R&D and Innovation as a Growth Engine – The Israeli Model and the Role of the OCS

R&D and Innovation as a Growth Engine – The Israeli Model and the Role of the OCS

Ministry of Industry, Trade and LaborISRAELMinistry of Industry, Trade and LaborISRAEL

Some Facts About Our WorldSome Facts About Our World

Forecast for 2050: 9.4 billion people

900 million people are hungry

33 million people are infected with HIV

1.1 billion people do not have access to clean water

5.1 billion people do not have access to internet

2.75 billion are not using cell phones

Barrel of oil $40 → $147 →$70

Forecast for 2050: 9.4 billion people

900 million people are hungry

33 million people are infected with HIV

1.1 billion people do not have access to clean water

5.1 billion people do not have access to internet

2.75 billion are not using cell phones

Barrel of oil $40 → $147 →$70

And now what? And now what?

“Heavier-than-air flying machines are impossible" 

Lord Kelvin, 1895

Source: OECD and Israel CBS

Expenditure on Civilian R&D as a percent of theGDP in Israel and in OECD Countries 2008

4.5

3.6 3.43.22.7

2.52.32.2 2.12.0 2.01.91.81.61.6 1.6

1.4 1.4 1.41.11.01.0 0 .9 0.90.7

0

1

2

3

4

5

Isra

el

Sweden

Finla

nd

Japan

Switzer

land

Korea

Germ

any

Icel

andUSA

Denm

ark

France

Belgiu

m

Nether

lands

Austria UK

Norway

Canad

a

China

Austra

lia

Brazil

New Z

eala

nd

Italy

Russia

Spain

India

Greec

e

If you lie on the ground, you cannot fall…

3.2

Scientists & Technicians per 10,000 Workers

140

83 80

6055 55

45 43

33 33 3225

0

20

40

60

80

100

120

140

Israel US Japan Germany Canada Switzerland Taiwan UK Ireland Italy Singapore Spain

Patents (2008)

• Israel ranked #1 in Medical Device patents per capita

• Israel ranked #5 in number of patents per capita

Source: The United States Patent and Trademark Office (June 2008)

“If you want real growth ,you have to have new

technologies”Source: Business Week

Evaluating

Activities of the OCSActivities of the OCS

MagnetMagneton, Nofar

MagnetMagneton, Nofar

R&D FundR&D Fund

TnufaTnufa

TechnologicalIncubators

TechnologicalIncubators

R&D Centers in UniversitiesR&D Centers

in Universities

Support of Research Institutes

Support of Research Institutes

Support ofTraditional Industry

Support ofTraditional Industry Seed FundSeed Fund Bi-National

AgreementsBi-NationalAgreements

EU R&D ProgramFP-7

EU R&D ProgramFP-7

Global Enterprise R&DCooperation FrameworkGlobal Enterprise R&D

Cooperation Framework

US-Israel Science& Technology Commission

US-Israel Science& Technology Commission

Bi-National FundsBi-National Funds

EurekaEureka

MatimopMatimop

Chief Scientist

Dr. Eli Opper

Chief Scientist

Dr. Eli Opper

Activities in Israel

International Activities

Generic R&D

Magnet

Magneton

Competitive R&D

IndustrialR&D

Nati

on

al

Pre-Seed

Tnufa

Nofar

TechnologicalIncubators

Cooperative R&D

Infrastructure for R&D

Seed Fund

Applied Academic Research Basic R&D Market Proximity

EUREKA!

Bi-national Funds

ISERD(Europe FP)

Inte

rnati

on

al

OCS Instruments Along The Value Chain

Global Enterprises R&D Cooperation

Bi-national Agreements

Galileo

Support of Research Institutes

Support ofTraditional Industry

International Activities

Academia

Industry

Preferred

Sectors

BUDGETBUDGET

Quality of

Service to the

Customer

Strategy:

Encouraging Innovation While Embracing Tradition

source: The Economist

Encouraging Innovation While Embracing Tradition

source: The Economist

2008 Budget – NIS 1,650 M, ~2000 requests per year

Supports competitive R&D of mature companies (SME’s as well as big companies)

Target: establish and develop substantial industrial R&D infrastructure

Grants between 30-50% of R&D plan, royalties payments - obligatory upon success

Acquisition and transfer of knowledge due to special approvals

Budgetary platform for all bilateral parallel agreements

2008 Budget – NIS 1,650 M, ~2000 requests per year

Supports competitive R&D of mature companies (SME’s as well as big companies)

Target: establish and develop substantial industrial R&D infrastructure

Grants between 30-50% of R&D plan, royalties payments - obligatory upon success

Acquisition and transfer of knowledge due to special approvals

Budgetary platform for all bilateral parallel agreements

R&D Fund Competitive R&D

R&D Fund Competitive R&D

Technological Incubators Pre-Seed & Seed R&D

Technological Incubators Pre-Seed & Seed R&D

2008 Budget – NIS 175 M A framework for nascent companies to

develop their innovative technological ideas into start-ups that can attract private investors

Suitable facilities for R&D activity & administrative and logistic support to projects

2008 Budget – NIS 175 M A framework for nascent companies to

develop their innovative technological ideas into start-ups that can attract private investors

Suitable facilities for R&D activity & administrative and logistic support to projects 24 Incubators

2 Industrial Incubators1 Biotechnology incubator

8-10 projects in eachGrants- up to 85%

Magnet Generic R&D

Magnet Generic R&D

2008 Budget – NIS 190 MSupports consortia of industrial

companies and academic institutions.Target: jointly develop generic, pre

competitive technologies or dissemination existing new technologies.

