R&D INCENTIVE PROGRAMS

Transcription

1 State of Israel R&D INCENTIVE PROGRAMS Success Stories Inside

2 Table of Contents Opening Words by The Chief Scientist... 3 The OCS and Its Affiliates... 4 Guide for Foreign Companies, Investors and Partners... 5 National R&D Programs... 6 Industrial R&D... 6 The R&D Fund... 7 Support for Traditional Industries... 8 The KIDMA Program Advancement of The Israeli Cyber Defense Security Industry... 8 Large Companies R&D Centers in Israel s Periphery... 9 Encouragement of Research and Development in Space Technologies...10 MEIMAD - Encouraging R&D of Dual Use Technologies...11 Development of Technological Solutions for People with Special Needs...11 The ETGAR Program - Grand Challenges Israel (GCI)...11 National Program for the Return of Israeli Academics...12 Pre-Seed and Seed Programs...13 Tnufa...14 Technological Incubators...14 Licensees...15 Assistance for New Start-Up Companies...16 Academitech - Student Initiative Competition...16 Young Entrepreneurs...17 Israeli National Renewable Energy Center...17 Encouragement of Investment in R&D Companies...18 Life Sciences Fund...19 Investments in VC-Backed Companies Specializing in The Field of Alternative Fuels for Transportation...19 Pre-Competitive and Long-Term R&D Programs...21 MAGNET Instruments...22 MAGNET Consortia...22 MAGNETON...22 Users Association...22 NOFAR - Industrial Application of Academic Research...22 KAMIN - Promotion of Selected Applied Research...23 Table of Contents 1

3 Opening Words by The Chief Scientist TELEM FORUM...23 TZATAM - Life Sciences R&D Supporting Equipment Purchase Grants...23 Basic and Applied Nanotechnology Research...24 National Bio-Bank...24 Support for Israeli Research Institutions...25 Long-Term R&D Support for Large Companies with Substantial R&D Investment...25 National Institute for Biotechnology in the Negev (NIBN)...25 International Cooperation in R&D Cooperation with Foreign Firms...27 The Global Enterprise R&D Collaboration Framework...27 Project Centers of Multinational Cooperations...28 Establishment of R&D Centers in Israel for The Service of The International Financial Community...29 CERN...29 Cooperation with Countries and Regions...29 Industrial R&D Cooperation with Asia Pacific...29 Industrial R&D Cooperation with North and Latin America...31 Industrial R&D Cooperation with Europe...33 EU Framework Programs for R&D...33 EUREKA...34 Bilateral Agreements in Europe...35 Enterprise Europe Network (EEN)...35 Bi-National Funds...36 US-Israel Binational Industrial R&D Foundation (BIRD)...36 Canada-Israel Industrial R&D Foundation (CIIRDF)...37 Korea-Israel Industrial R&D Foundation (KORIL-RDF)...37 Singapore-Israel Industrial R&D Foundation (SIIRD)...38 US-Israel Science & Technology Commission and Foundation (USISTC and USISTF)...38 Success Stories Afimilk...40 Aqwise...40 Argo Medical...41 Dip-Tech...41 First Care Products...42 InSightec...42 LiveU...43 Orbotech...43 Protalix Biotherapeutics...44 Traffix Systems...44 Dear Partners and Colleagues, R&D is both an essential factor with regard to the perpetual flourishing of a company and the principal growth engine of the Israeli economy. Innovation and entrepreneurship are simply integrated into the country s backbone. The continued encouragement and support of R&D in Israel is crucial to our sustained growth, as well as to maintaining our competitive edge in the technology-based industries. The Office of the Chief Scientist (OCS) in the Ministry of Economy, as the main governmental support arm for industrial R&D in Israel, provides a broad spectrum of programs for the encouragement of technological entrepreneurship and innovation. These programs help share some of the risks inherent to all R&D activities by means of attractive financing, creation of unique partnerships between industry and academic institutions, facilitation of international cooperation and more. The myriad of programs offered by the OCS have enabled a host of Israeli companies to actively pursue R&D and thus develop, produce and market a wide range of cutting-edge products that compete successfully in world markets. In this brochure, you will find a number of representative success stories resulting from participation in different OCS programs. Innumerable opportunities are available to foreign entities for involvement in our thriving, cutting-edge technology industry. The OCS collaborates with international counterparts to respectively support Israeli and foreign companies through bilateral R&D partnerships. We also offer several direct incentives to foreign financial investors and technological corporations for collaboration with Israeli companies. Such collaborations may be executed through joint operation of technological incubators, venture capital government backing, co-development of technology through MAGNET Consortia, etc. These opportunities and others are further explained in the pages to follow. The OCS remains committed to advancing Israel s global leadership in R&D and to pursuing long term policies designed to foster innovation, entrepreneurship and excellence. We look forward to creating long-term, dynamic partnerships with you in the near future. Sincerely, Avi Hasson Chief Scientist 2 Table of Contents Opening Words by The Chief Scientist 3

4 The OCS and Its Affiliates Although recognized as a leading growth engine for modern world economies, Research and Development (R&D) is considered a fairly risky investment. As a result, R&D investment by the private sector can be scarce a serious obstacle to the goal of maintaining Israel s lasting competitive edge in Applied Innovation. The Government s willingness to share in this risk greatly aids in both reducing it and in ensuring the process successful fruition. The Office of the Chief Scientist (OCS) in the Ministry of Economy, empowered by the Law for the Encouragement of Industrial Research & Development 1984 (The R&D Law), oversees all government-sponsored support of R&D within Israeli industry. It operates through the R&D Fund, as well as a gamut of domestic and international programs, agreements and collaborations. The OCS supports hundreds of projects annually, ranging from incipient concepts within a pre-seed framework, to incubator and start-up companies, to autonomous industrial R&D enterprises. Website: 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 responsible for 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 4,500 companies of all sizes which are interested in international cooperation. The database can be searched by technology, application, keyword or alphabetically at: Website: ISERD The Israel-Europe R&D Directorate for the Framework Programme (FP), operating through the Office of the Chief Scientist in the Israeli Ministry of Economy, aims to promote joint Israeli-EU R&D ventures within the FP. ISERD is an inter-ministerial directorate established by the Ministry of Economy, 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 program proposals Providing assistance in identifying partners and business opportunities Offering guidance, 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 Programme s management committees at the European Commission Promoting Israeli interests in the Framework Programme s key organizations, such as research institutions and universities ISERD additionally coordinates Israel s operation of its bilateral R&D agreements in Europe under the MATIMOP umbrella, Israel s participation in EUREKA, several ERA-NET programs, as well as other programs for cooperation in industrial R&D in Europe on behalf of the Office of the Chief Scientist. Website: Guide for Foreign Companies, Investors and Partners One of the primary goals of the Office of the Chief Scientist (OCS) is to promote R&D collaborations between Israel and the international community. Through the alliances developed, the OCS strives to promote Israeli R&D while concurrently advancing the objectives of each collaborator involved. When a foreign corporation creates a local subsidiary within Israel, the Israeli entity is granted the benefits of a domestic company, whereby all rules and regulations of support programs relevant to Israeli companies would apply. Within the bi-lateral programs, funding to a foreign company is granted by the partnering country while the OCS administers matching funds to its Israeli company. These programs are presented in a dedicated chapter. Additionally, within the OCS support framework, incentives are available from which foreign entities can benefit directly. Information regarding these programs will be highlighted throughout the pages of this brochure. 4 The OCS and Its Affiliates Guide for Foreign Companies, Investors and Partners 5

