Nonrefundable Grants For Firms In The Traditional Industry Field
Given By The Chief Scientist For Investments In Research and Development
This program is open until the 31/12/15
A grant will be given to companies in the traditional industry field whose sales turnover is less than $ 70 million, most of their production is in Israel, and the extent of their R&D expenses for the year pervious to filling the grant request is no more than 7% of the corporation’s total sales.
The amount of the grant - 50% of the R&D budget submitted (including personnel costs, overheads, subcontractors, marketing, patents, materials and equipment).
Traditional companies need innovation and unique technological advantages in order to face the increasing global competition. In order to avoid lack of progress and even regression in the fields of traditional industry, the Chief Scientist provides incentives specifically geared to the needs of this industry and are intended to implement technological innovation processes and create competitive advantages in both the domestic and international markets.
Since 2005 and up to the end of 2013, 1,500 new R&D programs were approved by the Chief Scientist’s traditional industry support tracks, and R&D grants for these projects totaled at 1.1 billion NIS.
Chief Scientist support of traditional industry in 2013:
- 80% success rate - 170 projects were submitted to the Chief Scientist, of which 136 projects were approved.
- Average grant – 600,000 NIS. Total of grants amounted to 80.8 million NIS.
What is a traditional industry company?
A company that manufactures products of one of the following: plastics, rubber, metal, glass, ceramic materials, building materials, textiles, wood, leather, paper, jewelry and food.
What do companies receive as part of the traditional industry support?
- Support for personnel costs, overheads, materials, subcontractors, equipment, patents and marketing.
- A budget for development templates, totaling no more than 500,000 NIS
- A budget for knowledge acquirement, totaling no more than 250,000 NIS
- A budget for the salaries of up to 3 employees at an employment rate of less than 10%.
- A budget for courses and seminars for the professional staff, totaling no more than 25,000 NIS
- A direct budget for the development of unique production machinery.
- A budget for commercialization and marketing of the program’s products abroad, totaling at no more than 10% of the program’s approved budget.
- Recognition of hourly cost of expensive machinery, which are necessary to use for the purpose of research.
Support track for companies first starting out in the traditional industry field:
What is considered a traditional industry company first starting out?
A company which meets all of the following conditions:
- Revenues in the year pervious to filling the grant request were smaller than $70 million.
- The scope of the company's R & D expenses in the year pervious to filling the grant request do not exceed 7% of the total sales of the company, other than a company with the yearly sales turnover of the year pervious to filling the grant request is less than 10 million NIS.
A company that produces most its products of the program in Israel will be entitled to the following additional benefits:
- A 50% support rate and additions to grants in national priority areas.
- It is possible to approve a plan for developing processes and products intended for the domestic market as well.
- Exemption from payment of royalties.
For filing a request for a grant, please contact:
Nili Shohet, Partner