Israel Innovation Authority
Israel Innovation Authority is an independent, publicly funded agency, charged with fostering the development of industrial R&D within the State of Israel. Its main missions are:
- Nurture, maintain and strengthen the technological leadership and entrepreneurial culture in Israel
- Increase innovation’s weight within the Israeli market and contribute to the country’s export base.
- Create quality job/employment opportunities
- Maintain Israel’s position at the global innovation forefront
The Israel Innovation Authority’s structure is focused on six primary innovation divisions. Each division addresses a different target audience and provides a comprehensive response to its changing and unique needs.
Relevant audiences vary from nascent entrepreneurs, a mature company developing products and services, academic research groups or a factory wishing to innovate and scale up its activity.
The advantages of applying for the Israel Innovation Authority:
- Non Dilutive Funds (except for the Incubators Program)
- No intervention in management
- A quality standard for technology
- A positive signal to private investors
- Annual and long-term programs
- Thousands to millions of NIS in grants each year
- Technological collaboration
- Risk sharing
What do they want in return?
Israel
Appropriate bookkeeping and reporting
Restricted knowledge transfer
Royalties (applies to some programs)
How do I know which program suits me best?
This will be discussed at an assessment meeting
The Authority’s Divisions:
Startup
Technological Infrastructure
Societal Challenges
Growth
International Collaboration
Advanced Manufacturing
Advanced Manufacturing
Societal Challenges
Startup Division
The Startup Division offers unique tools to support the early developmental stages of technological initiatives at the pre-seed or initial R&D stages, thus helping transform their ideas into reality while reaching significant funding milestones
The Program is designed for fledgling entrepreneurs to develop and validate innovative technological concepts. The goal of the program is to financially support entrepreneurs reach proof of concept and business feasibility of early stage projects and continue their development.
What do you get?
A grant of up to 85% of the approved budget, and up to NIS 200,000
The Incubators Incentive Program is designed for entrepreneurs who are interested in establishing a startup company based on an innovative technological concept. A technological incubator is a center for entrepreneurship intended to invest in new startup companies and provide them with technological, business and administrative support.
What do you get?
A grant of up to 85% of the approved budget, and up to NIS 3 milliom.
Growth Division
The Growth Division targets startup companies, mature hi-tech companies and R&D centers. It assists in advancing their competitiveness and technological leadership in order to increase their growth rate and potential.
This incentive program provides support for commercial companies in the development of innovative technologies or enhancement of existing ones. The R&D Fund offers the greatest financial incentives for R&D activities on behalf of the Israeli government. The support is offered to all Israeli High Tech companies in all sectors and is aimed at strengthening the Israeli economy.
What do you get?
A grant of 20%-50% of the approved budget up to a budget of NIS 15 million a year. The grant varies across fledging or mature companies. Companies operating in favorable development regions are eligible for additional support of 10%-25%.
This incentive program focuses on the long-term R&D of large companies for the creation of new knowledge and technological infrastructure, used for the development or production of future innovative products.
What do you get?
A grant of 20%-50% of the approved R&D expenditures. Companies operating in Area ‘A’ Development Regions will be eligible for an additional 10% support.
A company receiving the support will not be obliged to pay royalties to the Authority.
Societal Challenges Division
This division was established to encourage innovative developments that address various societal and public challenges, as well as increase employment in the Israeli Hi Tech sector.
This incentive program, launched jointly by the Authority and the Ministry for Social Equality’s “Digital Israel” project, is designed to Encourage and assist entrepreneurs and companies seeking to meet the challenges and needs of the public sector with innovative technological solutions (in the fields of education, health, law, local government, welfare etc.)
What do you get?
A grant of up to 80% of the approved budget, and up to a NIS 4 million budget.
This incentive program is a joint venture of the Authority and the National Insurance Institute. It encourages R&D of assistive technologies for the disabled and contributes to their quality of life while easing their integration into society, the community and the labor market.
What do you get?
A grant of up to 85% of the approved budget. A maximum grant of NIS 900,000 for a period of up to 12 months.
This incentive program supports the R&D of global health challenges. It is also partnered by Israel’s Agency for International Development Cooperation (MASHAV), as part of the global Grand Challenges initiative which aims to develop technological solutions to meet health, water and food security challenges in developing countries.