5 Domestic R&D Programs Competitive R&D THE R&D FUND Industrial R&D The R&D Fund is the main instrument of The R&D Law. It gives partial financing of 20 to 50 percent to Approved R&D Programs programs lasting one or more years that will result 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. Support for the Beta Site stage of a project can also be accredited as part of the R&D expenditure and is recognized as an important and integral part of the R&D process. The annual budget of approximately NIS 1.5 Billion (~USD 375 Million) supports applied R&D for hundreds of companies. A designated Research Committee headed by the Chief Scientist is assigned with awarding the funds according to a predetermined set of terms and conditions. Projects that have received support from another governmental source are not eligible for further assistance by the Fund. Approved projects in the Nanotechnology 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 their 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 further industrial R&D. Royalty payments are typically a specified percentage of the total annual revenues derived from the sale of a developed product: 3 percent of revenues acquired 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 incur different payment terms. While the ultimate goal of the R&D Law is to support the development of Israeli-based industry, the government has recognized the fact that in today s global economy, a need may arise for a company to transfer its IP abroad. The R&D Law s new cap regulations address this need by: a. Differentiating between cases entailing transfer of ownership to a foreign entity with business activity remaining in Israel and cases entailing transfer of IP resulting in substantial termination of local activities. b. Setting maximal transfer fees for each case: up to 3 times the value of the original grant when the Research Committee is satisfied that the core business activity has remained in Israel, and up to 6 times the value of the original grant in the case of liquidation of activities in Israel. These new guidelines, while still encouraging of foreign companies to keep their R&D activities in Israel, provide a more investment-friendly environment by allowing better clarity and certainty to investors in OCS-supported companies. Contact: Telephone: support.madaan@ocs.economy.gov.il Website: 6 Domestic R&D Programs National R&D Programs Industrial R&D 7

6 Support for Traditional Industries In its early years, Israel s industrial sector was exclusively composed of traditional industries; such as textiles, plastics, rubber, metals, glass, ceramic materials, wood leather, paper and food. Even today, traditional industries are a significant portion of the economy in terms of sales and employment. The two aspects of traditional industries, namely a low level of R&D and being relatively labor intensive are the harbingers of doom for their future in developed countries and their eventual total transfer to third world economies. It is for this reason that the OCS, in 2005, created a program to encourage and support the traditional industries to enhance their R&D activities in order to develop new products and processes that will help them survive in a hightech culture. Today, the program is more relevant than ever since many companies, as well as new ventures in the traditional area are in need of technological upgrading to keep them competitive in the world market. This program is dedicated to Traditional Industries, characterized by relatively low investment in R&D. This track offers separate evaluation and review for projects within these sectors. 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 maximal 50 percent of the approved R&D budget. Contacts: Smadar Taieb Telephone: smadar.taieb@ocs.economy.gov.il The KIDMA Program for Advancement of The Israeli Cyber Security Industry As the Internet plays an increasingly significant role in every life aspect, cyber threats rapidly become more complex and challenging, and their global influence increases. This raises the threshold for successfully developing adequate protection systems. Israel s unique advantages and leading global position in the fields of information security, computer security and communications security, makes it a prominent player in the field of Cyber Defense. The government, wishing to maintain and enhance Israel s abilities is this sector, issued Decision 3611 in mid-2011, calling for The Advancement of National Capabilities in the Field of Cyber Security. Following this Decision, a program has been devised, by the Office of The Chief Scientist (OCS) and the Israeli National Cyber Bureau (INCB), jointly allocating NIS 80 Million (~USD 20 Million) to promote the development of advanced cyber defense solutions and establish cyber security knowledge centers. The Program will be executed through existing OCS Programs: 1. R&D Fund Track In addition to standard conditions of the R&D Fund, Cyber Defense companies will enjoy the following terms: a. Applications may be submitted for a period of up to two years b. Projects are entitled to the maximal 50 percent of the approved budget c. Young companies (up to 10 employees and within the first three years of existence) are additionally entitled to 25 percent of overhead costs d. Additional funding is available for advanced training in the cyber field, market research, marketing consulting, business plan preparation and participation in cyber technology events, up to NIS 125,000 (not to exceed NIS 25,000 per individual activity) e. Additional funding is available for returning resident scholars (Senior R&D) to be incorporated in the budget as a standard deviation of the maximum salary, up to NIS 35,000. f. An aggregate amount of at least 80% from the total expenses of the approved program, shall be granted for salaries of R&D personnel. g. Individual consulting from the Program Coordinator is available on behalf of the Chief Scientist for companies applying for the first time 2. Technological Incubator Track In addition to standard conditions of the Technological Incubators, Cyber Defense companies will enjoy the following terms: a. Budget for the first two years may reach NIS 2.3 Million b. Projects in this program will be eligible for a third year with 65 percent participation of the State 3. International Cooperation in R&D Track In addition to standard conditions of international R&D cooperation agreements operated by the Chief Scientist, Cyber Defense companies will enjoy terms similar to those listed in Section 1 above. Contact: Avi Shavit Telephone: avi@shavit.co.il Large Companies R&D Centers in Israel s Periphery Operating since 2010, this track aims to bridge the gap between Israel s center and periphery by encouraging large companies to open their R&D centers in areas with lesser economic growth. This program creates a mechanism of increased employment quality and economic activity within this target geographical area. Grants given amount to up to 75% of the approved budget for a period of 2-3 years. The track is designed for large companies with an annual turnover of USD 100 Million or more that is generated from business activities within Israel. Companies must additionally meet the following requirements: a. 50 percent of the project s production activities will take place in Israel. b. The project should demonstrate a high level of innovation, in accordance with existing OCS guidelines. 8 National R&D Programs Industrial R&D National R&D Programs Industrial R&D 9

