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Technological sectors suffering from under-representation in the multinational corporations’ R&D activity do not currently benefit from the technological advantages that they bring to the fields of ICT. These sectors will, therefore, profit greatly from the attraction of multinational corporations’ R&D centers in Israel. The cultivation of additional thriving innovation systems in areas in which the Israeli economy possesses a leverageable advantage is a central component in the Innovation Authority’s strategy.<\/strong> Accordingly, the granting of appropriate incentives to multinational corporations choosing to conduct R&D and other activity in the value chain, in fields other than ICT, is a clear strategic objective both for the Innovation Authority and for the government in general. The Innovation Authority is currently launching a pilot program with the objective of enabling multinational corporations, active in the fields of medicine and biotechnology, to establish or expand their Israeli R&D activity, technological innovation or production. The program leverages the changes in the tax regime of high-tech companies to expand their economic activity in Israel. The program has two central elements:<\/p>\n\n\n\n The Foreign Investment and Industrial Cooperation Authority, under the auspice of the Ministry of Economy and Industry, was established in its present format approximately two years ago out of a desire to increase quality foreign investment in Israel. Investment in advanced manufacturing by innovative multinational corporations is central in this regard, the objective being the expansion of Israel’s share in the innovative multinational corporations’ value chain from R&D alone to the manufacturing of higher technological intensity.
Indeed, the government has already begun acting in this direction: this year, the Innovation Authority launched a program to encourage the establishment or expansion of R&D centers’ activity in the fields of biotechnology and medicine. Also, the Ministry of Economy and Industry’s Foreign Investment and Industrial Cooperation Authority is active in attracting investments to Israel in the field of advanced manufacturing (for more details on these two programs, see the table below).<\/p>\n\n\n\n Steps to Expand the R&D Centers’ Activity in Israel<\/strong><\/h3>\n\n\n\n
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Within this framework, the Authority is operating on three central axes: Firstly, the Authority is focusing its marketing and development efforts towards promoting this model<\/strong> by means of designated conferences, global campaigns via different forms of media, delegations, and activity with target companies while utilizing the Department’s global array of attaches, and while relying on business intelligence capabilities developed by the Authority. Secondly, the Authority offers investors a One-Stop-Shop<\/strong> model including accompaniment throughout all stages of the investment with designated sector managers. Because investment in manufacturing occasionally results in increased “friction” between the company and government regulators, the Authority has also established an Investors Service Center<\/strong> with the goal of reducing this friction.
Thirdly, the establishment of the Authority in its current format merged the encouragement of foreign investments and activity associated with the foreign companies’ offset obligation in Israel. Because the majority of the obligated companies are also the world’s largest industrial corporations, the consolidation of these two spheres enables the leverage of the local activity from one of the foreign company’s obligation <\/strong>to that of opportunity <\/strong>for investment and growth in Israel, including manufacturing.
Further information can be seen on The Foreign Investment and Industrial Cooperation Authority.<\/strong><\/p>\n\n\n\n