Transition from Development to Production Program – R&D in Industry (MOFET) Fund  

The Transition from Development to Production Program (MOFET Fund) supports technology-oriented industrial companies that have completed the development of an innovative technological product at a world-class level and are transitioning toward manufacturing. 

The program provides grants to promote research and development (R&D) activities related to: 

• The creation of a new manufacturing process
• The development of a new manufacturing process 
• A substantial improvement of an existing manufacturing process all aimed at producing an innovative product with a competitive advantage at the global level. 

The program is designed to accelerate the growth of Israel’s advanced industry by strengthening its reliance on technological innovation as a basis for global competitiveness, thereby generating significant economic impact for the Israeli economy. 

The goals of the program are to: 

• Encourage technology-oriented industrial companies that have developed innovative products at a world-class level to advance R&D of sophisticated manufacturing processes 
• Support the development or substantial improvement of manufacturing processes for technologically innovative products with global competitive potential 
• Encourage the establishment of advanced factories and production lines in Israel 
• Assist companies in successfully transitioning from development to manufacturing and establishing long-term manufacturing activity in Israel. 

The program is intended for technology-oriented industrial companies, as defined under the relevant benefit program, that: 

• Have developed an innovative technological product at a world-class level 
• Seek to promote R&D of a manufacturing process for that product in Israel. 

The participants of the program will receive the following: 

• An approved budget ceiling of up to NIS 7,500,000 for a 12-month implementation period, or up to NIS 15,000,000 for an implementation period of up to 24 months. 
• A grant rate of 40% of the approved budget, up to a maximum of NIS 3,000,000 (12 months) or NIS 6,000,000 (24 months). 
• An additional 10% grant increase (to a total of 44%) for companies implementing the majority of the approved plan in Development Areas A or B, subject to a maximum grant of NIS 3,300,000 or NIS 6,600,000, respectively. 

• A clear and predefined grant model and approved project budget, enabling effective planning of manufacturing process development.
• Support for establishing new production lines while maintaining a clear transition from development to manufacturing, facilitating future product development. 
• Reduction of techno-economic risk during the critical final stages prior to full-scale manufacturing.  

Eligibility Conditions 

The applicant must be a technology-oriented industrial company, legally incorporated in Israel, meeting one of the following criteria: 

Revenue-Based Eligibility 

• Annual revenues in the year preceding the application ranged between NIS 15 million and NIS 250 million, with more than 50% of revenues derived from industrial manufacturing activities; and 

• One of the following applies: 

• R&D expenditure exceeded 7% of total revenue in at least two of the three years preceding submission; or 

• The company was recognized as a Preferred Technological Enterprise under Section 51(24) of the Capital Investment Encouragement Law, 5719–1959, in the year preceding submission. 

Early-Stage Manufacturing Readiness 

Alternatively, companies with revenues of up to NIS 15 million may apply, provided they demonstrate preparation for industrial manufacturing in Israel and meet at least two of the following criteria: 

• Execution of an agreement (purchase, lease, or rental) for a suitable manufacturing facility; 
• Acquisition of manufacturing equipment; 
• Employment of dedicated manufacturing personnel (e.g., production manager, process engineer); 
• Execution of an agreement (or conditional agreement subject to approval) with a subcontractor for manufacturing process development or industrial production of the proposed product. 

Submission Requirements 

Applicants are required to Submit the application online via the Hebrew website’s personal area, including:  

• Completion of the “Submitting a Support Request” form;   
• Attachment of all required application forms and supporting documents, including financial documentation 

Please note: 

• Only complete and valid applications will be reviewed 
• In case of discrepancies between submitted documents, the budget file will prevail 
• Early submission is recommended to ensure confirmation of proper receipt 
• Applicants are encouraged to review the application submission guide outlining all submission stages. 

The program operates through calls for proposals. Availability may vary based on published calls. 

Israeli companies seeking further information on the requirements and application process to this program, should refer to the Israel Innovation Authority’s Hebrew site.

For the customer service department, please contact by email:  [email protected]  or by phone at  03-7157900  , Sunday-Thursday, 9:00-17:00

For details about the program, please contact: 

• Ronit Eshel, Director of the ClimateTech Division, by email:  [email protected] or by phone 03-7157936
• Daniel Pinto, Director of Advanced Manufacturing and Smart Construction by email: [email protected]  or by phone 03-5118155