7 c. The company must commit to hiring a substantial number of employees living in Israel s periphery, reaching 50 percent of total approved manpower in its 2nd year of OCS support and 60 percent in its 3rd year. The OCS Research Committee is the authorizing entity of programs within this track. The budgetary framework of this program is NIS 300 Million (~USD 75 Million) for a period of three years. Contact: Aviram Zolti Telephone: aviram.zolti@ocs.economy.gov.il Encouragement of Research and Development in Space Technologies Israel has knowledge and development capabilities in many areas in the field of space technology. Due to the technological complexity of the space environment, development of systems and assemblies which could function in space involves high technological risk, as well as high development and production costs. In order to respond to these unique market conditions, the Ministry of Science and Technology and The Office of Chief Scientist (OCS) in the Ministry of Economy have jointly initiated a dedicated program encouraging research and development of various space technologies. Companies eligible for this track include those developing: products to be installed in satellites or in earth stations, products designated for the reception or transmission of data from satellites, instruments designed for testing and calibration and equipment to be installed in satellites or relating to their operation, including adjustment of satellite versions for export. Applications will be reviewed by the program s special committee. Requests approved by the Committee shall be eligible for the following: An approved project of a company with an annual turnover of USD $100 Million and above shall receive 50% of the approved budget. An approved project of a company with an annual turnover of under USD $100 Million shall receive: A. 60% of the approved budget if the request is for executing an Industrial R&D space technology project for the development of products and assemblies not intended for direct operation in space. B. 85% of the approved budget if the request is for executing an Industrial R&D space technology project for the development of products and assemblies for direct operation in space. An approved project may receive government funding for up to 36 months, subject to compliance with pre-determined milestones and in accordance with the approved business plan. Overall government funding per project shall not exceed NIS $20 million (~USD 5 Million). The Program is subject to the terms of the R&D Law regarding the payment of royalties and intellectual property transfer rules. Contact: Lydia Lazanes Telephone: lydia.lazanes@ocs.economy.gov.il Meimad - Encouraging R&D of Dual Use Technologies MEIMAD is a collaborative program between the Ministry of Defense, The Office of the Chief Scientist of The Ministry of Economy 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 (~USD 1.25 Million). Contact: Ilan Peled Telephone: info@magnet.org.il Website: Development of Technological Solutions for People with Special Needs This new track of the OCS was 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. A special committee reviews applications of non-profit and for-profit organizations with projects that do not meet other OCS support programs criteria but correspond to these goals. Approved projects of non-profit organizations will be eligible for 85 percent of the project s overall approved budget and profitable corporations will be eligible for 65 percent. Each grant is limited to NIS 600,000 (~USD 150,000) per project per year for no more than two years. Non-profit organizations are exempt from royalty payments. Contact: Aviram Zolti Telephone: aviram.zolti@ocs.economy.gov.il The ETGAR Program - Grand Challenges Israel (GCI) The OCS launched GCI upon joining the international initiative called Grand Challenges in Global Health. GCI will support the development of technological solutions relevant to world health with an emphasis on R&D that address humanitarian health problems in developing countries. Some of the health and medical challenges facing developing nations are in the areas of immunization, availability of health services, sanitation, parasitic diseases, natal and pre-natal care, mental health, medical equipment etc. In addition, are related areas such as, Food quality, waste water treatment, advanced agriculture, desert irrigation, ecology, etc. In many cases, these developments providing help to developing countries have also a great commercial potential in the world market. The grant will be 90% of the approved budget up to a cap of 500,000 NIS. Approval will be given by an expanded committee of the OCS that will include representatives of the Foreign Ministry as well as the Prime Minister s Office. There are many countries and agencies that are cooperating in the Grand Challenge initiative. Among them are, USAID, the Aid Agency of Great Britain, numerous philanthropic organizations and research institutes as well as Brazil, India and a myriad of additional countries. The program enables the Israeli 10 National R&D Programs Industrial R&D National R&D Programs Industrial R&D 11

8 industry to interact with a broad network of world wide companies, research institutes and other initiatives in the area of international health care resulting in the establishment of development and business relationships that are of great benefit to our penetrating these markets. The Israeli program is partnered with Grand Challenges Canada, GCC. GCC is a non-profit entity established in 2010 by the Canadian Government. GCC will assist GCI in the area of business development and the establishment of appropriate contacts to introduce the fruits of Israeli R&D to the developing countries. Contact: Jacob Fisher Telephone: jacobf@tnufa.org.il Website: National Program for the Return of Israeli Academics The program is a cooperative effort involving the Council for Higher Education the Ministry of Absorption and the Ministry of Economy. The objective of the program is to support and encourage the return of developers and researchers to Israel on one hand and to assist the Israeli industry to absorb quality personnel on the other hand. The program operates primarily in the establishment of relationships between returning Israeli scientists and researchers and the appropriate industry and/or academic institution. The program is accompanied by a steering committee headed by the Chief Scientist and composed of representatives of the participating institutions along representatives of the Ministry of Finance. Contact: Nurit Eyal Telephone: info@israel-braingain.org.il Website: Pre-Seed and Seed Programs 12 National R&D Programs Industrial R&D Domestic R&D Programs 13

