The Technological Incubators program
Technological incubators are support corporations that give fledgling entrepreneurs - veteran Israelis and new immigrants alike - an opportunity to develop their innovative technological ideas and set up new businesses in order to commercialize them.
The incubator program, created in 1991, is applied in all parts of the country under the guidance and with the support of the Office of the Chief Scientist (OCS) of the Ministry of Industry and Trade.
Since then, the project has blossomed into the 27 technological incubators operating in Israel today, containing more than 200 projects in electronics and communication, software, medical devices, new materials and biotechnology.
The OCS provides a variety of support programs that operate on an annual budget of about US $300 million. This is spent on about 1,000 projects undertaken by 500 companies. These programs have helped make Israel a major center of hi-tech entrepreneurship.
The main OCS' program (the R&D Fund) supports R&D projects of Israeli companies by offering conditional grants of up to 50% of the approved R&D expenditure. If the project is commercially successful, the company will be under an obligation to repay the grant by royalty payments.
The Heznek-Seed Fund through which the government matches an investor’s investment in the share capital of a seed company, later giving the investors an option to purchase the government shares. Grants are up to 50% of the approved work program.
The Tnufa Program is designed to encourage and support an individual entrepreneur in his initial efforts to build a prototype, register a patent, design a business plan, etc. Grants are up to 85% of the approved expenses for a maximum of $50,000 for each project.
Magneton and Noffar
The Magneton and Noffar programs are designed to support applied academic research in all areas and especially in biotechnology and nano-technology in order to promote the transfer of the technology to the industry. Grants are up to 66% and 90% of the approved expenses respectively.
The Magnet Program supports the formation of consortia comprised of individual firms and academic institutions to jointly develop generic, pre-competitive technologies by offering grants of up to 66% of the approved budget.
For more information on support for industrial R&D and starting entrepreneurs
Incubators Center for Technological Initiative
Office of the Chief Scientist (OCS)
5, Bank Israel St.
POBox 3166, Jerusalem 91036