R&D Fund

Support of R&D and Promotion of Technological Innovation

This is the main incentive program designed for industrial R&D support for the development of innovative competitive products and technologies. The R&D Fund, which offers the greatest financial incentives for R&D activities on behalf of the Israeli government, provides commercial companies in all industrial fields with support for the development processes of groundbreaking / breakthrough technologies or for the upgrading of existing technology. The support is offered to all Israeli High Tech companies in all sectors, at all stages of R&D.

Objective

  • Encourage the performance of commercial R&D programs in Israel by the MNC’s Israel-based subsidiary • New IP registration in Israel is a pre-condition but may be transferred abroad under favorable conditions.

Benefits

  • Israel Innovation Authority supports/shares in up to 50% of the project’s R&D costs.

Advantages

  • Sharing R&D costs reduces the risk and financial burden of the projects' costs. Moreover, the Authority’s due diligence of the projects quality and innovativeness, as a pre-condition for approval, provides objective validation for investors.

Availbility

  • Yearlong submission of applications

Goal of the incentive program:

  • The R&D Fund encourages technological innovation in a wide variety of fields such as:  hardware, software, communications, complex systems, life sciences, medical devices, cyber, IOT, fintech, cleantech, and others.

Who is the incentive program for?

  • Israeli companies from all Hihj-Tech sectors interested in enhancing manufacturing processes, or in developing or upgrading existing products, or those in advanced stages of development that require technological and engineering adaptations and alterations in a product developed by the submitting company, in accordance with standards and needs of the target countries’ markets.   

What do you get?

  • A conditional grant of 20% to 50% of the approved R&D expenditures. Companies operating in favorable development regions are eligible for additional support of 10%-25%.

Why should you apply for this incentive program?

  • Attractive financing model: The R&D Fund provides financial benefits of significant scale. It participates in the risks involved in the development process of the company. The companies that receive financing undertake to repay the received funding to the Authority via royalty payments from sales, but only if the project succeeds in reaching the commercialization stage.

Innovative High Risk R&D: The R&D Fund enables long-term R&D operation for the development of future products and innovative technologies that provide the company with a technological horizon, competitive advantage and the ability to penetrate new markets.

Quality Hallmark support: Support from the Authority is provided following a comprehensive professional assessment of the project, which serves as a hallmark of quality for companies in the industry and makes it easier for them to raise private capital in the long-term.

Israeli Companies

Israeli companies seeking further information on the requirements and application process to this program, should refer to the Israel Innovation Authority's Hebrew site: https://innovationisrael.org.il/program/2728