9 Domestic R&D Programs Pre-Seed and Seed Programs TNUFA Tnufa is the national pre-seed fund, assisting 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 NIS 250,000 (~USD 60,000) per project. Contact: Jacob Fisher Telephone: jacobf@tnufa.org.il Website: (Hebrew) TECHNOLOGICAL INCUBATORS The primary goal of this program is to transform innovative technological ideas in their early, high-risk stages into viable startup companies capable of raising money and operating on their own. Additional goals of the program are: 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 into the industry. 4. Enhance the entrepreneurial culture in Israel. The program is subject to the R&D law with regards to manufacturing, royalties and IP rights. Technological Incubators Technological incubators support the formation of startup companies in order to lead them toward Round A investments. For a period of two to three years, the program provides companies whose projects were approved by the Incubators Committee with full financial support (~USD $500,000 USD $750,000, of which 85 percent is granted by the government and 15 percent is invested by the incubator), to be repaid to the government only upon generation of sales, in the form of 3% of the revenues annually. Designated Biotechnological Incubators Biotechnological incubators support the formation of biotechnology startup companies in order to lead them toward clinical trials and Round A investments. For a period of three years, the program provides companies whose projects were approved by the Incubators Committee with full financial support (~USD $2,025,000, of which 85 percent is granted by the government and 15 percent is invested by the incubator), payable only upon generation of sales, in the form of 3% of the revenues annually. Technology-Based Industrial Incubators Technology-based industrial incubators support the ongoing operations of startup companies in order to lead them toward commercialization and market penetration. For a period of two to three years, the program provides companies whose projects were approved by the Incubators Committee with full financial support (~USD $500,000, of which 50 percent is granted by the government and 50 percent is invested by the incubator), payable only upon generation of sales, in the form of 3% of the revenues annually. Licensees The Technological Incubators program has recently undergone a substantial reform: the Incubators private-sector licensees, who own and operate the incubator, now undergo a competitive selection process, opening up the investment opportunity to many new actors and making sure the early stage community is constantly at its best. The path is quite lucrative for the private investor having only to invest 15% of the project funding, while receiving up to 50% of the ownership of the incubated companies. In addition, licensees that decide to establish their incubators in peripheral areas receive the following: 1. An annual financial support from the government in the sum of USD $150,000 for the operation costs of the incubators. 2. Each project that is approved by the Incubators Committee, receives an extra financial support in the sum of USD $125,000 (85 percent is granted by the government and 15 percent is invested by the incubator). A licensee could be a foreign entity. Within less than a year since the reform took place, new multinational corporations such as the Nielsen Company and HWL s Hutchison Water have already competed in the Incubators bidding process and won 8 year licenses. The incubator companies are private and a foreign entity may choose to invest in them, alongside an existing licensee, during or after the company s incubation period. In addition to financial support, the incubators provide entrepreneurs with a working environment, including facilities and infrastructure, technological and business mentoring, legal and regulatory advice and administrative assistance. Contact: Telephone: hamamot@ocs.economy.gov.il Website: 14 National R&D Programs Pre-Seed and Seed Programs National R&D Programs Pre-Seed and Seed Programs 15

10 Assistance for New Start-Up Companies Young Entrepreneurs Seed companies typically find it difficult to raise the funds required in order to complete their initial R&D and become commercial. The financial crisis of recent years created a leaner and more conservative global VC community. It deepened the shortage in funding at this crucial stage of a company s life, known as The valley of death. The State of Israel through the Office of the Chief Scientist (OCS) in the Ministry of Economy, has created a new program to address this issue. The new program offers an approved seed company a funding commitment of 50% of the R&D expenses from the OCS, up to NIS 5 Million (~USD 1.25 million), for up to two years. It then allows six months for the company to seek investors, thus giving the investor the assurance that a. The rest of the funds necessary for the completion of the product development have been obtained, and b. the company in which the investor is considering to invest, is highly innovative. Companies eligible for the Program are those which have not received support from any other government program, excluding the OCS Tnufa and The Technological Incubators, that have raised less than NIS 2 million (~USD 500,000) and that were created less than 3 years before request submission. In the case of an Incubator company, term may extend to up to 12 months after graduation. Life Sciences companies and R&D projects conducted in Geographical Development Areas are subject to slightly different terms and conditions. Contact: Smadar Taieb Telephone: smadar.taieb@ocs.economy.gov.il Academitech - Student Initiative Competition Academitech is a competition at the student level established by the OCS, for the development of an innovative product. The competitors are groups of students from institutions recognized by the Council for Higher Education that will present a Proof of Concept for a commercial product. Any field of study is eligible to enter the competition. The awards for the winners will be 100,000 NIS for first prize 75,000 NIS for second and 50,000 NIS for third to be used toward the development and commercialization of the initiative. In order to keep Israel at the forefront of High-Tech activity in the future, The OCS has embarked upon a program of encouragement and training of young entrepreneurs by involving them in various phases of development projects. The program, in conjunction with Technological Incubators, provides high school students with a basic knowledge and foundation needed for their future as developers and entrepreneurs. The students enjoy all the services provided by the incubators from leading consultants and project leaders in various fields. The program provides high school students knowledge and experience in the evolutionary process of a new technological development. Contact: Telephone: hamamot@ocs.economy.gov.il Website: Israeli National Renewable Energy Center The Government of Israel, in an effort to enhance Israel s capabilities in the field of Renewable Energy Technologies, has declared the creation of a technological center for renewable energy solutions in the South of Israel. The center operates a Venture Track, a Test and Validation Track and a Research Track. Through these tracks it supports technological entrepreneurship from the initial R&D stages to the production and marketing, as well as encourages cooperation between academia and industry towards development of innovative renewable energy solutions. The center also serves as a focal point for applied research in these fields. The State of Israel has allocated a budget for this program of NIS 57 Million (~USD 14 Million) over a five year period. During 2012, the Center was launched by investment firm Capital Nature, which had been selected to operate it through a government competitive process. Contact: Gil Shaki Telephone: gil.shaki@economy.gov.il The primary objective of the competition is to expose students to the world of entrepreneurship by providing support and direction to further their concept. The criteria of judgment in this competition will be on the basis of the idea of the product, the need that it addresses, the targeted market etc. The product should be innovative and unique and that utilizes either new or novel technology. The competitors will not be required to actually produce the final product but rather the idea should be relatively easy to implement. Contact: Jacob Fisher Telephone: jacobf@tnufa.org.il Website: 16 National R&D Programs Pre-Seed and Seed Programs National R&D Programs Pre-Seed and Seed Programs 17

11 Domestic R&D Programs Encouragement of Investment and Innovation Adoption Life Sciences Fund The goal of the Life Sciences Fund is to promote and accelerate the growth of Israel s Biotechnology industry, an area in which Israel possesses many competitive advantages but the global private sector considers high risk. On April 6, 2011, the government selected Orbimed Partners Israel, a private healthcare investment firm, from open tender to become the Fund s General Partner and Manager. The Fund is structured as a standard venture capital fund. Capital commitments to the Fund are made in a minority part by the Israeli government as a Limited Partner and the rest of the Fund s investments are private and raised by the General Partner. Total investment in the Fund is approximately USD 220 Million. The Fund s operating period shall be at least ten years, extendable by three additional years, and the investment period may last up to five years. The Fund must allocate a certain portion of its capital commitments to investments in companies developing Biopharmaceutical Technologies. Contact: Ora Dar ora@dar.co.il Investments in VC-Backed Companies Specializing in The Field of Alternative Fuels for Transportation Encouragement of Investment in R&D Companies In 2011 the Government of Israel issued a resolution to carry out a national program encouraging the development of technologies to reduce global consumption of petroleum-based fuels and boost the development of knowledge-based industries in the field of alternative fuels for transportation. The government resolution entailed the creation of an investment encouragement program in said field. The objective of this new program is to encourage investments in Israeli companies specializing in the development and implementation of technologies in the field of alternative fuels for transportation. The government has designated an overall budget of NIS 400 Million for this program (~USD 100 Million), to be utilized by Interested investors and technological companies should submit a joint application to the program. The investors could be a foreign entity. If approved, they can benefit as follows: Companies receive additional funding equal to 50% of the investment made by the private investor, from the government. Investors receive a warrant issued by the company, providing the option to obtain additional shares in the company on the same terms of the original investment round. The additional shares are obtained in return for the repayment of the funding by the investor to the government. 18 Domestic R&D Programs National R&D Programs Encouragement of Investment in R&D Companies 19

