Israel's primary advantage is to be found in its human potential. Circumstances in Israel have created an outstanding academic-technological infrastructure. To exploit this potential for economic advantage, investments must be made in R&D and industrial development. The government attaches great importance to R&D and sees it as a major factor contributing to economic growth.
The Office of the Chief Scientist within the Ministry of Industry and Trade is responsible for carrying out government policy concerning support for industrial R&D.
The Law for the Promotion of Industrial Research and Development of 1984 is the principal mechanism for providing government assistance to hi-tech industrial development, which is based, to a large extent, on products and processes that are the result of local research and development.
Objective of the Law - Law for the Promotion of Research and Development (1984)*
The objective of this law is to promote research and industrial development, as follows:
To develop hi-tech industry by exploiting and expanding the science and technology infrastructure as well as the country's human resources;
To improve Israel's balance of payments through the production and export of locally developed hi-tech products;
To create jobs in industry and provide manpower with scientific and technological training.
*(The law was amended in August 1995)
The research and development must be conducted by the party making the request or the party specified in the R&D plan;
Products developed as a result of the R&D will be produced in Israel unless otherwise specified by the Research Committee;
Knowledge gained from the R&D will not be transferred to other parties unless permission is received from the Research Committee. The Research Committee will not permit the transfer of intellectual property overseas except under special circumstances.
A. Assistance for Hi-Tech Startups
Incubators for hi-tech entrepreneurs
Promotion of hi-tech enterprises under incubator conditions in conjunction with existing industrial corporations.
Center for Assistance in Idea Development.
B. R&D Assistance to Existing Companies:
R&D for developing innovative products.
R&D for improving existing products.
R&D in start-up companies.
R&D conducted in Class A development areas.
R&D for development of products intended for military use.
For further details contact: Office of the Chief Scientist, 4 Mevo Hamatmid, P.O.B. 2197, Jerusalem 91021, Tel: 02-677-0531, Fax: 02-624-1064. Internet site:
C. Marketing and Business Support for Promoting R&D Programs
Writing of business plans
Assistance in transition from R&D to marketing stage (i.e. developing a beta site)
The party receiving the grant is required to pay
royalties from sales and
other income derived from the R&D project. This generally amounts to
returning the amount of the grant linked to the dollar plus interest at
E. Assistance for international cooperation in
Israel - USA
Israel - Canada
Israel - Britain
Israel - Singapore
The EEC's Fifth Framework program through ISERD
Parallel support agreements:
Several agreements have been signed, primarily with European countries and
regions, to encourage joint venture R&D programs.
F. Generic R&D Infrastructure
Assistance for the development of a generic technology
infrastructure to serve as
a platform for future product development.
contact: IICRD (Israel Industrial Center for R&D) Tel:
Internet site: http://www.matimop.org.il