Introduction
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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.
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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.
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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.
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Principal Clauses of the Law for the Promotion of R&D
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Objective of the Law - Law for the Promotion of Research and Development
(1984)*
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The objective of this law is to promote research and industrial development, as
follows:
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1. |
To develop hi-tech industry by exploiting and expanding the science and
technology infrastructure as well as the country's human resources;
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2. |
To improve Israel's balance of payments through the production and export
of locally developed hi-tech products;
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3. |
To create jobs in industry and provide manpower with scientific and
technological training.
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*(The law was amended in August 1995)
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Authorized Research and Development Programs must Fulfill
the Following Conditions:
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The research and development must be conducted by the party making the
request or the party specified in the R&D plan;
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Products developed as a result of the R&D will be produced in Israel
unless otherwise specified by the Research Committee;
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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.
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Options for R&D Assistance:
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A. Assistance for Hi-Tech Startups
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Incubators for hi-tech entrepreneurs
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Promotion of hi-tech enterprises under incubator conditions in conjunction
with existing industrial corporations.
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Center for Assistance in Idea Development.
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B. R&D Assistance to Existing Companies:
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R&D for developing innovative products.
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R&D for improving existing products.
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R&D in start-up companies.
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R&D conducted in Class A development areas.
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R&D for development of products intended for military use.
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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:
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http://www.moital.gov.il
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C. Marketing and Business Support for Promoting R&D Programs
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Market surveys
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Writing of business plans
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Assistance in transition from R&D to marketing stage (i.e. developing a beta
site)
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D. Royalties
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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
the
LIBOR rate.
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E. Assistance for international cooperation in
industrial R&D
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Bi-national funds:
Israel - USA
Israel - Canada
Israel - Britain
Israel - Singapore
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The EEC's Fifth Framework program through ISERD
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Parallel support agreements:
Several agreements have been signed, primarily with European countries and
regions, to encourage joint venture R&D programs.
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F. Generic R&D Infrastructure
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Assistance for the development of a generic technology
infrastructure to serve as
a platform for future product development.
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For further details:
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contact: IICRD (Israel Industrial Center for R&D) Tel:
03-511-8111,
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Fax: 03-517-7655,
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