12 If the warrant is not exercised by the investor, the company is required to repay the loan only the in case of successful commercialization, by means of royalties from sales. The minimum private investment in a company for this program is 1.5 million NIS (~USD 400,000). The maximum cumulative capital investments, made by one or more private investors, to be approved to a company during the program period is 60 million NIS (~USD 16 million). The program is implemented by the Office of Chief Scientist in the Ministry of Economy, in cooperation with The Prime Minister s Office, The Budgets Department in The Ministry of Finance and the Accountant General Department in The Ministry of Finance. Contact: Gil Shaki Telephone: Gil.shaki@economy.gov.il Pre-Competitive and Long-Term R&D Programs 20 National R&D Programs Encouragement of Investment in R&D Companies Domestic R&D Programs 21

13 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 companies and researchers from academic institutions through several instruments. These instruments seek to develop Israel s industrial infrastructure by supporting R&D activities and sharing technological knowledge among its participants. Magnet Consortia This program supports the formation of consortia made up of industrial companies and academic institutions in order to jointly develop generic, precompetitive technologies. The duration of a MAGNET Consortium is three to five years. Industrial companies are granted up to 66 percent of their approved budget and academic institutions are granted up to 80 percent. No royalty payments are mandated. Foreign technological companies are invited to apply to become members of a consortium. Magneton The MAGNETON program promotes technology transfer from academia to industry via mutual cooperation between an individual company and an academic research group, reducing the firm s uncertainty regarding the use of novel technology. It is designed for projects up to NIS 3.4 Million (~USD 760,000) and has a duration period of up to 24 months. Grants may be up to 66 percent of the approved budget. No royalty payments are mandated. Users Association An Advanced Technologies Users Association is a group of industrial companies involved in the dissemination and assimilation of generic advanced technology and in 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 may be to up to 66 percent of the approved budget. Subsidies are given only to the association as a group and not to individual members. No royalty payments are mandated. Kamin - Promotion of Selected Applied Research The KAMIN program is designed to translate academic research achievements into technologies of interest to the Industry. It serves as an additional bridge between pre-commercial research and industrial research. KAMIN offers the opportunity for academic groups whose research is no longer eligible for basic research funds having matured to an applied phase to continue in their work for up to two years. Grants may be 85 to 90 percent of the approved budget and the remainder of the R&D costs are to be borne by the research institute. No royalty payments are mandated. TELEM FORUM TELEM is a voluntary partnership between The Office of the Chief Scientist in The Ministry of Economy, The Office of The Chief Scientist in The Ministry of Science & Technology, The Planning and Budgeting Committee of the Council for Higher Education The Ministry of Defense and The Ministry of Finance. TELEM encompasses several programs aimed at establishing a national infrastructure for R&D in areas that are of common interest to the forum s members. Financing of the projects is carried out with TELEM members own resources. Tzatam Equipment Purchase Grants Life Sciences Research This TELEM instrument is designed to assist experienced companies who provide research services in the field of Life Sciences by supporting the purchase of expensive equipment, thus strengthening Israel s Life Sciences R&D capabilities. These purchases provide entities in both industry and academia the ability to broaden the scope of the research they conduct. OCS equipment purchase grants assist in the validation of scientific and technological feasibility 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. Nofar Industrial Application of Academic Research NOFAR is designed to bridge the gap between know-how within academia and the needs of the industry. It does so by encouraging the support of applied academic research activity by an industrial company. The academic research group gains better understanding of the market s needs and tendencies, while the company taps into groundbreaking discoveries in its field of activity. The program supports applied academic research in the following technological areas: biotechnology, nanotechnology, medical devices and storage of water and energy. The project s budget is up to NIS 500,000 (~USD 125,000) for a period of 15 months. Grants are up to 90 percent of the approved budget, to be complemented by the industrial company associated with the project. No royalty payments are mandated. International technology companies are invited to connect with an Israeli academic research institute and take part in the program. 22 National R&D Programs Pre-Competitive and Long-Term R&D Programs National R&D Programs Pre-Competitive and Long-Term R&D Programs 23

14 Basic and Applied Nanotechnology Research From 2005 to 2012, six nanotechnology academic research centers have been founded and put into operation in Israel: first at the Technion, then Tel Aviv University, Hebrew University, Bar-Ilan University, Ben-Gurion University, and The Weizmann Institute. These six centers were funded by collaborative private and public resources and have collectively received a total budget of USD $220 Million. The program has established strong capabilities in design and fabrication of nanodevices which has aided research in academia and development in industry. The program s notable achievements include the return of over 50 scientists to Israel as a result of new research opportunities created in the research centers, as well as several impressive success stories of commercialized discoveries. Hundreds of scientific papers have been published and several patents have been claimed. A follow-up program has been devised for , the main goal of which is to establish a strong Nanotechnology industry by transferring technologies from academia to industry and by creating a pool of skilled Ph.D. and an M.Sc. graduates in Nano-science. National Bio-Bank A bio-bank is an organized collection of human biological material and associated information stored for one or more research purposes. Biobanks allow researchers to analyze data representing larger numbers of individuals than to which they would typically have access, 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 founded a national bio-bank. Through The Office of the Chief Scientist of the Ministry of Economy, 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, the Government has decided to allocate NIS 35 Million for the project over a period of up to five years. The Ministry of Health is responsible for the logistical set-up and operation of the bio-bank and samples are collected and distributed by selected medical institutions around the country. The biological material will be available for academic researchers at a subsidized cost and to local for-profit entities at cost. Foreign organizations will be able to purchase samples on a limited basis according to established international standards. Support for Israeli Research Institutions This program assists research institutions with clear links to industry in strengthening their technology infrastructure and developing relevant technologies and products. For a research institute to qualify for support, it must be an independent legal entity, employ a team of researchers with proven scientific and technological abilities, have equipment for conducting and testing industrial R&D and gain at least 30 percent of its revenue by providing services to industry. Grants given may be up to 90 percent of the approved budget for up to two years. At least 10 percent of the budget of an approved project must be provided by an industrial company. Contact: Edna Badichi Telephone: Badichi@ocs.economy.gov.il 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 typically of higher risk and more expensive in companies with more than 200 R&D employees or an annual R&D budget of at least USD $20 Million and yearly revenues exceeding USD $100 Million. Grants may be up to 50 percent of the approved R&D budget. No royalty payments are mandated. Contact: Telephone: support.madaan@ocs.economy.gov.il 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 multidisciplinary bridge between basic and applied research in biotechnology and for the emergence of a successful biotechnology industry in Israel and the Negev. The focus of the institute s research includes structural biotechnology, computational biotechnology, human genetics, functional genomics, nanomedicine and immune system biotechnology. The OCS is part of the NIBN s Steering Committee. Contact: Smadar Taieb Telephone: smadar.taieb@ocs.economy.gov.il MAGNET and TELEM Programs Contact: Ilan Peled Telephone: info@magnet.org.il Website: 24 National R&D Programs Pre-Competitive and Long-Term R&D Programs National R&D Programs Pre-Competitive and Long-Term R&D Programs 25

