Applied Research in Academia & Industry in Collaboration with DDR&D (MAFAT) – Applied Research Fund

The purpose of this program is to promote military/defense and commercial R&D of dual use technologies, which on the one hand constitute a contribution to national security, and on the other hand possess financial potential  and as a result strengthen the long-term technological advantage of Israeli industry in international markets through applied industrial research at Technology Readiness Levels (TRL) 2–5.

This program is intended to support applied research, in the following Technology Readiness (TRLs) levels: 

• TRL 2-5 – Applied research by an applicant that is an industrial corporation – the applied research is carried out within the range of Technology Readiness Levels (TRL) 2 to 5, and is intended to stimulate globally groundbreaking product innovation within industrial corporations. This may be achieved through pre-product research owned by the industrial corporation, or jointly owned pre-product research conducted together with an academic body (research institution or application company), either in Israel or abroad.  

• TRL 4 – Applied research by applicants that are an industrial corporation and an application company – pre-product research at Technology Readiness Level (TRL) 4, owned by a research institution/foreign research institution, for the purpose of reproducing, validating, adapting, and integrating existing knowledge into the needs of the industrial corporation. 

An industrial corporation that meets one of the following two conditions: 

• The total financing it has received exceeds NIS 50,000,000 from the date of incorporation until three months prior to the submission date of the application.  
• The corporation’s annual sales exceeded NIS 30,000,000 according to its latest financial statements.  

In addition, application companies of research institutions (up to three research groups) may jointly submit an application for funding of a knowledge commercialization project (TRL-4) together with an industrial corporation partnering in the same project.

Industrial Corporation – (including applications involving a knowledge commercialization agreement) 

• The approved grant rate will be 60% of the approved budget.  
• The total grants approved for an industrial corporation under this sub-track in a calendar year shall not exceed NIS 15 million.  
• The grant is subject to royalty payments.  

Application Company 

• The approved grant rate will be 100% of the approved budget.  
• The approved budget for all applicants that are application companies together shall not exceed 50% of the total approved program budget shared between the industrial corporation and the application company/companies.  

• Innovative high-risk dual research – engaging in high-risk research and developing innovative technologies provide competitive advantages, opportunities to enter new markets, and contribute to the growth of the Israeli economy in both civil and defence sectors.  

• Attractive funding model – the track supports businesses undertaking risky technological development, regardless of future profits or commercial success.  

Program Duration 

• The requested period for the approved program, including all associated files/projects, shall not exceed 36 months.  
• The grant application shall be submitted for a 12-month execution period.  
• The track is open for submissions year-round, subject to submission deadlines and/or calls for proposals as published periodically on the website of the Israel Innovation Authority. 

Pre-Requisit Criteria 

• The company must be registered in Israel.  
• The company must meet the threshold conditions specified above (regarding capital raising and sales revenue).  
• The applied research must be conducted within Technology Readiness Levels TRL-2 to TRL-5 and must not yet be at the stage of product development or development of part of a product.  
• The applicant must commit to owning the knowledge/IP from the moment it is created.  
• In cases of joint ownership of knowledge and/or knowledge commercialization, intellectual property rights between the parties must be regulated in an agreement.  
• The submitted program must constitute a genuine research program involving substantial technological depth and high technological risk. 

Evaluation criteria  

Technological Criteria: 

• The level of technological innovation in the research, including its complexity, depth, and feasibility.  
• The extent to which the program falls within Technology Readiness Levels (TRL) 2–5, in accordance with the public call publication.  
• For applicants that are application companies: the research value of the existing knowledge (TRL-4) that predates the application and on which the proposal is based.  
• For applicants that are industrial corporations: the extent to which the proposed research relies on technologies that are not already part of the corporation’s existing product development processes. Applications relying more heavily on technologies outside the corporation’s existing development processes will receive a higher evaluation.  

Applicant Capabilities Criteria 

• The applicant’s ability to successfully complete the proposed activities, including technological and managerial capabilities.  

Business Criteria 

• Dual nature of the research. 
• Commercialization potential – the business potential embodied in the technology, market size and growth rate, and the technology’s competitive advantage (including intellectual property aspects).