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.

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.

• 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.
• highlighting the various product’s generations.

• 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.

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.