15 International Cooperation in R&D International Cooperation in R&D Via the OCS and its affiliates, MATIMOP and ISERD, the Government of Israel acts with other governments, provinces and organizations to actively support and encourage industrial R&D cooperation between Israel and overseas partners. There are currently more than 40 bi-national R&D cooperation agreements between Israel and other countries around the world. These agreements facilitate access to know-how and technologies, as well as open up new markets. Cooperation with Foreign Firms The Global Enterprise R&D Collaboration Framework In order to encourage partnerships between multinational corporations (MNCs) and startup companies in Israel, the Office of the Chief Scientist (OCS) has established a dedicated program aimed at maximizing the synergy between the partners strengths. The program combines the highly reputed ability of Israeli startups to conduct innovative R&D efficiently and effectively with the well-established commercialization, manufacturing and international marketing infrastructure of MNCs. To date, over 30 corporations have joined the program and are collaborating with young Israeli companies whose technology complements their own. The multinational corporations currently participating in the program: Abbott, Alcatel, Alstom, Arkema, B.Braun, Bombardier-Transportation, BT, Cisco, Coca-Cola, Dupont, Deutsche-Telekom, General-Electric, HP, IBM, Infosys, intel, Life-Technologies, Merck, Microsoft, Novozymes, Oracle, Philips, Posco, Procter & Gamble, Punj Lloyd, Renault, SAP, Telecom Italia, Telefonica, Orange, Roche. Main benefits to the parties: Shared risk of the R&D investment between the MNC, the startup company and the OCS Assistance in identifying synergetic partners of mutual benefit to collaborative parties Preferential access to know-how and technologies which are not otherwise readily available to the participants Improved prospect of successful marketing and support for the developed product or service internationally Basis for collaboration: A strategic cooperation agreement is signed between the OCS and the MNC. Within this framework, both parties commit to equally invest in co-selected R&D projects, conducted jointly by the MNC and an Israeli company. The MNC can invest in cash and/or in kind, i.e. by providing assistance to the startup company through services such as manpower, technological guidance, use of testing equipment and/or laboratory space, discounted software licenses, regulatory advice, etc. These service benefits may be provided instead of, or in addition to, cash funding. Eligibility: Multinational corporations are qualified to join the framework, subject to possession of: a. annual revenues over USD 2 Billion b. significant investment in R&D c. worldwide presence 26 Special Programs International Cooperation in R&D 27

16 International Cooperation in R&D Israeli companies are qualified to apply, subject to possession of: a. strong R&D focus b. capacity to finance self R&D activity c. annual revenues not exceeding USD 70 Million d. no affiliation with the MNC Projects should involve both parties in the R&D, treat IP in accordance with OCS guidelines and align with the MNC s core business. Intellectual Property Rights The three possible ways of treating IP of the joint project are: a. sole ownership by the Israeli company b. provision of a non-exclusive license by the Israeli company to the MNC c. joint ownership by the Israeli company and the MNC In cases of joint ownership and non-exclusive licensing of the IP, the MNC would hold the unrestricted, royalty-free right to use the new know-how inside or outside of Israel, provided that the right of the Israeli company to use/exploit the new know-how is not adversely affected. Rights of the Israeli company with regard to application and use of the new know-how would be subject to the R&D Law. Contact: Noam Bar-Gal Telephone: noam.bargal@ocs.economy.gov.il Website: Project Centers of Multinational Cooperations Establishment of R&D Centers in Israel for The Service of The International Financial Community The Office of the Chief Scientist (OCS) is fostering a proactive 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 program is to advance development of the financial sector by encouraging leading multinational financial institutions to establish R&D centers in Israel in order to serve the international financial community. Within the framework of this program, the government will support 40 percent of the total budget approved by the Research Committee for the first and second years, 30 percent for the third and fourth years and 25 percent for the fifth year. Projects executed in Israel s 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. Time periods for the various funding levels will commence on the date indicated in the Letter of Approval for the Multiyear Activity Framework. Contact: Zev Adelman Telephone: Zev.Adelman@ocs.economy.gov.il Smadar Taieb Telephone: smadar.taieb@ocs.economy.gov.il This program encourages multinational corporations to establish Project Centers in Israel. Roles of the Project Center: Locating and forming R&D collaborations between Israeli partners and the multinational corporation Creating and implementing R&D projects Providing financial and professional assistance to the Israeli partner The Project Center should be established as an Israeli company, wholly owned by the multinational corporation and functioning as its representative in Israel. Government financing will be one of the following (of lowest value): 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 an Israeli partner in national preference zones or from traditional industry CERN CERN (Conseil Européen pour la Recherche Nucléaire) is the largest particle accelerator in the world. In 2012, Israel was upgraded from associate member to full membership in CERN. The membership fee for a full member is 13 million SF, 17% of which was contributed by the OCS. Full membership entitles Israeli companies to bid on all tenders involving CERN. Contact: Noam Bar-Gal Telephone: noam.bargal@ocs.economy.gov.il Cooperation with Countries and Regions INDUSTRIAL R&D COOPERATION WITH ASIA PACIFIC MATIMOP implements bilateral cooperation agreements with established and emerging leaders in the global economy, including China, India and Australia. Such cooperation agreements and industrial R&D programs help facilitate partnership 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 region 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 take advantage of market opportunities unique to the Asia Pacific region, which has shown unprecedented growth over the last decade. 28 International Cooperation in R&D International Cooperation in R&D 29

