For many Israeli companies R&D funds provided by the OCS are an important funding source, being bestowed as conditional loans. The advantages of this form of R&D funding include:
- In case of technological and commercial success, the awarded funds are returned in the form of royalties from income resulting from the product developed with the finances received from the OCS. Thus, the OCS shares with the company the risks involved in the development and introduction to
market of the developed product.
- The sum returned is limited to the amount received from the OCS, plus a small amount of interest. Consequently, the OCS is not a “co-partner” since it shares with the company risks, but not profits.
- The OCS awards grants without demanding security. In current market conditions, when banks limit the credit offered to their clients, OCS assists companies to infuse cash that can help to meet the
- Grants awarded by the OCS do not call for the issuance of stock or the surrender of rights.
- The return of funds is flexible and linked to the commercial success of the product. This contrasts with loans received from banks or investors, which need to be returned on time, disregarding the actual state of the R&D effort, the product and its commercial success.