6832-6386

Email: [email protected]; Website: www.siird.com

Israel Contact:

Shirley Refuah-Hasson, Manager

Telephone: +972-3-511-8170


US - Israel Science & Technology Commission and FoundationThis initiative provides a unique and highly beneficial environment for promoting bi-national cooperation at the highest levels of government and industry. Together with its implementation arm, the US-Israel Science and Technology Foundation, the Commission focuses on areas of bi-national strategic importance, such as the life sciences, space reseach and renewable energy. The Commission acts as a catalyst by identifying and removing impediments and building the bi-national infrastructure for mutually beneficial economic and technological cooperation.

Contact: David Miron-Wapner

Telephone: +972-3-511-8195

Email: [email protected]; Website: www.usistf.org

■ EU Framework Programs for R&D operated by ISERD

Israel is the only non-European country fully participating in the European Union’s Framework Program (FP) – Europe’s prime vehicle for research and technological development. The FP provides funding for the following areas: health, food, agriculture and biotechnology, information and communication technologies, nano-sciences and nano-technologies, energy, environment and climate change; transport and aeronautics, socio-economic sciences and the humanities, space and security.

ISERD - the Israel-Europe R&D Directorate for the FP, operating through the Office of the Chief Scientist of the Israeli Ministry of Industry, Trade and Labor, aims to promote joint Israeli-EU R&D ventures within the FP.ISERD is an inter-ministerial directorate, established by the Ministry of Industry, Trade & Labor, The Ministry of Science & Technology, The Ministry of Foreign Affairs, The Ministry of Finance and the Planning and the Budgeting Committee of the Council for Higher Education. ISERD’s activities include:• Actively assisting academic and industrial entities in preparing and submitting

their EU-RTD program proposals• Providing help in identifying partners and business opportunities• Offering assistance, training and support services to interested parties• Disseminating information and raising awareness within Israel• Organizing events such as training sessions, seminars and conferences• Representing Israel in the Framework Program’s management committees

at the European Commission.• Promoting Israeli interests in the Framework Program’s key organizations,

such as research institutions and universities.


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More than 2000 Israeli entities participated in R&D projects in the 4th, 5th and 6th Framework Programs. The current Framework Program, FP7, began in 2007 and will extend to 2013, with a total budget of € 50 billion. In FP7 - so far 1300 Israeli entities are participating in 780 funded projects.

Contact: Ms. Noa Gur

Telephone: +972-3-511-8122; Fax: +972-3-517-0020

Email: [email protected]; Website: www.iserd.org.il

■ Cooperation with Foreign Firms

The Global Enterprise R&D Cooperation FrameworkThe Global Enterprise R&D Cooperation Framework, established by the Ministry of Industry, Trade and Labor's Office of the Chief Scientist, works to encourage large multinationals to forge alliances with Israeli start-ups. This is accomplished via strategic cooperation agreements between the State of Israel and multinationals, such as Alcatel, IBM, Intel, HP, Coca Cola and General Electric.

Contact: Noam Bar-Gal, Head MNC Collaboration

Telephone: 972-3-5118116


Project Centers for Multinational CompaniesThis program encourages multinational companies to establish a "Project Center" in Israel.Project Center is an Israeli company, wholly owned by the multinational company, which functions as the representative of the multinational company in Israel.

Role of the Project Center:locating and forming R&D collaborations between an Israeli partner and the multinational company• creating and implementing R&D projects and providing financial assistance

to the Israeli partner• providing professional assistance to the Israeli partner

Government financing will be lower of each of the following:• 40 percent of the Project Center's operating expenses• 50 percent of the accumulated investment funding given to the Israeli

partner in the project• accumulated investment funding given to the Israeli partner in national

preference zones or from traditional industry

Contact: David Lavie

Telephone: +972-2-666-2474


Program to Encourage the Establishment of R&D Centers in Israel for the Service of the International Financial CommunityThe Office of the Chief Scientist (OCS) is fostering a pro-active approach to create engines of growth in various sectors of the economy, including software, communications, life sciences, traditional industries, renewable energy sources and water technologies. The objective of this approach is to develop and create a new engine of growth in the financial sector by means of a new program that will encourage leading multinational financial institutions to establish R&D centers in Israel that will service the international financial community. The levels of government support within the framework of this program are 40 percent of total budget approved by the Research Committee for projects to be executed in the first and second years; 30 percent for the third and fourth years and a level of 25 percent for the fifth year.

Projects executed in the Periphery will enjoy support levels of 50 percent for the first and second years, 40 percent for the third and fourth years and 35 percent for the fifth year. The years listed in this paragraph will commence on the date indicated in the Letter of Approval for the Multiyear Activity Framework.

Contact: Zev Adelman, Director of Computer and Software Research, OCS

Telephone: +972-2-666-2497



R&D INCENTIVE PROGRAMS

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