17 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, the OCS works via MATIMOP to deepen its ties with countries emerging as global economy leaders and is working to expand its activities throughout Asia. Joint industrial R&D projects can be initiated in any technological field through one of the bilateral frameworks listed below. Contact: Avi Luvton Telephone: Website: Contact (China): Merav Tapiero Telephone: India Israel Industrial R&D Cooperation Framework (i4rd) China Israel Industrial R&D Cooperation China (MOST)-Israel Industrial R&D Cooperation Program The government of The People s Republic of China (PRC) and the government of the State of Israel signed a bilateral agreement in 2010 to form the China-Israel Cooperation 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 bilateral framework is jointly implemented by the Chinese Ministry of Science and Technology (MOST) on behalf of the Chinese government and MATIMOP on behalf of the Office of the Chief Scientist (OCS) in Israel. Jiangsu (China) Israel Industrial R&D Cooperation Program MATIMOP, on behalf of the Office of the Chief Scientist (OCS) in Israel, and 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 memorandum of understanding (MoU) between the State of Israel and China s Jiangsu province in 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 developing products or processes leading to commercialization in the global market. The bilateral 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. Shenzhen (China) - Israel Industrial R&D Cooperation Program The Shenzhen Science, Technology & Innovation Commission (SZSTI) in the Shenzhen municipality, The People s Republic of China, and MATIMOP on behalf of the Office of the Chief Scientist (OCS) of the Ministry of Economy in Israel operate a cooperation program aimed at supporting joint industrial R&D projects in all technology fields. The program is the result of a memorandum of understanding (MoU) signed in September 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. It was 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 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) Victoria (Australia)-Israel R&D Cooperation Program The Victoria-Israel Science and Technology R&D Fund (VISTECH) launched on December 7, 2005 to promote, facilitate and support jointly approved science and technology R&D projects. The fund was established between the State of Israel s Ministry of Economy (Economy) 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. Contact (India & Australia): Hadas Kroitoru Telephone: Hadas@matimop.org.il INDUSTRIAL R&D COOPERATION WITH NORTH AND LATIN AMERICA The Americas offer abundant opportunities for industrial R&D cooperation with Israeli companies. MATIMOP facilitates the implementation of bilateral cooperation agreements with global market leaders as well as emerging markets within these countries, which include the United States, Canada, Brazil, Argentina and Uruguay. Cooperation with American-based corporations is facilitated through the Global Enterprise Cooperation program. These cooperation agreements and industrial R&D programs provide the necessary bridge to enter international markets, gain access to funding and receive assistance in partner matching. Through R&D alliances, Israeli companies not only benefit from the unique strengths and skills of their partner companies, but can also make the most of market opportunities unique to this vast region. Contact: Israel Shamay Telphone: i_shamay@matimop.org.il Website: 30 International Cooperation in R&D International Cooperation in R&D 31

18 US-Israel Industrial R&D and Innovation Cooperation MATIMOP, on behalf of the Office of the Chief Scientist, collaborates with US counterparts at Federal and State levels as well as with stakeholders in the private sector to facilitate and implement funding schemes dedicated to the development of business-driven Israeli and US R&D cooperation. These programs complement the BIRD Foundation and other mechanisms in providing access to OCS funding schemes in Israel and to similar funds in the United States. At the federal level, MATIMOP administers The US-Israel Science & Technology Foundation (USISTF) and develops cooperation schemes with US Departments and Agencies. At the State level, it implements bilateral cooperation agreements with various US states, enabling Israeli companies access to funding and assistance in partner-matching. This program sets a parallel scheme by which each government provides support to its respective companies who engage in collaborative R&D within mutually approved projects. Israeli and Brazilian companies are invited to draw proposals for R&D cooperation that will result in the development of new products, processes or services of industrial application and will lead to commercialization in domestic and/or global markets. The program provides access to OCS funding schemes in Israel and to similar funds in Brazil. It is open to all technological fields, with a special focus on the following technological and industrial fields: Homeland Security, Information and Communication Technology (ICT) and Life Sciences. Israel Argentina Industrial R&D Innovation Cooperation MATIMOP currently implements the following bilateral cooperation agreements at the State level: Massachusetts, Colorado, Maryland, New York, Oregon, Virginia, Wisconsin, Florida, South Carolina. In addition, MATIMOP facilitates a large number of research, development and investment agreements with countries and organizations around the world who are open to trilateral projects with US entities. MATIMOP, on behalf of the Office of the Chief Scientist, collaborates with its Argentinean counterparts the Ministry of Economy and Production (MECON) and the Ministry of Science, Technology and Productive Innovation (MINCYT) to facilitate and implement funding schemes dedicated to the development of business-driven Israeli and Argentinian R&D cooperation in all technological fields. Israel Uruguay Industrial R&D Innovation Cooperation Israel-Canada Technology Innovation Cooperation MATIMOP, on behalf of the Office of the Chief Scientist, collaborates with Canadian counterparts as well as with stakeholders in the private sector to facilitate and implement funding schemes dedicated to the development of business-driven Israeli and Canadian R&D cooperation. These programs complement the CIIRDF and other mechanisms in providing access to OCS funding schemes in Israel and to similar funds in Canada. MATIMOP collaborates with the National Research Council of Canada (NRC) to develop cooperation schemes between various departments. The Israel-Canada Technology Innovation Cooperation is open to all technological fields, with a special focus on the following technological and industrial fields: The Uruguay Israel program for Industrial Research and Development is a government bilateral framework that provides active support for collaborative R&D ventures between Uruguayan and Israeli companies. The program is jointly implemented by The National Research and Innovation Agency of Uruguay (ANII) on behalf of The Innovation Ministerial Cabinet in Uruguay and MATIMOP, the Israeli Industry Center for R&D, on behalf of The Office of the Chief Scientist (OCS) in Israel. Contact (Latin America): Ilana Gross Telephone: ilana@matimop.org.il INDUSTRIAL R&D COOPERATION WITH EUROPE Renewable and Alternative Energy Water Recovery and Treatment Solutions Brain and Brain-related Research Contact (North America & Canada): Liron Eldar Telephone: liron@matimop.org.il Europe is Israel s main R&D partner. Europe-Israel R&D cooperation programs not only allow access to know-how, R&D platforms and funding sources within Europe, but also provide Israeli companies with their European partners connections to global markets. EU Framework Programs for R&D Israel-Brazil Industrial R&D Innovation Cooperation MATIMOP, on behalf of the Office of the Chief Scientist, collaborates with the Secretariat of Innovation in the Ministry of Development, Industry and Foreign Trade of Brazil (MDIC) to facilitate and implement funding schemes dedicated to the development of business-driven Israeli and Brazilian R&D cooperation. Israel is the only non-european country that is fully participating in the European Union s Framework Program (FP) Europe s primary 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. 32 International Cooperation in R&D International Cooperation in R&D 33

