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innovation israel

R&D Fund – Support of R&D and Encouragement of Technological Innovation

This is the main incentive program designed for industrial R&D support for the development of competitive products and innovative processes.

The R&D Fund, which offers the greatest financial incentives for R&D activities on behalf of the Israeli government, provides commercial companies in all areas with support for the development processes of new products or for the upgrade of existing technology. The support is offered to all businesses in Israel in all sectors, at all stages of R&D.

Goal of the incentive program:

The R&D Fund encourages technological innovation in a wide variety of fields such as: hardware, software, communications, complex systems, life sciences, medical devices, cyber, IOT, fintech, cleantech, and others.

Who is the incentive program for?

Israeli companies from all industrial sectors interested in enhancing manufacturing processes, or in developing or upgrading existing products, or those in advanced stages of development that require technological and engineering adaptations and alterations in a product developed by the submitting company, in accordance with standards and needs of the target countries’ markets.

What do you get?

  • A conditional grant of 20% to 50% of the approved R&D expenditures.
  • Companies operating in Area ‘A’ Development Regions are eligible for additional support of 10%.
  • Companies operating in the area around the Gaza Strip are eligible for an additional grant of 25%

Why should you apply for this incentive program?

Attractive financing model: The R&D Fund provides financial benefits of significant scale. It participates in the risks involved in the development process of the company. The companies that receive financing undertake to repay the received funding to the Authority via royalty payments from sales, but only if the project succeeds in reaching the commercialization stage.

Innovative High Risk R&D: The R&D Fund enables long-term R&D operation for the development of future products and innovative technologies that provide the company with a competitive advantage and the ability to penetrate new markets.

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

For further details: R&D Fund


Generic R&D Incentive Program for Large Companies

This incentive program allows large companies to focus on long-term creation of new knowledge and technological infrastructure, used for the development or production of future innovative products.

Goal of the incentive program:

To encourage and support long-term R&D of large companies, which invest in the development of infrastructural knowledge that can be implemented in a series of products over a long time frame. The R&D plans under the arrangement are exempt from royalties (full grants). R&D projects submitted to this incentive program should include a long-term R&D plan or collaboration with another Israeli company.

Who is the incentive program for?

  • Large Israeli companies that employ at least 200 employees in R&D or with a R&D budget in Israel of at least USD 20 million. In addition, the company’s average yearly sales (including subsidiaries) must exceed USD 70 million for 3 years; or its parent company’s total revenue (with a direct or indirect holding of at least 80%) exceeds USD 2.5 billion.
  • Pre-Competitive technology R&D programs. Highlighting the product’s various developmental generations.

What do you get?

  • A grant of 20%-50% of the approved R&D expenditures for long-term R&D plans or for an R&D project executed in cooperation with another Israeli company.
  • Companies operating in Area ‘A’ Development Regions will be eligible for additional support of 10%
  • A company receiving the support will not be obliged to pay royalties to the Authority.

Why should you apply for this incentive program?

Financial grant: The incentive program offers a grant used for the R&D process of a new product or the upgrade of an existing product.

Long-term R&D: The incentive program enables long-term R&D operations in order to develop innovative technologies that provide a competitive advantage for the company.

Attractive financing model: The incentive program offers substantial financial benefits as well as participation in risks involved in the development process but not in the future profits or successes.

For further details: Generic R&D Incentive Program for Large Companies