R&D Fund

The incentive program supports commercial companies currently developing new products or upgrading an existing technology. The program offers the largest financial incentive awarded by the State of Israel for Israeli corporations’ R&D activity and is offered to all sectors with the aim of strengthening and advancing the Israeli economy.

To encourage technological innovation, thereby strengthening and advancing the Israeli economy. To
offer support to startups and investment-intensive corporations for R&D in a wide variety of fields,
including hardware, software, communications, complex systems, life sciences, medical devices, cyber,
IOT, fintech, cleantech, and others.

Israeli corporations at different stages and from all industrial sectors – from startups to investmentintensive corporations engaged in technological innovation, interested in developing or upgrading existing products and technologies.

• Financial support of between 20%-50% of the approved R&D expenditure.
• Companies operating in Development Zones are eligible for 10% additional support, and those operating in the areas around the Gaza Strip are eligible for 25% additional support.
• Preferential funding terms for a startup corporation owned by minority population and/or UltraOrthodox and/or women entrepreneurs of amounts up to 75% funding in the first year and 70% in the second year.

Attractive financing model: The R&D Fund provides significant financial benefits. The program shares
in the risks involved in the company’s development process regardless of future successes or profits.
The companies that receive financing undertake to repay the received funding to the Authority via royalty payments from sales, but only if the project successfully reaches the commercialization stage.

Innovative High-Risk R&D: The program enables companies to engage in R&D that entails development risk and that is aimed at developing future products and innovative technologies which give them
a competitive advantage and the ability to penetrate new markets.

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