19 From the time that Israel began to participate in the European Community s Framework program in 1996 through the end of 2013, 17,000 Israeli R&D groups submitted proposals to participate in the program. Of these, 4,100 succeeded in approved grants totaling 1.25 billion Euros. This 24% Israeli acceptance rate is slightly above that of the rest of the EC. The Seventh European Framework Program FP7 The multi-year budget for the Seventh European framework Program (FP7) that ran from 2007 through the end of 2013 totaled 50 billion Euros of which Israel contributed about 500 million Euros. 2,100 Israel proposals were approved in the Seventh Framework Program (FP7). Israeli groups participated in FP7 s projects whose total budgets equaled 10 billion Euros, and enjoyed grants of 840 million Euros. The FP7 s Cooperation Program, which encourages scientific cooperation between academia and industry, witnessed a level of participation by Israeli industry of 60%. This is in contrast to a level of 25% by European industry. The Eighth European Framework Program Horizon 2020 The Framework Program is renewed once in seven years. The current program, Horizon 2020, began in January 2014 through the end of The multi-year budget of Horizon 2020 stands at 70 billion Euros, of which Israel will contribute about 1 billion Euros during The central objective of Horizon 2020 is to maintain the European Community s status as a world leader in science and in industrial innovation through the availability of capital along with the support for small and medium sized enterprises. Horizon 2020 has placed emphasis on social challenges as well as support for companies active in the area of health, welfare, demographic shifts, food security, sustainable agriculture, sea research, bio-economics, secure, clean and efficient energy, green transportation, climatology, efficient resources and raw materials. Contact: Tony Levy Telephone: tony@iserd.org.il Website: EUREKA EUREKA incorporates 40 national funding schemes of virtually all European countries and the European Union. EUREKA facilitates approximately 400 projects every year, mobilizing EUR 1.5 Billion of public and private funds. As 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 utilize the multiplying effects of cooperation. 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). SMEs are the prime target group for Eurostars a EUREKA-EU joint program aimed at supporting R&D-performing SMEs (including start-ups) through improved support mechanisms. Eurostars announces two open calls every year for close-to-market projects led by SMEs in any industrial domain and funds approximately 150 projects each year. Also among EUREKA s activities are the Industrial Cluster sub-programs that are initiated and managed by large multinational corporations (MNCs) in selected areas. The majority of clusters are active in information and communications technology (ICT), energy and water technologies. Initiating companies in this project include Philips, Siemens, Veolia, Alcatel, Thomson, Ericsson, Nokia, France Telecom, Telefonica, Deutsche Telekom and other market leaders. Since 2000, Israel has been the only non-european Full Member of EUREKA (South Korea and Canada have additionally joined as Associated Members). Israel is among the most active members of the network Israeli companies currently participate in more than 10 percent of all EUREKA projects. Israel was also chosen to chair the EUREKA Program in , which served to be instrumental in strengthening industrial and political links with Europe. This chairmanship additionally aided 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. Contact: Ran Arad Telephone: ran@iserd.org.il Bilateral Agreements with Europe At a bilateral level, Israel implements a large number of R&D agreements with major European countries, including: France, Germany (with BMBF and BMWi), Italy, the Czech Republic, Finland, Greece, Hungary, Lithuania, Spain, Sweden, Turkey, Poland, Romania, the UK,, 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. Contact: Uzi Bar-Sade Telephone: uzi@iserd.org.il Enterprise Europe Network (EEN) The Enterprise Europe Network (EEN) is comprised of approximately 600 partner organizations in more than 40 countries in Europe, North America, Latin America and Asia Pacific, promoting competitiveness and innovation services for small and medium enterprises (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 34 Domestic R&D Programs Domestic R&D Programs 35

20 and technology requests, access to European, national and/or regional support schemes and additional services supporting technological partnerships and internationalization of SMEs. The EEN fully exploits the synergies between all support services and help desks for European businesses. on the Energy Independence and Security Act of 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 or energy efficiency technology. BIRD also manages TRIDE a trinational fund that brings together Israeli, Jordanian and US companies for projects based on the BIRD model. Contact: BIRD: Einat Spivak Telephone: einat@birdf.com Website: BIRD Energy: Limor Nakar-Vincent Telephone: limorn@birdf.com Contact: Uri Fishelson Telephone: uri@iserd.org.il BI-NATIONAL FUNDS In this framework, two nations contribute a predetermined sum to a binational 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. A designated non-profit organization manages the funds and administers grant payments. 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. Binational foundations do not receive equity or intellectual property rights of the companies supported, nor do they interfere in formulating or managing relationships between partnering companies. US-Israel Binational Industrial R&D Foundation (BIRD) BIRD is a key catalyst for joint R&D between American and Israeli companies focusing on emerging industries and novel technologies. Any pair of companies, one Israeli and one American, may jointly apply for BIRD support provided they have the combined capability and infrastructure to define, develop, manufacture, market, sell and support an innovative product based on industrial R&D. One of the two companies is typically involved in the development of cutting edge technologies while the other offers large-scale product development and commercialization. The BIRD Foundation provides 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 and 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, 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. Since its inception in 1977, BIRD has approved over 800 projects and cumulative sales of products developed through BIRD projects amount to approximately USD 10 billion. In 2009, BIRD Energy was initiated to fund renewable energy and energy efficiency industrial R&D between either a U.S. and an Israeli company or a company and a university or 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 Canada-Israel Industrial R&D Foundation (CIIRDF) The 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 projects and searches for suitable partners in Canada and Israel to collaborate in technology development projects. CIIRDF is additionally entrusted with the implementation of the Ontario agreement, focusing 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 it supports 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. Contact: Les Abelson Telephone: les@ciirdf.ca Website: Korea-Israel Industrial R&D Foundation (KORIL-RDF) The 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; an Israeli manager is based in Tel Aviv. Contact: Deborah Schabes Telephone: dvora@matimop.org.il Website: 36 International Cooperation in R&D International Cooperation in R&D 37