A broad range of funding sources is currently available to Israeli companies seeking assistance in financing their Research and Development activities.
Each of these sources has distinct advantages and limitations, which require in-depth analysis before the company decides which source of financing is best for it, depending on the stage it is in and its long-term plans.
The track supports commercial companies in developing new products or upgrading existing technology. This track, whose aim is to boost and advance the Israeli economy, provides the most significant financial incentive offered by the Government of Israel for Research and Development activities carried out by Israeli corporations.
A program operating within the framework of the European Union. This grants program offers an EIC Accelerator track (equivalent to the former SMEs track in Horizon 2020) as well as several consortium tracks. EU support, which may reach millions of Euros per project, is provided to outstanding projects in their field of endeavor.
For novice entrepreneurs and startups whose innovative idea is in the conceptual stage, as well as for corporations interested in operating technology incubators and R&D laboratories.
Binational funds are an independent support track that encourages augmented cooperation between Israeli companies and companies from the partner countries.
The US administration operates numerous support programs whose aim is the promotion of the development of the technological infrastructure and execution of groundbreaking projects. Some of the programs are open to non-US companies. Our company specializes in submitting applications to a wide variety of programs run by the US administration. Some of the programs are open to non-US companies. Our company specializes in submitting applications to a wide variety of programs run by the US administration.
This track supports startups, developing companies, mature companies, and R&D centers. It offers R&D grants at various project stages, from proof of feasibility to participation in pilot runs, and a variety of financial tools for promoting innovation in companies.
This track supports Israeli companies that cooperate with foreign companies in R&D projects involving new technological products or in significant upgrades of existing technology. The State of Israel has currently more than 50 cooperation agreements with various countries worldwide. The track provides a financial incentive funded by the cooperating countries and raises the chances of success of the joint ventures. The State of Israel has currently more than 50 cooperation agreements with various countries worldwide. The track provides a financial incentive funded by the cooperating countries and raises the chances of success of the joint ventures. This track assists the participants in seeking foreign technological partners.
The Authority, jointly with the company, shares the risks involved in the development and the introduction of the product to the market.
The Innovation Authority shares the risks but not the profits.
In market conditions today, when banks reduce credit volumes for companies, the authority's grants allow companies to flow positively alongside the expenses on the various activities available in each company.
R&D activity requires a constant flow of funds, and contrary to what is customary in the business arena, reception of grants does not entail the issuance of shares or a waiving of rights.
Repayment of the grant money depends on the company's success, as opposed to raising a loan from a bank or investor. The amount repaid depends on the actual royalties from the sales of the product. The amount repaid depends on the actual royalties from the sales of the product.
Preparation of an application and its submission
The period between the submission of the application and its examination and approval by the Research Committee of the Innovation Authority
Following the approval of the grant, ongoing R&D work and reporting its achievements.
This phase typically takes between four and six weeks. Its actual duration depends on the degree of maturity and cohesion of the company’s concept definition. The main issues addressed at this stage include: The main issues addressed at this stage include:
Preliminary meetings and analyses aimed at defining the most desirable development objective for the company, and determining its scope.
Initially, we collect information and data from the company's R&D and marketing departments, to optimize the specification of the desired development products.
An ongoing work that includes exchanging drafts with the client's development, marketing, and finance departments, and as needed – frontal and virtual meetings as well, combining the grant request chapters into a coherent grant request.
Proofreading, correction, and completion of missing material, as applicable, by all involved parties.
Final inspection and approval of the grant request, signature, and submission.
During this period, a Professional Examiner, appointed by the Innovation Authority, studies and analyzes the grant request, and the company is required to pass an examination carried out by him and by the head of the department at the Authority or representatives of the fund, as the case may be. The examination includes an analysis of the application and one (or more) frontal meetings with the professional examiner, in which the company is required to present the planned research and elucidate its various aspects, such as technological innovation, development products, market advantage, market size, and marketing approach.
The meeting with the professional examiner is extremely important since it affects his ability to represent effectively the company and its grant application vis-à-vis the Research Committee since it depends on his thorough understanding of the overall picture that involves the company, its technology, and its product. To this end, the company must prepare before the meeting with the professional examiner a detailed presentation and run several preliminary simulations of its display.
After the meeting, as requested, the Professional Examiner should receive complementary materials.
In addition to the examination performed by the Professional Examiner, a financial review is carried out by an accountant on behalf of the Innovation Authority. The purpose of the financial review is to verify the company's ability to finance its share of the R&D program's budget. The review is one of the conditions for receiving an Innovation Authority grant.
Companies that receive R&D grants are required to submit periodic reports detailing the expenses incurred and the progress made. In addition, accounting and technological summary reports are submitted at the end of each program year.
To allow flexibility in development management, the company may apply for approval of changes in the budget and project milestones, provided that such changes do not materially change the development objectives and the products to be developed. In joint ventures, such as ISERD or bi-national funds, the changes must be approved by all participants in the venture.
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