What do you get?
Financing of up to 90% of the budget gives the project an initial push. In addition, the incentive program offers an exemption from the repayment of royalties on the revenues received from target countries.
The Advanced Manufacturing Division
This division supports factories and companies in the manufacturing sector interested in the development of innovative products and integrating new technologies.
The preparatory incentive program is a complementary tool operated by the Innovation Authority for the manufacturing industry sectors. This tool is intended to assist companies without prior R&D experience in leading innovation processes, or for companies that require focus and guidance with their R&D activities. Companies in this track receive (mostly) refunds of consultancy fees.
What do you get?
Support for 66% of the approved budget (maximum budget NIS 75,000) and support for 75% of the approved request’s budget (maximum budget NIS 100,000) for Area ‘A’ Development Regions.
This track supports industrial factories in integrating technological innovation processes through the development of innovative products, the improvement and enhancement of existing ones or optimizing production.
What do you get?
Support of between 30%-50% of R&D expenses of the approved programs: an increment of 10% for R&D projects in Area ‘A’ Development Regions. An increment of 10% if at least 30% of the project’s authorized budget is implemented in a recognized research institute or an applied industry center. Exemption from paying royalties.
Technological Infrastructure Division
The division supports entrepreneurs, companies and research institutes interested in R&D collaborations. It focuses on funding applied R&D and provides a platform for collaborations between relevant bodies.
This track, operating since January 2012, is a joint venture of the Innovation Authority, Ministry of Finance and the Administration for the Ministry of Defense. This incentive program supports the development of innovative solutions for the defense and commercial markets.
What do you get?
- A grant of 50%-90% in accordance with the type and nature of the activity.
This track offers grants for R&D collaborations in the form of consortiums (industrial companies and research institutions collaborating to develop innovative technologies). The various consortiums allow for long-term R&D and create a supportive environment for manufacturing companies. The collaboration with other companies, as well as academic research groups assists in developing groundbreaking technology. For the research institutions, the collaboration with industry promotes the commercialization of applied research and study that the market needs.
What do you get?
The amount of the grant provided through the consortium is up to 66% of the approved budget.
for an industrial company and 100% of the approved budget for a research institution.
This track aims to support groundbreaking products through the transfer of research-based knowledge to an industrial corporation
What do you get?
An applied research grant of up to 66% of the approved budget, up to NIS 3.4 million over a period of up to 24 months. The grant recipients are exempt from paying royalties.
The International Collaboration Division
This division supports companies interested in expanding into international markets. It makes it possible to receive matching grants and tools supporting the penetration of technological innovations into the global market.
The program provides financial support to companies interested in submitting requests to the EU Framework Program – Horizon 2020.
What do you get?
Program 37A – a grant of 75% of the approved expenditures up to NIS 40,000
Program37B – a grant of up to 85% of approved expenditures up to NIS 70,000
This program supports Israeli companies collaborating with selected MNCs on market-oriented projects of new technologies or o=improving existing ones.
The program provides Israeli companies with the opportunity to work alongside MNCs, as well as financial incentives (funded by the Authority) so as to share the risk of R&D investment.
What do you get?
Financial support of up to 50% of the approved R&D expenditure of the Israeli company.
Companies operating in favorable development regions are eligible for additional support of 10%-25%.
The program provides support for Israeli companies working with foreign companies on market-oriented developments of new technologies or significant improvement of existing ones. The program provides financial incentive, funded by the Authority, as well as by governmental bodies of leading foreign countries, provinces and cities. In addition to the grant, which allows the sharing of risk in funding the project, the program offers support in finding business technological partners.
What do you get?
Grants of up to 50% of the approved R&D expenditure of the Israeli company, and parallel funding on behalf of the foreign government of the expenditure of the foreign company (this varies across governments). Companies operating in favorable development regions are eligible for additional support of 10%-25%.
The program supports Israeli companies working with foreign companies in the USA India, Singapore and Korea on R&D projects of new technologies or significant improvement of existing ones. The program provides a financial incentive on behalf of the funds which enables sharing the risk in financing the project. In addition, it offers support in finding business technological partners.
What do you get?
Financial support of up to 50% of the approved R&D expenditures.