Summary:

Program Description

Israeli technology companies are invited to submit proposals for pilot projects aimed at the safe and economically efficient operation of manned or unmanned aircraft within a managed airspace (U-Space), including urban and densely populated areas, intended to operate in the emerging Advanced Air Mobility (AAM) sector, under the Innovation Authority’s R&D Fund Incentive Program.

The National Drone Initiative operates as a platform for demonstrating innovative technologies in a controlled experimental environment managed by the Ministry of Transport and the Civil Aviation Authority of Israel. The initiative seeks to expand the range of services provided by unmanned aerial vehicles.

Its strategic objectives include promoting civil and commercial aviation, advancing innovative operational concepts, and creating aerial transportation networks that will improve mobility and strengthen the economy. The initiative also aims to develop the industry by fostering technological solutions based on international standards, creating an ecosystem, enhancing technological leadership, and expanding applications and business models.

• Financial support at a rate of 20%-50% of the approved budget
• A 10% supplement will be granted to companies whose main activity will be carried out in Development Area A (25% for companies whose main activity will be carried out in other areas, Sderot or Gaza Strip settlements
• A grant at a rate of 75% of the approved budget if the company meets the following conditions:
  • At least 33% of the company’s share capital (on a fully diluted basis) is held by an entrepreneur from a group with preferential financing conditions (minorities/ultra-Orthodox/women), in accordance with sections 2.16 and 2.26 of the Startup Fund.
  • The company was incorporated 5 years or less before the date of application submission and the requested budget does not exceed 2.5 million NIS.
• The application constitutes the company’s first submission to any program within the framework of the R&D Law Benefit Program

Criteria

Proposals must demonstrate safe and economically viable operation of manned or unmanned aircraft in managed airspace (U-Space), including urban and congested environments, within the new transportation dimension (AAM – Advanced Air Mobility). Solutions may involve:

• Providing commercial service to a specific civilian customer
• Extending capabilities such as range, payload weight, GNSS interference resilience, and innovative flight solutions
• Air traffic management (USSP) or cooperative information services (CIS)
• Cross-boundary operations across different control zones
• Automated interfaces for information exchange with air traffic management units (e.g., IAF, Israel Airports Authority, control towers)
• Takeoff and landing in public spaces, including regulatory and planning considerations

• If AI technologies are used, they must comply with the European Union Aviation Safety Agency – Artificial Intelligence Roadmap 2.0.
• Definition of “managed airspace (U-Space)” follows EU Regulation 2021/664 and ASTM Standards F3411-22a and F3548-21.

Application Process

Application Assessment Criteria:

• Technological aspect: The level of functional and technological innovation of the product, including its complexity and depth, the technological challenges of the program, and its technological feasibility.
• Business aspect: The applicant’s business and economic growth potential following the program’s success, including business potential, market size and/or growth rate, competitive advantage (including intellectual property strength), and market validation.
• Economic aspect: The added value to the Israeli economy, including high market penetration challenges and the potential for the development of an entire industry in Israel.
• Applicant capabilities:
  • The applicant’s ability to successfully complete the program, including managerial, technological/engineering, and business/marketing capabilities, and achievements to date.
  • The extent to which the program’s product addresses the defined challenge.