The technology cannot be acquired from commercial sources at competitive prices

Grants of up to 66% - no royalty repayments

Magneton, Nofar, Nataf, Katamon

2008 Budget – NIS 190 MSupports consortia of industrial

companies and academic institutions.Target: jointly develop generic, pre

competitive technologies or dissemination existing new technologies.

The technology cannot be acquired from commercial sources at competitive prices

Grants of up to 66% - no royalty repayments

Magneton, Nofar, Nataf, Katamon

Preferred Sector: Traditional Industry

• 2006 – 2008: M 180 NIS in 200 2006 – 2008: M 180 NIS in 200 projects projects • Strategic consultationStrategic consultation• Guidance and evaluation Guidance and evaluation services services

Preferred Sector: NanotechnologyPreferred Sector: Nanotechnology

6 R&D Centers $278M/5 Years NOFAR Program Infrastructure

6 R&D Centers $278M/5 Years NOFAR Program Infrastructure

Small Enterprises – 520 Projects in R&D Fund

Incubators – 100 projectsMAGNET - 13 ConsortiaMagneton – 24 ProjectsNofar – 14 ProjectsKatamon – 3 ProjectsNataf – 9 Projects

Small Enterprises – 520 Projects in R&D Fund

Incubators – 100 projectsMAGNET - 13 ConsortiaMagneton – 24 ProjectsNofar – 14 ProjectsKatamon – 3 ProjectsNataf – 9 Projects

AcademiaAcademia

IndustryIndustry

6 Nanotechnology R&D Centers6 Nanotechnology R&D Centers 4 R&D Institutions4 R&D Institutions 1 Biotechnology R&D Institution 1 Biotechnology R&D Institution 2 R&D Centers: Water, Energy2 R&D Centers: Water, Energy

6 Nanotechnology R&D Centers6 Nanotechnology R&D Centers 4 R&D Institutions4 R&D Institutions 1 Biotechnology R&D Institution 1 Biotechnology R&D Institution 2 R&D Centers: Water, Energy2 R&D Centers: Water, Energy

Academia

Industry

Global Network for Transfer of Knowledge

International Cooperation

International Cooperation

Foundations:

BIRDF-with U.S.A.

USISTC/F

SIIRD-with Singapore

CIIRDF - with Canada

KORIL-RDF - With S. Korea

BRITECH–with the UK

International Cooperation

Maryland, Victoria, Ontario

France

Belgium

China

Finland

Germany Holland

ItalyIndiaTaiwan

Hungary

Sweden

Portugal

TurkeyBrazi

lArgentina

Greece Denmark

Bi-National Support Agreements:

Uruguay

Future Cooperation in R&D Israel and Russia

• Bi-National Fund

• Bi-National Support Agreement:

• Agency (such as MATIMOP) to Agency (such as RUSNANO) or

• Government to Government

• Within Multilateral platforms such as

Eureka

OptionsOptions::

Total Figures for 2006-2008:

International CooperationInternational Cooperation

source: OCS Data

$210M in 520 R&D Projects $210M in 520 R&D Projects

Where Technology Meets Where Technology Meets CreativityCreativity

Where Technology Meets Where Technology Meets CreativityCreativity

OCS Grants by Technological Sectors 2008

OCS Grants by Technological Sectors 2008

Other, 3% Electronics, 13%

Life Sciences,

25%

Communications

, 38%

Chemicals, 3%

Software, 11%

Electro-Optics, 4%

OCS 2009 Some Figures

No. Of No. Of ApplicationsApplications:

~2000 Projects

Requested Requested Budget:Budget:

~6.7 Billion NIS

Total Grants:Total Grants: ~1.75 Billion NIS

200456789101112131415

GOING TO THE FUTURE

16171819

Other: 5%

Communications:

33%Software:

8%

Chemicals: 4%

Electro-Optics: 7%

Electronics: 15%Life Sciences:

28%

OCS Grants by Technological Sectors - Forecast

OCS Grants by Technological Sectors - Forecast

Bio ?Nano?

High-end Industry?

Converging Technologies?

Energy/Water/Environment?

There is always room also for the small ones

Excellence is a Excellence is a Key Success Key Success

FactorFactor

Excellence is a Excellence is a Key Success Key Success

FactorFactor