Background

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The encouragement of industrial research and development (R & D) is a vital component for the growth of high-tech industries. In order to encourage the promotion of such activity, countries take upon themselves some of the producer's economic risks in form of providing capital at his disposal. In the State of Israel, the Innovation Authority (formerly the Chief Scientist) is responsible for this issue and encourages technological and industrial innovation through the implementation of the Law for the Encouragement of Research and Development in Industry, 1984 (R & D Law).

The R & D Law prescribes conditions for the granting of grants, loans, exemptions and easements to approved programs for the realization of job creation, the development of a high-tech industry, the improvement of the state's balance of payments by producing and exporting high-tech products, and the creation of excess returns for the economy. Excess yield to the economy is defined as a gap between the yield to the individual company and the return to the economy in the form of leakage of knowledge and increased consumer welfare.

The implementation of the industrial R & D support is done both through direct funding through the R & D Fund and through special programs, including a program for developing and expanding the technological infrastructure for industry through assistance to generic R & D (Magnet Program), promoting the transfer of knowledge from the academy to the industry (the Magneton and Nofar programs), fostering international cooperation in the field of industrial R & D (MATIMOP) and supporting entrepreneurs in their early stages, whether in technological incubators or as part of the Tnufa program.

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The "Tnufa" program for new ventures

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The Tnufa project of the Chief Scientist is designed to help start-up technological entrepreneurs. The submission to the project consists of the filling and submission of Tnufa forms and a filtration process with Tnufa's referent. The project has five different routes, the main one being Tnufa's program for start-up projects. This program is designed for inventors, entrepreneurs and start-ups at the beginning of their path. Tnufa's assistance is provided in order to prove the technological feasibility and / or commercial applicability of the idea and to protect the intellectual property of the entrepreneurs. The entrepreneurs can take advantage of the grant to build a prototype of the idea, conduct a market survey, prepare a business plan for the project, submit a patent application and initial marketing efforts. The scope of support for this route is up to 85% of the approved budget, and up to a grant ceiling of 200,000 NIS.